G/SCM/N/1/LBR/1  
 
1 December  2017 
(17-6451) Page: 1/34 
Committee on Subsidies and Countervailing Measures  Original: English  
 
NOTIFICATION OF LAWS  AND REGULATIONS UNDE R  
ARTICLE 32.6 OF THE RELEVANT AGREEMENT  
LIBERIA  
The following communication, dated 25 September 2017, is being circulated at the request of  the 
delegation of Liberia . 
_______________  
 
Pursuant to Article 32.6 of the Agreement of Subsidies and Countervailing Measures the Republic 
of Liberia hereby notifies:  
REGULATION C/REG.05/06/13 RELATING TO THE IMPOSITION OF  COUNTERVAILING DUTIES  
The text of the document is attached.  
Should Liberia  want to implement any trade defence measure as a country other than those of 
ECOWAS, the WTO will be notified in advance.  
  G/SCM/N/1/LBR/1  
 
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  SEVENTIETH ORDINARY SESSION OF THE COUNC IL OF MINISTERS  
Abidjan, 20 -21 June 2013  
REGULATION C/REG.05/ 06/13 RELATING TO TH E IMPOSITI ON OF  
COUNTERVAILING DUTIE S 
THE COUNCIL OF MINISTERS,  
MINDFUL  of Articles·10, 11, and 12 of the ECOWAS Revised Treaty creating the Council of 
Ministers and defining its composition and functions;  
MINDFUL of Articles 35, 36, and 37 of the said Treaty relati ng to trade liberalization, customs 
duties, and the common external tariff concerning all imported products from third countries into 
member states with the view to establishing a customs union in the community;  
MINDFUL of Decision A/DEC.....17/10/06 on th e adoption of the ECOWAS Common External 
Tariff, notably article 9 of the said decision authorizing the Council of Minister to determine 
through a regulation the list of products, tax base, rate and duration of the imposition of the 
import safeguard tax;  
CONSIDERING that safeguard measures constitute an additional protection mechanism to protect 
community production;  
DESIROUS of ensuring smooth implementation of the Common External Tariff by the adoption 
within this framework of a mechanism for the applica tion of the Import safeguard tax, and in this 
regard, impose duties to compensate for subsidies on products whose release for consumption in 
the community causes or threaten to cause serious injury to community industry  
ON THE PROPOSAL of the13th meeting of the joint ECOWAS -UEMOA committee for the 
management of the ECOWAS Common External Tariff held in Dakar on 29 -30 April, 2013;  
UPON THE RECOMMENDATION of the Fifty Second Meeting of the Ministerial Meeting on 
Trade, Customs, and Free movement held in Daka r, on 02 -03 May 2013;  
ENACT THE FOLLOWING:  
GENERAL PRINCIPLES  
Article 1:  Definitions  
For the purpose of this Regulation:  
"ECOWAS": the Economic Community of West African States, the creation of which was 
reaffirmed by article  2 of the revised treaty signed  in Cotonou on 24 July 1993;  
Commission: the ECOWAS Commission created by article 17 of the ECOWAS Revised treaty as 
amended by Supplementary Protocol A/SP1/06/06 on the amendment of the said treaty;  
Community:  the Economic Community of West African States , the creation of which was 
reaffirmed by article 2 of the revised treaty signed in Cotonou on 24 July 1993;  
Authority: the Authority of Heads of States and Government of member states of the community 
created by article 7 of the ECOWAS revised treaty;  
Council: the Council of ministers created by article 10 of the ECOWAS revised treaty as amended 
by Supplementary Protocol A/SP1/06/06;  
Member State:  member state of the community;  G/SCM/N/1/LBR/1  
 
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  Third countries:  countries other than member states of the community;  
Treaty:  the ECOWAS Revised treaty signed in Cotonou on 24 July 1993 and all subsequent 
amendments  
"Serious injury": means a significant overall impairment in the position of an industry within 
the Community.  
"Threat of serious injury":  means a serious injury that i s clearly imminent based on facts and 
not merely on allegation, conjecture or remote possibility;  
Community industry : means all producers of identical, like or directly competing products 
operating within the territory of the Community or producers whose c ollective productions of, like 
or directly competing products account for a major proportion of the total community production of 
such products.  
Treaty: the revised ECOWAS Treaty signed in Cotonou on 24th July 1993 and all its subsequent 
amendments.  
Public  authorities: any public agency under the geographical jurisdiction of the country of origin 
or export.  
Like product: an identical or similar in all respect to the product under consideration, or in the 
absence of such a product, another product which, tho ugh not alike in all respects, has 
characteristics closely resembling the product under consideration.  
Article 2:  Principles  
1. A countervailing duty may be imposed to offset any direct or indirect subsidies provided 
during the production, manufacturing and export or transport of any product whose 
consumption within the community shall cause or is likely to cause serious injury to 
industries within the Community.  
2. For the purposes of this regulation, a product shall be considered subsidized if it benefi ts 
from a countervailable subsidy as defined in articles 3 and 4.  
3. Such subsidy may be granted either by the government of the country of origin of the 
imported product or public authorities of an intermediary country from where the product is 
imported into the Community and which is referred to as the "exporting countries" by virtue 
of this regulation.  
4. Notwithstanding paragraphs 1, 2 and 3, when products are not directly imported from the 
country of origin but are exported to the Community through an  intermediary country, the 
provisions of this regulation shall be fully applicable and in the case where transactions are 
considered , if applicable as  having been conducted between the country of origin and the 
Community.  
Article 3:  Definition of a subsidy  
A subvention is deemed to exist:  
a. If there is a financial contribution of public authorities or any public agency under the 
territorial jurisdiction of the country of origin or export, meaning in cases where:  
i. A practice of public authorities involves a dir ect transfer of funds (for example, in 
form of grants, loans or interest in the share capital) or potential direct transfers of 
funds or liabilities (for example loan guarantees);  
ii. Public revenues that are otherwise due are forgone or not collected (for exa mple in 
the case of tax incentives such as tax credits); in this regard the exemption of the G/SCM/N/1/LBR/1  
 
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  exported product from taxes or duties imposed on the like product if it is meant for 
domestic consumption or the remission of such duties and taxes to the tune of 
amounts due shall not be considered as a subsidy provided that such an exemption 
is granted in accordance with the provision of annexes  I to III.  
iii. Public  authorities provide goods and services other than general infrastructure  or 
purchase goods;  
iv. Public aut horities make payments to a funding mechanism or entrust to a private 
body  one or several types of functions listed under points i), ii) and iii) which under 
normal circumstances fall within their purview or direct it to do so, the practice does 
not reall y differ from the normal practice followed by public authorities;  
Or 
b. If there is any form of income support or price support in the sense of article XVI of the 
1994 GATT.  
And 
c. If a benefit is thereby conferred.  
Article 4 : Specificities  
1. Subsidies shall be  subject to countervailing measures only if they are specific as defined in 
paragraphs 2, 3, and 4 of this regulation.  
2. In order to determine whether a subsidy is specific to an enterprise or industry or group of 
enterprises or industries (hereinafter re ferred to as certain enterprises) within the jurisdiction of 
the granting authority, the following principles shall apply:  
a. Where the authority granting the subvention, or the legislation applicable, explicitly 
limits access to a subsidy to certain enterpri ses, such subsidy shall be considered as 
specific;  
b. Where the granting authority, or the legislation applicable, 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 adhered to. For the purpose of this article '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 across board 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 subject to verifica tion. 
c. If, notwithstanding any appearance of non -specificity resulting from the application of 
the principles laid down in points (a) and (b), of this article, 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; and the manner in which discretion has bee n 
exercised 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. In 
applying the first paragraph, account shall be taken of the extent of diversification of 
economic activities within the jurisdiction of the granting authority, as well as of the 
period during which the subsidy programme has been implemented.  
3. A subsidy w hich 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 Regulation.  G/SCM/N/1/LBR/1  
 
