G/SCM/N/1/EU/1  
 
10 April 2014  
(14-2243)  Page: 1/44  
 Committee on Subsidies and Countervailing Measures  Original: English  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 32.6 OF THE AGREEMENT 
EUROPEAN UNION 
The following communication, dated 19 March 2014, is being circulated at the request of the 
Delegation of the European Union.  
_______________ 
  In line with the obligation under Article 32.6 of the WTO Agreement on Subsidies and 
Countervailing Measures, to notify laws, regulations and administrative procedures to the 
Committee on Anti-Subsidy, the European Union (EU) is pleased to inform the Committee as follows: 
 
In 2009, the European institutions carried out a codification of its anti-subsidy rules, issued as Council Regulation (EC) No 597/2009 on protection  against subsidized imports from countries not 
members of the European Union. The codification  fully preserved the content of the acts being 
codified, bringing them together with only such  formal amendments as were required by the 
codification exercise. Since then, there has been  one set of amendments, introduced in 2014 by 
Regulation (EU) No 37/2014.
1 
 
                                               
1 Circulated separately as G/ADP/N/1/EU/1/Rev.1/Suppl.4-G/SCM/N/1/EU/1/Suppl.2-
G/SG/N/1/EU/1/Suppl.2. G/SCM/N/1/EU/1 
 
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COUNCIL REGULATION (EC) No 597/2009  
of 11 June 2009  
on protection against subsidised imports fr om countries not members of the European 
Community  
(Codified version)  
 
THE COUNCIL OF THE EUROPEAN UNION, 
 
Having regard to the Treaty establishing the Eu ropean Community, and in particular Article 133 
thereof,  
Having regard to the Regulations establishing the common organisation of agricultural markets 
and the Regulations adopted pursuant to Arti cle 308 of the Treaty applicable to goods 
manufactured from agricultural products, and in particular the provisions of those Regulations 
which allow for derogation from the general principle that protective measures at frontiers may be 
replaced solely by the measures provided for in those Regulations,  Having regard to the prop osal from the Commission, 
 
Whereas:  
(1) Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidised 
imports from countries not members of the European Community
1 has been substantially amended 
several times2. In the interests of clarity and rationality the said Regulation should be codified.  
 
(2) The conclusion of the Uruguay Round of multilateral trade negotiations led to the establishment of the World Trade Organisation (WTO).   
(3) Annex 1A to the Agreement establishing the WTO (hereinafter referred to as the WTO 
Agreement), approved by Council Decision 94/800/EC of 22 December 1994 concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the 
agreements reached in the Uruguay Round multilateral negotiations (1986 to 1994)
3, contains, 
inter alia, the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as the GATT 1994), an Agreement on Agriculture (her einafter referred to as the Agreement on 
Agriculture), an Agreement on implementation of Article VI of the GATT 1994 (hereinafter referred 
to as the 1994 Anti-Dumping Agreement) and an Agreement on Subsidies and Countervailing Measures (hereinafter referred to as the Subsidies Agreement).  
(4) In order to reach greater transparency and effectiveness in the application by the Community 
of the rules laid down in the 1994 Anti-Dum ping Agreement and the Subsidies Agreement 
respectively, the adoption of two separate Regulations which would lay down in sufficient detail the 
requirements for the application of each of these commercial defence instruments has been 
considered as necessary.  
(5) In order to ensure an adequate and transparen t implementation of the rules provided for in 
those two Agreements, it is appropriate to transpose their language into Community legislation to the best extent possible.  
(6) Furthermore, it seems advisable to explain, in adequate detail, when a subsidy shall be 
deemed to exist, according to which principles it shall be countervailable (in particular whether the subsidy has been granted specifically), and according to which criteria the amount of the 
countervailable subsidy is to be calculated. 
 
                                               
1 OJ L 288, 21.10.1997, p. 1. 
2 See Annex V. 
3 OJ L 336, 23.12.1994, p. 1. G/SCM/N/1/EU/1 
 
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  (7) In determining the existence of a subsidy, it is necessary to demonstrate that there has been a 
financial contribution by a governme nt or any public body within the territory of a country, or that 
there has been some form of income or price su pport within the meaning of Article XVI of the 
GATT 1994, and that a benefit has thereby been conferred on the recipient enterprise. 
 
(8) For the calculation of the benefit to the recipient, in cases where a market benchmark does not 
exist in the country concerned the benchmark shou ld be determined by adjusting the terms and 
conditions prevailing in the country concerned on the basis of actual factors available in that 
country. If this is not practicable because, inter alia, such prices or costs do no exist or are unreliable, then the appropriate benchmark should be determined by resorting to terms and conditions in other markets. 
 
(9) It is desirable to lay down clear and detailed guidance as to the factors which may be relevant 
for the determination of whether the subsidised imports have caused material injury or are 
threatening to cause injury. In demonstrating that the volume and price levels of the imports 
concerned are responsible for injury sustained by a Community industry, attention should be given 
to the effect of other factors and in particular prevailing market conditions in the Community. 
 
(10) It is advisable to define the term ‘Community  industry’ and to provide that parties related to 
exporters may be excluded from such industry, an d to define the term ‘related’. It is also 
necessary to provide for countervailing duty action to be taken on behalf of producers in a region 
of the Community and to lay down guidelin es on the definition of such region. 
 (11) It is necessary to lay down who may lodge a countervailing duty complaint, including the 
extent to which it should be supported by the Community industry, and the information on 
countervailable subsidies, injury and causation which such complaint should contain. It is also expedient to specify the procedures for the rejection of complaints or the initiation of proceedings.  
 
