WORLD TRADE
ORGANIZATIONG/SCM/N/1/CZE/2
4 October 2002
(02-5344)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 32.6 OF THE AGREEMENT
CZECH REPUBLIC
The following communication, dated 30 September 2002, has been received from the
Permanent Mission of Czech Republic.
_______________
Pursuant to the notification requirements under Article 32.6 of the Agreement on Subsidies
and Countervailing Measures, I have the honour to submit the full text of Law 63/2000 Coll., on
Protection Against Subsidized Imports and Amendm ent of Act No. 2/1969 Coll., on the Establishment
of Ministries and Other Central Authorities of the State Administration of the Czech Republic, as
amended, and of Act No. 13/1993 Coll., the Customs Act, as amended.G/SCM/N/1/CZE/2
Page 2
ACT
No. 63/2000, Coll., of 24 February 2000
on Protection against Subsidized Imports and Amendment of Act No. 2/1969 Coll.,
on the Establishment of Ministries and Other Central Authorities of the State
Administration of the Czech Republic, as amended, and of Act No. 13/1993
Coll., the Customs Act, as amended
The Parliament has adopted the following Act of the Czech Republic:
PART ONE
PROTECTION AGAINST SUBSIDIZED IMPORTS
CHAPTER I
GENERAL PROVISIONS
§ 1
Subject
This Act regulates protection by means of countervailing duties of the domestic industry
against imported products on the manufacture or export of which a prohibited or an actionable subsidy
has been granted abroad.  For these purposes, the Act lays down principles governing the subsidyexamination, determination of injury caused to the domestic industry, procedures for examination of
complaints about import of the subsidized product and proceedings regarding countervailing duties.
§ 2
Definition of Terms
For the purposes of this Act:
(a) "a subsidy from public sources" shall mean a financial contribution granted or any other direct
or indirect financial support or subsidy from these sources and tax or any other dutyexemption,  which confers a benefit to the recipient; the exemption of exported products from
export duties or taxes which are levied on like product when destined for domestic
consumption shall not be considered as a subsidy;
(b) “a specific subsidy” shall mean a subsidy which is not flat in application and is not granted
automatically, that is to be understood a subsidy which is granted to certain industry or
activity or territorial area or certain enterprises and  the access to which is limited by
legislative provisions or decision of a state authority;
(c) “a non-specific subsidy” shall mean a subsidy which is flat in application and is granted
automatically in accordance with conditions laid down in legislative provisions and in respect
of equality for all;G/SCM/N/1/CZE/2
Page 3
(d) "an actionable subsidy" shall mean a subsidy the use of which causes injury determinated
pursuant to § 4 and that is not a non-actionable or a prohibited subsidy, including a subsidy
maintained on agricultural product which is in compliance with commitments relating to
export and other subsidies;
(e) "a prohibited subsidy" shall mean a subsidy which is contingent upon export performance or
the use of domestic over imported goods; with respect to agricultural products a prohibited
subsidy shall mean a subsidy on an agricultural product which exceeded limitations on export
subsidizations as laid down by the WTO Agreement on Agriculture and export subsidy
commitments undertaken by a WTO Member as specified in its Schedule of commitments;
(f) "a non-actionable subsidy" shall mean a non-specific subsidy, a specific subsidy with respect
of which no injury has been found pursuant to § 4, a subsidy maintained on an agricultural
product in accordance with the terms set out in Annex 2 to the Act, and a subsidy which has
been granted by a subsidizing country:
1. to assist research activities conducted on a contract basis if the assistance covers not
more than 75 per cent of the costs of industrial research or 50 per cent of the costs of
pre-competitive development activity, and provided that such assistance is limited
exclusively to personnel costs of researchers, technicians and other supporting staff;
costs of instruments, equipment, land and buildings; costs of consultancy and
equivalent services; additional overhead costs; other running costs and materials andsupplies;
2. to assist disadvantaged regions within the territory of the subsidizing country
provided that  within a three-year period the income per capita, or household income
per capita, or GDP per capita in such regions is less than 85 per cent of the averagefor the subsidizing country; or the unemployment rate in such regions is at least
110 per cent of the average for the subsidizing country;
3. as a one-time, non-recurring measure designated to promote reconstruction and
adaptation of existing production facilities called by new environmental requirements
imposed by legislative provisions, provided that the assistance is limited to 20 per
cent of the cost of  adaptation, and  is available to all producers of the productconcerned who are interested in reducing the negative effect of its production on the
environment;
(g) "a subsidized product" shall mean the product on the manufacture or export which an
actionable or a prohibited subsidy has been granted abroad;
(h) "the same or the like product" shall mean the product which is manufactured domestically and
is identical or comparable in all respects to the imported product under consideration, or
which has similar parameters, composition and features as the imported product and may be
interchangeable with the imported product;
(i) "an exporter" shall mean a physical or juridical person who exports products in question from
the country of origin or export to territory of the Czech Republic;
(j) "a domestic industry" shall mean domestic producers as a whole of the same or the like
product in the Czech Republic; if these producers are related to the exporters, or are
themselves importers of the subsidized product, the term "industry" shall be interpreted as
referring to the rest of the producers.  Subjects shall be deemed to be related when one ofG/SCM/N/1/CZE/2
Page 4
them directly or indirectly controls the other or both of them are directly or indirectly
controlled by a third person, or together they directly or indirectly control the third person;
(k) "an export price" shall mean the price1 for which the product is being sold to the Czech
Republic;
(l) "an injury" shall be taken to mean a material injury to the domestic industry  or a material
retardation of the establishment of the production of the same or the like product in the Czech
Republic caused by the import of the subsidized product;
(m) "threat of the injury" shall mean a situation in which there is an imminent danger of injury
caused by further imports of the subsidized products;
(n) "an agricultural product" shall mean the product specified in Annex 1 to the Act;(o) "a country" shall mean a state or an integration grouping of states if the latter grants a subsidy
in a particular case.
§ 3
Notification requirement and Subsidy Registration
The Ministry of Finance (hereinafter referred to as "the Ministry") shall register the subsidies
granted by foreign governments whereof the Czech Republic has been informed pursuant to
international treaties.  The Ministry provides such information to other ministries and administration
authorities according to their competencies for  the purpose of execution of the state administration.
§ 4
Determination of Injury
(1) The injury or threat thereof which is caused by import of subsidized goods shall be a
precondition for the imposition of a countervailing duty (§ 19).  When determining the injury or threat
thereof, the following factors shall be examined in particular:
(a) the volume and increase of import of the subsidized product to the Czech Republic,
either in absolute terms or relative to production or consumption of the same or thelike product and the consequent change in the consumption patterns;
(b) the amount of the subsidy per unit of the subsidized product, the export price of the
imported product, the inventory of the imported product and the price of the same or
the like product;
(c) the inventory of the unsold domestic or the like product;(d) the consequent impact of  imports of the subsidized product on the price of the same
or the like product in the Czech Republic which is evaluated in conjunction with otherfactors affecting prices on the domestic market, their impact on the productivity and
return on investments, real or potential decline in output, demand and sales of the
                                                     
1 Act No. 526/1990 Coll., on Prices, as Subsequently Amended.G/SCM/N/1/CZE/2
Page 5
same or the like product, decline in utilization of production capacities, employment
and profit in the domestic industry;
(e) the real or potential negative impact on cash flow, inventories, wages and ability to
raise capital for investments; the real or potential negative effects on increase inforeign direct investments to the domestic industry; and in the case of agriculture
products, also whether there has been an increased burden on government support
programmes;
(f) limitation of trade and competition between foreign and domestic producers and
reduction of domestic enterprises ability to export their production;
(g) retardation of development of technology in the domestic industry;
(h) sufficient freely disposable, or an imminent, substantial increase in capacity of the
exporter indicating the likelihood of substantially increased subsidized exports to the
market of the Czech Republic, taking into account the availability of other markets toabsorb additional imports;
(i) the relation of producers of the subsidized imported product with domestic producers
of the same or the like product.