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  4. Irrespective of the provisions of paragraphs 2 and 3, of this article, the following subsidies 
shall be deemed to be specific:  
a. Subsidies contingent, in law or in fact,  either solely or as one of several other conditions, 
upon export performance, including those listed as examples in Annex I;  
b. Subsidies contingent, either solely or as one of several other  conditions, upon the use of 
domestic over imported goods.  
5. Any d etermination of specificity under the provisions of this Article shall be clearly 
substantiated on the basis of positive evidence.  
Article 5: Non countervailable subsidies  
1. The following subsidies shall not be subjected to countervailing measures:  
a. Subsid ies that are not specific as defined in paragraphs 2 and 3 of article 4;  
b. Subsidies that are specific as defined in paragraph 2 and 3 of article 4 but meet the 
requirement stated in paragraphs 2, 3 or 4 of this article ;  
c. An element of subsidy that may be in cluded in measures set forth in annex IV;  
2. Subsidies for research activities conducted by firms or by higher education or research 
establishments on a contract basis with firms shall not be subject to countervailing measures if the 
subsidies granted cove r at most 75% of the industrial research cost or 50%  of the cost of 
pre-competitive development activity, provided such subsidies are limited exclusively to the 
following elements:  
a. Personnel expenditures (researchers, technicians and other support personne l employed 
exclusively for research activity);  
b. Costs of instruments, material, lands and buildings used exclusively and permanently 
(except in a case of transfer on commercial basis) for the research activity;  
c. Cost of consultancy or equivalent services use d exclusively for the research activity, 
including research, technical knowledge, patents, etc. procured from external sources;  
d. Additional overheads incurred directly as a result of the research activity;  
e. Other operating expenses, (for example: costs of ma terials, supplies and similar 
products) incurred directly as a result of the research activity.  
3. For the purposes of this article:  
a. The allowable levels of non -countervailable subsidy referred to in this paragraph shall be 
established by reference to the total eligible costs incurred over the duration of a given 
project.  
In the case of programmes which span both 'industrial research and 'pre­ competitive 
development activity, the allowable level of non -countervailable subsidy shall not exceed 
the simple av erage of the allowable levels of non­countervailable subsidy applicable to 
the above two categories, calculated on the basis of all eligible costs as set forth in 
points (a) to (e) of paragraph  2 of this article;  
b. the term "industrial research" means planne d research or critical investigation aimed at 
discovery of new knowledge, with the objective that such knowledge may be useful in 
developing new products, processes or services, or in bringing about a significant 
improvement to existing products, processes  or services;  G/SCM/N/1/LBR/1  
 
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  c. The term "pre -competitive development activity" means the translation of industrial 
research findings into a plan, blueprint or design for new, modified or improved 
products, processes or services whether intended for sale or use, including t he creation 
of a first prototype which would not be put to commercial use. It may further include the 
conceptual formulation and design of products, processes or services alternatives and 
initial demonstration or pilot projects, provided that these same pr ojects cannot be 
converted or used for industrial application or commercial exploitation. It does not 
include routine or periodic alterations to existing products, production lines, 
manufacturing process, services, and other ongoing operations even though those 
alterations may represent improvements.  
4. Subsidies to disadvantaged regions within the territory of the country of origin and/or 
export, granted pursuant to a general framework of regional development, and which would be 
non-specific if the criteri a laid down in Article 4 subparagraphs (2) and (3) were applied to each 
eligible region concerned, shall not be subject to countervailing measures, provided that:  
a. Each disadvantaged region is a clearly designated contiguous geographical area with a 
definab le economic and administrative identity;  
b. The region is considered as disadvantaged on the basis of neutral and objective criteria, 
indicating that the region's difficulties arise out of more than temporary circumstances; 
such criteria must be clearly spelled out by law, regulation, or other official document, so 
as to be subject to verification;  
c. The criteria mentioned under (b) of this paragraph include a measurement of economic 
development which shall be based on at least one of the following factors:  
i. the income per capita or household income per capita, or GDP per c apita, which must 
not exceed 85 % of the average for the territory of the country of origin or export 
concerned,  
ii. the unemployment rate, which must be at least 110% of the average for the ter ritory 
of the country of origin or export concerned as measured over a three -year period; 
such measurement, however,  may be a composite  one and may include other 
factors.  
5. For the purpose of this article:  
a. The term "general framework of regional developme nt" means that regional subsidy 
programmes are part of an internally consistent and generally applicable regional 
development policy and that regional development subsidies are not granted in isolated 
geographical points having no, or  virtually no, influe nce on the development of a region;  
b. The term "neutral and objective criteria" means criteria which do not favour certain 
regions beyond what is appropriate for the elimination or reduction of regional disparities 
within the framework of the regional develo pment  policy. In this regard, regional 
subsidy programmes shall include ceilings on the amount of subsidy which can be 
granted to each subsidised project. Such ceilings must be differentiated according to the 
different levels of development of assisted re gions and must be expressed in terms of 
investment costs or the cost of job creation. Within such ceilings, the distribution of 
subsidy shall be sufficiently broad and even to avoid the predominant use of a subsidy 
by, or the granting of disproportionately  large amounts of subsidy to, certain 
enterprises.  
c. This provision shall be applied in the light of the criteria defined in article 4 
paragraphs  (2) and (3) of this regulation.  G/SCM/N/1/LBR/1  
 
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  1.1.  1 6. Subsidies to promote adaptation of existing facilities to new environmental requirements 
imposed by law and/or regulations which result in greater constraints and financial burden on 
firms, shall not be subject to countervailing measures, provided that the subsidy:  
a. is a one -time non -recurring measure; and  
b. is limited to 20 % of the  cost of adaptation; and  
c. does not cover the cost of replacing and operating the subsidised investment, which 
must be fully borne by firms; and  
d. is directly linked to and proportionate to a firm's planned reduction of nuisances and 
pollution, and does not co ver  any manufacturing  cost savings which may be achieved; 
and 
e. is available to all firms which can adopt the new equipment and/or production processes.  
For the purpose of the first subparagraph the term "existing facilities" means facilities having 
been i n operation for at least two years at the time when new environmental requirements 
are imposed.  
Article 6: Calculation of the amount of the countervailable subsidy  
The amount of countervailable subsidies, for the purposes of this regulation, shall be calculated in 
terms of the benefit conferred on the recipient which is found to exist during the investigation 
period. Normally this period shall be the most recent accounting year of the beneficiary, but may 
be any other period of at least six months prio r to the initiation of the investigation for which 
reliable financial and other relevant data are  available.  
Article 7: Calculation of benefit to the recipient  
For 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 between 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 this case the benefit shall be the 
difference between these 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 firm would pay for a 
comparable commercial loan in the absence of the government guarantee. In this case 
the benefit s hall be the difference between these two amounts adjusted to take account 
of any differences in fees;  
d. The provision of goods or services or purchase of goods 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 prevailing market conditions 
for the product or service in question in the country of provision or purc hase (including 
price, quality, availability, marketability, transportation and other conditions of purchase 
or sale).  G/SCM/N/1/LBR/1  
 
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  Article 8: General provisions on calculation  
1. a. The amount of countervailable subsidies shall be determined per unit of the subsidised  
product exported to the Community. In establishing this amount the following elements 
may be deducted from the total subsidy: any application fee or other costs necessarily 
incurred in order to qualify for, or to obtain the subsidy;  
b. Export taxes, duties o r other charges levied on the export of the product to the 
Community 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 transported, the amount of countervailable subsidy shall be determined by allocating 
the value of the total subsidy, as appropriate, over the level of produ ction, sales or exports of the 
products concerned during the investigation period.  
3. Where the subsidy can be linked to the current or future acquisition of fixed assets, the 
amount of the countervailable subsidy shall be calculated by spreading the subsi dy 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 this period, shal l be allocated in accordance with the provisions under 
paragraph 2 of this article. Where the assets are non -depreciating, the subsidy shall be valued as 
an interest -free loan, and be treated in accordance with Article 7 paragraph (b) of this regulation  
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 principle be attributed to this period, and 
allocated as described in paragraph 2, of this article unless s pecial circumstances  arise justifying 
attribution over a different period.  
Article 9: Determination of injury  
1. For the purposes of this Regulation, the term 'injury shall, unless otherwise specified, be 
taken to mean material injury to the Community ind ustry, threat of material injury to the 
Community industry or material delay of the establishment of such an industry and shall be 
interpreted in accordance with the provisions of this Article.  
2. A determination of injury shall be based on positive eviden ce and shall involve an objective 
examination of both:  
a. the volume of the subsidised imports and the effect of the subsidised imports on prices 
in the Community market for like products;  
b. and (b) the consequent impact of those imports on producers of such pr oducts within the 
Community industry.  
3. With regard 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 consump tion in the Community. Concerning the effect of the subsidized imports on 
prices, consideration shall be given to whether there has been significant price undercutting of the 
subsidised imports as compared with the price of a like product of the Community industry, or 
whether the effect of such imports is otherwise 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 
these factors can necessarily give decisive ju dgement.  G/SCM/N/1/LBR/1  
 
