G/SCM/N/1/EU/2  
 
1 November  2016 
(16-5987) Page: 1/42 
Committee on Subsidies and Countervailing Measures  Original: English  
 
NOTIFICATIO N OF LAWS AND REGULATIONS UNDER  
ARTICLE 32.6 OF THE AGREEMENT   
EUROPEAN UNION 
The following communication, dated 4 October 2016, is being ci rculated at the request of the 
delegation of the European  Union.  
 
_______________  
 G/SCM/N/1/EU/2  
 
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  REGULATION (EU) 2016 /1037 OF THE EUROPEAN  PARLIAMENT AND OF TH E COUNCIL  
OF 8 JUNE 2016  
ON PROTECTION AGAINS T SUBSIDISED IMPORTS  FROM COUNTRIE S 
NOT MEMBERS OF THE EUR OPEAN UNION  
(CODIFICATION)  
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,  
Having regard to the T reaty on the Functioning of the European Union, and in particular 
Article  207(2) thereof,  
Having regard to the proposal from the European Commission,  
After transmission of the draft legislative act to the national parliaments,  
Having regard to the opinion of the European Economic and Social Committee1, 
Acting in accordance with the ordinary legislative procedure2, 
Whereas:  
(1) Council Regulation (EC) No. 597/20093 has been substantially amended4. In the interests of 
clarity and rationality, that Regulation shou ld be codified.  
(2) Annex 1A to the Agreement establishing the World Trade Organisation 
('the WTO Agreement ') contains, inter alia, the General Agreement on Tariffs and Trade 
1994 ( 'the GATT 1994 '), an Agreement on Agriculture ( 'the Agreement on Agriculture '), an 
Agreement on Implementation of Article VI of the General Agreement on Tariffs and 
Trade  1994 and an Agreement on Subsidies and Countervailing Measures 
('the Subsidies  Agreement '). 
(3) In order to ensure a proper and transparent application of the rules pro vided for in the 
Subsidies Agreement, the language of that agreement should be reflected in Union 
legislation to the best extent possible.  
(4) Furthermore, it is appropriate to explain, in adequate detail, when a subsidy is to be deemed 
to exist, according to which principles it is to be countervailable (in particular whether the 
subsidy has been granted specifically), and according to which criteria the amount of the 
countervailable subsidy is to be calculated.  
(5) In determining the existence of a subsidy, it is necessary to demonstrate that there has 
been a financial contribution by a government or a public body within the territory of a 
country, or that there has been some form of income or price support within the meaning of 
Article XVI of the GATT 1994, and th at a benefit has thereby been conferred on the recipient 
enterprise.  
(6) For the calculation of the benefit to the recipient in cases where a market benchmark does 
not exist in the country concerned, the benchmark should be determined by adjusting the 
terms an d conditions prevailing in the country concerned on the basis of actual factors 
available in that country. If this is not practicable because, inter alia, such prices or costs do 
                                                
1 Opinion of 10 December 2014 (OJ C 230, 14.7.2015, p. 129).  
2 Position of the European Parliament of 10 May 2016 (not yet pu blished in the Official Journal) and 
decision of the Council of 30 May 2016.  
3 Council Regulation (EC) No . 597/2009 of 11 June 2009 on protection against subsidised imports from 
countries not members of the European Community (OJ L 188, 18.7.2009, p. 93).  
4 See Annex V.  G/SCM/N/1/EU/2  
 
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  not exist or are unreliable, then the appropriate benchmark should be determi ned by 
resorting to terms and conditions in other markets.  
(7) It is desirable to set out clear and detailed guidance as to the factors which may be relevant 
for the determination of whether the subsidised imports have caused material injury or are 
threatening  to cause injury. In demonstrating that the volume and price levels of the 
imports concerned are responsible for injury sustained by a Union industry, attention should 
be given to the effect of other factors and in particular prevailing market conditions i n 
the Union.  
(8) It is advisable to define the term 'Union industry ' and to provide that parties related to 
exporters may be excluded from such an industry, and to define the term 'related '. It is also 
necessary to provide for countervailing duty action to be taken on behalf of producers in a 
region of the Union and to set out guidelines on the definition of such a region.  
(9) It is necessary to specify who may lodge a countervailing duty complaint, including the 
extent to which it should be supported by the Union industry, and the information on 
countervailable subsidies, injury and causation which such a complaint should contain. It is 
also expedient to specify the procedures for the rejection of complaints or the initiation of 
proceedings.  
(10)  It is necessary to spec ify the manner in which interested parties should be given notice of 
the information which the authorities require. Interested parties should have ample 
opportunity to present all relevant evidence and to defend their interests. It is also desirable 
to set  out clearly the rules and procedures to be followed during the investigation, in 
particular the rules whereby interested parties are to make themselves known, present their 
views and submit information within specified time limits, if such views and infor mation are 
to be taken into account. It is also appropriate to set out the conditions under which an 
interested party may have access to, and comment on, information presented by other 
interested parties. There should also be cooperation between the Member  States and the 
Commission in the collection of information.  
(11)  It is necessary to set out the conditions under which provisional duties may be imposed, 
including conditions whereby provisional duties may be imposed no earlier than 60 days 
from initiation and  no later than nine months thereafter. Such duties may in all cases be 
imposed by the Commission only for a four -month period.  
(12)  It is necessary to set out procedures for accepting undertakings which eliminate or offset the 
countervailable subsidies and inju ry instead of imposing provisional or definitive duties. It is 
also appropriate to specify the consequences of a breach or withdrawal of undertakings and 
that provisional duties may be imposed in cases of suspected violation or where further 
investigation is necessary to supplement the findings. In accepting undertakings, care 
should be taken that the proposed undertakings, and their enforcement, do not lead to anti - 
competitive behaviour.  
(13)  It is appropriate to allow withdrawal of an undertaking and applicat ion of the duty by one 
single legal act. It is also necessary to ensure that the withdrawal procedure is terminated 
within a time limit of normally six months and in no case more than nine months in order to 
ensure the proper enforcement of the measure in force.  
(14)  It is necessary to provide that the termination of cases should, irrespective of whether 
definitive measures are adopted or not, normally take place within 12 months, and in no 
case more than 13 months, of the initiation of the investigation.  
(15)  Invest igations or proceedings should be terminated where the amount of the subsidy is 
de minimis or, particularly in the case of imports originating in developing countries, the 
volume of subsidised imports or the injury is negligible, and it is appropriate to d efine those 
situations. Where measures are to be imposed, it is necessary to provide for the termination 
of investigations and to specify that measures should be less than the amount of 
countervailable subsidies if such lesser amount would remove the injur y, and also to specify 
the method of calculating the level of measures in cases of sampling.  G/SCM/N/1/EU/2  
 
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  (16)  It is necessary to provide for retroactive collection of provisional duties if that is deemed 
appropriate and to define the circumstances which may trigger the ret roactive application of 
duties to avoid the undermining of the definitive measures to be applied. It is also necessary 
to provide that duties may be applied retroactively in cases of breach or withdrawal of 
undertakings.  
(17)  It is necessary to provide that mea sures are to lapse after five years unless a review 
indicates that they should be maintained. It is also necessary to provide, in cases where 
sufficient evidence is submitted of changed circum­ stances, for interim reviews or for 
investigations to determin e whether refunds of countervailing duties are warranted.  
(18)  Even though the Subsidies Agreement does not contain provisions concerning circumvention 
of countervailing measures, the possibility of such circumvention exists, in terms similar, 
albeit not identi cal, to the circumvention of anti -dumping measures. It is appropriate, 
therefore, to provide for an anti -circumvention provision in this Regulation.  
(19)  It is desirable to clarify which parties have the right to request the initiation of 
anti-circumvention inv estigations.  
(20)  It is also desirable to clarify which practices constitute circumvention of the measures in 
place. Circumvention practices may take place either inside or outside the Union. It is 
consequently necessary to provide that exemptions from the exte nded duties which may be 
granted to importers may also be granted to exporters when duties are being applied to 
address circumvention taking place outside the Union.  
(21)  It is expedient to permit the suspension of countervailing measures where there is a 
tempo rary change in market conditions which makes the continued imposition of such 
measures temporarily inappropriate.  
(22)  It is necessary to provide that imports under investigation may be made subject to 
registration upon importation in order to enable measures t o be subsequently applied 
against such imports.  
(23)  In order to ensure the proper enforcement of measures, it is necessary that Member States 
monitor, and report to the Commission on, the import trade of products subject to 
investigation or subject to measures , as well as the amount of duties collected under this 
Regulation. It is also necessary to provide for the possibility for the Commission to request 
Member States to supply, subject to confidentiality rules, information to be used for 
monitoring price unde rtakings and verifying the level of effectiveness of the measures in 
force.  
(24)  It is expedient to provide for verification visits to check information submitted on 
countervailable subsidies and injury, such visits being, however, conditional on proper 
replies  to questionnaires being received.  
(25)  It is essential to provide for sampling in cases where the number of parties or transactions is 
large in order to permit completion of investigations within the appointed time limits.  
(26)  It is necessary to provide that, wher e parties do not cooperate satisfactorily, other 
information may be used to establish findings and that such information may be less 
favourable to the parties than if they had cooperated.  
(27)  Provision should be made for the treatment of confidential informati on so that business or 
governmental secrets are not divulged.  
(28)  It is essential that provision be made for proper disclosure of the essential facts and 
considerations to parties which  qualify for such treatment and that such disclosure be made, 
with due rega rd to the decision -making process in the Union, within a time –limit which 
permits parties to defend their interests.  G/SCM/N/1/EU/2  
 
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  (29)  It is prudent to provide for an administrative system under which arguments can be 
presented as to whether measures  are in the Union's in terest, including consumers' 
interests, and to specify the time –limits within which such information has to be presented, 
together with the disclosure rights of the parties concerned.  
(30)  In applying the rules of the Subsidies Agreement it is essential, in or der to maintain the 
balance of rights and obligations which that agreement seeks to establish, that the Union 
take account of the interpretation of those rights and obligations by the Union's major 
trading partners, as reflected in legislation or establish ed practice.  
(31)  The implementation of this Regulation requires uniform conditions for adopting provisional 
and definitive duties, and for the termination of an investigation without measures. Those 
measures should be adopted by the Commission in accordance wi th Regulation (EU) 
No. 182/2011 of the European Parliament and of the Council1. 
(32)  The advisory procedure should be used for the adoption of provisional measures given the 
effects of such measures and their sequential logic in relation to the adoption of defi nitive 
measures. It  should also be used for the acceptance of undertakings, initiation and 
non-initiation of expiry reviews, suspension of measures, extension of the suspension of 
measures and the reinstatement of measures given the effect of such measures  as 
compared to definitive measures. Where a delay in the imposition of measures would cause 
injury which would be difficult to repair, it is necessary to allow the Commission to adopt 
immediately applicable provisional measures,  
HAVE ADOPTED THIS REGULATI ON: 
 
Article 1  
Principles  
1. A countervailing duty may be imposed to offset any subsidy granted, directly or indirectly, 
for the manufacture, production, export or transport of any product whose release for free 
circulation in the Union causes injury.  
2. Notwith standing paragraph 1, where products are not directly imported from the country of 
origin but are exported to the Union from an intermediate country, the provisions of this 
Regulation shall be fully applicable and the transaction or transactions shall, whe re appropriate, be 
regarded as having taken place between the country of origin and the Union.  
Article 2  
Definitions  
For the purposes of this Regulation:  
(a) a product is considered to be subsidised if it benefits from a countervailable subsidy as 
defined in A rticles 3 and 4. Such subsidy may be granted by the government of the country 
of origin of the imported product, or by the government of an intermediate country from 
which the product is exported to the Union, known for the purposes of this Regulation as 
'the country of export '; 
(b) 'government ' means a government or any public body within the territory of the country of 
origin or export;  
(c) 'like product ' means a product which is identical, that is to say, alike in all respects, to the 
product under considera tion, or, in the absence of such a product, another product which, 
                                                
1 Regulation (EU) No . 182/2011 of the European Parliament and of the Council of 16 February 2011 
laying down the rules and general principles concerning mechanisms for control by Member States of the 
Commission's exercise of implementing pow ers (OJ L 55, 28.2.2011, p. 13).  G/SCM/N/1/EU/2  
 