(2) In making a determination regarding injury or threat thereof consideration shall also
be given to other factors injuring the domestic industry whose impact, however, must not be attributed
to the subsidized imports.  Relevant factors in this respect include, in particular,  the volume and prices
of non-subsidize imports of the product, contraction in demand or change in the patterns of
consumption and the competition between foreign and domestic producers, developments intechnology, export performance and productivity of the domestic industry.
(3) A determination of injury or threat thereof shall be based on positive evidence.
§ 5
There shall be no injury or threat thereof, provided that:
(a) the product is not subsidized pursuant to this Act or the subsidy is less than 1 per cent
of the export price or less than 1 per cent of the customs value if the export price is
not known;
(b) the import of the subsidized product is negligible, i.e. the import is found to account
for less than 2 per cent of  the market share in the relevant market of  the Czech
Republic.
§ 6
Principles Governing Subsidy Examination
For the purpose to calculate the benefit to the recipient of subsidy, the following principles
shall be applied:G/SCM/N/1/CZE/2
Page 6
(a) government provision of equity capital to  the trading company shall not be considered
as conferring a benefit if it occurred under the usual commercial terms and conditions
in the territory of the subsidizing country;
(b) a loan by a government shall not be considered as conferring a benefit, unless there is
a difference between the amount that the person receiving  the loan pays on the
government loan and the amount the person would pay on a comparable commercial
loan which the person could actually obtain on the market.  In this case the benefit
shall be the difference between these two amounts;
(c) a loan guarantee by a government shall not be considered as conferring a benefit,
unless there is a difference between the amount that the person receiving theguarantee pays on a loan guaranteed by the government and the amount that the
person would pay on a comparable commercial loan absent the government
guarantee.  In this case the benefit sha ll be the difference between these two amounts;
(d) the provision of goods or services or purchase of goods by a government of the
subsidizing country shall not be considered as conferring a benefit provided that the
usual price has been agreed for which goods or services are being sold on the market
of the subsidizing country .
CHAPTER II
EXAMINATION OF THE COMPLAINT ABOUT IMPORT
OF THE SUBSIDIZED PRODUCT
§ 7
(1) Any natural person with permanent or long-term residence
2 on the territory of the
Czech Republic or any legal person with the place of business on the territory of the Czech Republic
(hereinafter referred to as the "complainant") may submit to the Ministry a written complaint for the
examination whether import of the subsidized product has occurred.
(2) The complaint shall contain the following information that is reasonably available to
the complainant:
(a) identity of the complainant;  business name or title, place of business, legal form and
identification number in the case of a legal person; name, surname, date of birth orbirth certificate number, permanent or long-term residence in the case of a natural
person; also business name and identification number in the case when a natural
person is carrying out business activity;
(b) identity of producer of the allegedly subsidized product;  list of all known exporters
and importers of this product and the names of the country or countries of export or
origin;
(c) list of all producers in the Czech Republic known to the complainant who produce the
same or the like product, including description of the volume and value of theirproduction and, appropriately, a  document on support for the complaint expressed by
                                                     
2 Act No. 326/1999 Coll., on Residence of Aliens in the Territory of the Czech Republic and
Amendment to Some Acts.G/SCM/N/1/CZE/2
Page 7
producers of the same or the like product  in the Czech Republic;  in cases where the
number of producers is large the degree of support may be based on statistically valid
selection;
(d) description of the allegedly subsidized product, including specification of the item in
the Customs Tariff3;
(e) information as is available to the complainant on the existence, amount of the
subsidy, export price of the allegedly subsidized product and the price of the same or
the like product on the market of the country of export or origin;
(f) evidence of the existence injury or threat  thereof caused by import of the allegedly
subsidized product  including a financial statement of its volume;
(g) volume of import of the allegedly subsidized products or estimated volume of import;(h) evidence of the existence of a causal link between imports of the allegedly subsidized
products and the alleged injury or threat ensuing thereof;
(i) any other reason justifying the complaint.
(3) The general provisions of the Administrative Code shall not apply to the procedures
set in this Chapter.
4
(4) In submitting a complaint for the exam ination whether subsidized import has
occurred, the complainant shall deposit to special account of the Ministry a caution of CZK 100,000
which shall be paid back to the complainant if the Ministry takes a decision on the imposition of acountervailing duty or it accepts an undertaking of the subsidizing country to eliminate or limit the
subsidy.  The caution shall be paid back by the Ministry within the time period of 14 days from the
date of entering into force of this decision.
(5) In case the caution is not paid back pursuant to § 7 (4) above it is considered to
become an income to the state budget.
§ 8
(1) The Ministry shall initiate an examination upon a complaint pursuant to § 7.  The
Ministry may initiate the examination at its own initiative if it has sufficient evidence of the import ofthe subsidized product and existence of injury caused to the domestic industry.
(2) An examination is initiated on the date of receipt of the complaint by the Ministry or
on the date when the Ministry took a decision to initiate an examination on its own initiative.
(3) The Ministry shall, within 15 days since the date of the initiation of the examination,
invite producers of the same or the like product in the Czech Republic to submit their statements in
writing in respect to the complaint or the initiate d examination and to do so within the time limit of
30 days from the date of delivery of the invitation.  In cases where the number of producers is large,
the invitation may be limited to a statistically valid selection of producers.
                                                     
3 Act No. 13/1993 Coll., the Customs Code, as Subsequently Amended.
4 Act No.71/1967 Coll., on Administrative Processes (the Administrative Code), as Amended by Act
No. 29/2000 Coll.G/SCM/N/1/CZE/2
Page 8
(4) The Ministry shall, within 15 days from the initiation of an examination, request the
Ministry of Industry and Trade, the Ministry of Foreign Affairs, the Office for Protection of Economic
Competition, and the Ministry of Finance - the General Customs Office to submit their written views.
Views of the Ministry of Agriculture shall be requested in cases where agricultural products areconcerned.  Subject to the nature of a matter, the Ministry may request views from other
administrative authorities.  The Ministry shall sp ecify the time limit for submitting any views, which
does not exceed 30 days from the date of the delivery of the request.
(5) In the case where required statement is not submitted within the time-limit set forth in
§ 8 (3) and (4), the Ministry shall conduct an examination on the basis of the facts available.