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  4. Where imports of a product from more than one country are simultaneously subject to 
countervailing duty investigations, 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 that the volume of 
imports from each country is not negligible; and  
b. a cumulative assessment of the effects of the imports is appropri ate in light of the 
conditions of competition between imported products and the conditions of competition 
between the imported products and the like community product.  
5. The review of the impact of the subsidized imports on the Community industry concerne d 
shall include an evaluation of all relevant economic factors 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 magn itude of the amount of countervailable 
subsidies, actual and potential decline in sales, profits, output, market share, productivity, return 
on investments, utilisation of capacity; factors affecting Community prices; actual and potential 
negative effects on cash flow, inventories, employment, wages, growth and ability to raise capital 
or investments. This list is not exhaustive, nor can any one or more of these factors necessarily 
give decisive basis of judgement.  
6. It must be demonstrated, from all the r elevant evidence presented in relation to 
paragraph  2, of this article that the subsidised imports are causing injury in the sense of this 
regulation. Specifically, this shall entail a demonstration that the volume and/or price levels 
referred to in paragr aph 3 have an impact on the Community industry as provided for in 
paragraph  5, and that this impact exists to a degree which enables it to be considered as 
important.  
7. Known factors other than the subsidised imports which at the same time are causing inj ury 
to the Community industry shall also be examined to ensure that injury caused by these other 
factors is not attributed to the subsidised imports pursuant to paragraph 6 of this article. Factors 
which may be considered relevant in this respect include t he volume and prices of non -subsidised 
imports, contraction in demand or changes in the patterns of consumption, restrictive trade 
practices of third country and community producers as well as competition between these same 
producers, developments in techn ology, export performance and productivity of the Community 
industry.  
8. The effect of the subsidised imports shall be assessed in relation to the production of the 
Community industry of the like product when available data permit the separate identificati on of 
the production on the basis of such criteria as the production process, producers' sales and profits. 
If such separate identification of the production is not possible, the effects of the subsidised 
imports shall be assessed by examining the producti on of the narrowest group or range of 
products, which includes the like product, for which the necessary information can be provided.  
9. A conclusive determination of a threat of serious material injury shall be based on facts and 
not merely on allegation,  conjecture or remote possibility. The change in circumstances which 
would create a situation in which the subsidy would cause injury must be clearly foreseen and 
imminent.  
10. In making a determination regarding the existence of a threat of material injur y, 
consideration should be given to, inter alia, such factors 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 Community market indicating 
the likelihood of substantially increased imports;  
c. sufficient freely available capacity of the exporter or an imminent substantial increase in 
such capacity indicating the likelihood of substantially increased subsidised exports to G/SCM/N/1/LBR/1  
 
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  the Community, taking in to account the availability of  other export 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 proba bly 
increase demand for further imports; and  
e. Inventories of the product being investigated.  
11. No one of the factors listed in paragraph 10 of this article by itself can necessarily give 
decisive judgement but the totality of the factors considered must l ead to the conclusion that 
further subsidised exports are imminent and that, unless protective action is taken, material injury 
will occur.  
Article 10 : Definition of community industry  
1. For the purposes of this regulation, the term "Community industry" m eans Community 
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 11 paragraph 8 of this regulation, of 
the total Community production of those produc ts, except that:  
2. Without prejudice to the provisions of the above paragraph, when producers are linked to 
the exporters or importers or are themselves importers of the allegedly subsidised product, the 
term "Community industry" may be interpreted as referring to the rest of the producers;  
3. In exceptional circumstances the territory of the Community may, for the production in 
question, be divided into two or more competitive markets and the producers within each market 
may be regarded as a separate i ndustry if:  
a. the producers within such a market sell all or almost all of their production of the 
product in question in that market;  
b. the demand in that market is not to any substantial degree supplied by producers of the 
product in question located elsewhe re in the Community.  
4. In the circumstances indicated in paragraph 3 of this article, injury may be found to exist 
even where a major portion of the total Community industry is not injured, provided 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.  
5. For the purpose of paragraph 1, of this article, producers shall be considered to be re lated to 
exporters or importers only if:  
a. one of them directly or indirectly controls the other; or  
b. both of them are directly or indirectly controlled by a third party; or  
c. together they directly or indirectly control 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 non­related producers.  
6. For the purpose of this paragraph, one producer shall be deemed to control another when 
the former is legally or operationally in a position to exercise restraint or direction over the latter.  
7. Where the Community industry has been interpreted as referring to the producers in a 
certain region, the exporters or the government granting subsid ies shall be given an opportunity to 
offer undertakings pursuant to Article 14 of this regulation in respect of the region concerned. 
In such cases, when evaluating the Community interest of the measures, special account shall be 
taken of the interest of t he region. If an adequate undertaking is not offered promptly or if the 
situations set out in Article 14 paragraphs (9) and (10) apply, a provisional or definitive G/SCM/N/1/LBR/1  
 
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  countervailing duty may be imposed in respect of the Community as a whole. In such cases the  
duties may, if practicable, be limited to specific producers or exporters.  
8. Provisions of Article 9 paragraph (8) shall apply to this article.  
Article 11: Initiation of Proceedings  
1. Subject to paragraph 10 of this article, an investigation to determin e 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 Community 
industry.  
2. The complaint may be submi tted to 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 de livery to the commission by registered mail or the issuing of an acknowledgement of receipt 
by the Commission. Where, in the absence of any complaint, a Member State is in possession of 
sufficient evidence of subsidisation and of resultant injury to the Co mmunity industry, it shall 
immediately communicate such evidence to the Commission.  
3. A complaint, as referred to in paragraph 1 of this article, shall include sufficient evidence of 
the existence of countervailable subsidies (including, if possible, thei r amount), injury and a causal 
link between 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 descript ion of the volume and value of the 
Community production of the like product by the complainant. Where a written complaint 
is made on behalf of the Community industry, the complaint shall identify the industry 
on behalf of which the complaint is made by a l ist of all known Community producers of 
the like product (or associations of Community producers of the like product) and, to the 
extent possible, a description of the volume and value of Community production of the 
like product accounted for by such produ cers; 
b. a comprehensive description of the allegedly subsidised product, the names of the 
country or countries of origin and/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 countervailability of the 
subsidies in question;  
d. information on changes in the volume of the allegedly subsidised imports, the effect of 
those imports on prices of the like product in the C ommunity market and the consequent 
impact of the imports on the Community industry, as demonstrated by relevant factors 
and indices having a bearing on the state of the Community industry, such as those 
listed in Article 9 paragraphs (3) and (5).  
4. The Co mmission shall, as far as possible, examine  the accuracy and adequacy of the 
evidence provided in the complaint, in order to determine whether there is sufficient evidence to 
justify the initiation of an investigation.  
5. An investigation may be initiated  in order to determine whether or not the alleged subsidies 
are specific as defined in Article 4 paragraphs (2) and (3).  
6. An investigation may also be initiated in respect of non countervailable subsidies as defined 
in article 5 paragraphs (2), (3) or (4 ) in order to determine whether the requirements therein 
stated are met.  
7. If a subsidy is granted under a subsidy programme which before implementation  had been 
brought to the attention of the Subsidy and Countervailing Measures Committee of the WTO in 
accordance with article 8 of the agreement on subventions  and for which the committee was G/SCM/N/1/LBR/1  
 
