Dominican Republic
Sweet
and savoury biscuits of all kinds, industrially or mass produced,
and made primarily from wheat
The
following communication, dated 19 September 2025 and received on 25 September
2025, is being circulated at the request of the delegation of the Dominican
Republic.
_______________
Pursuant
to Article 12.1(a) of the WTO Agreement on Safeguards, the Dominican Republic
hereby notifies the initiation of the following safeguard investigation in
accordance with the Agreement on Safeguards and Law No. 1-02 on Unfair Trade
Practices and Safeguard Measures and its Implementing Regulations.[1]
1._
Date when the investigation was initiated
The
Regulatory Commission for Unfair Trade Practices and Safeguard Measures decided
to initiate the investigation through Resolution No.
CDC-RD-SG-002-2025 of 19 September 2025, which was published in the
national newspaper El Caribe on the same date.
Information
concerning the ongoing investigation, including the aforementioned initiating Resolution,
can be found on the website of the Regulatory Commission for Unfair Trade
Practices and Safeguard Measures (cdc.gob.do) in the section on safeguard investigations.
2._
Product involved
Sweet
and savoury biscuits of all kinds, industrially or mass produced, made
primarily from wheat and its derivatives (wheat, wheat flour, with or without
gluten) and containing ingredients that are rich in fibre or fibre-based, excluding
artisanal biscuits, biscuits for babies, biscuits made from cereals other than
wheat and its derivatives, and energy or nutrition bars, the main ingredient of
which is not roasted wheat flour or fibre, classified under tariff subheadings
1905.31.90, 1905.32.00, 1905.90.10 and 1905.90.90 of the Seventh Amendment to
the Customs Tariff of the Dominican Republic.
3._
Reasons for the initiation of the investigation
The investigation was initiated at the request of the domestic
industry (DI). Between 2022 and 2024, according to information provided by the
DI, imports of the product under investigation rose by 78.9%, and their
market share increased from 49% to 63%. This trend displaced domestic production,
the growth of which fell from 9.3% (2022-2023) to a near stagnant level of 0.6%
(2023-2024), and which contracted by 4% in 2025. An aggressive pricing strategy
was applied for the imports under investigation.
As
a result of the increase in imports at low prices, the DI performed poorly in
terms of the following economic indicators: inventories, EBIT[2], net profit, sales
margins, ROI[3] and cash flow.
A
number of events and circumstances led to a sudden and substantial increase in
imports of the product under investigation, including the conflict between
Russia and Ukraine, which affected the global market for wheat, the main
ingredient of the biscuits, with both countries reducing export prices owing to
logistical constraints, port closures, and the need to seek alternative
markets.
4._
Point of contact and correspondence for the purposes of the
investigation
Comisión Reguladora de Prácticas Desleales en
el Comercio y sobre Medidas de Salvaguardias (CDC)
Calle Manuel de Jesús Troncoso, núm. 18,
Ensanche Paraíso
Santo
Domingo, Distrito Nacional, Dominican Republic
Tel.:
809-476-0111, Ext. 248
Email:
info@cdc.gob.do
Website:
cdc.gob.do
5._
Deadlines and procedures for parties to present evidence and views
Pursuant
to Article 65 of Law No. 1-02 and Article 43 of the Implementing Regulations
for Law No. 1-02, interested parties shall have a period of 30 working days to
complete and submit to the CDC the forms established for this purpose, as well
as the evidence and arguments they consider relevant. This period ends on
Monday, 3 November 2025, at 3 p.m.
In
the case of foreign exporters and producers, pursuant to Article 40(I) of the
Implementing Regulations for Law No. 1-02, the notification shall be deemed to
have been received one week from the date on which it was sent. The period for
interested parties abroad shall therefore end on 10 November 2025, at 3 p.m.
Pursuant
to Article 34(II) of the Implementing Regulations for Law No. 1-02, any other
interested party that has not been notified directly by the CDC, shall have a
period of 15 working days from the publication of the Resolution to indicate in
writing its interest in participating in the investigation procedure; this
period ends on 13 October 2025 at 3 p.m.
Pursuant
to Articles 228 and 229 of the Implementing Regulations for Law No. 1-02,
interested parties may file an appeal for reconsideration with the CDC against
Resolution No. CDC-RD-SG-002-2025, within 30 working days from the date of
notification or publication of the aforementioned Resolution.
Neither
a date nor a place has yet been decided for the public hearing. This
information shall be made known to the interested parties through
communications and the website of the Regulatory Commission for Unfair Trade
Practices and Safeguard Measures.
__________
[1] The Dominican Republic has submitted a number of documents relating
to the investigation. To consult these documents, please contact Ms Anne
Richards (anne.richards@wto.org).
[2] Earnings before Interest and Taxes.
[3] Return on Investment.