(6) When examining the complain t the Ministry shall consider:
(a) whether the complaint contains all requirements as provided in § 7; should the
complaint lack some of the required in formation, the Ministry shall invite the
complainant to provide it within a time- limit; the time-limit for completion shall not
exceed 30 days as of receiving the invitation;
(b) whether there is a sufficient degree of support for the complaint in accordance with
the provision of § 8 (9b);
(c) whether the subsidy has been truly granted abroad on the product concerned and if it
is so, the Ministry shall determine whether the subsidy in question is prohibited,
specific, non-specific, actionable, or non-actionable;
(d) based on its own investigations and statements made by ministries and other
administrative authorities pursuant to § 8 (4), whether  injury has been caused to the
domestic industry or there exist a threat of injury.
(7) The Ministry shall notify the relevant authority of the subsidizing country and the
country of export or origin on the initiation of the examination.
(8) An examination shall be concluded within the time limit of 3 months from the date of
its initiation.
(9) The Ministry shall terminate an exam ination of the complaint and advise the
complainant of the reasons for such termination if it finds out that:
(a) the complaint contains apparently false data or does not contain available information
pursuant to § 7 (2), or the person who lodged the complaint failed to correct its
defects despite the written invitation by the Ministry to do so within a specified time-
limit; or
(b) the collective output of the same or the like product of those producers who supported
the complaint constitutes less than 50 per cent of the total production of the same or
the like product produced by that proportion of producers expressing either support
for or opposition  to the complaint, or if the total output of the same or the like
product of those producers supporting complaint accounts for less than 25 per cent ofthe volume of the output of the same or the like product produced by the domestic
industry; or
(c) the subsidy is non-actionable; orG/SCM/N/1/CZE/2
Page 9
(d) the subsidized product does not cause injury or threat thereof.
(10) When the Ministry does not find reasons for the termination of the examination of a
complaint it shall initiate consultations pursuant to Chapter III.
CHAPTER III
CONSULTATIONS
§ 9
(1) The Ministry shall initiate bilateral consul tations with the competent authorities in the
subsidizing country after the acceptance of the complaint or upon its own initiative if it has
information proving the existence of import to the Czech Republic of the subsidized product which is
causing injury or threat thereof.
(2) The purpose of the consultations shall be to clarify established facts and arrive at a
mutually acceptable solution on the basis of an agreement.
(3) If no mutually acceptable solution has b een reached, the Ministry shall submit the
case to the WTO authorities5, which may adopt appropriate corrective measures and simultaneously
initiate proceedings pursuant to Chapter IV.
CHAPTER IV
PROCEEDINGS REGARDING COUNTERVAILING DUTIES
AND ACCEPTANCE OF UNDERTAKINGS
§ 10
Initiation of the Investigation
(1) The Ministry shall initiate the investigation if the examination resulted in the
preliminary determination of the existence of import of the subsidized product and that this import is
causing injury or threat thereof and that there ar e no reasons to terminate the examination pursuant to
§ 8 (9).  The investigation shall be initiated if th e bilateral consultations in the meaning of § 9 have
not led to a mutually acceptable solution.  The inve stigation is initiated the day when the Ministry
shall publish in the Commercial Journal and via Internet a notice of the initiation of the investigation.
The publication shall be made without any undue delay and in any case not later than within 30 days
from the date of the termination of  the examination of the complaint.
(2) The notice of the initiation of an investigation shall contain:
(a) a designation of the complainant, producer and exporter of allegedly subsidized
product and designation of parties to the investigation pursuant to § 11;
                                                     
5 Notification of the Ministry of Foreign Affairs No. 191/1995 Coll., on Treaty on Establishment of the
World Trade Organization (WTO).G/SCM/N/1/CZE/2
Page 10
(b) a description of the product subject to the investigation, including specifications of
the item in the Customs Tariff3;
(c) the name of the country of export and country of origin;
(d) a summary of factors on which the allegation of the existence of import of the
subsidised product is based;
(e) data concerning the category of the subsidy and its amount;(f) facts relevant to injury or its threat caused to the domestic industry;
(g) the address to which the views of parties to the investigation should be directed;
(h) the time-limit, which shall not be less th an 30 days from the date of the initiation of
the investigation and during which other producers of the same or the like product
may make themselves known as parties to the investigation; failure to meet the timelimit shall not be waived;
(i) the name of the subsidizing country.
(3) Notice of the initiation of an investigati on shall be addressed to all parties to the
investigation and to the respective authorities of subsidizing country.
(4) For any exporter who has not been investigated for reasons other than rejection to
cooperate, a new investigation shall be initiated and individual countervailing duty shall be imposed
on the basis of such investigation.
§ 11
(1) The following shall be considered as parties to the investigation:
(a) a complainant if the investigation has been initiated upon his complaint,
(b) known producers of the allegedly subsidized product;(c) known exporters of the allegedly subsidized product;
(d) producers of the same or the like product in the Czech Republic who supported the
complaint in question or gave their opinion thereto.
(2) Where the number of persons involved is so high that it would prevent economical
and meaningful management of the administrative proceedings, persons mentioned in § 11 (1)(b)(c)and (d) shall not be parties to the investigation, unless they explicitly express they interest to be a
party to the investigation.
(3) Professional association of persons mentioned in § 11 (1)(b)(c) and (d) may be a party
to the investigation provided that persons themselves are not parties to the investigation to § 11 (2).
(4) When persons mentioned in § 11 (1)(b) and (c) above are not parties to the
investigation, the Ministry, in addition to the public  notice of the initiation of the investigation, shall
without undue delay provide to the authorities of the subsidizing country the grounds for a decision toG/SCM/N/1/CZE/2
Page 11
be transmitted to the exporters, producers (or their professional associations) concerned for their
eventual views.  These persons may submit their views to the Ministry within 60 days as of the day
when grounds for decision were delivered to the authorities of subsidizing country.
§ 12
Evidence
(1) For the purpose of the examination whether subsidized products have been imported
leading to injury or threat thereof, the Ministry sh all request the parties to the investigation, Ministries
and other administrative authorities (hereinafter referred to as the "supplier of information") to supplynecessary information.  They are obliged to provide such information free of charge.
(2) Provision of § 12 (1) shall not affect provisions of specific laws and regulations
relating to the protection of secret information, personal data in information systems, commercial and
banking secret or the obligation to maintain confidentiality stipulated by law.
6
(3) On the basis of the request of the Ministry and as a part of the process of evidence
gathering, the Ministry of Industry and Trade shal l submit its views concerning examination of injury
and threat thereof, and the Office for Protection of Economic Competition shall submit its views on
the protection of competition.  In cases when agri cultural products are involved, its views regarding
injury and threat thereof shall be also submitted by the Ministry of Agriculture.
(4) For the purpose of obtaining information the Ministry may use a questionnaire and
give up to 30 days time limit for its completion and reply.  The time limit may be extended on the
basis of a duly justified request of a party to the investigation.
§ 13
In order to verify information requested by the Ministry from persons in other countries or to
obtain additional information, the Ministry may carry out examinations in the territory of other
countries, provided the Ministry notifies the releva nt body of the country concerned of its intention,
the latter does not object to that intention and the Ministry obtains the agreement of the subject
concerned.
§ 14
Protection of Confidential Information
(1) For the purposes of this Act, confidential information or information provided on a
confidential basis shall be any information whose disclosure would be of significant competitiveadvantage to other persons, or its disclosure would have a significantly adverse effect upon the
supplier of confidential information.