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  although not alike in all respects, has character istics closely resembling those of the product 
under consideration;  
(d) 'injury ', unless otherwise specified, means material injury to the Union ind ustry, threat of 
material injury to the Union industry or material retardation of the establishment of such an 
industry, and shall be interpreted in accordance with the provisions of Article 8.  
Article 3  
Definition of a subsidy  
A subsidy shall be deemed to  exist if:  
1. (a) there is a financial contribution by a government in the country of origin or export, that is to 
say, where:  
(i) a government practice involves a direct transfer of funds (for example, grants, loans, 
equity infusion), potential direct transfe rs of funds or liabilities (for example, loan 
guarantees);  
(ii) government revenue that is otherwise due is forgone or not collected (for example, 
fiscal incentives such as tax credits). In this regard, the exemption of an exported 
product from duties or taxes borne by the like product when destined for domestic 
consumption, or the remission of such duties or taxes in amounts not in excess of 
those which have been accrued, shall not be deemed to be a subsidy, provided that 
such an exemption is granted in accorda nce with the provisions of Annexes I, II 
and III; 
(iii) a government provides goods or services other than general infrastructure, or 
purchases goods;  
(iv) a government:  
- makes payments to a funding mechanism, or  
- entrusts or directs a private body to carry out one  or more of the type of 
functions illustrated in points (i), (ii) and (iii) which would normally be vested in 
the government, and the practice, in no real sense, differs from practices 
normally followed by governments;  
or 
(b) there is any form of income or  price support within the meaning of Article XVI of the 
GATT  1994; and  
2. a benefit is thereby conferred.  
Article 4  
Countervailable subsidies  
1. Subsidies shall be subject to countervailing measures only if they are specific, as defined in 
paragraphs 2, 3 and 4.  
2. In order to determine whether a subsidy is specific to an enterprise or industry or group of 
enterprises or industries ( 'certain enterprises ') within the jurisdiction of the granting authority, the 
following principles shall apply:  
(a) where the gran ting authority, or the legislation pursuant to which the granting authority 
operates, explicitly limits access to a subsidy to certain enterprises, such a subsidy shall be 
specific;  G/SCM/N/1/EU/2  
 
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  (b) where the granting authority, or the legislation pursuant to which the gra nting authority 
operates, establishes objective criteria or conditions governing the eligibility for, and the 
amount of, a subsidy, specificity shall not exist, provided that the eligibility is automatic and 
that such criteria and conditions are strictly a dhered to;  
(c) if, notwithstanding any appearance of non -specificity resulting from the application of the 
principles laid down in points (a) and (b), there are reasons to believe that the subsidy may 
in fact be specific, other factors may be considered. Such factors are: use of a subsidy 
programme by a limited number of certain enterprises; predominant use by certain 
enterprises; the granting of disproportionately large amounts of subsidy to certain 
enterprises; the manner in which discretion has been exercise d by the granting authority in 
the decision to grant a subsidy. In this regard, information on the frequency with which 
applications for a subsidy are refused or approved and the reasons for such decisions shall, 
in particular, be considered.  
For the purpo se of point (b), 'objective criteria or conditions ' means criteria or conditions which are 
neutral, which do not favour certain enterprises over others, and which are economic in nature and 
horizontal in application, such as number of employees or size of enterprise.  
The criteria or conditions must be clearly set out by law, regulation, or other official document, so 
as to be capable of verification.  
In applying point (c) of the first subparagraph, account shall be taken of the extent of 
diversification of economic activities within the jurisdiction of the granting authority, as well as of 
the length of time during which the subsidy programme has been in operation.  
3. A subsidy which is limited to certain enterprises located within a designated geographical 
region within the jurisdiction of the granting authority shall be specific. The setting or changing of 
generally applicable tax rates by all levels of government entitled to do so shall not be deemed to 
be a specific subsidy for the purposes of this Regula tion. 
4. Notwithstanding paragraphs 2 and 3, the following subsidies shall be deemed to be specific:  
(a) subsidies contingent, in law or in fact, whether solely or as one of several other conditions, 
upon export performance, including those illustrated in Anne x I; 
(b) subsidies contingent, whether solely or as one of several other conditions, upon the use of 
domestic over imported goods.  
For the purposes of point (a), subsidies shall be considered to be contingent in fact upon export 
performance when the facts demo nstrate that the granting of a subsidy, without having been 
made legally contingent upon export performance, is in fact tied to actual or anticipated 
exportation or export earnings. The mere fact that a subsidy is accorded to enterprises which 
export shall  not, for that reason alone, be considered to be an export subsidy within the meaning 
of this provision.  
5. Any determination of specificity under the provisions of this Article shall be clearly 
substantiated on the basis of positive evidence.  
Article 5  
Calculation of the amount of the countervailable subsidy  
The amount of countervailable subsidies shall be calculated in terms of the benefit conferred on 
the recipient which is found to exist during the investigation period for subsidisation. Normally this 
period shall be the most recent accounting year of the beneficiary, but may be any other period of 
at least six months prior to the initiation of the investigation for which reliable financial and other 
relevant data are available.  G/SCM/N/1/EU/2  
 
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  Article 6  
Calculation of benefit to the recipient  
As regards the calculation of benefit to the recipient, the following rules shall apply:  
(a) government provision of equity capital shall not be considered to confer a benefit, unless the 
investment can be regarded as inconsistent with  the usual investment practice, including for 
the provision of risk capital, of private investors in the territory of the country of origin 
and/or export;  
(b) a loan by a government shall not be considered to confer a benefit, unless there is a 
difference betw een the amount that the firm receiving the loan pays on the government loan 
and the amount that the firm would pay for a comparable commercial loan which the firm 
could actually obtain on the market. In that event the benefit shall be the difference 
betwee n those two amounts;  
(c) a loan guarantee by a government shall not be considered to confer a benefit, unless there 
is a difference between the amount that the firm receiving the guarantee pays on a loan 
guaranteed by the government and the amount that the fir m would pay for a comparable 
commercial loan in the absence of the government guarantee. In that case the benefit shall 
be the difference between those two amounts, adjusted for any differences in fees;  
(d) the provision of goods or services or purchase of goo ds by a government shall not be 
considered to confer a benefit, unless the provision is made for less than adequate 
remuneration or the purchase is made for more than adequate remuneration. The adequacy 
of remuneration shall be determined in relation to pr evailing market conditions for the 
product or service in question in the country of provision or purchase, including price, 
quality, availability, market­ ability, transportation and other conditions of purchase or sale.  
If there are no such prevailing mar ket terms and conditions for the product or service in question 
in the country of provision or purchase which can be used as appropriate benchmarks, the 
following rules shall apply:  
(i) the terms and conditions prevailing in the country concerned shall be adju sted, on the 
basis of actual costs, prices and other factors available in that country, by an 
appropriate amount which reflects normal market terms and conditions; or  
(ii) when appropriate, the terms and conditions prevailing in the market of another 
country or  on the world market which are available to the recipient shall be used.  
Article 7  
General provisions on calculation  
1. The amount of the countervailable subsidies shall be determined per unit of the subsidised 
product exported to the Union.  
In establishin g that amount, the following elements may be deducted from the total subsidy:  
(a) any application fee or other costs necessarily incurred in order to qualify for, or to 
obtain, the subsidy;  
(b) export taxes, duties or other charges levied on the export of the prod uct to the Union 
specifically intended to offset the subsidy.  
Where an interested party claims a deduction, it must prove that the claim is justified.  
2. Where the subsidy is not granted by reference to the quantities manufactured, produced, 
exported or tr ansported, the amount of countervailable subsidy shall be determined by allocating G/SCM/N/1/EU/2  
 
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  the value of the total subsidy, as appropriate, over the level of production, sales or exports of the 
products concerned during the in vestigation period for subsidi sation.  
3. Where the subsidy can be linked to the acquisition or future acquisition of fixed assets, the 
amount of the counte rvailable subsidy shall be calculated by spreading the subsidy across a period 
which reflects the normal depreciation of such assets in the industry concerned.  
The amount so calculated which is attributable to the investigation period, including that which 
derives from fixed assets acquired before that period, shall be allocated as described in 
paragraph  2. 
Where the assets are non -depreciatin g, the subsidy shall be valued as an interest -free loan, and 
be treated in accordance with Article 6(b).  
4. Where a subsidy cannot be linked to the acquisition of fixed assets, the amount of the 
benefit received during the investigation period shall in pri nciple be attributed to that period, and 
allocated as described in paragraph 2, unless special circumstances arise justifying attribution over 
a different period.  
Article 8  
Determination of injury  
1. A determination of injury shall be based on positive evi dence and shall involve an objective 
examination of:  
(a) the volume of the subsidised imports and the effect of the subsidised imports on 
prices in the Union market for like products; and  
(b) the consequent impact of those imports on the Union industry.  
2. With re gard to the volume of the subsidised imports, consideration shall be given to whether 
there has been a significant increase in subsidised imports, either in absolute terms or relative to 
production or consumption in the Union. With regard to the effect of the subsidised imports on 
prices, consideration shall be given to whether there has been significant price undercutting by the 
subsidised imports as compared with the price of a like product of the Union industry, or whether 
the effect of such imports is o therwise to depress prices to a significant degree or prevent price 
increases, which would otherwise have occurred, to a significant degree. No one or more of those 
factors can necessarily give decisive guidance.  
3. Where imports of a product from more tha n one country are simultaneously subject to 
countervailing duty investi gations, the effects of such imports shall be cumulatively assessed only 
if it is determined that:  
(a) the amount of countervailable subsidies established in relation to the imports from 
each country is more than de minimis as defined in Article 14(5) and the volume of 
imports from each country is not negligible; and  
(b) a cumulative assessment of the effects of the imports is appropriate in the light of the 
conditions of competition between imp orted products and the conditions of 
competition between the imported products and the like Union product.  
4. The examination of the impact of the subsidised imports on the Union industry concerned 
shall include an evaluation of all relevant economic facto rs and indices having a bearing on the 
state of the industry, including the fact that an industry is still in the process of recovering from 
the effects of past subsidisation or dumping; the magnitude of the amount of countervailable 
subsidies; actual and potential decline in sales, profits, output, market share, productivity, return 
on investments and utilisation of capacity; factors affecting Union prices; actual and potential 
negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or 
investments and, in the case of agriculture, whether there has been an increased burden on G/SCM/N/1/EU/2  
 
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  government support programmes. This list is not exhaustive, nor can any one or more of these 
factors necessarily give decisive guidance.  
5. It mu st be demonstrated, from all the relevant evidence presented in relation to 
paragraph  1, that the subsidised imports are causing injury. Specifically, that shall entail 
demonstrating that the volume and/or price levels identified pursuant to paragraph 2 ar e 
responsible for an impact on the Union industry as provided for in paragraph 4, and that that 
impact exists to a degree which enables it to be classified as material.  
6. Known factors, other than the subsidised imports, which are injuring the Union indus try at 
the same time shall also be examined to ensure that the injury caused by those other factors is 
not attributed to the subsidised imports pursuant to paragraph 5. Factors which may be considered 
in that respect shall include: the volume and prices of  non- subsidised imports; contraction in 
demand or changes in the patterns of consumption; restrictive trade practices of, and competition 
between, third -country and Union producers; developments in technology; and the export 
performance and productivity o f the Union industry.  
7. The effect of the subsidised imports shall be assessed in relation to the production of the 
Union industry of the like product when available data permit the separate identification of that 
production on the basis of criteria such as the production process, producers' sales and profits. If 
such separate identification of that production is not possible, the effects of the subsidised imports 
shall be assessed by examination of the production of the narrowest group or range of product s, 
including the like product, for which the necessary information can be provided.  
8. A determination of a threat of material injury shall be based on facts and not merely on 
allegations, conjecture or remote possibility. The change in circumstances which  would create a 
situation in which the subsidy would cause injury must have been clearly foreseen and must be 
imminent.  
In making a determination regarding the existence of a threat of material injury, consideration 
should be given to factors such as:  
(a) the nature of the subsidy or subsidies in question and the trade effects likely to arise 
therefrom;  
(b) a significant rate of increase of subsidised imports into the Union market indicating 
the likelihood of substantially increased imports;  
(c) whether there is suffic ient freely disposable capacity on the part of the exporter or an 
imminent and substantial increase in such capacity indicating the likelihood of 
substantially increased subsidised exports to the Union, account being taken of the 
availability of other expo rt markets to absorb any additional exports;  
(d) whether imports are entering at prices that would, to a significant degree, depress 
prices or prevent price increases which otherwise would have occurred, and would 
probably increase demand for further imports;  
(e) inventories of the product being investigated.  
No one of the factors listed above by itself can necessarily give decisive guidance, but the totality 
of the factors considered shall be such as to lead to the conclusion that further subsidised exports 
are im minent and that, unless protective action is taken, material injury will occur.  
 
