Date: 26/06/23

SECEX Ordinance No. 24/2023 was published

Marina Takitani and Leonardo de Paula

On June 22, SECEX Ordinance No. 24/2023 was published, which initiated an investigation into the existence of actionable subsidies in exports to Brazil of optical fiber cables with external coating of dielectric material, originating in the People’s Republic of China and classified under subitem 8544.70.10 of the Mercosur Common Nomenclature (“NCM”).

In October 2022, the companies Cablena do Brasil Ltda., Furukawa Eletric Latam S.A. and Prysmian Cabos e Sistemas do Brasil S.A. requested the initiation of an investigation that was recommended by the Department of Trade Defense (“DECOM”) due to the existence of sufficient evidence that China grants actionable subsidies to its producers/exporters of optical fiber cables, and the occurrence of damage to the domestic industry arising from such practice. The main information of the case is summarized in the table below:

Petitioner Cablena do Brasil Ltda., Furukawa Eletric Latam S.A. and Prysmian Cabos e Sistemas do Brasil S.A.
 

Origin

 

People’s Republic of China

 

Investigated period 

 

– Existence of subsidies subject to countervailing measures: July 2021 to June 2022

– Analysis of damage: July 2017 to June 2022
 

Product at issue 

 

– Tariff classification: usually classified in subitem 8544.70.10 of NCM.

 Product: optical fiber cables with external coating of dielectric material.

– Physical characteristics: Optical fiber cables are composed mainly of optical fibers, polymeric materials (polyethylene, polypropylene, PVC, materials with flame retardant characteristics), aramid or glass fiber tensile elements, glass fiber rods impregnated with an epoxy-type resin, polyester filaments, filling compounds (jelly), metallic elements (steel wires or tapes) and engineering plastics (PBT).

– Uses and applications: Fiber optic cables are used in indoor and/or outdoor telecommunications networks and can be installed in a self-supported aerial manner, in which the cables are anchored to poles or towers, supporting their own weight; spined aerial, in which the cables are supported on metallic or dielectric ropes for outdoor and/or indoor environments in telecommunications networks; or underground, in ducts or directly buried, with capacities ranging from 1 to 288 optical fibers.

The participation of interested parties in the process must necessarily occur through interlocking petitions in the Electronic Information System of the Ministry of Development, Industry, Commerce, and Services – SEI/MDIC, in SEI Processes No. 19972.101905/2022-51 (restricted) and No. 19972.101904/2022-14 (confidential). Questionnaires will be sent to the identified interested parties, who will have thirty days to return them, as of the date of acknowledgement. Others that consider themselves as interested parties and have not been identified as such may request their qualification until July 13, 2023.

Article 6 of SECEX Ordinance No. 13/2020 states that a public interest assessment will be optional, initiated upon request submitted based on a duly completed Questionnaire of Public Interest or ex officio at the discretion of DECOM.

Professionals

Marina Takitani 

Associate

See

Leonardo de Paula

Associate

See

Áreas de Atuação

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