(2) Confidential information may be disclosed only to the parties to the investigation
upon the consent of the supplier of information and exclusively for the purposes of the investigation.
                                                     
6 E.g. Act No. 148/1998 Coll., on Protection of Classified Information, as Subsequently Amended; Act
No. 256/1992 Coll., on Protection of Personal Data in Information Systems; Act No. 21/1992 Coll., on Banks,
as Subsequently Amended; Act No. 513/1991 Coll., the Commercial Code, as Subsequently Amended.G/SCM/N/1/CZE/2
Page 12
The Ministry shall require a supplier of confidential information to furnish detailed summaries that
shall be by nature non-confidential.  If the supplier of a confidential information indicates that it is not
susceptible of summary, a statement of the re asons why summarization is not possible must be
provided.
(3) If the Ministry finds that a request for confidentiality is not warranted, such
information shall be disregarded.  The Ministry shall immediately inform the supplier of information
about these facts.
(4) Persons who are in contact with information found during the investigation are duty-
bound to keep silent on it and shall not disclose or abuse its knowledge.
§ 15
Oral Hearing
(1) The Ministry is to order oral hearing any time at the request of a party to the
investigation or as required.  If a party to the investigation fails to attend oral hearing it shall not be
prejudicial to his rights.
(2) Oral information provided shall not be ta ken into account unless it is provided to the
Ministry within a set time-limit and in writing by a party who submitted it.
(3) The date of oral hearing pursuant to § 15 (1) shall be published by the Ministry
without undue delay in the Commercial Journal and via Internet.  Simultaneously, the Ministry shall
notify the parties to the investigation.
§ 16
Access to Information
(1) The Ministry shall during the course of an investigation provide opportunity for
parties to the investigation and persons mentioned in § 11(b)(c) and (d) as long as they are not parties
to the investigation, upon their request, to see all written documents relevant to the adoption of a
decision and which do not contain confidential information, and to see written documents submitted
by any party to the investigation.  Parties to the investigation may express their views regarding
written documents within a reasonable time-limit set by the Ministry which shall not exceed 30 days.
(2) The Ministry shall, before a decision is made, inform all parties to the investigation of
the essential facts which form the basis for the decision and shall provide the 30-day period for
making their views known.
(3) In cases where a party to the investigation fails to submit requested information
within a given time-limit or impedes the investigation, administrative decisions pursuant to this Act
may be made on the basis of the facts available.
§ 17
The Ministry shall conclude an investigation by a decision on the imposition of a
countervailing duty or by termination of an investigation not later than 9 months from the date of itsG/SCM/N/1/CZE/2
Page 13
initiation.  In particularly difficult cases, the Ministry shall decide not later than 15 months from the
date of initiation of the investigation.
§ 18
Termination and Suspension
(1) The Ministry shall terminate an investig ation when reasons leading to its initiation
ceased to exist, in particular if it has been subsequently determined that:
(a) the volume of imports of the subsidized  product is negligible within the meaning of
§ 5(b);
(b) the product is not subsidized at all or the amount of a subsidy does not exceed the
level as defined in § 5(a);
(c) a subsidy does not cause any injury;
(d) a subsidy is non-actionable;
(e) the Ministry would accept an undertaking of the exporter pursuant to § 21;(f) a subsidy was repealed.
(2) In cases where an undertaking of the exporter is accepted and the subsidizing country
requires continuation of the investigation or there are other reasons, the investigation shall not beterminated.
(3) In case of acceptance of an undertaking of a temporary nature, the investigation shall
be just suspended until the expiry of the time-limit for the undertaking's application.
(4) The decision whether to terminate or suspend the investigation shall be
communicated to the parties to the investigation and to the subsidizing country and the notice of thedecisions including explanations shall be publish ed without undue delay in the Commercial Journal
and via Internet.
(5) The Ministry shall request the Ministry of Industry and Trade, the Ministry of
Foreign Affairs, the Office for Protection of Economic Competition and the Ministry of Finance - theGeneral Customs Office to provide their written comments on the proposal to terminate the
investigation.  Comments of the Ministry of Agricu lture shall be requested when agricultural products
are concerned.  Comments shall be submitted within 15 days as of the date of delivery of the request,
otherwise it shall be assumed that they agree with the proposal.
§ 19
Imposition of Countervailing Duties
(1) If in course of an investigation the Ministry determines that import of the subsidized
product causes injury or treat thereof it may adopt a decision on the imposition of a countervailing
duty.  A countervailing duty may be either provisional or definitive.G/SCM/N/1/CZE/2
Page 14
(2) The decision on the imposition of a countervailing duty shall, after its entry into
force, be applicable to all declarants7 suggesting the products listed in the decision to be released for
free circulation provided that these products are sold or delivered into the territory of the Czech
Republic by producers who are also named in the decision.
(3) The countervailing duties shall not be higher than the amount of the subsidy provided
and shall not exceed the level that is adequa te to remove the injury or threat thereof.
(4) The decision on the imposition of countervailing duties shall contain in particular:(a) a commercially usual description of the product,
(b) the item in the Customs Tarrif
3,
(c) the name of the country of export and country of origin of the product concerned,(d) the name of the complainant,(e) the names of the producer, exporter and persons suggesting release of the subsidized
product for free circulation,
(f) the amount of the subsidy per unit  in its monetary equivalent and in terms of
percentage to the export price or the customs value if the export price is unknown,
(g) quantification and determination of the injury or threat thereof caused to the domestic
industry,
(h) the rate of a countervailing duty
3,
(i) duration of a countervailing duty,(j) the name of the subsidizing country,(k) the starting date of the application of a countervailing duties.(5) The decision on the imposition of a countervailing duty shall be communicated to all
parties to the investigation and to the subsidizing country and the notice thereof including
explanations shall be published without undue delay in the Commercial Journal and via Internet.  The
Ministry shall address a copy of the decision on the imposition of a countervailing duty to theMinistry of Finance - the General Customs Office , which shall ensure its immediate implementation.
(6) In cases where not all exporters of the subsidized product are known or if the number
of exporters is high pursuant to § 11 (2), instead of the names of exporters the decision shall include
the name of the subsidizing country.  In such a case, the decision on the imposition of a countervailingduty shall apply to all declarants suggesting release of the subsidized product for free circulation
during its duration, provided the country of export or origin is the country, which is classified in the
decision as subsidizing.
(7) Any countervailing duty shall remain in force only for such period of time as is
necessary and no longer than 5 years as of the date of its imposition or of the date of the most recent
review, except as provided in § 28.
                                                     
7 Section 2(n) of Act No. 13/1993 Coll.G/SCM/N/1/CZE/2
Page 15
(8) A countervailing duty shall not be imposed retroactively for the period preceding the
initiation of an investigation, except for the imposition of a definitive duty on the subsidized product
benefiting from a prohibited subsidy and imported in such quantities and in such a short period of
time where delay of the imposition of a countervailing duty could cause damage to the domesticindustry, which it would be unrepairable or difficult to repair.  In such cases, a definitive duty can be
assess retroactively on the subsidized product, however  not more than 90 days prior to the date of the
application of a provisional measure.