Article 9  
Definition of Union industry  
1. For the purposes of this Regulation, the term 'Union industry ' shall be interpreted as 
referring to the Union producers as a whole of  the like products or to those of them whose 
collective output of the products constitutes a major proportion, as defined in Article  10(6), of the 
total Union production of those products, except that:  G/SCM/N/1/EU/2  
 
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  (a) when producers are related to the exporters or importe rs, or are themselves 
importers of the allegedly subsidised product, the term 'Union industry ' may be 
interpreted as referring to the rest of the producers;  
(b) in exceptional circumstances, the territory of the Union may, for the production in 
question, be di vided into two or more competitive markets and the producers within 
each market may be regarded as a separate industry if:  
(i) the producers within such a market sell all or almost all of their production of 
the product in question in that market; and  
(ii) the dema nd in that market is not to any substantial degree met by producers of 
the product in question located elsewhere in the Union.  
In such circumstances, injury may be found to exist even where a major portion of the 
total Union industry is not injured, provid ed that there is a concentration of subsidised 
imports into such an isolated market and provided further that the subsidised imports 
are causing injury to the producers of all or almost all of the production within such a 
market.  
2. For the purpose of para graph 1, producers shall be considered to be related to exporters or 
importers only if:  
(a) one of them directly or indirectly controls the other;  
(b) both of them are directly or indirectly controlled by a third person; or  
(c) together they directly or indirectly con trol a third person, provided that there are 
grounds for believing or suspecting that the effect of the relationship is such as to 
cause the producer concerned to behave differently from non -related producers.  
For the purpose of this paragraph, one shall b e deemed to control another when the former is 
legally or operationally in a position to exercise restraint or direction over the latter.  
3. Where the Union industry has been interpreted as referring to the producers in a certain 
region, the exporters or t he government granting countervailable subsidies shall be given an 
opportunity to offer undertakings pursuant to Article 13 in respect of the region concerned. In such 
cases, when evaluating the Union interest of the measures, special account shall be take n of the 
interest of the region. If an adequate undertaking is not offered promptly or if the situations set 
out in Article 13(9) and (10) apply, a provisional or definitive countervailing duty may be imposed 
in respect of the Union as a whole. In such cas es the duties may, if practicable, be limited to 
specific producers or exporters.  
4. The provisions of Article 8(7) shall be applicable to this Article.  
Article 10  
Initiation of proceedings  
1. Except as provided for in paragraph 8, an investigation to determi ne the existence, degree 
and effect of any alleged subsidy shall be initiated upon a written complaint by any natural or legal 
person, or any association not having legal personality, acting on behalf of the Union industry.  
The complaint may be submitted t o the Commission or to a Member State, which shall forward it 
to the Commission. The Commission shall send Member States a copy of any complaint it receives. 
The complaint shall be deemed to have been lodged on the first working day following its delivery 
to the Commission by registered mail or the issuing of an acknowledgement of receipt by the 
Commission.  G/SCM/N/1/EU/2  
 
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  Where, in the absence of any complaint, a Member State is in possession of sufficient evidence of 
subsidisation and of resultant injury to the Union ind ustry, it shall immediately communicate such 
evidence to the Commission.  
2. A complaint under paragraph 1 shall include sufficient evidence of the existence of 
countervailable subsidies (including, if possible, of their amount), injury and a causal link betwe en 
the allegedly subsidised imports and the alleged injury. The complaint shall contain such 
information as is reasonably available to the complainant on the following:  
(a) the identity of the complainant and a description of the volume and value of the Union 
production of the like product by the complainant. Where a written complaint is made 
on behalf of the Union industry, the complaint shall identify the industry on behalf of 
which the complaint is made by a list of all known Union producers of the like prod uct 
(or associations of Union producers of the like product) and, to the extent possible, a 
description of the volume and value of Union production of the like product accounted 
for by such producers;  
(b) a complete description of the allegedly subsidised prod uct, the names of the country 
or countries of origin or export in question, the identity of each known exporter or 
foreign producer and a list of known persons importing the product in question;  
(c) evidence with regard to the existence, amount, nature and cou ntervailability of the 
subsidies in question;  
(d) the changes in the volume of the allegedly subsidised imports, the effect of those 
imports on prices of the like product in the Union market and the consequent impact 
of the imports on the Union industry, as de monstrated by relevant factors and indices 
having a bearing on the state of the Union industry, such as those listed in Article 8(2) 
and (4).  
3. The Commission shall, as far as possible, examine the accuracy and adequacy of the 
evidence provided in the compla int, to determine whether there is sufficient evidence to justify the 
initiation of an investigation.  
4. An investigation may be initiated in order to determine whether or not the alleged subsidies 
are 'specific ' within  the meaning of Article 4(2) and (3).  
5. An investigation may also be initiated in respect of measures of the type listed in Annex IV, 
to the extent that they contain an element of subsidy as defined by Article 3, in order to determine 
whether the measures in question fully conform to the provision s of that Annex.  
6. An investigation shall not be initiated pursuant to paragraph 1 unless it has been 
determined, on the basis of an examination as to the degree of support for, or opposition to, the 
complaint expressed by Union producers of the like product , that the complaint has been made by, 
or on behalf of, the Union industry. The complaint shall be considered to have been made by, or 
on behalf of, the Union industry if it is supported by those Union producers whose collective output 
constitutes more tha n 50% of the total production of the like product produced by that portion of 
the Union industry expressing either support for or opposition to the complaint. However, no 
investigation shall be initiated where Union producers expressly supporting the com plaint account 
for less than 25 % of total production of the like product produced by the Union industry.  
7. The authorities shall avoid, unless a decision has been taken to initiate an investigation, any 
publicising of the complaint seeking the initiation of an  investigation. However, as soon as possible 
after receipt of a properly documented complaint pursuant to this Article, and in any event before 
the initiation of an investigation, the Commission shall notify the country of origin and/or export 
concerned, w hich shall be invited for consultations with the aim of clarifying the situation as to 
matters referred to in paragraph 2 and arriving at a mutually agreed solution.  
8. If, in special circumstances, the Commission decides to initiate an investigation without 
having received a written complaint by, or on behalf of, the Union industry for the initiation of such 
an investigation, this shall be done on the basis of sufficient evidence of the existence of G/SCM/N/1/EU/2  
 
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  countervailable subsidies, injury and causal link, as descri bed in paragraph 2, to justify such 
initiation. The Commission shall provide information to the Member States once it has determined 
the need to initiate such an investigation.  
9. The evidence of both subsidies and injury shall be considered simultaneously in  the decision 
on whether or not to initiate an investigation. A complaint shall be rejected where there is 
insufficient evidence of either countervailable subsidies or of injury to justify proceeding with the 
case. Proceedings shall not be initiated agains t countries whose imports repr esent a market share 
of below 1 %, unless such countries collectively account for 3% or more of Union consumption.  
10. The complaint may be withdrawn prior to initiation, in which case it shall be considered not 
to have been lodged . 
11. Where it is apparent that there is sufficient evidence to justify initiating proceedings, the 
Commission shall do so within 45 days of the date on which the complaint was lodged and shall 
publish a notice in the Official Journal of the European Union. Wh ere insufficient evidence has been 
presented, the complainant shall be so informed within 45 days of the date on which the complaint 
is lodged with the Commission. The Commission shall provide information to the Member States 
concerning its analysis of the  complaint normally within 21 days of the date on which the 
complaint is lodged with the Commission.  
12. The notice of initiation of the proceedings shall announce the initiation of an investigation, 
indicate the product and countries concerned, give a summary  of the information received, and 
provide that all relevant information is to be communicated to the Commission.  
It shall state the periods within which interested parties may make themselves known, present 
their views in writing and submit information, if  such views and information are to be taken into 
account during the investigation. It shall also state the period within which interested parties may 
apply to be heard by the Commission in accordance with Article 11(5).  
13. The Commission shall advise the expo rters, importers and representative associations of 
importers or exporters known to it to be concerned, as well as the country of origin and/or export 
and the complainants, of the initiation of the proceedings and, with due regard to the protection of 
confidential information, provide the full text of the written complaint referred to in paragraph 1 to 
the known exporters and to the authorities of the country of origin and/or export, and make it 
available upon request to other interested parties involved. W here the number of exporters 
involved is particularly high, the full text of the written complaint may instead be provided only to 
the authorities of the country of origin and/or export or to the relevant trade association.  
14. A countervailing duty investigat ion shall not hinder the procedures of customs clearance.  
Article 11  
The investigation  
1. Following the initiation of proceedings, the Commission, acting in cooperation with the 
Member States, shall commence an investigation at Union level. Such an investigat ion shall cover 
both subsidisation and injury, and they shall be investigated simultaneously.  
For the purpose of a representative finding, an investigation period shall be selected which in the 
case of subsidisation shall, normally, cover the investigation  period provided for in Article 5.  
Information relating to a period subsequent to the investigation period shall not, normally, be 
taken into account.  
2. Parties receiving questionnaires used in a countervailing duty investigation shall be given at 
least 30 d ays to reply. The time limit for exporters shall be counted from the date of receipt of the 
questionnaire, which for this purpose shall be deemed to have been received one week from the 
day on which it was sent to the respondent or transmitted to the appro priate diplomatic 
representative of the country of origin and/or export. An extension to the 30 -day period may be G/SCM/N/1/EU/2  
 
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  granted, due account being taken of the time limits of the investigation, provided that the party 
shows due cause for such an extension in ter ms of its particular circumstances.  
3. The Commission may request Member States to supply information, and Member States 
shall take whatever steps are necessary in order to give effect to such requests.  
They shall send to the Commission the information reques ted together with the results of all 
inspections, checks or investigations carried out.  
Where that information is of general interest or where its transmission has been requested by a 
Member State, the Commission shall forward it to the Member States, prov ided that it is not 
confidential, in which case a non -confidential summary shall be forwarded.  
4. The Commission may request Member States to carry out all necessary checks and 
inspections, particularly amongst importers, traders and Union producers, and to c arry out 
investigations in third countries, provided that the firms concerned give their consent and that the 
government of the country in question has been officially notified and raises no objection.  
Member States shall take whatever steps are necessary in order to give effect to such requests 
from the Commission.  
Officials of the Commission shall be authorised, if the Commission or a Member State so requests, 
to assist the officials of Member States in carrying out their duties.  
5. The interested parties wh ich have made themselves known in accordance with the second 
subparagraph of Article 10(12), shall be heard if they have, within the period prescribed in the 
notice published in the Official Journal of the European Union , made a written request for a heari ng 
showing that they are an interested party likely to be affected by the result of the proceedings and 
that there are particular reasons why they should be heard.  
6. Opportunities shall, on request, be provided for the importers, exporters and the 
complainan ts, which have made themselves known in accordance with the second subparagraph of 
Article 10(12), and the government of the country of origin and/or export, to meet those parties 
having adverse interests, so that opposing views may be presented and rebutt al arguments 
offered.  
Provision of such opportunities shall take account of the need to preserve confidentiality and of the 
convenience to the parties.  
There shall be no obligation on any party to attend a meeting, and failure to do so shall not be 
prejudi cial to that party's case.  
Oral information provided under this paragraph shall be taken into account by the Commission in 
so far as it is subsequently confirmed in writing.  
7. The complainants, the government of the country of origin and/or export, importers  and 
exporters and their representative associations, users and consumer organisations, which have 
made themselves known in accordance with the second subparagraph of Article 10(12), may, upon 
written request, inspect all information made available to the Commission by any party to an 
investigation, as distinct from internal documents prepared by the authorities of the Union or its 
Member States, which is relevant to the presentation of their cases and is not confidential within 
the meaning of Article 29, a nd is used in the investigation.  
Such parties may respond to such information and their comments shall be taken into 
consideration wherever they are sufficiently substantiated in the response.  
8. Except in circumstances provided for in Article 28, the informa tion which is supplied by 
interested parties and upon which findings are based shall be examined for accuracy as far as 
possible.  G/SCM/N/1/EU/2  
 
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  9. For proceedings initiated pursuant to Article 10(11), an investigation shall, whenever 
possible, be concluded within one year.  In any event, such investigations shall in all cases be 
concluded within 13 months of their initiation, in accordance with the findings made pursuant to 
Article 13 for undertakings or the findings made pursuant to Article 15 for definitive action.  
10. Through out the investigation, the Commission shall afford the country of origin and/or 
export a reasonable opportunity to continue consultations with a view to clarifying the factual 
situation and arriving at a mutually agreed solution.  
Article 12  
Provisional mea sures  
1. Provisional duties may be imposed if:  
(a) proceedings have been initiated in accordance with Article 10;  
(b) a notice has been given to that effect and interested parties have been given an 
adequate opportunity to submit information and make comments in acco rdance with 
the second subparagraph of Article 10(12);  
(c) a provisional affirmative determination has been made that the imported product 
benefits from countervailable subsidies and of consequent injury to the Union 
industry; and  
(d) the Union interest calls for intervention to prevent such injury.  
The provisional duties shall be imposed no earlier than 60 days from the initiation of the 
proceedings but no later than nine months from the initiation of the proceedings.  
The amount of the provisional countervailing d uty shall not exceed the total amount of 
countervailable subsidies as provisionally established, but it should be less than this amount if 
such lesser duty would be adequate to remove the injury to the Union industry.  
2. Provisional duties shall be secured by  a guarantee and the release of the products concerned 
for free circulation in the Union shall be conditional upon the provision of such a guarantee.  
3. The Commission shall adopt provisional measures in accordance with the procedure referred 
to in Article 25 (4). 
4. Where a Member State requests immediate intervention by the Commission and where the 
conditions of the first and second subparagraphs of paragraph 1 are met, the Commission shall, 
within a maximum of five working days from receipt of the request, deci de whether a provisional 
countervailing duty shall be imposed.  
5. Provisional countervailing duties shall be imposed for a maximum period of four months.  
Article 13  
Undertakings  
1. On the condition that a provisional affirmative determination of subsidisation an d injury has 
been made, the Commission may in accordance with the advisory procedure referred to in 
Article  25(2) accept satisfactory voluntary undertakings offers under which:  
(a) the country of origin and/or export agrees to eliminate or limit the subsidy or  take 
other measures concerning its effects; or  G/SCM/N/1/EU/2  
 