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  unable to establish that it does not meet the conditions set in the said article, an investigation can 
be initiated in respect of such subsidy only if a violation of article 8 of the said agreement is 
established by the competent dispute settlement body of the WTO or by arbitration as stated in 
article 8(5) of the said agreement.  
8. An investigation may also be initiated in respect of measures of the type listed in Ann ex IV, 
to the extent that they contain an element of subsidy as defined in Article 3, in order to determine 
whether the measures in question fully conform to the provisions of the said Annex.  
9. An investigation shall not be initiated pursuant to paragraph  1 of this article 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 Community producers of the like product, that the complaint has been 
made by or on behalf of the Community industry. The complaint shall be considered to have been 
made by or on behalf of the Community industry if it is supported by those Community producers 
whose collective output constitutes more than 50 % of the total production of the like product 
produced by that portion of the Community industry expressing either support for or opposition to 
the complaint. However, no investigation shall be initiated when Community producers  expressly 
supporting the complaint account for less than 25 % of total pro duction of the like product 
produced by the Community industry.  
10. The authorities shall, unless a decision has been made to initiate an investigation, avoid 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, which shall be invited for consultati ons with the aim of clarifying the situation as to 
matters referred to in paragraph 2 of this article and arriving at a mutually agreed solution.  
11. If under special circumstances, the Commission decides to initiate an investigation without 
having receive d a written complaint by or on behalf of the Community industry for the initiation of 
such investigation, this shall be done on the basis of sufficient evidence of the existence of 
countervailable subsidies, injury and causal link, as described in paragrap h 2, to justify such 
initiation.  
12. The evidence both of subsidies and of injury shall be considered simultaneously in order to 
decide on whether or not to initiate an investigation. A complaint shall be rejected where there is 
insufficient evidence of ei ther countervailable subsidies or of injury to justify proceeding with the 
case. Proceedings shall not be initiated against countries whose imports represent a market share 
of below 1%, unless such countries collectively account for 3% or more of Community  
consumption.  
13. A complaint may be withdrawn prior to initiation of the investigation, in which  case it shall 
be considered not to have been lodged.  
14. Where after consultation, it is apparent that there is sufficient evidence to justify initiating 
proceedings, the Commission shall do so within 45 days of the lodging of the complaint and shall 
publish a notice in the Official Journal of ECOWAS. Where insufficient evidence has been 
presented, the complainant shall, after consultation, be so informed withi n 45 days of the date on 
which the complaint is lodged with the Commission.  
15. 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 r eceived, 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 infor mation 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 12 paragraph(5) of this regulation.  
16. The Commission shall adv ise the exporters, importers and representative associations of 
importers or exporters known 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 o f 
confidential information, provide the full text of the written complaint referred to in paragraph 1 of G/SCM/N/1/LBR/1  
 
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  this article to the known exporters and to the authorities of the country of origin and/or export, 
and make it available upon request to other interest ed parties involved. Where 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.  
17. A coun tervailing duty investigation shall not hinder customs clearance operations.  
Article 12:  Investigation  
1. Following the initiation of the proceedings, the Commission, acting in cooperation with the 
Member States, shall commence an investigation at Community level. Such investigation shall 
cover both subsidisation and injury, and these shall be investigated sim ultaneously. 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 6 of this 
regulation. 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 days to reply. The time limit for exporters shall be counte d 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 appropriate diplomatic 
representative of the country of origin and/or export. An extension to the 30 -day period may be 
granted, due account being taken of the time limits of the investigation, provided that the party 
shows due cause for such extension, in terms of its particular circumstances.  
3. The Commission may re quest 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 requested together with the results of all inspections, checks or 
investigations carried out. Where this 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, 
provided it is not confidential, in which case a non -confiden tial summary shall be forwarded.  
4. The Commission may request Member States to carry out all necessary checks and 
inspections, particularly amongst importers, traders and Community producers, and to carry out 
investigations in third countries, provided th at 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 
Commi ssion. 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. Interested parties which have made themselves known in accordance with the se cond 
subparagraph of Article 11 paragraph (15), shall be heard if they have, within the period 
prescribed in the notice published in the Official Journal of ECOWAS, made a written request for a 
hearing 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 a the complainants, 
which have made themselves known in accordance with the second subparagraph of Article 11 
paragraph(15), 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 rebuttal arguments 
offered. The provision of such op portunities must 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 prejudicial to that party's case. Oral information  
provided under  this paragraph shall be taken into account by the Commission in so far as ii 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 sub paragraph of Article 11 
paragraph  (15), may, upon written request, inspect all information made available to the G/SCM/N/1/LBR/1  
 
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  Commission by any party to a n investigation, as distinct from internal documents prepared by the 
authorities of the Community or its Member States, which is relevant to the presentation of their 
cases and is not confidential in the sense of Article 30, and is used in the investigatio n. 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 29, the information which is supplied by 
interested parties and upon which findings are based shall be examined for accuracy as far as 
possible.  
9. For proceedings initiated pursuant to Article 11 paragraph (13) of this regulation, 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 14 of this regulation for undertakings or the findings 
made pursuant to Article 15 for d efinitive action.  
10. Throughout 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 solutio n. 
Article 13:  Provisional measures  
1. Provisional duties may be imposed if:  
a. an investigation has been initiated in accordance with Article 11 of this regulation;  
b. a notice has been published to that effect and interested parties have been given 
adequate op portunities to submit information and make comments in accordance with 
Article 11, paragraph  (15) of this regulation;  
c. a provisional affirmative determination has been made that the imported product 
benefits from countervailable subsidies and are of consequ ent injury to the Community 
industry; and  
d. the Community interest calls for intervention to prevent such an injury.  
2. 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.  
3. The amount of the provisional countervailing duty 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 adequat e to remove the injury to the Community industry.  
4. The Commission shall take provisional action after consultation or, in cases of extreme 
urgency, after informing the Member States. In this latter case, consultations shall take place 10 
days, at the lat est, after notification to the Member States of the action taken by the Commission.  
5. 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, decide whether a provisional 
countervailing duty shall be imposed.  
6. Provisional countervailing duties shall be imposed for a maximum period of four months.  G/SCM/N/1/LBR/1  
 
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  Article  14: U ndertakings  
1. An investigation may be closed without the imposition of provisional or definitive duties 
subject to the voluntary and satisfactory undertakings 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  
b. the 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, 
after consultation is satisfied that the injurious effect of the subsidies is thereby 
eliminated. Price increases under such undertakings shall not be higher than is necessary 
to offset the amount of countervailable subsidies, and should be less than the amount of 
countervailable subsidi es if such increases would be adequate to remove the injury to 
the Community industry.  
2. Undertakings may be suggested by the Commission, but no country 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 determined that a threat of injury is more likely to be realised if the 
subsidised imports continue. Undertaking s 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 th an the end of the period during which representations may be made pursuant to Article 31 
paragraph (5) of this regulation.  
3. Undertakings offered need not be accepted if the acceptance is considered impractical, such 
as where the number of actual or poten tial 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 the reasons for which it is proposed to reject the offer of an undertaking and ma y 
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 to provide a non -confidential version of 
such undertaking, so that it may be made available to interested parties to the investigation.  
5. Where undertakings are, after consultation, accepted, and where there is no objection raised 
within the Advisory Committee, the investigation shall be terminated. In all other cases, the 
Commiss ion shall submit to the Council forthwith a report on the results of the consultation, 
together with a proposal that the investigation be terminated.  
6. If the undertakings are accepted, the investigation of subsidisation and injury shall normally 
be compl eted. 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 re quired 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 consistent with its modalities 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 such undertaking, and to 
permit verification of pertinent data. Non -compliance with such requir ements shall be construed as 
a breach of the undertaking.  
8. Where undertakings are accepted from certain exporters during the course of an 
investigation, they shall, for the purpose of Articles 19, 20, 21 and 23, be deemed to take effect 
from the date on which the investigation is concluded for the country of origin and/or export.  
9. In case of breach or withdrawal of undertakings by any party to the undertaking, a definitive 
duty shall be instituted in accordance with article 15 on the basis of facts esta blished during the 
investigation which led to the undertaking, provided that the said investigation is completed with a G/SCM/N/1/LBR/1  
 