(9) The Ministry shall require the Ministry of Industry and Trade, the Office for
Protection of Economic Competition, the Ministry of Foreign Affairs and the Ministry of Finance -
the General Customs Office to provide their comments on proposals regarding the decision on theimposition of a countervailing duty.  The Ministry of Agriculture shall also be requested to make
comments when agricultural products are concerned.  Comments shall be submitted within 15 days as
of the date of delivery of the request, otherwise it shall be assumed that they agree with the proposal.
(10) The Customs authorities shall assess, collect and exact countervailing duties in the
manner determined by the specific Act
3).
§ 20
Provisional Countervailing Duties
(1) If, in the course of an investigation, the Ministry has determined that imports of
subsidized product caused or threaten to cause the injury to the domestic industry and that delay of the
imposition of a countervailing duty could cause damage to the domestic industry which it would beunrepairable or difficult to repair, it may decide on the imposition of a provisional countervailing
duty.
(2) A provisional countervailing duty may be applied for a definite period not exceeding
four months since the entry into force of the decision on the imposition of such a duty.
(3) A provisional countervailing duties may be imposed if the following conditions have
been met:
(a) an investigation has been initiated in accordance with § 10 and no less than 60 days
have elapsed from the date of initiation of the investigation pursuant to § 8;
(b) an opportunity has been given to the parties of the investigation to submit information
and make comments;
(c) a preliminary affirmative determination has been made that an actionable or
a prohibited subsidy exists;
(d) a preliminary affirmative determination has been made that there is injury or threat
thereof.
(4) The decision on the imposition of a provisional countervailing duty shall cease to
have effect:
(a) when the period of its implementation has elapsed,G/SCM/N/1/CZE/2
Page 16
(b) by the date of entry into force of the decision on the imposition of a definitive
countervailing duty,
(c) by the date set forth in the decision on the withdrawal of a provisional countervailing
duty.
§ 21
Acceptance of an Undertaking
(1) In the course of an investigation and after the entry into force of the decision on the
imposition of a countervailing duty, the Ministry may decide to accept a voluntary undertaking
(hereinafter referred to as an "undertaking") of th e subsidizing country to eliminate or limit with an
immediate effect the subsidy so as to remove the injury or threat thereof.  The Ministry may also
decide to accept an undertaking of the exporter to revise with an immediate effect its export price of
the subsidized product or to cease or limit exports of the subsidized product to the Czech Republic.
(2) The undertaking shall not be accepted unless the course of an investigation hitherto
testifies to the existence of import of the subsidized product and the injury or threat thereof caused by
it.
(3) A price increase offered by the exporter shall not exceed the amount of the subsidy
and shall not be in excess of the level, which is necessary to remove the injury or threat thereof.
(4) If the Ministry has some reservations about the offered undertaking, it shall
communicate them to the exporter or the subsidiz ing country and shall set a time-limit for comments
thereon.
(5) The undertaking is accepted for a definite period not exceeding five years.  In the
decision on the acceptance of the undertaking, the Ministry shall charge the exporter with the
obligation to provide a report relevant to the fulfilment of such undertaking no less than once a year.
(6) Upon the acceptance of an undertaking the decision on the imposition of
a countervailing duty shall be repealed if such a duty has already been imposed.  The investigation
shall continue if so requested by the subsidizing country.
(7) If the Ministry comes to the conclusion that the injury or threat thereof has not
occurred, an undertaking shall cease to be effective from the date of entry into force of the decision onthe termination of an investigation.
(8) A decision on the acceptance of an undertaking shall be communicated to the parties
to the investigation and to the subsidizing country and a notice of such a decision including
explanations shall be published without undue delay in the Commercial Journal and via Internet.
§ 22
Violation of an Undertaking and Repeal of the Decision
on the Acceptance of an Undertaking
(1) If the Ministry, after the acceptance of an undertaking or eventual repeal of the
decision on the imposition of a countervailing duty, determines that the undertaking has been violated,G/SCM/N/1/CZE/2
Page 17
it shall call on the exporter or the subsidizing country to fulfil properly the accepted undertaking and
terms laid down in the decision.
(2) If the exporter fails to fulfil properly th e accepted undertaking or conditions laid down
in the decision even after the call, the Ministry shall re-open the investigation in case of its previoustermination and shall repeal the decision on the acceptance of the undertaking.
(3) If an investigation was re-opened due to a violation of the undertaking, the time-limit
of 60 days set out in § 20 (3) shall not be applied and a provisional duty may be imposed with the
effect from the date of violation of the undertaking.
(4) In case of violation, a definitive countervailing duty may be imposed retroactively,
however not more than 90 days before the date on which the provisional duty was imposed due to the
violation of the undertaking, however not sooner than the date of such a violation.
(5) A decision to repeal an undertaking shall be communicated to the parties to the
investigation and the subsidizing country and a notice of such a decision including explanations shallbe published without undue delay in the Commercial Journal and via Internet.
§ 23
Definitive Countervailing Duties
(1) The Ministry shall decide on the imposition of a definitive countervailing duty if the
following conditions have been met:
(a) reasonable efforts has been made to bring consultations to eliminate or limit an
actionable subsidy with the subsidizing country to a successful conclusion;
(b) in the course of the investigation it has be en determined that there is import of the
subsidized product injuring or threatening to cause injury to the domestic industry,
and provided that no decision of the acceptance of an undertaking has been taken or
the exporter has violated the undertaking,
(c) the term of validity of the decision on the acceptance of an undertaking has elapsed if
such an undertaking had been accepted.
(2) A definitive countervailing duty is being applied for a definite period or for an
indefinite period as specified in § 19 (7) and (8) with the effect from the date of entry into force of the
decision thereon.  In case of determination of the injury or threat thereof to the domestic industry, a
definitive countervailing duties may be imposed from the date of force of a provisional countervailing
duty.  In case of determination of the threat of injury only, a definitive countervailing duty may be
imposed from the date of such a determination.  If the provisional countervailing duty is lower thanthe definitive countervailing duty the Customs Office shall not assess and collect the respective
difference.G/SCM/N/1/CZE/2
Page 18
§ 24
Refund of Duties
(1) Upon a request by a person who paid a duty, the Customs Office3 shall refund a
collected countervailing duty or the difference, provided that:
(a) the Ministry terminates an investigation pursuant to § 18, or(b) the definitive countervailing duty has not being applied during the entire period of
application of the provisional countervailing duty, or
(c) the definitive countervailing duty is lower than the provisional countervailing duty, or
(d) the decision on the imposition of a countervailing duty has been repealed in full or in
part as a result of proceeding regarding  the administrative or judicial review, or
(e) no necessity for the extension has been foun d in the course of a review regarding the
extension of application of a final countervailing duty.
(2) The request has to be submitted no later than 90 days from the date of entry into force
of the decision on the termination of an investigation, otherwise the right shall be deemed expired.The Customs Office is duty-bound to refund a duty within 90 days after the date of receipt of a
request for refund of the duty.  Countervailing duties shall be refunded by the Customs Office, which
assessed and collected such a duty.
§ 25
Modification and Repeal of a Decision
(1) The Ministry shall monitor whether a countervailing duty applied continues to be in
compliance with the terms for its imposition under this Act.