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  (b) any exporter undertakes to revise its prices or to cease exports to the area in question 
as long as such exports benefit from countervailable subsidies, so that the 
Commission is satisfied that the injurious effect of the subsidies is thereby eliminated.  
In such a case and as long as such undertakings are in force, the provisional duties imposed by 
the Commission in accordance with Article 12(3) and the definitive duties imposed in accordance 
with Article 15(1 ) shall not apply to the relevant imports of the product concerned manufactured 
by the companies referred to in the Commission decision accepting undertakings, as subsequently 
amended.  
Price increases under such undertakings shall not be higher than necess ary to offset the amount of 
countervailable subsidies, and should be less than the amount of countervailable subsidies if such 
increases would be adequate to remove the injury to the Union industry.  
2. Undertakings may be suggested by the Commission, but no c ountry or exporter shall be 
obliged to enter into such an undertaking. The fact that countries or exporters do not offer such 
undertakings, or do not accept an invitation to do so, shall in no way prejudice consideration of the 
case. 
However, it may be det ermined that a threat of injury is more likely to be realised if the subsidised 
imports continue. Undertakings shall not be sought or accepted from countries or exporters unless 
a provisional affirmative determination of subsidisation and injury caused by such subsidisation 
has been made.  
Save in exceptional circumstances, undertakings may not be offered later than the end of the 
period during which representations may be made pursuant to Article 30(5).  
3. Undertakings offered need not be accepted if their acc eptance is considered impractical, 
such as where the number of actual or potential exporters is too great, or for other reasons, 
including reasons of general policy. The exporter and/ or the country of origin and/or export 
concerned may be provided with th e reasons for which it is proposed to reject the offer of an 
undertaking and may be given an opportunity to make comments thereon. The reasons for 
rejection shall be set out in the definitive decision.  
4. Parties which offer an undertaking shall be required t o provide a non -confidential version of 
that undertaking, so that it may be made available to interested parties to the investigation.  
5. Where undertakings are accepted the investigation shall be terminated. The Commission 
shall terminate the investi gation i n accordance with the examination procedure referred to in 
Article  25(3).  
6. If the undertakings are accepted, the investigation of subsidisation and injury shall normally 
be completed. In such a case, if a negative determination of subsidisation or injury is  made, the 
undertaking shall automatically lapse, except in cases where such a determination is due in large 
part to the existence of an undertaking. In such cases, it may be required that an undertaking be 
maintained for a reasonable period.  
In the event that an affirmative determination of subsidisation and injury is made, the undertaking 
shall continue in accordance with its terms and the provisions of this Regulation.  
7. The Commission shall require any country or exporter from whom undertakings have been 
accepted to provide, periodically, information relevant to the fulfilment of that undertaking, and to 
permit verification of pertinent data. Non -compliance with such requirements shall be construed as 
a breach of the undertaking.  
8. Where undertakings are acc epted from certain exporters during the course of an 
investigation, they shall, for the purpose of Articles 18, 19, 20 and 22, be deemed to take effect 
from the date on which the investigation is concluded for the country of origin and/or export.  
9. In the ca se of breach or withdrawal of undertakings by any party to the undertaking, or in 
the case of withdrawal of acceptance of the undertaking by the Commission, the acceptance of the G/SCM/N/1/EU/2  
 
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  undertaking shall be withdrawn by the Commission, as appropriate, and the pro visional duty which 
has been imposed by the Commission in accordance with Article 12 or the definitive duty which 
has been imposed in accordance with Article 15(1) shall apply, provided that the exporter 
concerned or the country of origin and/or export has , except in the case of withdrawal of the 
undertaking by that exporter or country, been given an opportunity to comment. The Commission 
shall provide information to the Member States when it decides to withdraw an undertaking.  
Any interested party or Membe r State may submit information, showing prima facie evidence of a 
breach of an undertaking. The subsequent assessment of whether or not a breach of an 
undertaking has occurred shall normally be concluded within six months, but in no case later than 
nine mo nths following a duly substantiated  request.  
The Commission may request the assistance of the competent authorities of the Member States in 
the monitoring of undertakings.  
10. A provisional duty may be imposed in accordance with Article 12 on the basis of the best 
information available, where there is reason to believe that an undertaking is being breached, or in 
the case of breach or withdrawal of an undertaking, where the investigation which led to the 
undertaking has not been concluded.  
Article 14  
Terminatio n without measures  
1. Where the complaint is withdrawn, proceedings may be terminated unless such termination 
would not be in the Union interest.  
2. Where protective measures are unnecessary, the investigation or proceedings shall be 
terminated. The Commission s hall terminate the investigation in accordance with the examination 
procedure referred to in Article 25(3).  
3. There shall be immediate termination of the proceedings where it is determined that the 
amount of countervailable subsidies is de minimis , in accord ance with paragraph 5, or where the 
volume of subsidised imports, actual or potential, or the injury, is negligible.  
4. For proceedings initiated pursuant to Article 10(11), injury shall normally be regarded as 
negligible where the market share of the imports  is less than the amounts set out in Article 10(9). 
With regard to investigations concerning imports from developing countries, the volume of 
subsidised imports shall also be considered negligib le if it represents less than 4 % of the total 
imports of the l ike product in the Union, unless imports from developing countries whose individual 
shares of tota l imports represent less than 4 % colle ctively account for more than 9 % of the total 
imports of the like product in the Union.  
5. The amount of the countervailabl e subsidies shall be considered to be de minimis if such 
amount is less than 1 % ad valorem, except where, as regards investigations concerning imports 
from developing countries, the de minimis threshold shall be 2 % ad valorem, provided that it is 
only the investigation that shall be terminated where the amount of the countervailable subsidies 
is below the relevant de minimis level for individual exporters, which shall remain subject to the 
proceedings and may be reinvestigated in any subsequent review carri ed out for the country 
concerned pursuant to Articles 18 and 19.  
Article 15  
Imposition of definitive duties  
1. Where the facts as finally established show the existence of countervailable subsidies and 
injury caused thereby, and the Union interest calls for i ntervention in accordance with Article 31, a 
definitive countervailing duty shall be imposed by the Commission acting in accordance with the 
examination procedure referred to in Article 25(3). Where provisional duties are in force, the 
Commission shall ini tiate that procedure no later than one month before the expiry of such duties.  G/SCM/N/1/EU/2  
 
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  No measures shall be imposed if the subsidy or subsidies are withdrawn or it has been 
demonstrated that the subsidies no longer confer any benefit on the exporters involved.  
The amount of the countervailing duty shall not exceed the amount of countervailable subsidies 
established, but it should be less than the total amount of countervailable subsidies if such lesser 
duty would be adequate to remove the injury to the Union indust ry. 
2. A countervailing duty shall be imposed in the appropriate amounts in each case, on a non -
discriminatory basis, on imports of a product from all sources found to benefit from countervailable 
subsidies and causing injury, except for imports from those so urces from which undertakings 
under the terms of this Regulation have been accepted.  
The Regulation imposing the duty shall specify the duty for each supplier, or, if that is 
impracticable, the supplying country concerned.  
3. When the Commission has limited i ts investigation in accordance with Article 27, any 
countervailing duty applied to imports from exporters or producers which have made themselves 
known in accordance with Article 27 but were not included in the investigation shall not exceed the 
weighted a verage amount of countervailable subsidies established for the parties in the sample.  
For the purpose of this paragraph, the Commission shall disregard any zero and de minimis 
amounts of countervailable subsidies and amounts of countervailable subsidies es tablished in the 
circumstances referred to in Article 28.  
Individual duties shall be applied to imports from any exporter or producer for which an individual 
amount of subsidi­ sation has been calculated as provided for in Article 27.  
Article 16  
Retroactiv ity 
1. Provisional measures and definitive countervailing duties shall only be applied to products 
which enter free circulation after the time when the measure taken pursuant to Article 12(1) or 
Article  15(1), as the case may be, enters into force, subject to  the exceptions set out in this 
Regulation.  
2. Where a provisional duty has been applied and the facts as finally established show the 
existence of countervailable subsidies and injury, the Commission shall decide, irrespective of 
whether a definitive counter vailing duty is to be imposed, what proportion of the provisional duty 
is to be definitively collected.  
For that purpose, 'injury ' shall not include material delay of the establishment of a Union industry, 
nor threat of material injury, except where it is found that this would, in the absence of provisional 
measures, have developed into material injury. In all other cases involving such threat or delay, 
any provisional amounts shall be released and definitive duties can only be imposed from the date 
on whic h a final determination of threat or material delay is  made.  
3. If the definitive countervailing duty is higher than the provisional duty, the difference shall 
not be collected. If the definitive duty is lower than the provisional duty, the duty shall be 
recalculated. Where a final determination is negative, the provisional duty shall not be confirmed.  
4. A definitive countervailing duty may be levied on products which were entered for 
consumption no more than 90 days prior to the date of application of provision al measures but not 
prior to the initiation of the investigation, provided that:  
(a) the imports have been registered in accordance with Article 24(5);  
(b) the importers concerned have been given an opportunity to comment by the 
Commission;  G/SCM/N/1/EU/2  
 
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  (c) there are critical circ umstances where for the subsidised product in question injury 
which is difficult to repair is caused by massive imports in a relatively short period of a 
product benefiting from countervailable subsidies under the terms of this Regulation; 
and 
(d) it is deemed  necessary, in order to preclude the recurrence of such injury, to assess 
countervailing duties retroactively on those imports.  
5. In cases of breach or withdrawal of undertakings, definitive duties may be levied on goods 
entered for free circulation no more than 90 days before the application of provisional measures, 
provided that the imports have been registered in accordance with Article 24(5) and that any such 
retroactive assessment shall not apply to imports entered before the breach or withdrawal of the 
undertaking.  
Article 17  
Duration  
A countervailing measure shall remain in force only as long as, and to the extent that, it is 
necessary to counteract the countervailable subsidies which are causing injury.  
Article 18  
Expiry reviews  
1. A definitive countervai ling measure shall expire five years from its imposition or five years 
from the date of the most recent review which has covered both subsidisation and injury, unless it 
is determined in a review that the expiry would be likely to lead to a continuation or  recurrence of 
subsidisation and injury. Such an expiry review shall be initiated on the initiative of the 
Commission, or upon a request made by or on behalf of Union producers, and the measure shall 
remain in force pending the outcome of that review.  
2. An expiry review shall be initiated where the request contains sufficient evidence that the 
expiry of the measures would be likely to result in a continuation or recurrence of subsidisation 
and injury. Such a likelihood may, for example, be indicated by eviden ce of continued 
subsidisation and injury or evidence that the removal of injury is partly or solely due to the 
existence of measures or evidence that the circumstances of the exporters, or market conditions, 
are such that they would indicate the likelihood  of further injurious subsidisation.  
3. In carrying out investigations under this Article, the exporters, importers, the country of 
origin and/or export and the Union producers shall be provided with the opportunity to amplify, 
rebut or comment on the matters  set out in the review request, and conclusions shall be reached 
with due account taken of all relevant and duly documented evidence presented in relation to the 
question as to whether the expiry of measures would be likely, or unlikely, to lead to the 
continuation or recurrence of subsidisation and injury.  
4. A notice of impending expiry shall be published in the Official Journal of the European Union 
at an appropriate time in the final year of the period of application of the measures as defined in 
this Arti cle. Thereafter, the Union producers shall, no later than three months before the end of 
the five -year period, be entitled to lodge a review request  in accordance with paragraph 2. 
A notice announcing the actual expiry of measures under this Article shall also be published.  
Article 19  
Interim reviews  
1. The need for the continued imposition of measures may also be reviewed, where warranted, 
on the initiative of the Commission or at the request of a Member State or, provided that a 
reasonable period of time of at least one year has elapsed since the imposition of the definitive 
measure, upon a request by any exporter, importer or by the Union producers or the country of G/SCM/N/1/EU/2  
 