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  final determination on the subsidies and injury and the exporter concerned and/or country of origin 
and/or export has, except in the cas e of withdrawal of the undertaking, been given an opportunity 
to comment.  
10. A provisional duty may, after consultation, be imposed in accordance with Article 13 of this 
regulation on the basis of the best information available, where there is reason to b elieve that an 
undertaking is being breached or in case of breach or withdrawal of an undertaking where the 
investigation which led to the undertaking has not been concluded.  
Article 15: Termination of proceedings without imposing measures  
1. Where the com plaint is withdrawn, the proceedings may be terminated unless such 
termination would not be in the Community interest.  
2. Where, after consultation, protective measures are unnecessary, the investigation or 
proceedings shall be terminated. In all other cas es, the Commission shall submit a report on the 
results of the consultation, together with proposal that the proceedings be terminated. The 
proceedings shall be deemed terminated if, within one month, the Commission has not decided 
otherwise.   
3. There sha ll be immediate termination of the proceedings where it is determined that the 
amount of countervailable subsidies is de minimis, in accordance with paragraph 5 of this article, 
or where the volume of subsidised imports, actual or potential, or the injury,  is negligible.  
4. For proceedings initiated pursuant to Article 11 paragraph 14 of this regulation, injury shall 
normally be regarded as negligible where the market share of the imports is less than the amounts 
set out in Article 11 paragraph 12. With reg ard to investigations concerning imports from 
developing countries, the volume of subsidised imports shall also be considered negligible if it 
represents less than 4 % of the total imports of the like product in the Community, unless imports 
from developing  countries whose individual shares of total imports represent less than 4 % 
collectively account for more than 9 % of the total imports of the like product in the Community.  
5. The amount of countervailable subsidies shall be considered de mimimis when it is below 1% 
ad valorem, except in the following cases:  
a. During investigations on imports originating from developing countries, the level below 
which it is considered as de minimis is 2% ad valorem;  
b. For developing countries that are members of the WTO and are  referred to in Annex VII to 
the Agreement on subsidies as well as developing countries members of the WTO which 
have removed all export subsidies as defined in article 4 paragraph (4) (a) of this 
regulation, the level below which the amount shall be consi dered as de minimis is 3% ad 
valorem; where the application of this provision is dependent upon the removal of export 
subsidies, it shall apply from the date this removal is notified to the WTO Committee on 
Subsidies and Countervailing Measures so long as the developing country concerned does 
not grant export subsidies. This provision shall expire eight years after the entry into force 
of the Agreement on the WTO, provided the investigation is terminated where the amount 
of countervailable subsidy is below the level of minimis applicable to individual exporters 
who shall remain subject to proceeding and can be re -investigated during a review 
conducted for the country concerned in accordance with article 19 and 20.  
Article 16: Imposition of definitive duties  
1. Where the facts as finally established show the existence of countervailable subsidies and 
injury caused thereby, and the Community interest calls for intervention in accordance with 
Article  32 of this regulation, a definitive countervailing duty shall be imposed by the Council of 
Ministers, deciding by a simple majority on a proposal submitted by the Commission after 
consultation of the Advisory Committee, unless there has been a removal of the subsidy or 
subsidies or it has been proven that such subsid ies does not confer any benefit to the exporters 
concerned. Where provisional duties are in force, a proposal regarding definitive action shall be 
submitted no later than one month before the expiry of such duties. The amount of the G/SCM/N/1/LBR/1  
 
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  countervailing duty sha ll not exceed the amount of countervailable subsidies established and found 
to benefit exporters 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 Community industry.  
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 sou rces 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  its examination in accordance with Article 28 of this 
regulation, any countervailing duty applied to imports from exporters or producers which have 
made themselves known in accordance with Article 28 but were not included in the examination 
shall not exce ed the weighted average 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 countervail able subsidies 
established in the circumstances referred to in Article 29 of this regulation. Individual duties shall 
be applied to imports from any exporter or producer for which an individual amount of 
subsidisation has been calculated as provided for in  Article  28 of this regulation.  
Article 17: Retroactivity  
1. Provisional measures and definitive countervailing duties shall be applied only to products 
which enter free circulation after the time when the measure taken pursuant to Article 13 
paragraph (1)  or Article 16 paragraph (1) of this regulation, 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 Council shall decide, irrespective of whether 
a definitive countervailing duty is to be imposed, what proportion of the provisional duty is to be 
definitively collected. For this purpose, 'inj ury' shall not include material delay of the establishment 
of a Community 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 which a final determination of threat or material delay is made.  
3. If the definitive countervailing duty is higher than the p rovisional 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 counter vailing duty may be levied on products which were entered for 
consumption no more than 90 days prior to the date of application of provisional measures but not 
prior to the initiation of the investigation, provided the imports are registered in accordance with 
article 24(5) and that the Commission has given importers the opportunity to comment and:  
a. there are critical circumstances where for the subsidised product in question, an 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 
b. it is deemed necessary, in order to preclude the recurrence of such injury, to impose 
countervailing duties retroactively on those import s. 
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 25 paragraph (5) of this 
regulation and that any such retroactive assessment shall not apply to imports entered before the 
breach or withdrawal of the undertaking.  G/SCM/N/1/LBR/1  
 
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  Article  18: Duration  
A countervailing measure shall remain in force only as lon g as, and to the extent that, it is 
necessary to counteract the countervailable subsidies which are causing injury.  
Article 19: Review of expiry of measures  
1. A definitive countervailing 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 likely lead to a continuation or recurrence of 
subsidisation and injury. Such an expiry review shall be initiat ed on the initiative of the 
Commission, or upon a request made by or on behalf of Community producers, and the measure 
shall remain in force pending the outcome of such review.  
2. An expiry review shall be initiated where the request contains sufficient ev idence that the 
expiry of the measures would be likely to result in a continuation or recurrence of subsidisation 
and injury. Such likelihood may, for example, be indicated by evidence of continued subsidisation 
and injury or evidence that the removal of i njury 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 und er this Article, the exporters, importers, the country of 
origin and/or export and the Community 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 wi th 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 by the Commission in the Official Journal of 
the Community and each member state in her official journal at an appropriate time in the final 
year of the period of application of the measures as defined in this Article. Thereafter, the 
Community 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 of this article. A notice 
announcing the actual expiry of measures under this  Article must also be published.  
5. 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 o ne year has elapsed since the imposition of the definitive 
measure, upon a request by any exporter, importer or by the Community producers or the country 
of origin and/or export which contains sufficient evidence substantiating the need for such an 
interim  review.  
6. 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 continue o r 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.  
7. Where countervailing duties imposed are less than the amount of countervai lable subsidies 
found, an interim review may be initiated if the Community producers submit sufficient evidence 
that the duties have not or have not sufficiently modified the resale price of the product imported 
into the Community. If the investigation pro ves the allegations to be correct, counter -vailing duties 
may be increased to achieve the price increase required to remove injury, provided that the 
increased duty level does not exceed the amount of the countervailable subsidies.  
8. In carrying out inves tigations pursuant to this Article, the Commission may, inter alia, 
consider whether the circumstances with regard to subsidisation and injury have changed 
significantly, or whether existing measures are achieving the intended results in removing the 
injury previously determined under Article 9 of this regulation. In these respects, account shall be 
taken in the final determination of all relevant and duly documented evidence.  G/SCM/N/1/LBR/1  
 
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  Article 20: Accelerated Reviews  
Any exporter whose exports are subject to a defin itive countervailing duty but which was not 
individually investigated during the original investigation for reasons other than a refusal to 
cooperate with the Commission, shall be entitled, upon request, to an accelerated review in order 
that the Commissio n may promptly establish an individual countervailing duty rate for that 
exporter. Such a review shall be initiated after consultation of the Advisory Committee and after 
Community producers have been given an opportunity to comment.  
Article 21: Refunds  
1. Notwithstanding Article 19 of this regulation, 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 or reduced to a lev el which is below the level of 
the duty in force.  
2. To obtain 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 which the 
products wer e 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 secure d 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, the amount of countervailable subsidies for the 
exporter or producer 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 
the exporter or producer is unwilling to release it to the importer, the application shall contain a 
statement from the exporter or producer that the amount of countervailable subsidies has been 
reduc ed or eliminated, as specified in this Article, and that the relevant supporting evidence will be 
provided to the Commission. Where such evidence is not forthcoming from the exporter or 
producer within a reasonable period of time the application shall be r ejected.  
4. The Commission shall, after consulting CET Management Committee, decide whether and to 
what extent the application should be granted, or it may decide at any time to initiate an interim 
review, whereupon the information and findings from such 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 shall 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 any 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 articles 11 and 12 of this regulation, excluding those relating to 
time limits shall apply to any review carried out pursuant to articles, 19, 20  and 21. Such review 
shall be carried out expeditiously and shall normally be concluded within 12  months of the date of 
initiati on of the review.  
2. Reviews pursuant to article 19, 20, and 21 of this regulation shall be conducted by the 
Commission after consulting the CET Management Committee. Where warranted by reviews, 
measures shall be repealed or maintained pursuant to Article 19 or repealed, maintained or 
amended in accordance with articles 20 and 21 by the Community's institution responsible for their 
adoption. Where measures are repealed for the benefit of individual exporters but not for the 
country as a whole, such exporter s shall remain subject to proceeding and may be reinvestigated 
in any subsequent review carried out for the said country pursuant to this article.  G/SCM/N/1/LBR/1  
 