(2) After the date of entry into force of a decision on the imposition of a countervailing
duty or a decision on the acceptance of an undertaking, the Ministry can modify or repeal these
decisions, upon a written request of a party to an investigation or on its own initiative.
§ 26
Reduction of Countervailing Duties
(1) The Ministry shall decide on the reduction of a countervailing duty or on the
adjustment of an undertaking if, in the course of a review, it finds that the reasons for collecting the
countervailing duty at its original level or existence of the undertaking in its original terms have
changed.
(2) Such reasons include in particular the limitation of a subsidy, change in the price of
the subsidized product, acceptance of an undertaking by the subsidizing country to eliminate or limit
the subsidy and acceptance of an undertaking of the exporter to change the price of the subsidized
product and, when appropriate, the acceptance of the change of such an undertaking.G/SCM/N/1/CZE/2
Page 19
(3) A decision on the reduction of a countervailing duty shall be communicated to all
parties to the investigation and to the subsidizing country, and a notice of such a decision including
explanations shall be published without undue delay in the Commercial Journal and via Internet.  The
Ministry shall send a copy of the decision on the reduction of a countervailing duty to the Ministry of
Finance - the General Customs Office which shall ensure its implementation without delay.
§ 27
Repeal of Countervailing Duties
(1) The Ministry shall repeal a decision on the imposition of a countervailing duty if the
reasons leading to its imposition cease to exist.  A review shall be made on the initiative of the
Ministry or at the request of any party to the investigation, the subsidizing country, the Ministry of
Industry and Trade, the Office for Protection of Economic Competition, the Ministry of Foreign
Affairs, the Ministry of Finance - the General Customs Office; or the Ministry of Agriculture if any
agricultural products are concerned.
(2) The Ministry shall repeal the decision on the imposition of a countervailing duty:(a) after the acceptance of an undertaking in accordance with § 21, or
(b) after the termination of an investigation in accordance with § 18, or
(c) if, in the course of a review, it has been found that other lawful reasons for collecting
ceased to exist.
(3) The decision on the repeal of a countervailing duty shall contain the date from which
the countervailing duty shall no longer be levied.
(4) A decision on the repeal of a countervailing duty shall be communicated to all parties
to the investigation and to the subsidizing country, and a notice of such a decision including
explanations shall be published without undue delay in the Commercial Journal and via Internet.  The
Ministry shall send a copy of the decision on the repeal of a countervailing duty to the Ministry ofFinance - the General Customs Office, which shall ensure its implementation without delay.
§ 28
Extension of Definitive Countervailing Duties
(1) If the Ministry, in the course of the review carried out upon a duly substantiated
request by a complainant or on the basis of its own information, finds that the termination of
application of the definitive countervailing duty would be likely to lead to continuation or recurrenceof import of the subsidized product causing the inju ry, it shall make, in the course of a review, a
decision on the extension of the definitive countervailing duty.  A request for a review must be lodged
no later than 6 months prior to the expiry of the period of application of the countervailing duty.  A
review shall be concluded within 12 months of the date of initiation of the review.
(2) The Ministry shall decide on the extension of the definitive countervailing duty only
if the exporter fails to offer an appropriate undert aking within the time limit set forth by the Ministry.G/SCM/N/1/CZE/2
Page 20
(3) Pending the outcome of a review regarding the extension of the application of the
definitive countervailing duty, the duty may remain in force.  When extended pursuant to § 28 (1) and
(2), the application of the final countervailing duty may exceed 5 years.
(4) A decision on the extension of a definiti ve countervailing duty shall be communicated
to all parties to the investigation and to the subsidizing country, and notice of such a decision
including explanations shall be published wit hout undue delay in the Commercial Journal and via
Internet.  The Ministry shall send a copy of the decision to the Ministry of Finance  the General
Customs Office, which shall ensure its implementation without delay.
§ 29
Remedies
(1) A party to an investigation may lodge an appeal against the decision under § 18 (1),
§ 23 and §§ 26 to 28 within 15 days from the delivery of the decision.  Lodging an appeal shall nothave a dilatory effect.  Other decisions issued in accordance with this Act can not be appealed or
subject of judicial review.
(2) A decision on the appeal shall be communicated to all parties to the investigation and
to the subsidizing country, and notice of such a decision including explanations shall be publishedwithout undue delay in the Commercial Journal and via Internet.  The Ministry shall send a copy of
the decision to the Ministry of Finance - th e General Customs Office, which shall ensure its
implementation without delay.
(3) A party to an investigation, within the c ourse of the investigation pursuant to this Act,
can not file a petition to reopen the case or motion for judicial review outside of the appeal process.
4
§ 30
Time-Limits in the Appeal Process
The appeal process must be terminated by maki ng a decision within 6 months of the date of
initiation of the process.  In particularly difficult cases, the appeal process may be terminated no later
than 9 months of the date of its initiation.
CHAPTER V
COMMON PROVISIONS
§ 31
Relationship to the Administrative Code
Unless otherwise stipulated in this Act, the Administrative Code shall apply to administration
proceeding pursuant to this Act.G/SCM/N/1/CZE/2
Page 21
§ 32
Proceedings regarding Exports of Subsidized Products
Carried out in Third Countries
The Ministry shall consider and settle requests for information which is necessary to
communicate in connection with the proceedings on subsidized imports carried out in third countries,
provided the requests were submitted by the author ities competent pursuant to the law of the third
country and the request is duly substantiated.
§ 33
Relationship to the International Treaties
Provisions of this Act shall apply unless otherwise provided by an international treaty binding
the Czech Republic and published in the Collection of Laws.5), 8)
§ 34
Written communications addressed pursuant to this Act to the authorities of the country of
export or origin can be sent through this country's diplomatic mission.
PART TWO
Amendment to the Act No. 2/1969 Coll., on the Establishment of Ministries and
Other Central Authorities of State Administration of the Czech Republic
§ 35
In Act No. 2/1969 Coll., on the Establishment of Ministries and Other Central Authorities of
the State Administration of the Czech Republic, as amended, in § 4, at the end of the first paragraph, a
full stop is substituted by a comma and the following words are added: “shall consider import of the
subsidized products and adopt measures on the protection against import of such products”.
PART THREE
Amendment to the Act No. 13/1993 Coll., the Customs Act
§ 36
The Act No. 13/1993 Coll., the Customs Act, as amended by the Act No. 35/1993 Coll. and
Act No. 113/1997 Coll., shall be amended as follows:
1. In § 54(3), after words “collected duties” the following wording, including the
footnote 7a), shall be added: “pursuant to a specific Act7a)
                                                     
8 Notification of the Ministry of Foreign Affairs No. 7/1995 Coll., on Establishment of the European TreatyG/SCM/N/1/CZE/2
Page 22
_______________
7a) Act No. 63/2000 Coll., on Protection Against Subsidized Imports and Altering Act No. 2/1969 Coll.,
on Establishing Ministries and Other Central Authorities of State Administration of the Czech Republic, as
amended, and Act No. 13/1993 Coll., the Customs Act, as amended.”
2. In § 54, a new paragraph (4) is inserted after paragraph (3), which shall read as
follows, including the footnote 13):
“(4) The antidumping duties shall be specific duties collected pursuant to a specific Act13) for
the purposes of protection against dumped imports._______________
13) Act No. 152/1997 Coll., on Protection against imports of dumped products and on the Change and
Amendment of Some Laws.”