- 20 - 
 
  origin and/or export which contains sufficient evidence substantiating the need for such an i nterim 
review.  
2. An interim review shall be initiated where the request contains sufficient evidence that the 
continued imposition of the measure is no longer necessary to offset the countervailable subsidy 
and/or that the injury would be unlikely to continu e or recur if the measure were removed or 
varied, or that the existing measure is not, or is no longer, sufficient to counteract the 
countervailable subsidy which is causing injury.  
3. Where the countervailing duties imposed are less than the amount of counte rvailable 
subsidies found, an interim review may be initiated if the Union producers or any other interested 
party submit, normally within two years from the entry into force of the measures, sufficient 
evidence that, after the original investigation perio d and prior to or following the imposition of 
measures, export prices have decreased or that there has been  no movement,  or insufficient 
movement of resale prices of the imported product in the Union. If the investigation proves the 
allegations to be corre ct, countervailing duties may be increased to achieve the price increase 
required to remove injury. However, the increased duty level shall not exceed the amount of the 
countervailable subsidies.  
The interim review may also be initiated, under the conditio ns set out above, at the initiative of 
the Commission or at the request of a Member State.  
4. In carrying out investigations pursuant to this Article, the Commission may, inter alia, 
consider whether the circumstances with regard to subsidisation and injury h ave changed 
significantly, or whether existing measures are achieving the intended results in removing the 
injury previously determined under Article 8. In those respects, account shall be taken in the final 
determination of all relevant and duly documente d evidence.  
Article 20  
Accelerated reviews  
Any exporter whose exports are subject to a definitive countervailing duty but which was not 
individually investigated during the original investigation for reasons other than a refusal to 
cooperate with the Commi ssion, shall be entitled, upon request, to an accelerated review in order 
that the Commission may promptly establish an individual counter­ vailing duty rate for that 
exporter.  
Such a review shall be initiated after Union producers have been given an oppor tunity to  comment.  
Article 21  
Refunds  
1. Notwithstanding Article 18, an importer may request reimbursement of duties collected 
where it is shown that the amount of countervailable subsidies, on the basis of which duties were 
paid, has been either eliminated o r reduced to a level which is below the level of the duty in force.  
2. In requesting a refund of countervailing duties, the importer shall submit an application to 
the Commission. The application shall be submitted via the Member State in the territory of whi ch 
the products were released for free circulation, within six months of the date on which the amount 
of the definitive duties to be levied was duly determined by the competent authorities or of the 
date on which a decision was made definitively to collect  the amounts secured by way of 
provisional duty. Member States shall forward the request to the Commission forthwith.  
3. An application for refund shall be considered to be duly supported by evidence only where it 
contains precise information on the amount of  refund of countervailing duties claimed and all 
customs documentation relating to the calculation and payment of such amount. It shall also 
include evidence, for a representative period, of the amount of countervailable subsidies for the 
exporter or produ cer to which the duty applies. In cases where the importer is not associated with 
the exporter or producer concerned and such information is not immediately available, or where G/SCM/N/1/EU/2  
 
- 21 - 
 
  the exporter or producer is unwilling to release it to the importer, the applic ation shall contain a 
statement from the exporter or producer that the amount of countervailable subsidies has been 
reduced or eliminated, as specified in this Article, and that the relevant supporting evidence will be 
provided to the Commission. Where suc h evidence is not forthcoming from the exporter or 
producer within a reasonable period of time the application shall be rejected.  
4. The Commission shall decide whether and to what extent the application should be granted, 
or it may decide at any time to init iate an interim review, whereupon the information and findings 
from such a review, carried out in accordance with the provisions applicable for such reviews, shall 
be used to determine whether and to what extent a refund is justified.  
Refunds of duties sha ll normally take place within 12 months and in no circumstances more than 
18 months after the date on which a request for a refund, duly supported by evidence, has been 
made by an importer of the product subject to the countervailing duty.  
The payment of a ny refund authorised should normally be made by Member States within 90 days 
of the decision referred to in the first subparagraph.  
Article 22  
General provisions on reviews and refunds  
1. The relevant provisions of this Regulation with regard to procedures an d the conduct of 
investigations, excluding those relating to time limits, shall apply to any review carried out 
pursuant to Articles 18, 19 and 20.  
Reviews carried out pursuant to Articles 18 and 19 shall be carried out expeditiously and shall 
normally be concluded within 12 months of the date of initiation of the review. In any event, 
reviews pursuant to Articles 18 and 19 shall in all cases be concluded within 15 months of  
initiation.  
Reviews pursuant to Article 20 shall in all cases be concluded within n ine months of the date of  
initiation.  
If a review carried out pursuant to Article 18 is initiated while a review under Article 19 is ongoing 
in the same proceedings, the review pursuant to Article 19 shall be concluded at the same time as 
provided for abov e for the review pursuant to Article 18.  
If the investigation is not completed within the deadlines specified in the second, third and fourth 
subparagraphs, the measures shall:  
(a) expire in investigations pursuant to Article 18;  
(b) expire in the case of investig ations carried out pursuant to Articles 18 and 19 in 
parallel, where either the investi­ gation pursuant to Article 18 was initiated while a 
review under Article 19 was ongoing in the same proceedings or where such reviews 
were initiated at the same time; or 
(c) remain unchanged in investigations pursuant to Articles 19 and 20.  
A notice announcing the actual expiry or maintenance of the measures pursuant to this paragraph 
shall be published in the Official Journal of the European Union . 
2. Reviews pursuant to Arti cles 18, 19 and 20 shall be initiated by the Commission. 
The Commission shall decide whether or not to initiate reviews pursuant to Article 18 in 
accordance with the advisory procedure referred to in Article 25(2). The Commission shall also 
provide informa tion to the Member States once an operator or a Member State has submitted a 
request justifying the initiation of a review pursuant to Articles 19 and 20 and the Commission has 
completed its analysis thereof, or once the Commission has itself determined th at the need for the 
continued imposition of measures should be reviewed.  G/SCM/N/1/EU/2  
 
- 22 - 
 
  3. Where warranted by reviews, measures shall, in accordance with the examination procedure 
referred to in Article 25(3), be repealed or maintained pursuant to Article 18, or repealed, 
maintained or amended pursuant to Articles 19 and 20.  
4. Where measures are repealed for individual exporters, but not for the country as a whole, 
such exporters shall remain subject to the proceedings and may be reinvestigated in any 
subsequent review carried  out for that country pursuant to this Article.  
5. Where a review of measures pursuant to Article 19 is in progress at the end of the period of 
application of measures as defined in Article 18, the measures shall also be investigated under the 
provisions of A rticle 18.  
6. In all review or refund investigations carried out pursuant to Articles 18 to 21, the 
Commission shall, provided that circumstances have not changed, apply the same methodology as 
in the investigation which led to the duty, with due account bein g taken of Articles 5, 6, 7 and 27.  
Article 23  
Circumvention  
1. Countervailing duties imposed pursuant to this Regulation may be extended to imports from 
third countries of the like product, whether slightly modified or not, or to imports of the slightly 
modified like product from the country subject to measures, or parts thereof, when circumvention 
of the measures in force is taking place.  
2. Countervailing duties not exceeding the residual countervailing duty imposed in accordance 
with Article 15(2) may be exte nded to imports from companies benefiting from individual duties in 
the countries subject to measures when circumvention of the measures in force is taking place.  
3. Circumvention shall be defined as a change in the pattern of trade between third countries 
and the Union or between individual companies in the country subject to measures and the Union, 
which stems from a practice, process or work for which there is insufficient due cause or economic 
justification other than the imposition of the duty, and where there is evidence of injury or that the 
remedial effects of the duty are being undermined in terms of the prices and/or quantities of the 
like product and that the imported like product and/or parts thereof still benefit from the subsidy.  
The practice, pro cess or work referred to in the first subparagraph includes, inter alia:  
(a) the slight modification of the product concerned to make it fall under customs codes 
which are normally not subject to the measures, provided that the modification does 
not alter its essential characteristics;  
(b) the consignment of the product subject to measures via third countries;  
(c) the reorganisation by exporters or producers of their patterns and channels of sales in 
the country subject to measures in order to eventually have their pro ducts exported to 
the Union through producers benefiting from an individual duty rate lower than that 
applicable to the products of the manufacturers.  
4. Investigations shall be initiated pursuant to this Article on the initiative of the Commission or 
at the request of a Member State or of any interested party on the basis of sufficient evidence 
regarding the factors set out in paragraphs 1, 2 and 3. Initiations shall be made by Commission 
Regulation which may also instruct customs authorities to subject impor ts to registration in 
accordance with Article 24(5) or to request guarantees. The Commission shall provide information 
to the Member States once an interested party or a Member State has submitted a request 
justifying the initiation of an investigation and  the Commission has completed its analysis thereof, 
or where the Commission has itself determined that there is a need to initiate an investigation.  
Investigations shall be carried out by the Commission. The Commission may be assisted by 
customs authoritie s and the investigations shall be concluded within nine months.  G/SCM/N/1/EU/2  
 
- 23 - 
 
  Where the facts as finally ascertained justify the extension of measures, this shall be done by the 
Commission acting in accordance with the examination procedure referred to in Article 25(3).  
The extension shall take effect from the date on which registration was imposed pursuant to 
Article  24(5) or on which guarantees were requested. The relevant procedural provisions of this 
Regulation with regard to the initiation and the conduct of investi gations shall apply pursuant to 
this Article.  
5. Imports shall not be subject to registration pursuant to Article 24(5) or measures where 
they are traded by companies which benefit from exemptions.  
6. Requests for exemptions duly supported by evidence shall be s ubmitted within the time 
limits established in the Commission Regulation initiating the investigation.  
Where the circumventing practice, process or work takes place outside the Union, exemptions may 
be granted to producers of the product concerned that can  show that they are not related to any 
producer subject to the measures and that are found not to be engaged in circumvention practices 
as defined in paragraph 3.  
Where the circumventing practice, process or work takes place inside the Union, exemptions ma y 
be granted to importers that can show that they are not related to producers subject to the 
measures.  
Those exemptions shall be granted by decision of the Commission and shall remain valid for the 
period and under the conditions set down therein. The Com mission shall provide information to the 
Member States once it has concluded its analysis.  
Provided that the conditions set in Article 20 are met, exemptions may also be granted after the 
conclusion of the investigation leading to the extension of the meas ures. 
7. Provided that at least one year has lapsed from the extension of the measures, and in case 
the number of parties requesting or potentially requesting an exemption is significant, the 
Commission may decide to initiate a review of the extension of the measures. Any such review 
shall be conducted in accordance with the provisions of Article 22(1) as applicable to reviews under 
Article  19. 
8. Nothing in this Article shall preclude the normal application of the provisions in force 
concerning customs duties.  
Article 24 
General provisions  
1. Provisional or definitive countervailing duties shall be imposed by Regulation, and collected 
by Member States in the form, at the rate specified and according to the other criteria laid down in 
the Regulation imposing such dut ies. Such duties shall also be collected independently of the 
customs duties, taxes and other charges normally imposed on imports.  
No product shall be subject to both anti -dumping and countervailing duties for the purpose of 
dealing with one and the same s ituation arising from dumping or from export  subsidisation.  
2. Regulations imposing provisional or definitive countervailing duties, and Regulations or 
Decisions accepting undertakings or terminating investigations or proceedings, shall be published 
in the Official Journal of the European Union . 
Such Regulations or Decisions shall contain in particular, and with due regard to the protection of 
confidential information, the names of the exporters, if possible, or of the countries involved, a 
description of the product and a summary of the facts and considerations relevant to the subsidy 
and injury determinations. In each case, a copy of the Regulation or Decision shall be sent to 
known interested parties. The provisions of this paragraph shall apply mutatis muta ndis to 
reviews.  G/SCM/N/1/EU/2  
 
- 24 - 
 
  3. Special provisions, in particular with regard to the common definition of the concept of 
origin, as contained in Regulation (EU) No. 952/2013 of the European Parliament and of the 
Council1, may be adopted pursuant to this Regulation.  
4. In the Union interest, measures imposed pursuant to this Regulation may be suspended by a 
decision of the Commission in accordance with the advisory procedure referred to in Article 25(2) 
for a period of nine months. The suspension may be extended for a furthe r period, not exceeding 
one year, by the Commission acting in accordance with the advisory procedure referred to in 
Article 25(2).  
Measures may only be suspended where market conditions have temporarily changed to an extent 
that injury would be unlikely to  resume as a result of the suspension, and provided that the Union 
industry has been given an opportunity to comment and those comments have been taken into 
account. Measures may at any time be reinstated in accordance with the advisory procedure 
referred to in Article 25(2) if the reason for suspension is no longer  applicable.  
5. The Commission may, after having informed the Member States in due time, direct the 
customs authorities to take the appropriate steps to register imports, so that measures may 
subseq uently be applied against those imports from the date of such registration.  
Imports may be made subject to registration following a request from the Union industry which 
contains sufficient evidence to justify such action.  
Registration shall be introduced by Regulation which shall specify the purpose of the action and, if 
appropriate, the estimated amount of possible future liability. Imports shall not be made subject to 
registration for a period longer than nine months.  
6. Member States shall report to the Co mmission every month on the import trade of products 
subject to investi gation and to measures, and on the amount of duties collected pursuant to this 
Regulation.  
7. Without prejudice to paragraph 6, the Commission may request Member States, on a 
case-by-case basis, to supply information necessary to monitor efficiently the application of 
measures. In this respect, the provisions of Articles 11(3) and (4) shall apply. Any data submitted 
by Member States pursuant to this Article shall be covered by the provision s of Article 29(6).  
Article 25  
Committee procedure  
1. The Commission shall be assisted by the Committee established by Regulation (EU) 
2016/1036 of the European Parliament and of the Council2. That Committee shall be a committee 
within the meaning of Regulati on (EU) No. 182/2011.  
2. Where reference is made to this paragraph, Article 4 of Regulation (EU) No. 182/2011 shall 
apply.  
3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No. 182/2011 shall 
apply.  
4. Where reference is made to this paragr aph, Article 8 of Regulation (EU) No. 182/2011, in 
conjunction with Article 4 thereof, shall apply.  
5. Pursuant to Article 3(5) of Regulation (EU) No. 182/2011, where the written procedure is 
used to adopt definitive measures pursuant to paragraph 3 of this A rticle, or to decide on the 
                                                
