This request represents an important first step following the execution of a Concentration Control Agreement (ACC), on October 16, between the Administrative Council for Economic Defense (CADE) and the Oben Group as a condition for approving Oben’s acquisition of Terphane.

Based on a study conducted by CADE’s Department of Economic Studies (DEE-CADE) and responses to requests for information from companies operating in the sector, Reporting Commissioner Victor Fernandes concluded that the maintenance of anti-dumping measures on imports of PET film would constitute a significant barrier to imports into Brazil.

According to the Commissioner, those measures would hinder the entry of new competitors, increase the cost to importers of BOPET sourced from the producing regions and reduce the competitiveness of imports in the domestic market.

In light of these considerations, the parties negotiated the ACC that foresee the following undertakings regarding anti-dumping measures[2]:

1. To request the immediate termination of anti-dumping duties on imports of BOPET from Peru, Bahrain, the United Arab Emirates and Mexico;
2. To not request the reinstatement of suspended anti-dumping duties on imports of BOPET from China, or the renewal of anti-dumping duties on imports from China, India, and Egypt;
3. To not request the initiation of new investigations for the imposition of anti-dumping duties on imports of BOPET from India, Egypt, Peru, Bahrain, the United Arab Emirates, China and Mexico, for a period of five years.

The ACC also stipulated that the merged company may not require exclusivity from distributors operating in Brazil, or make use mechanisms that could lead to tariff or non-tariff alterations that would increase the cost of imports of BOPET. Existing countervailing measures were not addressed or limited by the ACC.

As highlighted in the decision, this outcome reflects an important institutional dialogue between CADE and the Trade Defense Department of the Secretariat for Foreign Trade (DECOM/SECEX/MDIC) which aims at promoting effective competition in the Brazilian BOPET film market and address the competition concerns identified.

[1]  https://www.in.gov.br/web/dou/-/circular-n-64-de-18-de-novembro-de-2024-596563079

[2]https://sei.cade.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?HJ7F4wnIPj2Y8B7Bj80h1lskjh7ohC8yMfhLoDBLddZsvmjZILDQspDmgL9xEemz0O_q0-emljCBhE2YV9cwoZvaRGYPRD-sjXLwiCairnp1PQ7lSbsrIvxE1xVhRikr

O conteúdo PET Film producer requests termination of anti-dumping duty sunset review following agreement approved by CADE aparece primeiro em Grinberg Cordovil Advogados.

In the first panel, DECEX explained how works the coordination between the Federal Revenue and the Foreign Trade Intelligence Group – GI-CEX, and the non-automatic licensing regime. GI-CEX produces reports and receives charts. However, the measures from each sphere are independent, respecting their autonomy and competence. The licensing regime can be an effective measure in combating fraud since licensing occurs before customs clearance, and the importer must wait for the importation goods release.

Another front is the action against false declaration of origin, which is conducted based on an investigation opened after a complaint from the domestic industry, importers, or ex-officio (in this case, the Government verifies data that only it has access to). In these cases, Secex may also communicate with authorities from other countries.

The Federal Revenue, in turn, highlighted customs risk management and enforcement and control actions within the scope of clearance. The main customs frauds are fraudulent intermediation and imports under-invoicing. Today, there is a difficulty in identifying frauds, as they are more complex and overlapping. However, it was noted that the RFB has automated systems that verify data and detect potential irregularities, which help in the investigation of illegal activities.

Despite technological advances and systems integration, the authorities highlighted the important role of companies from each sector in identifying fraud and other illicit activities. Given their expertise and close monitoring, businesses and sectoral entities are able to detect possible frauds more quickly and accurately. For this reason, they reinforced the promotion of complaint channels and dialogue with the authorities, if necessary.

O conteúdo Comex: Secex and Federal Revenue of Brazil announce joint efforts aparece primeiro em Grinberg Cordovil Advogados.

The new ordinance revokes art. 5 of SECEX Ordinance No. 13/2020, which determined the obligation to carry out a public interest assessment in original investigation, and to extend and update for this type of trade defense process the one already established for end-of-period reviews.

Thus, as of 03/15/2023, the opening of the public interest assessment related to antidumping and countervailing duties will depend on an analysis to be carried out by the Department of Trade Remedies (Decom/Mdic), based on questionnaires submitted by interested parties in period accounted from the initiation of the investigation (same period applicable for the

submission of the importer’s questionnaires). Decom’s decision on opening the procedure must then be disclosed at the time when its preliminary conclusions on the trade remedy investigation will be published.

The rule still does not admit the opening of public interest assessment based exclusively on a request presented by a foreign producer or exporter, or any of its related parties.

In the context of the Brazilian trade remedy system, the trend is that the removal of the obligation to make public interest assessment based on original investigations will reduce the occurrence of this type of procedure, and reduce the workload of the trade remedy authority, especially with complete processes to be despite the inexistence of interested parties contrary to the trade remedy measure, or in which the elements of public interest do not have solid grounds. It is worth remembering that this rule applies to public interest assessment that may occur concurrently with dumping and subsidies investigations, and that requests for independent public interest assessment are only accepted in extraordinary cases.

O conteúdo Public interest assessment procedure is no more mandatory aparece primeiro em Grinberg Cordovil Advogados.