The existing paragraphs (4) and (5) shall be indicated as paragraphs (5) and (6), respectively.
3. In § 54(5), the following words shall be inserted after the word “stipulated”: “by
Government Order”.
4. § 54 (6) shall be repealed.
PART FOUR
§ 37
Effective Date
This Act shall enter into force on the first day of the calendar month following its publishing.G/SCM/N/1/CZE/2
Page 23
Annex 1 to Act No. 63/2000 Coll.
AGRICULTURAL PRODUCTS
1. Chapters 01 to 24 of the Customs Tariff, with the exception of Chapter 03 and numbers 1504,
1603, 1604 and 1605.
2. Item 2905.43 Mannitol
Item 2905.44 D-glucitol (sorbitol)
Heading Number 33.01: Essential oils (terpeneless or not), including concretes and absolutes;
resinoids; concentrates of essential oils in fats, in fixed oils, in waxes
or the like, obtained by enfleurage or maceration; terpenic by-
products of the deterpenation of essential oils; aqueous distillates and
aqueous solutions of essential oils.
Heading Number 35.01: Casein, caseinates and other casein derivatives, casein glues.
Heading Number 35.02: Albumins (including con centrates of two or more whey proteins
containing by weight more than 80 per cent whey proteins, calculated
on the dry matter), albuminates and other albumin.
Heading Number 35.03: Gelatin (including gelatin in rectangular and square sheets, whether or
not surface-worked or coloured) and gelatin derivates; isinglass; other
glues of animal origin, excluding casein glues of heading number
35.01.
Heading  Number 35.04: Peptones and their derivatives; other protein substances and their
derivatives, not elsewhere specified or included, hide powder,whether or not chromed.
Heading Number 35.05: Dextrins and other modified starches (e.g. pregelatinised or esterified
starches), glues based on starches, or on dextrins or other modified
starches.
Item 3809.10: Finishing agents, dye carriers to accelerate the dyeing or fixing of
dyestuffs and other products and preparations (e.g. dressings and
mordants), of a kind used in the textile, paper, leather or likeindustries, not elsewhere specified or included, with a basis of
amylaceous substances.
Item 3824.60: Sorbitol other than 2905.44.
Heading Number 41.01: Raw hides and skins of bovine or equine animals (fresh, or salted,
dried, limed, pickled or otherwise preserved, but not tanned,parchment-dressed or further prepared), whether or not dehaired or
split.
Heading Number 41.02: Raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or
otherwise preserved, but not tanned, parchment-dressed or further
prepared), whether or not with wool on or split, other than thoseexcluded by Note 1(c) to  this Chapter.
Heading Number 41.03: Other raw hides and skins (fresh, or salted, dried, limed, pickled or
otherwise preserved, but not tanned, parchment -dressed or further
prepared), whether or not dehaired or split, other than those excluded
by Note 1(b) or 1(c) to this Chapter.
Heading Number 43.01: Raw furskins (including heads, tails, paws and other pieces or
cuttings, suitable for furriers' use), other than raw hides and skins of
heading No 41.01, 41.02 or 41.03.
Heading Number 50.01: Silk-worm cocoons suitable for reeling.G/SCM/N/1/CZE/2
Page 24
Heading Number 50.02: Raw silk (not thrown).
Heading Number 50.03: Silk waste (including cocoons unsuitable for reeling, yarn waste and
garneted stock).
Heading Number 51.01: Wool not carded or combed
Heading Number 51.02: Fine or coarse animal hair, not carded or combed.Heading Number 51.03: Waste of wool or of fine or coarse animal hair, including yarn waste,
but excluding garneted stock.
Heading Number 52.01: Cotton non-carded or combed.
Heading Number 52.02: Cotton waste (including yarn waste and garneted stock).
Heading Number 52.03: Cotton carded or combed.
Heading Number 53.01: Flax raw or processed, but not spun, flax tow and waste (including
yarn waste and garneted stock).
Heading Number 53.02: True hemp (Cannabis sativa L.), raw or processed, but not spun, tow
and waste of true hemp (including yarn waste and garneted stock).G/SCM/N/1/CZE/2
Page 25
Annex 2 to Act No. 63/2000 Coll.
CRITERIA AND CONDITIONS FOR NON-ACTIONABLE SUBSIDIES
GRANTED ON AGRICULTURAL PRODUCTS
1. Subsidies granted in the country of an ex porter shall conform to the following basic
criteria:
(a) subsidies in question shall be provided through the publicly-funded government
programme not including transfers from a consumer,
(b) subsidies in question shall not have the effect of providing price support to producers,(c) subsidies in question shall conform  to the subsidy-specific criteria and conditions
asset out below
Government Assistance Programmes
2. Subsidies on General Assistance
Subsidies in this category involve expenditures (or revenue foregone) related to programmes,
which provide assistance or benefits to agriculture or rural communities.  They shall not involve direct
subsidies to producers or processors.  Such programmes are, inter alia , programmes which meet all
general criteria stipulated in subsection (1) and specific conditions, as follows:
(a) research, including general research, research in connection with environmental
programmes, and research programmes relating to particular products
(b) pest and disease control, including general and product-specific pest and disease
control measures, such as early-warning systems, quarantine and eradication
(c) training services, including both general and specialist training facilities(d) extension and advisory services, including the provision of means to facilitate the
transfer of information and the results of research to producer and consumers
(e) inspection services, including general inspection services and the inspection of
particular product for health, safety, grading or standardization purposes
(f) marketing and promotion services, including market information, advice and
promotion relating to particular product but excluding expenditure for unspecified
purpose that could be used by sellers purchasers: and
(g) infrastructural services, including: electricity reticulation, roads and other means of
transport, market and port facilities, water supply facilities, dams and drainage
schemas, and infrastructural works associated with environmental programmes.  In all
cases the expenditure shall be directed to the provision or construction of capitalworks only, and shall exclude the subsidized provision of on-farm facilities other than
for the reticulation of generally available public utilities.  It shall not include
subsidies to inputs or operating costs, or preferential user charges.G/SCM/N/1/CZE/2
Page 26
3. Subsidies provided for public stockholding for food security purposes.9
The expenditures (or revenue foregone) in relation to the accumulation and holding of stocks
of products which form an integral part of a food security programme identified in national
legislation.  This may also include government aid to private storage of products as part of suchprogramme.
The volume and accumulation of such stocks shall correspond to predetermined targets
related solely to food security.  The process of stock accumulation and disposal shall be financially
transparent.  Food purchases by the government shall be made at current market prices and sales from
food security stocks shall be made at no less than the current domestic market price and quality for the
product in question.
4. Subsidies provided within the framework of domestic food aid.The expenditures (or revenue foregone) related to the domestic food aid to the population in
need.
Eligibility to receive the food aid shall be subject to clearly defined criteria related to
nutritional objectives.  Such aid shall be in the form  of direct supply of food to those concerned or, the
provision of means to allow eligible recipients to buy agricultural products either at market or
subsidized prices.  Food purchases by the government shall be made at current market prices and thefinancing and administration of the aid shall be transparent.