1 Regulation (EU) No . 952/2013 of the European Parliament and of the Council of 9 October 2013 laying 
down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).  
2 Regulation (EU) 2016/1036 of the European Parliament and of t he Council of 8 June 2016 on 
protection against dumped imports from countries not members of the European Union (see page 21 of this 
Official Journal).  G/SCM/N/1/EU/2  
 
- 25 - 
 
  initiation or non -initiation of expiry reviews pursuant to Article 18 of this Regulation, that 
procedure shall be terminated without result where, within the time limit set down by the chair, 
the chair so decides or a majority o f committee members as defined in Article 5(1) of 
Regulation  (EU) No. 182/2011 so request. Where the written procedure is used in other instances 
where there has been a discussion of the draft measure in the committee, that procedure shall be 
terminated wi thout result where, within the time limit set down by the chair, the chair so decides 
or a simple majority of committee members so request. Where the written procedure is used in 
other instances where there has not been a discussion of the draft measure in  the committee, that 
procedure shall be terminated without result where, within the time limit set down by the chair, 
the chair so decides or at least a quarter of committee members so request.  
6. The committee may consider any matter relating to the applicat ion of this Regulation, raised 
by the Commission or at the request of a Member State. Member States may request information 
and may exchange views in the committee or directly with the Commission.  
Article 26  
Verification visits  
1. The Commission shall, where it considers it appropriate, carry out visits to examine the 
records of importers, exporters, traders, agents, producers, trade associations and organisations, 
and to verify information provided on subsidi­ sation and injury. In the absence of a proper and  
timely reply the Commission may choose not to carry out a verification visit.  
2. The Commission may carry out investigations in third countries as required, provided that it 
obtains the agreement of the firms concerned, that it notifies the country in questi on and that the 
latter does not object to the investigation. As soon as the agreement of the firms concerned has 
been obtained, the Commission shall notify the country of origin and/or export of the names and 
addresses of the firms to be visited and the da tes agreed.  
3. The firms concerned shall be advised of the nature of the information to be verified during 
verification visits and of any further information which needs to be provided during such visits, 
though this does not preclude requests, made during th e verification, for further details to be 
provided in the light of information obtained.  
4. In investigations carried out pursuant to paragraphs 1, 2 and 3, the Commission shall be 
assisted by officials of those Member States which so request.  
Article 27  
Samp ling 
1. In cases where the number of complainants, exporters or importers, types of product or 
transactions is large, the investigation may be limited to:  
(a) a reasonable number of parties, products or transactions by using samples which are 
statistically valid on the basis of information available at the time of the selection; or  
(b) the largest representative volume of the production, sales or exports which can 
reasonably be investigated within the time available.  
2. The final selection of parties, types of products o r transactions made under this Article shall 
rest with the Commission, though preference shall be given to choosing a sample in consultation 
with, and with the consent of, the parties concerned, provided that such parties make themselves 
known and make suf ficient information available, within three weeks of initiation of the 
investigation, to enable a representative sample to be chosen.  
3. In cases where the investigation has been limited in accordance with this Article, an 
individual amount of counter­ vailab le subsidisation shall be calculated for any exporter or 
producer not initially selected who submits the necessary information within the time limits 
provided for in this Regulation, except where the number of exporters or producers is so large that G/SCM/N/1/EU/2  
 
- 26 - 
 
  indivi dual examinations would be unduly burdensome and would prevent completion of the 
investigation in good time.  
4. Where it is decided to sample and there is a degree of non -cooperation by some or all of the 
parties selected which is likely to materially affect the outcome of the investigation, a new sample 
may be selected.  
However, if a material degree of non -cooperation persists or there is insufficient time to select a 
new sample, the relevant provisions of Article 28 shall apply.  
Article 28  
Non-cooperation  
1. In cases in which any interested party refuses access to, or otherwise does not provide 
necessary information within the time limits provided for in this Regulation, or significantly 
impedes the investigation, provisional or final findings, affirmative or ne gative, may be made on 
the basis of the facts available.  
Where it is found that any interested party has supplied false or misleading information, that 
information shall be disregarded and use may be made of the facts available.  
Interested parties shall be  made aware of the consequences of  non-cooperation.  
2. Failure to give a computerised response shall not be deemed to constitute non -cooperation, 
provided that the interested party shows that presenting the response as requested would result in 
an unreasonabl e extra burden or unreasonable additional cost.  
3. Where the information submitted by an interested party is not ideal in all respects, it shall 
nevertheless not be disregarded, provided that any deficiencies are not such as to cause undue 
difficulty in arriv ing at a reasonably accurate finding and that the information is appropriately 
submitted in good time and is verifiable, and that the party has acted to the best of its ability.  
4. If evidence or information is not accepted, the supplying party shall be infor med forthwith of 
the reasons therefor and shall be granted an opportunity to provide further explanations within the 
time limit specified. If the explanations are considered unsatisfactory, the reasons for rejection of 
such evidence or information shall be  disclosed and given in published findings.  
5. If determinations, including those regarding the amount of countervailable subsidies, are 
based on the provisions of paragraph 1, including the information supplied in the complaint, it 
shall, where practicable a nd with due regard to the time limits of the investigation, be checked by 
reference to information from other independent sources which may be available, such as 
published price lists, official import statistics and customs returns, or information obtained  from 
other interested parties during the investigation.  
Such information may include relevant data pertaining to the world market or other representative 
markets, where appropriate.  
6. If an interested party does not cooperate, or cooperates only partially, so that relevant 
information is thereby withheld, the result of the investigation may be less favourable to the party 
than if it had cooperated.  
 
Article 29  
Confidentiality  
1. Any information which is by nature confidential (for example, because its disclosur e would 
be of significant competitive advantage to a competitor or would have a significantly adverse effect 
upon a person supplying the information or upon a person from whom the person supplying the G/SCM/N/1/EU/2  
 
- 27 - 
 
  information has acquired the information), or which is provided on a confidential basis by parties 
to an investigation shall, if good cause is shown, be treated as such by the authorities.  
2. Interested parties providing confidential information shall be required to provide 
non-confidential summaries thereof. Tho se summaries shall be in sufficient detail to permit a 
reasonable understanding of the substance of the information submitted in confidence. 
In exceptional circumstances, such parties may indicate that such information is not capable of 
being summarised. I n such exceptional circumstances, a statement of the reasons why 
summarisation is not possible shall be provided.  
3. If it is considered that a request for confidentiality is not warranted and if the supplier of the 
information is either unwilling to make the  information available or to authorise its disclosure in 
generalised or summary form, such information may be disregarded unless it can be satisfactorily 
demonstrated from appropriate sources that the information is correct. Requests for confidentiality 
shall not be arbitrarily rejected.  
4. This Article shall not preclude the disclosure of general information by the Union authorities, 
and, in particular, of the reasons on which decisions taken pursuant to this Regulation are based, 
or disclosure of the evidenc e relied on by the Union authorities in so far as is necessary to explain 
those reasons in court proceedings. Such disclosure shall take into account the legitimate interests 
of the parties concerned that their business or governmental secrets not be divul ged. 
5. The Commission and the Member States, including the officials of either, shall not reveal any 
information received pursuant to this Regulation for which confidential treatment has been 
requested by its supplier, without specific permission from that s upplier. Exchanges of information 
between the Commission and Member States, or any internal documents prepared by the 
authorities of the Union or the Member States, shall not be divulged except as specifically provided 
for in this Regulation.  
6. Information r eceived pursuant to this Regulation shall be used only for the purpose for which 
it was requested.  
This provision shall not preclude the use of information received in the context of one investigation 
for the purpose of initiating other investigations with in the same proceedings concerning the same 
like product.  
Article 30  
Disclosure  
1. The complainants, importers and exporters and their representative associations, and the 
country of origin and/or export, may request disclosure of the details underlying the e ssential facts 
and considerations on the basis of which provisional measures have been imposed. Requests for 
such disclosure shall be made in writing immediately following the imposition of provisional 
measures, and the disclosure shall be made in writing as soon as possible thereafter.  
2. The parties mentioned in paragraph 1 may request final disclosure of the essential facts and 
considerations on the basis of which it is intended to recommend the imposition of definitive 
measures, or the termination of an in vestigation or proceedings without the imposition of 
measures, particular attention being paid to the disclosure of any facts or considerations which are 
different from those used for any provisional measures.  
3. Requests for final disclosure shall be address ed to the Commission in writing and be 
received, in cases where a provisional duty has been imposed, no later than one month after 
publication of the imposition of that duty. Where a provisional duty has not been imposed, parties 
shall be provided with an opportunity to request final disclosure within time limits set by the 
Commission.  
4. Final disclosure shall be given in writing. It shall be made, due regard being had to the 
protection of confidential information, as soon as possible and, normally, no later than one month 
prior to the initiation of the procedures set out in Article 14 or Article 15. Where the Commission is G/SCM/N/1/EU/2  
 
- 28 - 
 
  not in a position to disclose certain facts or considerations at that time, they shall be disclosed as 
soon as possible thereafter.  
Disclo sure shall not prejudice any subsequent decision which may be taken by the Commission, 
but where such a decision is based on any different facts and considerations they shall be disclosed 
as soon as possible.  
5. Representations made after final disclosure is given shall be taken into consideration only if 
received within a period to be set by the Commission in each case, which shall be at least 10 days, 
due consideration being given to the urgency of the matter. A shorter period may be set whenever 
an addition al final disclosure has to be made.  
Article 31  
Union interest  
1. A determination as to whether the Union's interest calls for intervention shall be based on an 
appraisal of all the various interests taken as a whole, including the interests of the domestic 
industry and users and consumers. A determi nation pursuant to this Article shall be made only 
where all parties have been given the opportunity to make their views known pursuant to 
paragraph 2. In such an examination, the need to eliminate the trade -distort ing effects of injurious 
subsidisation and to restore effective competition shall be given special consideration. Measures, 
as determined on the basis of subsidisation and injury found, may not be applied where the 
authorities, on the basis of all the info rmation submitted, can clearly conclude that it is not in the 
Union's interest to apply such measures.  
2. In order to provide a sound basis on which the authorities can take account of all views and 
information in the decision as to whether or not the imposit ion of measures is in the Union's 
interest, the complainants, importers and their representative associations, representative users 
and representative consumer organisations may, within the time limits specified in the notice of 
initiation of the counterva iling duty investigation, make themselves known and provide information 
to the Commission. Such information, or appropriate summaries thereof, shall be made available 
to the other parties specified in this paragraph, and they shall be entitled to respond t o such 
information.  
3. The parties which have acted in accordance with paragraph 2 may request a hearing. Such 
requests shall be granted when they are submitted within the time limits set in paragraph 2, and 
when they set out the reasons, in terms of the Unio n interest, why the parties should be heard.  
4. The parties which have acted in accordance with paragraph 2 may provide comments on the 
application of any provisional duties. Such comments shall be received within 25 days of the date 
of application of such me asures if they are to be taken into account and they, or appropriate 
summaries thereof, shall be made available to other parties who shall be entitled to respond to 
such comments.  
5. The Commission shall examine the information which is properly submitted and  the extent 
to which it is represen tative, and the results of such analysis, together with an opinion on its 
merits, shall be transmitted to the committee referred to in Article 25 as part of the draft measure 
submitted pursuant to Articles 14 and 15. The views expressed in the committee should be taken 
into account by the Commission under the conditions provided for in Regulation (EU) 
No. 182/2011.  
6. The parties which have acted in conformity with paragraph 2 may request that the facts and 
considerations on which final decisions are likely to be taken be made available to them. Such 
information shall be made available to the extent possible and without prejudice to any 
subsequent decision taken by the Commission.  
7. Information shall be taken into account only w here it is supported by actual evidence which 
substantiates its validity.  G/SCM/N/1/EU/2  
 