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  3. Where a review of measures pursuant to Article 20 of this regulation is in progress at the 
end of the peri od of application of measures as defined in Article 19, the measures shall also be 
reviewed under the provisions of Article 19. 
4. In all review or refund investigations carried out pursuant to Articles 19 to 22, the 
Commission shall, provided that circums tances have not changed, apply the same methodology as 
in the investigation which led to the duty, with due account being taken of Articles, 6, 7, 8 and 28.  
Article  23: Circumvention  
1. Countervailing duties imposed pursuant to this Regulation may be extended to imports from 
third countries of like products, or parts thereof, when circumvention of the measures in force is 
taking place. Circumvention shall be defined as a change in the pat tern of trade between third 
countries and the Community 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 that the remedial ef fects of the duty are being undermined in terms of the prices 
and/or quantities of the like products and that the imported like product and/or parts thereof still 
benefit from the subsidy.  
2. Investigations shall be initiated pursuant to this Article where  the request contains sufficient 
evidence regarding the factors set out in paragraph 1. Investigation shall be initiated, after 
consultation of the GET Management Committee, by a Commission regulation which shall also 
instruct the customs authorities to ma ke imports subject to registration in accordance with article 
25 paragraph (5) of this regulation or to demand guarantees. Investigations shall be carried out by 
the Commission, which may be assisted by customs authorities, and shall be concluded within ni ne 
months. When the facts as finally ascertained justify the extension of measures, this shall be done 
by the Commission from the date on which registration was imposed pursuant to Article 24(5) or 
on which guarantees were requested. The relevant procedura l provisions of this regulation with 
regard to initiations and the conduct of investigations shall apply pursuant to this article.  
3. Products shall not be subject to registration pursuant to Article 25 paragraph (5) of this 
regulation or measures where th ey are accompanied by a customs certificate declaring that the 
importation of the goods does not constitute circumvention. These certificates may be issued to 
importers, upon written application following authorization by decision of the Commission after 
consultation of the GET Management Committee, and they shall remain valid for the period, and 
under the conditions, set down therein.  
4. 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 a 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 d uties. 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  
situation arising from dumping or from export subsidisation.  
2. Regulations imposing provisional or definitive countervailing duties, and regulation or 
decisions on accepting undertakings or terminating investigations or proceedings, shall be 
published by  the Commission in the Official Journal of the Community and by each member state 
in her official journal. Such regulations or decisions shall contain in particular rand with due regard 
to the protection of confidential information, the names of the export ers, 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 decision or 
regulation shall be sent to known interest ed parties. The provisions of this paragraph shall apply 
mutatis mutandis to reviews.  G/SCM/N/1/LBR/1  
 
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  3. In the Community interest, measures imposed pursuant to this regulation may be 
suspended by a decision of the Commission for a period of nine months. The suspension ma y be 
extended for a further period, not exceeding one year. 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 Community industry has been given an 
opportunity to comment and these comments have been taken into account. Measures may, at 
any time and after consultation, be reinstated if the reason for suspension is no longer justified.  
4. The Commission may direct the customs  authorities' to take the appropriate steps to 
register imports, so that measures may subsequently be applied against those imports from the 
date of such registration. Imports may be made subject to registration following a request from 
the Community indus try which contains sufficient evidence to justify such action. Registration shall 
be introduced by a Commission regulation which shall specify the purpose of the action and, if 
appropriate, the estimated amount of possible future liability. Imports shall n ot be made subject to 
registration for a period longer than nine months.  
5. Member States shall report to the Commission every month on the import of products 
subject to investigation and to measures, and on the amount of duties collected pursuant to this 
regulation.  
Article  25: Consultations  
1. Any consultations provided for in this regulation, except those referred to in Article 11 
paragraph  (9) and article 12, paragraph (10) of this regulation, shall take place within the GET 
Management Committee. Consul tations shall be held immediately on request by a Member State or 
on the initiative of the Commission, and in any event within a period of time which allows the time 
limits set by this regulation to be adhered to.  
2. The GET Management Committee shall meet  when convened by its chairman. He shall 
provide the Member States, as promptly as possible, with all relevant information.  
3. Where necessary, consultation may be in writing only; in that event, the Commission shall 
notify the Member States and shall spec ify a period within which they shall be entitled to express 
their opinions or to request an oral consultation which the chairman shall arrange, provided that 
such oral consultation can be held within a period of time which allows the time limits set by thi s 
regulation to be adhered to.  
4. Consultation shall cover, in particular:  
a. the existence of countervailable subsidies and the methods of establishing their amount;  
b. the existence and extent of injury;  
c. the causal link between the subsidised imports and injury;  
d. the measures which, in the circumstances, are appropriate to prevent or remedy the 
injury caused by the countervailable subsidies and the ways and means of putting such 
measures into effect.  
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 
to verify information provided on subsidisation and  injury. In the ab sence of a proper and timely 
reply a verification visit may not be carried out.  
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 qu estion and that the 
latter does not object to the investigation. As soon as the agreement of the firms concerned has 
been obtained the Commission must notify the country of origin and/or export of the names and 
addresses of the firms to be visited and the dates agreed.  G/SCM/N/1/LBR/1  
 
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  3. The firms concerned shall be advised on 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 should not preclude requests made dur ing the 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 of this article, the 
Commission shall be assisted by officials of those Member States who so re quest.  
Article 27: Sampling  
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 whic h 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 or transactions made pursuant to 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 sufficient information available, within three weeks of initiation of the 
investigation, to enable a representative sample to be chosen.  
3. In cases where the examination has been limited in accordance with this Article, an 
individual amount of countervailable subsidisation shall, nevertheless, 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 individual 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 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 Arti cle 29 of this regulation shall apply.  
Article 28: Non cooperation  
1. In cases in which any interested party refuses access to, or otherwise does not provide, the 
necessary information within the time limits provided in this regulation, or significantly im pedes 
the investigation, provisional or final findings, affirmative or negative, may be made on the basis 
of the facts available.  
2. Where it is found that any interested party has supplied false or misleading information, the 
information shall be disregarded and use may be made of the facts available. Interested parties 
should be made aware of the consequences of non -cooperation.  
3. Where the information submitted by an interested party is not ideal in all respects it should 
nevertheless not be dis regarded, provided that any deficiencies are not such as to cause undue 
difficulty in arriving 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 informed forthwith of 
the reasons thereof 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 and with due regard to the time limits of the investigation, be checked by G/SCM/N/1/LBR/1  
 
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  reference to information from other independent sources which may be available, such a s 
published price lists, official import statistics and customs returns, or information obtained from 
other interested parties during the investigation.  
6. If an interested party does not cooperate, or cooperates only partially, so that relevant 
informatio n is thereby withheld, the result 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 disclosure would 
be of significant competitive advanta ge to a competitor or would have a significantly adverse effect 
upon a person supplying the information or upon a person from whom he 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 of the Commission.  
2. Interested parties providing confidential information shall be required to furnish 
non-confidential summaries thereof. Those 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 susceptible to 
summary. In such exceptional circumstances, a statement of the reasons why  a summary is not 
possible must 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 
generalis ed 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 preclud e the disclosure of general information by the Community 
authorities and in particular of the reasons on which decisions taken pursuant to this regulation are 
based, nor disclosure of the evidence relied on by the Community authorities in so far as it is 
necessary to explain those reasons in court proceedings. Such disclosure must take into account 
the legitimate interests of the parties concerned that their business or governmental secrets 
should not be divulged.  
5. The Commission and the Member States, or  the officials of any of them, shall not reveal any 
information received pursuant to this regulation for which confidential treatment has been 
requested by its supplier, without specific permission from the supplier. Exchanges of information 
between the Co mmission and Member States, or any information relating to consultations made 
pursuant to Article  26, or consultations described in Articles 11 paragraph (9) and article 12 
paragraph (10) of this regulation, or any internal documents prepared by the author ities of the 
Community or its Member States, shall not be divulged except as specifically provided for in this 
regulation.  
6. Information received pursuant to this regulation shall be used only for the purpose for which 
it was requested.  
Article 30: Disclo sure 
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 essential 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 of this article may request final information of the 
essential facts and considerations on the basis of which it is intended to recommend the imposition 
of definitive m easures, or the termination of an investigation 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.  G/SCM/N/1/LBR/1  
 