5. Direct subsidies provided to producers.
The subsidy provided through direct payments (or revenue foregone, including payments in
kind) to the producers for which exemption from commitments reduction is claimed, shall meet the
basic criteria set out in subsection (1), and specific criteria for particular types of direct payments as
set forth in paragraphs (6) to (13).  Where exemption from reduction is claimed for any existing or
new type of direct subsidy other than those specified in paragraphs (6) to (13), it shall conform to
criteria of paragraph (6) (b) to (e), in addition to the general criteria set forth in paragraph (1).
6. Subsidies for income support.
(a) Eligibility for such subsidies shall be dete rmined by clearly defined criteria such as
income, status of a producer or landowner, factor use or production level in a defined
and fixed period.
(b) The amount of such payments in any given year shall not be related to, or based on,
the type and volume of production (including livestock units) undertaken by the
producer in any year after the base period.
                                                     
9 For the purposes of subsection (3) of this Annex, the governmental stockholding programmes for
food security purposes in developing countries whose operation is transparent and conducted in accordance withofficially published objective criteria or guidelines shall be considered to be in conformity with the provisions ofthis subsection, including programmes under which the stocks of foodstuffs for food security purposes areacquired and released at administered prices provided that the difference between the acquisition price and the
external reference price is accounted for the domestic subsidies set out by GATT Treaty and the list of
undertakings and licences of WTO member.G/SCM/N/1/CZE/2
Page 27
(c) The amount of such payments in any given year shall not be related to, or based on,
the prices, domestic or international, applying to any production undertaken in any
year after the base period.
(d) The amount of such payments in any given year shall not be related to, or based on,
factor of production employed  in any year after the base period.
(e) No production shall be required in order to receive such payments.
7. Subsidies provided in the form of government financial participation in income
insurance and income safety-net programmes.
(a) Eligibility for such payments shall be de termined by an income loss, taking into
consideration only income derived from agriculture which exceeds 30 per cent of
average gross income or, the equivalent of a net income (excluding any payments
from the same or similar schemes) in the preceding three-year period or a three-year
average based on the preceding five-year period excluding the highest and the lowestentry.  Any producer who met this condition shall be eligible to receive such a
payment.
(b) The amount of such payments shall compensate for less than 70 per cent of the
producer's income loss in the year the producer becomes eligible to receive thisassistance.
(c) The amount of any such payments shall relate solely to income, it shall not relate to
the type or volume of production (including livestock units) undertaken by the
producer; or to the prices, domestic or international, applying to such production, orto the factors of production employed.
(d) Where a producer receives in the same year subsidies pursuant to this paragraph and
pursuant to paragraph (8) (relief from natural disasters) in one year, the total of such
payments shall be less than 100 per cent of the producer's total loss.
8. Subsidies for relief from natural disasters
(a) Eligibility for such subsidies shall arise only following a formal recognition by
government authorities that a natural or like disaster (including disease outbreaks,
pest infestation, nuclear accidents, and wars on the territory of the party concerned)
has occurred or is occurring, and shall be determined by a production loss whichexceeds 30 per cent of the average of production in the preceding three-year period or
the three-year average based on the preceding five-year period excluding the highest
and lowest entry.
(b) Such subsidies shall be applied only in respect of losses of income, livestock
(including payments in connection with veterinary treatment of animals), land or
other production factors due to the natural disaster in question.
(c) Subsidies shall compensate for not more than  total cost of replacing such losses and
shall not require or specify type or quantity of future production.
(d) Subsidies provided during the disaster shall not exceed the level required to prevent or
alleviate further loss as defined in criterion (b) above.G/SCM/N/1/CZE/2
Page 28
(e) Where a producer receives in the same year subsidies pursuant to this paragraph and
pursuant to paragraph (7) (income insurance and income safety-net programmes), the
total amount of such subsidies shall be less than 100 per cent of the producer's total
loss.
9. Structural adjustment assistance provided through producer retirement programmes.
(a) Eligibility for such subsidies shall be de termined by reference to clearly defined
criteria in programmes designed to facilitate the retirement of persons engaged in
marketable agricultural production, or their movement to non-agricultural activities.
(b) Subsidies shall be subject to the total and permanent retirement of the recipients from
marketable agricultural production.
10. Structural adjustment assistance provided through resource retirement programmes.
(a) Eligibility for such subsidies shall be de termined by reference to clearly defined
criteria in programmes designed to remove land or other resources, including
livestock, from marketable agricultural production.
(b) Subsidies shall be subject to the land retirement from marketable agricultural
production for a minimum of three years, and in the case of livestock on its slaughteror definitive permanent disposal.
(c) Subsidies shall not require or specify any alternative use of such land or other
resources which involves production of marketable agricultural products.
(d) Subsidies shall not be related either to the type or quantity of production nor to the
prices, domestic or international, applied in production using the land or other
resources preserved for a production.
11. Structural adjustment assistance provided through investment aids.
(a) Eligibility for such subsidies shall be de termined by reference to clearly defined
criteria in government programmes designed to assist the financial or physical
restructuring of the producer's operations in response to objectively demonstrated
structural disadvantages.  Eligibility for such programmes may also be based on a
clearly defined government programme for reprivatization of agricultural land.
(b) The amount of such payments in any given year shall not be related to, or based on,
the type and volume of production (including livestock units) undertaken by the
producer in any year after the base period other than as provided under criterion (e)
below.
(c) The amount of such subsidies in any given year shall not be related to, or based on,
the prices, domestic or international, applied in production undertaken in any year
after the base period.
(d) Subsidies shall be given only for the period of time necessary for realization of the
investments in respect of which they are provided.G/SCM/N/1/CZE/2
Page 29
(e) The subsidies shall not mandate or in any way designate the which agricultural
products the recipients shall produce, except to the requirement not to produce a
particular product.
(f) Subsidies shall be limited to the amount re quired to compensate for the structural
disadvantage.
12. Subsidies under environmental protection programmes.
(a) Eligibility for such subsidies shall be determined as a part of a clearly defined
government environmental or conservation programmes and are subject to specific
conditions under the government programme, including conditions related toproduction methods or inputs.
(b) The amount of the subsidy shall be limited to the extra costs or loss of income
involved in complying with the government programme.
13. Subsidies under regional assistance programmes.
(a) Eligibility for such subsidies shall be limited to producers in disadvantaged regions.
Each such region must be a clearly designated continuous geographical area with a
definable economic and administrative identity, considered disadvantaged on thebasis of neutral and objective criteria clearly spelt out in a law or any other legislative
regulation and indicating that the region's difficulties arise out of more than temporary
circumstances.
(b) The amount of such subsidies in any given year shall not be related, or based on, the
type and volume of production (including livestock units) undertaken by the producer
in any year after the base period, except the cases where production concerned shall
be reduced.
(c) The amount of such subsidies in any given year shall not be related to, or based on,
the prices, domestic or international, applied in a production undertaken in any year
after the base period.
(d) Subsidies shall be available only to producers in eligible regions, but generally
available to all producers within such eligible regions.
(e) Where related to the production factors, subsidies shall be provided at a regressive
rate above a threshold level laid down for the factor concerned.
(f) Subsidies shall be limited to extra costs or loss of income resulting from undertaking
agricultural production in the specified regions.
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