- 29 - 
 
  Article 32  
Relationships between countervailing duty measures and multilateral remedies  
If an imported product is made subject to any countermeasures imposed following recourse to t he 
dispute settlement procedures of the Subsidies Agreement, and such measures are appropriate to 
remove th e injury caused by the counter vailable subsidies, any countervailing duty imposed with 
regard to that product shall immediately be suspended, or repe aled, as appropriate.  
Article 33  
Final provisions  
This Regulation shall not preclude the application of:  
(a) any special rules laid down in agreements concluded between the Union and third countries;  
(b) the Union Regulations in the agricultural sector and Council  Regulations  (EC) 
No. 1667/20061, (EC) No . 614/20092 and (EC) No . 1216/20093. This Regulation shall 
operate by way of complement to those Regulations and in derogation from any provisions 
thereof which preclude the application of countervailing duties;  
(c) special measures, provided that such action does not run counter to obligations under the 
GATT  1994.  
Article 34  
Report  
The Commission shall include information on the implementation of this Regulation in its annual 
report on the application and implementation  of trade defence measures presented to the 
European Parliament and to the Council pursuant to Article 23 of Regulation (EU) 2016/1036.  
Article 35  
Repeal  
Regulation (EC) No. 597/2009 is repealed.  
References to the repealed Regulation shall be construed as references to this Regulation and shall 
be read in accordance with the correlation table in Annex VI.  
                                                
1 Council Regulation (EC) No . 1667/2006 of 7 November 2006 on glucose and lactose (OJ L 312, 
11.11.2006,  p. 1).  
2 Council Regulation (EC) No . 614/2009 of 7 July 2009 on the common system of trade for ovalbumin 
and lactalbumin (OJ L 181, 14.7.2009, p. 8).  
3 Council Regulation (EC) No . 1216/2009 of 30 November 2009 laying down the trade arrangements 
applicable  to certain goods resulting  from the processing of agricultural products (OJ L 328, 15.12.2009, 
p. 10). G/SCM/N/1/EU/2  
 
- 30 - 
 
  Article 36  
Entry into force  
This Regulation shall enter into force on the twentieth day following that of its publication in the 
Official Journal of the E uropean Union.  
This Regulation shall be binding in its entirety and directly applicable in all Member States.  
Done at Strasbourg, 8 June 2016 . 
For the European Parliament  
The President  
M. SCHULZ  For the Council  
The President  
A.G. KOENDERS  
_______________  G/SCM/N/1/EU/2  
 
- 31 - 
 
  ANNEX I  
ILLUSTRATIVE LIST OF  EXPORT SUBSIDIES  
(a) The provision by governments of direct subsidies to a firm or an industry contingent upon 
export performance.  
(b) Currency retention schemes or any similar practices which involve a bonus on exports.  
(c) Internal tran sport and freight charges on export shipments, provided or mandated by 
governments, on terms more favourable than for domestic shipments.  
(d) The provision by governments or their agencies either directly or indirectly through 
government -mandated schemes, of i mported or domestic products or services for use in the 
production of exported goods, on terms or conditions more favourable than for provision of 
like or directly competitive products or services for use in the production of goods for 
domestic consumption , if (in the case of products) such terms or conditions are more 
favourable than those commercially available1 on world markets to their exporters.  
(e) The full or partial exemption, remission, or deferral2 specifically related to exports, of direct 
taxes3 or social welfare charges paid or payable by industrial or commercial enterprises.  
(f) The allowance of special deductions directly related to exports or export performance, over 
and above those granted in respect of production for domestic consumption, in the 
calculation of the base on which direct taxes are charged.  
                                                
1 'Commercially available ' means that the choice between domestic and imported products is 
unrestricted and depends only on commercial considerations.  
2 Deferral may not amount to an export subsidy where, for example, appropriate interest charges are 
collected.  
3 For the purposes of this Regulation:  
- 'direct taxes ' means taxes on wages, profits, interests, rents, royalties, and all other forms of 
income,  and taxes on the ownership of real property,  
- 'import charges ' means tariffs, duties, and other fiscal charges not elsewhere enumerated in this 
footnote that are levied on imports,  
- 'indirect taxes ' means sales, excise, turnover, value added, franchise,  stamp, transfer, inventory 
and equipment taxes, border taxes and all taxes other than direct taxes and import charges,  
- 'prior-stage ' indirect taxes are those levied on goods or services used directly or indirectly in 
making the product,  
- 'cumulative ' indirect taxes are multi -staged taxes levied where there is no mechanism for 
subsequent crediting of the tax if the goods or services subject to tax at one stage of production 
are used in a succeeding state of production,  
- 'remission ' of taxes includes the  refund or rebate of taxes,  
- 'remission or drawback ' includes the full or partial exemption or deferral of import charges.  G/SCM/N/1/EU/2  
 
- 32 - 
 
  (g) The exemption or remission, in respect of the production and distribution of exported 
products, of indirect taxes4 in excess of those levied in respect of the production and 
distribution of like prod ucts when sold for domestic consumption.  
(h) The exemption, remission or deferral of prior -stage cumulative indirect taxes4 on goods or 
services used in the production of exported products in excess of the exemption, remission 
or deferral of like prior -stage c umulative indirect taxes on goods or services used in the 
production of like products when sold for domestic consumption; provided, however, that 
prior-stage cumulative indirect taxes may be exempted, remitted or deferred on exported 
products even when not  exempted, remitted or deferred on like products when sold for 
domestic consumption, if the prior -stage cumulative indirect taxes are levied on inputs that 
are consumed in the production of the exported product (maki ng normal allowance for 
waste)5. This it em shall be interpreted in accordance with the guidelines on consumption of 
inputs in the production process contained in Annex II.  
(i) The remission or drawback of import charges4 in excess of those levied on imported inputs 
that are consumed in the productio n of the exported product (making normal allowance for 
waste); provided, however, that in particular cases a firm may use a quantity of home 
market inputs equal to, and having the same quality and characteristics as, the imported 
inputs as a substitute for  them in order to benefit from this provision if the import and  the 
corresponding export operations both occur within a reasonable time period, not to exceed 
two years. This item  shall be interpreted in accordance with the guidelines on consumption 
of inpu ts in the production process contained in Annex II and the guidelines in the 
determination of substitution drawback systems as export subsidies contained in Annex  III. 
(j) The provision by governments (or special institutions controlled by governments) of expo rt 
credit guarantee or insurance programmes, of insurance or guarantee programmes against 
increases in the cost of exported products or of exchange risk programmes, at premium 
rates which are inadequate to cover the long -term operating costs and losses of the 
programmes.  
(k) The grant by governments (or special institutions controlled by and/or acting under the 
authority of governments) of export credits at rates below those which they actually have to 
pay for the funds so employed (or would have to pay if they  borrowed on international 
capital markets in order to obtain funds of the same maturity and other credit terms and 
denominated in the same currency as the export credit), or the payment by them of all or 
part of the costs incurred by exporters or financia l institutions in obtaining credits, in so far 
as they are used to secure a material advantage in the field of export credit terms.  
Provided, however, that if a Member of the WTO is a party to an international undertaking 
on official export credits to whic h at least 12 original such Members are parties as of 
1 January 1979 (or a successor undertaking which has been adopted by those original 
Members), or if in practice a Member of the WTO applies the  interest rates provisions of the 
relevant undertaking, an export credit practice which is in conformity with those provisions 
shall not be considered an export subsidy.  
(l) Any other charge on the public account constituting an export subsidy in the sense of 
Article  XVI of the  GATT 1994.  
 
_______________  
 
                                                
4 See footnote 2 to point (e).  
5 Point (h) does not apply to value added tax systems and border -tax adjustment in lieu thereof; the 
problem of the excessive remission of value added taxes is exclusively covered by point (g).  G/SCM/N/1/EU/2  
 
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  ANNEX II  
GUIDELINES ON CONSUMP TION OF INPUTS IN TH E PRODUCTION PROCESS1 
1. Indirect tax rebate schemes can allow for exemption, remission or deferral of prior -stage 
cumulative indirect taxes levied on inputs that are consumed in the production of the exported 
product ( making normal allowance for waste). Similarly, drawback schemes can allow for the 
remission or drawback of import charges levied on inputs that are consumed in the production of 
the exported product (making normal allowance for waste).  
2. The illustrative lis t of export subsidies in Annex I makes reference to the term 'inputs that 
are consumed in the production of the exported product ' in points (h) and (i). Pursuant to 
point (h), indirect tax rebate schemes can constitute an export subsidy to the extent that they 
result in exemption, remission or deferral of prior -stage cumulative indirect taxes in excess of the 
amount of such taxes  actually levied on inputs that are consumed in the production of the 
exported product. Pursuant to point (i), drawback schemes ca n constitute an export subsidy to the 
extent that they result in a remission or drawback of import charges in excess of those actually 
levied on inputs that are consumed in the production of the exported product. Both points stipulate 
that normal allowance  for waste must be made in findings regarding consumption of inputs in the 
production of the exported product. Point (i) also provides for substitution, where appropriate.  
3. In examining whether inputs are consumed in the production of the exported product, as 
part of a countervailing duty investigation pursuant to this Regulation, the Commission must 
normally proceed on the following basis.  
4. Where it is alleged that an indirect tax rebate scheme, or a drawback scheme, conveys a 
subsidy by reason of over - rebate or excess drawback of indirect taxes or import charges on inputs 
consumed in the production of the exported product, the Commission must normally first 
determine whether the government of the exporting country has in place and applies a system or 
proced ure to confirm which inputs are consumed in the production of the exported product and in 
what amounts. Where such a system or procedure is determined to be applied, the Commission 
must normally then examine the system or procedure to see whether it is rea sonable, effective for 
the purpose intended, and based on generally accepted commercial practices in the country of 
export. The Commission may deem it necessary to carry out, in accordance with Article 26(2), 
certain practical tests in order to verify info rmation or to satisfy itself that the system or procedure 
is being effectively applied.  
5. Where there is no such system or procedure, where it is not reasonable, or where it is 
instituted and considered reasonable but is found not to be applied or not to be applied effectively, 
a further examination by the exporting country based on the actual inputs involved will normally 
need to be carried out in the context of determining whether an excess payment occurred. If the 
Commission deems it necessary, a further e xamination may be carried out in accordance with 
point 4.  
6. The Commission must normally treat inputs as physically incorporated if such inputs are 
used in the production process and are physically present in the product exported. An input need 
not be presen t in the final product in the same form in which it entered the production process.  
7. In determining the amount of a particular input that is consumed in the production of the 
exported product, a 'normal allowance for waste ' must normally be taken into accou nt, and such 
waste must normally be treated  as consumed in the production of the exported product. The term 
'waste ' refers to that portion of a given input which does not serve an independent function in the 
production process, is not consumed in the produ ction of the exported product (for reasons such 
as inefficiencies) and is not recovered, used or sold by the same manufacturer.  
                                                
1 Inputs consumed in the production process are inputs physically incorporated, energy, fuels and oil 
used in the production process and catalysts which are consum ed in the course of their use to obtain the 
exported product.  G/SCM/N/1/EU/2  
 
- 34 - 
 
  8. The Commission's determination of whether the claimed allowance for waste is 'normal ' 
must normally take into account the produc tion process, the average experience of the industry in 
the country of export, and other technical  factors, as appropriate. The Commission must bear in 
mind that an important question is whether the authorities in the exporting country have 
reasonably calc ulated the amount of waste, when such an amount is intended to be included in the 
tax or duty rebate or remission.  
 
_______________  
 G/SCM/N/1/EU/2  
 
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  ANNEX III  
GUIDELINES  IN THE DETERMINATION  OF SUBSTITUTION  
DRAWBACK  SYSTEMS AS  EXPORT  SUBSIDIES  
I 
Drawback systems can allo w for the refund or drawback of import charges on inputs which are 
consumed in the production process of another product and where the export of this latter product 
contains domestic inputs having the same quality and characteristics as those submitted for  the 
imported inputs. Pursuant to point (i) of  Annex  I, substitution drawback systems can constitute an 
export subsidy to the extent that they result in an excess drawback of the import charges levied 
initially on the imported inputs for which drawback is being claimed.  
II 
In examining any substitution drawback system as part of a countervailing duty investigation 
pursuant  to this Regulation, the Commission must normally proceed on the following basis:  
1. point (i) of Annex I stipulates that home market inputs  may be substituted for imported 
inputs in the production of a product for export provided such inputs are equal in quantity to, and 
have the same quality and characteristics as, the imported inputs being substituted. The existence 
of a verification system  or procedure is important because it enables the government of the 
exporting country to ensure and demonstrate that the quantity of inputs for which drawback is 
claimed does not exceed the quantity of similar products exported, in whatever form, and that 
there is no drawback of import charges in excess of those originally levied on the imported inputs 
in question;  
2. where it is alleged that a substitution drawback system conveys a subsidy, the Commission 
must normally first proceed to determine whether the g overnment of the exporting country has in 
place and applies a verification system or procedure. Where such a system or procedure is 
determined to be applied, the Commission shall normally then examine the verification procedures 
to see whether they are rea sonable, effective for the purpose intended, and based on generally 
accepted commercial practices in the country of export. To the extent that the procedures are 
determined to meet this test and are effectively applied, no subsidy will be presumed to exist . It 
may be deemed necessary by the Commission to carry out, in accordance with Article 26(2), 
certain practical tests in order to verify information or to satisfy itself that the verification 
procedures are being effectively applied;  
3. where there are no ve rification procedures, where they are not reasonable, or where such 
procedures are instituted and considered reasonable but are found not to be actually applied or not 
to be applied effectively, there may be a subsidy. In such cases, further examination by  the 
exporting country based on the actual transactions involved would need to be carried out to 
determine whether an excess payment occurred. If the Commission deems it necessary, a further 
examination may be carried out in accordance with point 2;  
4. the ex istence of a substitution drawback provision under which exporters are allowed to 
select particular import shipments on which drawback is claimed should not of itself be considered 
to convey a subsidy;  
5. an excess drawback of import charges within the meanin g of point (i) of Annex I would be 
deemed to exist where governments paid interest on any monies refunded under their drawback 
schemes, to the extent of the interest actually paid or payable.  
 