- 24 - 
 
  3. Request s for final information shall be addressed to the Commission in writing and be 
received, in cases where a provisional duty has been applied, not later than one month after 
publication of the imposition of that duty. Where a provisional duty has not been ap plied, 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, with due regard to the protection 
of confidential information, as so on as possible and, normally, not later than one month prior to a 
definitive decision or the submission by the Commission of any proposal for final action pursuant 
to Articles 15 and  16. Where the Commission is not  in a position to disclose certain facts or 
considerations at that time, these shall be disclosed as soon as possible thereafter. Disclosure shall 
not prejudice any subsequent decision which may be taken by the Commission but where such 
decision is based on any different facts and considerations,  these shall be disclosed as soon as 
possible.  
5. Representations made after final disclosure is given shall be taken it consideration only if 
received within a period to be set by the Commission in each case, which shall be at least 10 days, 
due considera tion being given to the urgency of the matter.  
Article 31: Community interest  
1. A determination as to whether the Community interest calls for intervention shall be based 
on an appreciation of all the various interests taken as a whole, including the interests of the 
community industry and users and consumers; a determination pursuant to this Article shall only 
be made where all parties have been given the opportunity to make their views known pursuant to 
paragraph 2 of this article. In such an examination , the need to eliminate the trade distorting 
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 information submitted, can clearly conclude 
that it is not in the Community 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 imposition of measures is in the Community 
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 countervailing duty investigation, make themselves known and provide information 
to the national CET Management Committee and 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 to such information.  
3. The parties which have acted in conformity with paragraph 2 of this article 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 Community interest, why the 
parties should be heard.  
4. The parties which have acted in conformity with paragraph 2 of this art icle may provide 
comments on the application of any provisional duties imposed. Such comments shall be received 
within one month of the application of such measures if they are to be taken into account and 
they, or appropriate summaries thereof, shall be m ade 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 representative, and the results of such analysis, together with an o pinion on its 
merits, shall be transmitted to the CET Management Committee. The summary of opinions 
expressed within the Committee must be taken into account by the Commission in any proposal 
made pursuant to article 15 and 16 of this regulation.  
6. The pa rties which have acted in conformity with paragraph 2 of this article may request the 
facts and considerations on which final decisions are likely to be taken to 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 or the Council.  G/SCM/N/1/LBR/1  
 
- 25 - 
 
  7. Information shall only be taken into account where it is supported by actual evidence which 
substantiates its validity.  
Article 32:  Relationships between countervailin g duty measures and multilateral 
remedies  
If an imported product is made subject to any measures imposed following recourse to the dispute 
settlement procedures of the Subsidies Agreement, and such measures are appropriate to remove 
the injury caused by th e countervailable subsidies, any countervailing duty imposed with regard to 
that product shall immediately be suspended, or repealed, 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 Community and 
third countries;  
b. Community regulations in the area of agriculture and in derogation to all their provisions 
that may run counter to the imposition of countervailing duties;  
c. waivers special measures, provided that such action does not run counter to obligations 
under the GATT.  
Article 34:  
This Regulation shall be published by the Commission in the official journa l of the community 
within thirty (30) days of its signature by the President of the Council  of Ministers. It shall equally 
be published by each member state in her official journal thirty (30) days after notification by the 
Commission.  
DONE AT ABIDJAN THIS 21ST DAY OF JUNE 2013  
H.E. CHARLES KOFFI DIBY  
CHAIRMAN  
FOR COUNCIL  
  G/SCM/N/1/LBR/1  
 
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  ANNEX I  
ILLUSTRATIVE LIST OF EXPORT SUBSI DIES  
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 transport and freight char ges 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 imported or domestic pro ducts 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 pr oducts) such terms or conditions 
are more favourable than those commercially available (1) on world markets to their 
exporters.  
e. The full or partial exemption, remission, or deferral specifically related to exports, of 
direct taxes (2) or social security ch arges paid or payable by industrial or commercial 
enterprises (3) which would be granted them specifically in respect of their exports.  
f. Special deductions directly related to exports or export performance, over and above 
those granted in respect of product ion for domestic consumption, in the calculation of 
the base on which direct taxes are charged.  
g. The exemption or remission in respect of the production and distribution of exported 
products, of indirect taxes (4) in excess of those levied in respect of the  production of 
like product when sold for domestic consumption.  
h. The exemption, remission or deferral of prior -stage cumulative indirect taxes (5) on 
goods or services used in the production of exported products in excess of the 
exemption, remission or defe rral of like prior -stage cumulative 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 expor ted 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 (making normal allo wance for waste) (6). This item 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 charges (7) in excess of those levied on imported 
inputs th at are consumed in the production 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 imp orted 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 g uidelines on consumption of inputs 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 co ntrolled by governments) of 
export 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.  G/SCM/N/1/LBR/1  
 
- 27 - 
 
  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 employ ed (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 i ncurred by exporters or financial institutions 
in obtaining credits, in so far as they are used to secure a material advantage in the field 
of export credit terms.  
 However, that if a Member of the WTO is a party to an international undertaking on official  
export credits to which 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 re levant 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 GATT 1994.  
(1) The te rm commercially available means that the choice between domestic and 
imported products is unrestricted and depends only on commercial considerations.  
(2) For the purposes of the regulation C/REG...../...../..13 relative to countervailing 
duties:  
- the term  'direct taxes' shall mean taxes on wages, profits, interests, rents, royalties, 
and all other forms of income, and taxes on the ownership of real property,  
-  the term 'import charges' shall mean tariffs, duties, and other fiscal charges not 
elsewhere enu merated in this note that are levied on imports,  
-  the term 'indirect taxes' shall mean sales, excise, turnover, value added, franchise, 
stamp, transfer, inventory and equipment taxes, border taxes and all taxes other than 
direct taxes and import charges,  
The term 'prior stage' indirect taxes means taxes levied on goods or services used directly or 
indirectly in making the product,  
-  The term 'cumulative' indirect taxes means multi -staged taxes levied where there is 
no mechanism for subsequent crediting o f the tax if the goods or services subject to 
tax at one stage of production are used in a succeeding state of production,  
-  the term 'remission of taxes' refers to the refund or rebate of taxes,  
-  'remission or drawback'·includes  the full or partial exemption or deferral of import 
charges.  
(3) Deferral may not amount to an export subsidy where, for example, appropriate 
interest charges are collected.  
(4) Paragraph (h) of this annex, 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 paragraph (g).  
  G/SCM/N/1/LBR/1  
 
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  ANNEX II  
GUIDELINES ON CONSUM PTION OF INPUTS IN T HE PRODUCTION  PROCESS (1)  
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 drawb ack of import charges levied on inputs that are consumed in the production of 
the exported product (making normal allowance for waste).  
2. The illustrative list of export subsidies in Annex I makes reference to the term 'inputs that 
are consumed in the pro duction of the exported product' in paragraphs (h) and (i). Pursuant to 
paragraph (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 paragraph (i), drawback schemes can constitute an export subsidy 
to the extent that they result in a remission or drawb ack of import charges in excess of those 
actually levied on inputs that are consumed in the production of the exported product. Both 
paragraphs stipulate that normal allowance for waste must be made in findings regarding 
consumption of inputs in the produc tion of the exported product. Paragraph  (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 the regulation C/REG..../...113 relative to 
countervailing duties, 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 
procedure to confirm which i nputs 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 reasonable, 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 27 
paragraph (2) of the regulation on countervailing duties, certain practic al tests in order to verify 
information 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 fo und not to be applied or not to be applied effectively, 
a further examination by the exporting country base  on the actual inputs involved will normally 
need to be carried out in the context of determining whether an excess payment occurred. If the 
Commiss ion deems it necessary, a further examination may be carried out in accordance with 
paragraph 4 of this annex.  
6. The Commission must normally treat inputs as physically incorporated if such inputs are 
used in the production process and are physically pres ent in the product exported. An input need 
not be present 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 'no rmal allowance for waste'  must normally be taken into account, 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 funct ion in the 
production process, is not consumed in the production of the exported product (for reasons such 
as inefficiencies) and is not recovered, used or sold by the same manufacturer.  
8. The Commission's determination of whether the claimed allowance fo r waste is 'normal' 
must normally take into account the production 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 G/SCM/N/1/LBR/1  
 
