Brazilian International Trade Alert - June 17, 2014

Keywords: antidumping investigations, imports, China, South Korea, Pakistan, Malaysia

The Brazilian Official Gazette has published several Circulars announcing the findings of a number of antidumping investigations.

On June 16, 2014, SECEX (Brazil's Secretariat of Foreign Trade) Circular No. 30, as of June 13, 2014, determined that the initiation of dumping investigation on the imports from China and South Korea of ferrite magnets in segment format (arc), classified under MERCOSUR's Common Nomenclature Code 8505.19.10 was justified.

Because China is not considered a market economy country, the normal value will be based on data from South Korea.

The period considered for the verification of dumping practices was January 2013 through December 2013, while the period considered for verification of injury was January 2009 through December 2013.

DECOM (the Ministry of Development, Industry and Foreign Commerce of Brazil) will send questionnaires to selected manufacturers, importers and exporters, which must be answered in up to 30 days. Any additional party that wishes to receive the questionnaire must request qualification within 20 days from June 16. Qualified parties may then submit written evidence and request hearings.

The dumping investigation was originally requested on April 25, 2014, by Ugimag do Brasil Indústria e Comércio de Produtos Magnéticos Ltda. The identified interested parties were the petitioner, the only other Brazilian manufacturer, several Brazilian importers, and a number of producers/exporters from the investigated countries and their governments.

The dumping margins on the imports from the investigated countries are set forth in the following table:

The analysis concluded that there is evidence of dumping on these imports over the investigated period of time, which justifies the initiation of an investigation.

Additionally, SECEX Circular No. 31determined, as of June 13, 2014, that the initiation of dumping investigation on the imports from China and Pakistan of cuticle nippers, classified under MERCOSUR's Common Nomenclature Code 8214.20.00 was justified.

Again, because China is not considered a market economy country, the normal value will be based on data from Pakistan.

The period considered for the verification of dumping practices was January 2013 through December 2013, while the period considered for verification of injury was January 2009 through December 2013.

DECOM will send questionnaires to selected manufacturers, importers and exporters, which must be answered in up to 30 days. Any additional party that wishes to receive the questionnaire must request qualification within 20 days from June 16 and identify its representatives. Qualified parties may then submit written evidence and request hearings.

The dumping investigation was requested on April 30, 2014, by Mundial S.A. - Produtos de Consumo. Interested parties were identified as the petitioner, Brazilian importers and producers/exporters from the investigated countries...