_______________  
 G/SCM/N/1/EU/2  
 
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  ANNEX IV  
(This Annex reproduces Annex 2 to the  Agreement on Agriculture. Any terms or expressions which 
are not explained herein or which are not self -explanatory are to be interpreted in the context of 
that Agreement.)  
DOMESTIC SUPPORT: THE BASIS OF EXEMPTION FROM THE REDUCTION COMMITMENTS  
1. Domestic s upport measures for which exemption from the reduction commitments is claimed 
shall meet the fundamental requirement that they have no, or at most minimal, trade -distorting 
effects or effects on production. Accordingly, all measures for which exemption is claimed shall 
conform to the following basic criteria:  
(a) the support in question shall be provided through a publicly -funded government programme 
(including government revenue foregone) not involving transfers from consumers; and  
(b) the support in question shal l not have the effect of providing price support to producers;  
 plus policy -specific criteria and conditions as set out below.  
Government service programmes  
2. General services  
Policies in this category involve expenditures (or revenue foregone) in relation t o programmes 
which provide services or benefits to agriculture or the rural community. They shall not involve 
direct payments to producers or processors. Such programmes, which include but are not 
restricted to the following list, shall meet  the general cr iteria in point 1 and policy -specific 
conditions where set out below:  
(a) research, including general research, research in connection with environmental 
programmes, and research programmes relating to particular products;  
(b) pest and disease control, including g eneral and product -specific pest and disease control 
measures, such as early -warning systems, quarantine and eradication;  
(c) training services, including both general and specific training facilities;  
(d) extension and advisory services, including the provision o f means to facilitate the transfer of 
information and the results of research to producers and consumers;  
(e) inspection services, including general inspection services and the inspection of particular 
products for health, safety, grading or standardisation pu rposes;  
(f) marketing and promotion services, including market information, advice and promotion 
relating to particular products but excluding expenditure for unspecified purposes that could 
be used by sellers to reduce their selling price or confer a direct e conomic benefit to 
purchasers; and  
(g) infrastructural services, including: electricity reticulation, roads and other means of 
transport, market and port facilities, water supply facilities, dams and drainage schemes, 
and infrastructural works associated with environ­ mental programmes. In all cases the 
expenditure shall be directed to the provision or construction of capital works only, and shall 
exclude the subsidised provision of on -farm facilities other than for the reticulation of 
generally available publi c utilities. It shall not include subsidies to inputs or operating costs, 
or preferential user charges.  G/SCM/N/1/EU/2  
 
- 37 - 
 
  3. Public stockhol ding for food security purposes1 
Expenditures (or revenue foregone) in relation to the accumulation and holding of stocks of 
products wh ich form an integral part of a food security programme identified in national 
legislation. This may include government aid to private storage of products as part of such a  
programme.  
The volume and accumulation of such stocks shall correspond to predetermi ned 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 le ss than the current domestic market price for the 
product and quality in  question.  
4. Domestic food aid2 
Expenditure (or revenue foregone) in relation to the provision of domestic food aid to sections of 
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 provision of food to those concerned or the 
provision of means to allow eligible recipients to buy food either at market or at subs idised prices. 
Food purchases by the government shall be made at current market prices and the financing and 
administration of the aid shall be  transparent.  
5. Direct payments to producers  
Support provided through direct payments (or revenue foregone, includi ng payments in kind) to 
producers for which exemption from reduction commitments as claimed shall meet the basic 
criteria set out in point 1, plus specific criteria applying to individual types of direct payment as set 
out in points 6 to 13. Where exemptio n from reduction is claimed for any existing or new type of 
direct payment other than those specified in points 6 to 13, it shall conform to criteria set out in 
points 6(b) to (e), in addition to the general criteria set out in point  1. 
6. Decoupled income su pport  
(a) Eligibility for such payments shall be determined by clearly -defined criteria such as income, 
status as a producer or landowner, factor use or production level in a defined and fixed base 
period.  
(b) The amount of such payments in any given year shall no t be related to, or based on, the 
type or volume of production (including livestock units) undertaken by the producer in any 
year after the base period.  
(c) The amount of such payments in any given year shall not be related to, or based on, the 
prices, domesti c or in ternational, 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, the 
factors of production employed in any year after the base period.  
(e) No produc tion shall be required in order to receive such payments.  
                                                
1 For the purpose of point 3 of this Annex, governmental stockholding programmes for food security 
purposes in developing countries whose operation is transparent and conducted in accordance wit h officially 
published objective criteria or guidelines shall be considered to be in conformity with the provisions of this 
point, including programmes under which stocks of foodstuffs for food security purposes are acquired and 
released at administered pr ices, provided that the difference between the acquisition price and the external 
reference price is accounted for in the AMS.  
2 For the purposes of points 3 and 4 of this Annex, the provision of foodstuffs at subsidised prices with 
the objective of meetin g food  requirements of urban and rural poor in developing countries on a regular basis 
at reasonable prices shall be considered to be in conformity with the provisions of this point.  G/SCM/N/1/EU/2  
 
- 38 - 
 
  7. Government financial participation in income insurance and income safety -net programmes  
(a) Eligibility for such payments shall be determined by an income loss, taking into account only 
income derived f rom agricultur e, which exceeds 30 % of average gross income or the 
equivalent in net income terms (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, e xcluding the highest and the lowest entry. Any producer meeting this condition shall 
be eligible to receive the payments.  
(b) The amount of such payments sh all compensate for less than 70 % of the producer's income 
loss in the year the producer becomes eligible  to receive this assistance.  
(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, applyin g to such production; or to the factors of 
production employed.  
(d) Where a producer receives in the same year payments pursuant to this point and pursuant 
to point  8 (relief from natural disasters), the total of such payments shall be less than 100 % 
of the pr oducer's total loss.  
8. Payments (made either directly or by way of a government financial participation in crop 
insurance schemes) for relief from natural disasters  
(a) Eligibility for such payments shall arise only following a formal recognition by government 
authorities that a natural or like disaster (including disease outbreaks, pest infestations, 
nuclear accidents, and war on the territory of the Member concerned) has occurred or is 
occurring; and shall be determined by a p roduction loss which exceeds 30 % of the average 
of production in the preceding three -year period or a three -year average based on the 
preceding five -year period, excluding the highest and the lowest entry.  
(b) Payments made following a disaster shall be applied only in respect of losses of inco me, 
livestock (including payments in connection with the veterinary treatment of animals), land 
or other production factors due to the natural disaster in question.  
(c) Payments shall compensate for not more than the total cost of replacing such losses and 
shall not require or specify the type or quantity of future production.  
(d) Payments made during a disaster shall not exceed the level required to prevent or alleviate 
further loss as defined in criterion set out in point (b).  
(e) Where a producer receives in the sam e year payments pursuant to this point and pursuant 
to point  7 (income insurance and income safety -net programmes), the total of such 
payments shall be less than 100 % of the producer's total loss.  
9. Structural adjustment assistance provided through producer retirement programmes  
(a) Eligibility for such payments shall be determined 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 -agricult ural activities.  
(b) Payments shall be conditional upon 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 payments  shall be determined by reference to clearly defined criteria in 
programmes designed to remove land or other resources, including livestock, from 
marketable agricultural production.  G/SCM/N/1/EU/2  
 
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  (b) Payments shall be conditional upon the retirement of land from marketable agricultural 
production for a minimum of three years, and in the case of livestock on its slaughter or 
definitive permanent disposal.  
(c) Payments shall not require or specify any alternative use for such land or other resources 
which involves the production o f marketable agricultural products.  
(d) Payments shall not be related to either type or quantity of production or to the prices, 
domestic or internat ional, applying to production undertaken using the land or other 
resources remaining in production.  
11. Structural adjustment assistance provided through investment aids  
(a) Eligibility for such payments shall be determined by reference to clearly -defined criteria in 
government programmes designed to assist the financial or physical restructuring of a 
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 the reprivatisation of agricultural land.  
(b) The amount of such payments in any given year shall  not be related to, or based on, the 
type or volume of production (including livestock units) undertaken by the producer in any 
year after the base period other than as provided for under criterion (e).  
(c) The amount of such payments in any given year shall n ot be related to, or based on, the 
prices, domestic or in­ ternational, applying to any production undertaken in any year after 
the base period.  
(d) The payments shall be given only for the period of time necessary for the realisation of the 
investment in resp ect of which they are provided.  
(e) The payments shall not mandate or in any way designate the agricultural products to be 
produced by the recipients except to require them not to produce a particular product.  
(f) The payments shall be limited to the amount requir ed to compensate for the structural 
disadvantage.  
12. Payments under environmental programmes  
(a) Eligibility for such payments shall be determined as part of a clearly -defined government 
environmental or conservation programme and be dependent on the fulfilment o f specific 
conditions under the government programme, including conditions related to production 
methods or inputs.  
(b) The amount of payment shall be limited to the extra costs or loss of income involved in 
complying with the government programme.  
13. Payments un der regional assistance programmes  
(a) Eligibility for such payments shall be limited to producers in disadvantaged regions. Each 
such region must be a clearly designated contiguous geographical area with a definable 
economic and administrative identity, consi dered as disadvantaged on the basis of neutral 
and objective criteria clearly spelt out in a law or regulation and indicating that the region's 
difficulties arise out of more than temporary circumstances.  
(b) The amount of such payments in any given year shall  not be related to, or based on, the 
type or volume of production (including livestock units) undertaken by the producer in any 
year after the base period other than to reduce that production.  
(c) The amount of such payments in any given year shall not be rela ted to, or based on, the 
prices, domestic or international, applying to any production undertaken in any year after 
the base period.  G/SCM/N/1/EU/2  
 
- 40 - 
 
  (d) Payments shall be available only to producers in eligible regions, but generally available to 
all producers within such reg ions. 
(e) Where related to production factors, payments shall be made at a degressive rate above a 
threshold level of the factor concerned.  
(f) The payments shall be limited to the extra costs or loss of income involved in undertaking 
agricultural production in th e prescribed area.  
 
_______________  
 G/SCM/N/1/EU/2  
 
- 41 - 
 
  ANNEX V  
REPEALED REGULATION WITH THE AMENDMENT T HERETO  
Council Regulation (EC) No. 597/2009  
(OJ L 188, 18.7.2009, p. 93)  
Regulation (EU) No. 37/2014 of the Europea n Parliament and of the Council  Only point 18 of 
the An nex 
(OJ L 18, 21.1.2014, p.  1) 
_______________  
 
 G/SCM/N/1/EU/2  
 
- 42 - 
 
  ANNEX VI  
CORRELATION TABLE  
Regulation (EC) No. 597/2009  This Regulation  
Articles 1 to 11  Articles 1 to 11  
Article 12(1) to (4)  Article 12(1) to (4)  
Article 12(6)  Article 12(5)  
Articles 13 and 14  Article s 13 and 14  
Article 15(1)  Article 15(1)  
Article 15(2), first sentence  Article 15(2), first subparagraph  
Article 15(2), second sentence  Article 15(2), second subparagraph  
Article 15(3)  Article 15(3)  
Articles 16 to 27  Articles 16 to 27  
Article 28(1) to  (4) Article 28(1) to (4)  
Article 28(5), first sentence  Article 28(5), first subparagraph  
Article 28(5), second sentence  Article 28(5), second subparagraph  
Article 28(6)  Article 28(6)  
Articles 29 to 33  Articles 29 to 33  
Article 33a  Article 34  
Article  34 Article 35  
Article 35  Article 36  
Annexes I to IV  Annexes I to IV  
Annex V  — 
Annex VI  — 
— Annex V  
— Annex VI  
 
 
__________