- 29 - 
 
  1.2.  t
t reasonably calculated the  amount of waste, when such an amount is intended to be included in 
the tax or duty rebate or remission.  
9. Inputs consumed in the production process are inputs physically incorporate d, energy, fuels 
and oil used in the production process and catalysts which are consumed in the course of their use 
to obtain the exported product.  
ANNEX III 
GUIDELINES IN THE DE TERMINATION OF INPUT S SUBSTITUTION  
DRAWBACK SYSTEMS AS EXPORT SUBSIDIES  
I 
Drawback systems can allow 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 characteristi cs as those substituted for the 
imported inputs.  
Pursuant to paragraph (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 importe d inputs for which drawback is being claimed.  
II 
In examining any input substitution drawback system as part of a countervailing duty investigation 
pursuant to regulation C/REG/..../..../13 relative to countervailing duties, the Commission must 
normally pr oceed on the following basis:  
1. Paragraph (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 chara cteristics 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 not drawback of import charges in excess of those originally levied on the imported inputs 
in question.  
2. Where it is alleged that an input substitu tion drawback system conveys a subsidy, the 
Commission must normally first proceed to determine whether the government of the exporting 
country has in place and applies a verification system or procedure. Where such a system or 
procedure is determined to b e applied, the Commission shall normally then examine the 
verification procedures to see whether they are reasonable, 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 lo exist. It may be deemed necessary by the Commission to carry out, in accordance 
with Article 27 paragraph (2) of regulation C/REG/..../..../13 relative to countervailing duties, 
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 verification procedures, where they are not reasonable, or where suc h 
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 w ould 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 paragraph 2 of this annex.  
4. The existence of an input substitution drawback pro vision 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.  G/SCM/N/1/LBR/1  
 
- 30 - 
 
  5. An excess drawback of import charges in the sense of paragraph (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.  
ANNEX IV  
(This Annex reproduces Annex 2 to the Agreement on Agriculture. Any terms or expressions whi ch 
are not explained herein or which are not self -explanatory are to be interpreted in the context of 
that Agreement.)  
DOMESTIC SUPPORT: TH E BASIS OF EXEMPTION  FROM THE  
REDUCTION COMMITMENT S 
1. Domestic support measures for which exemption from the reducti on 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 shall not have the effect of providing price su pport to producers; 
plus policy -specific criteria and conditions as set out below depending on the policies.  
Public service programmes  
2. General services  
Policies in this category involve expenditures (or revenue foregone) in relation to 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 criteria in point 1 o f this annex 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 general 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 advisor y services, including the provision of means to facilitate the 
transfer of information and research results to producers and consumers;  
e. inspection services, including general inspection services and the inspection of particular 
products for health, safety,  grading or standardisation purposes;  
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 sell ing price or confer a direct economic benefit 
to purchasers; and  
g. Infrastructural services, including: electricity networks, roads and other means of 
transport, market and port facilities, water supply facilities, dams and drainage schemes, 
and infrastructu ral works associated with environmental programmes. In all cases the 
expenditure shall be directed to the provision or construction of capital works only, and G/SCM/N/1/LBR/1  
 
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  shall exclude the subsidised provision of on -farm facilities other than for the extension of 
generally available public utilities. It shall not include subsidies on inputs or operating 
costs, or preferential user charges.  
3. Public stockholding for food security purposes (1)  
Expenditures (or revenue foregone) in relation to the accumulation and holdin g of stocks of 
products which form an integral part of a food security programme identified in national legislation 
may include government aid to private storage of products as part of such a programme.  
The volume and accumulation of such stocks shall corr espond to predetermined targets related 
solely to food security. The process of stock accumulation and disposal shall be financially 
transparent. Food purchases by the government shall be made at current market prices and sales 
from food security stocks sh all be made at no less than the current domestic market price for the 
product and quality in question.  
4. Domestic food aid (1)  
Expenditure (or revenue foregone) in relation to the provision of domestic food aid to sections of 
the population in need  
Eligib ility 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 ei ther at market or at subsidised 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, including 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 various types of direct payment as set 
out in point s 6 to 13. Where exemption 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).  
6. Decoupled income support  
a. Eligibility for such p ayments 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 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.  
c. The amount of such payments in any given year shall not be related to, or based on, the 
prices, domestic or international, applying  to any production undertaken in any year 
after the base period.  
d. The amount of such payments in any given year shall not be related to, or based on, the 
factors of production employed in any year after the base period.  
e. No production shall be required in or der to receive such payments.  
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 from agriculture, which ex ceeds 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 G/SCM/N/1/LBR/1  
 
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  preceding five -year period, excluding the highest and the lowest value. Any producer 
meeting this condition shall be eligible to receive the payments.  
b. The amount of such payments shall compensate for less than 70% of the producer's 
income loss in the year the producer becomes eligible to receive this assistan ce. 
c. The amount of any such payments shall relate solely to income; it shall not relate to the 
type or volume of production (including livestock units) undertaken by the producer; or 
to the prices, domestic or international, applying to such production; 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 of this annex (relief from natural disasters), the total of such 
payments shall be less than 100 % of the producer'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 authori ties that a natural or similar 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 production loss which exceeds 
30% of th e 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 
value.  
b. Payments made following a disaster shall be applied only in respect of losses of income,  
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 8 (b) of this annex.  
e. Where a producer receiv es in the same 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 shift t o non -agricultural activities.  
b. Payments shall be conditional upon the total and permanent retirement of the recipients 
from marketable agricultural.  
10. Structural adjustment  assistance provided through resource retirement programmes  
a. Eligibility for such p ayments shall be determined by reference to clearly defined criteria 
in programmes designed to remove land or other resources, including livestock, from 
marketable agricultural production.  
b. Payments shall be conditional upon the retirement of land from mar ketable 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 prod uction of marketable agricultural products.  G/SCM/N/1/LBR/1  
 
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  d. Payments shall not be related to either type or quantity of production or to the prices, 
domestic or international, 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 giv en 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 11 of this 
annex.  
c. The amount of such payments  in any given year shall not be related to, or based on, the 
prices, domestic or international, applying to any production undertaken in any year 
after the base period.  
d. The payments shall be given only for the period of time necessary for the realisation o f 
the investment in respect 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 limi ted to the amount required to compensate for the structural 
disadvantage.  
12. Payments under environmental protection programmes  
a. Eligibility for such payments shall be determined as part of a clearly -defined government 
environmental protection or conservation programme and be dependent on the 
fulfilment of 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 invol ved in 
complying with the government programme.  
13. Payments under 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, considered 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 c ircumstances.  
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 related to, or based on, the 
prices, domestic or international, applying to any production undertaken in any year 
after the base period.  
d. Payments shall be available only to producers in eligible regions, but generally available 
to all producers within such regions.  
e. Where related to production factors, payments shall be made at a degressive rate above 
a threshold level of the factor concerned.  G/SCM/N/1/LBR/1  
 
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  f. The payments shall be limited to the extra costs or los s of income involved in 
undertaking agricultural production in the prescribed area.  
(1) For the purposes of paragraph 3 of this Annex, governmental stockholding 
programmes for food security purposes in developing countries whose operation is 
transparent an d conducted in accordance with officially published objective criteria or 
guidelines shall be considered to be in conformity with the provisions of this 
paragraph, including programmes under which stocks of foodstuffs for food security 
purposes are acquire d and released at administered prices, provided that the 
difference between the acquisition price and the external reference price is accounted 
for in the general support measure (GSM).  
(2) For the purposes of paragraphs 3 and 4 of this Annex, the provisio n of foodstuffs at 
subsidized prices with the objective of meeting 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 paragraph.  
____ ______