CIRCUMVENTION

The application of anti-dumping/countervailing duties may be ineffective in counteracting the effects of unfair trade. Some exporters may engage in practices in order to avoid the application of the due duty. Different forms of elision undermine the effectiveness of the anti-dumping/countervailing measure, for example, by reallocating a small part of its production process to third countries or even to the importing country itself. In general, this practice has been conceptualized in the international literature as circumvention and, although there is no international rule on the subject, notably due to the conflict of interest among WTO Members, it has been included in the national regulation of several countries. In general, the provisions allow the extension of the measures without the need for a further investigation, thus making the process faster and more dynamic. In Brazil, circumvention was initially introduced by CAMEX Resolution No. 63/2010, which dealt with slightly modified product, elusive upstream circumvention practices (introduction into the national territory of parts, pieces or components whose industrialization results in the product subject to trade remedy) and introduction into the national territory of a product resulting from industrialization carried out in third countries, with parts, pieces or components originating or coming from the country subject to the trade remedy measure). AS Consultoria is one of the few firms in Brazil with experience in anti-circumvention investigations, having represented the Brazilian footwear industry in a case involving Vietnam, Indonesia and Malaysia.
The application of anti-dumping/countervailing duties may be ineffective in counteracting the effects of unfair trade. Some exporters may engage in practices in order to avoid the application of the due duty. Different forms of elision undermine the effectiveness of the anti-dumping/countervailing measure, for example, by reallocating a small part of its production process to third countries or even to the importing country itself. In general, this practice has been conceptualized in the international literature as circumvention and, although there is no international rule on the subject, notably due to the conflict of interest among WTO Members, it has been included in the national regulation of several countries. In general, the provisions allow the extension of the measures without the need for a further investigation, thus making the process faster and more dynamic. In Brazil, circumvention was initially introduced by CAMEX Resolution No. 63/2010, which dealt with slightly modified product, elusive upstream circumvention practices (introduction into the national territory of parts, pieces or components whose industrialization results in the product subject to trade remedy) and introduction into the national territory of a product resulting from industrialization carried out in third countries, with parts, pieces or components originating or coming from the country subject to the trade remedy measure). AS Consultoria is one of the few firms in Brazil with experience in anti-circumvention investigations, having represented the Brazilian footwear industry in a case involving Vietnam, Indonesia and Malaysia.

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