(12) It is necessary to lay down the manner in which interested parties should be given notice of the information which the authorities require, and should have ample opportunity to present all relevant evidence and to defend their interests. It  is also desirable to set out clearly the rules and 
procedures to be followed during the investigation, in particular the rules whereby interested 
parties are to make themselves known, present their views and submit information within specified time limits, if such views and information are to be taken into account. It is also appropriate to set 
out the conditions under which an interested  party may have access to, and comment on, 
information presented by other interested parties.  There should also be cooperation between the 
Member States and the Commission in the collection of information. 
 
(13) It is necessary to lay down the conditions under which provisional duties may be imposed, including conditions whereby they may be imposed no earlier than 60 days from initiation and no later than nine months thereafter. Such duties may in all cases be imposed by the Commission 
only for a four-month period. 
 (14) It is necessary to specify procedures for the acceptance of undertakings eliminating or 
offsetting the countervailable subsidies and injury in lieu of the imposition of provisional or 
definitive duties. It is also appropriate to lay down the consequences of breach or withdrawal of undertakings and that provisional duties may be imposed in cases of suspected violation or where 
further investigation is necessary to supplement the findings. In accepting undertakings, care 
should be taken that the proposed undertakings, and their enforcement, do not lead to anti-competitive behaviour.  
(15) It is considered appropriate to allow withdraw al of an undertaking and application of the duty 
by one single legal act. It is also necessary to ensure that the withdrawal procedure is terminated 
within a time limit of normally six months and in no case more than nine months in order to 
ensure a proper enforcement of the measure in force. 
 (16) It is necessary to provide that the termination of cases should, irrespective of whether 
definitive measures are adopted or not, normally take place within 12 months and in no case later 
than 13 months, from the initiation of the investigation.  (17) An investigation or proceedings should be terminated whenever the amount of the subsidy is 
found to be de minimis or if, particularly in the case of imports originating in developing countries, G/SCM/N/1/EU/1 
 
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  the volume of subsidised imports or the injury is negligible, and it is appropriate to define those 
criteria. Where measures are to be imposed, it is necessary to provide for the termination of 
investigations and to lay down that measures should be less than the amount of countervailable subsidies if such lesser amount would remove the injury, and also to specify the method of 
calculating the level of measures in cases of sampling. 
 (18) It is necessary to provide for the retroactive collection of provisional duties if that is deemed 
appropriate and to define the circumstances which may trigger the retroactive application of duties 
in order to avoid the undermining of the definitive measures to be applied. It is also necessary to provide that duties may be applied retroactively in  cases of breach or withdrawal of undertakings. 
 
(19) It is necessary to provide that measures are to lapse after five years unless a review indicates 
that they should be maintained. It is also necessa ry to provide, in cases where sufficient evidence 
is submitted of changed circumstances, for interim reviews or for investigations to determine 
whether refunds of countervailing duties are warranted. 
 (20) Even though the Subsidies Agreement does not contain provisions concerning circumvention 
of countervailing measures, the possibility of such circumvention exists, in terms similar, albeit not 
identical, to the circumvention of anti-dumping  measures. It appears therefore appropriate to 
enact an anti-circumvention provision in this Regulation.  
(21) It is desirable to clarify which parties have the right to request the initiation of anti-
circumvention investigations.  
(22) It is also desirable to clarify which practices constitute circumvention of the measures in 
place. Circumvention practices may take place either inside or outside the Community. It is consequently necessary to provide that exemptions from the extended duties which may be 
granted to importers may also be granted to expo rters when duties are being extended to address 
circumvention taking place outside the Community.  (23) It is expedient to permit the suspension of countervailing measures where there is a 
temporary change in market conditions which makes the continued imposition of such measures 
temporarily inappropriate.   
(24) It is necessary to provide that imports under investigation may be made subject to 
registration upon importation in order to enable measures to be subsequently applied against such imports. 
 
(25) In order to ensure proper enforcement of measures, it is necessary that Member States 
monitor, and report to the Commission, the import trade in products subject to investigation or subject to measures, and also the amount of duties collected under this Regulation. It is also 
necessary to provide for the possibility for the Commission to request Member States to supply, 
subject to the respect of confidentiality rules, information to be used for monitoring price undertakings and verifying the level of effe ctiveness of the measures in force.  
 
(26) It is necessary to provide for consultation of an Advisory Committee at regular and specified stages of the investigation. The Committee should consist of representatives of Member States 
with a representative of the Commission as chairman. 
 (27) It is expedient to provide for verification visits to check information submitted on countervailable subsidies and injury, such visits being, however, conditional on proper replies to 
questionnaires being received. 
 (28) It is essential to provide for sampling in cases where the number of parties or transactions is 
large in order to permit completion of investigations within the appointed time limits. 
 (29) It is necessary to provide that, where parties do not cooperate satisfactorily, other 
information may be used to establish findings and that such information may be less favourable to 
the parties than if they had cooperated.  (30) Provision should be made for the treatment of confidential information so that business or 
governmental secrets are not divulged. G/SCM/N/1/EU/1 
 
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(31) It is essential that provision be made for proper disclosure of essential facts and considerations to parties which qualify for such treatment and that such disclosure be made, with due regard to the decision-making process in the Community, within a time period which permits 
parties to defend their interests. 
 (32) It is prudent to provide for an admini strative system under which arguments can be 
presented as to whether measures are in the Community interest, including the interests of 
consumers, and to lay down the time periods within which such information has to be presented, together with the disclosure rights of the parties concerned.  
(33) In applying the rules of the Subsidies Agreement it is essential, in order to maintain the 
balance of rights and obligations which this Agreement sought to establish, that the Community take account of their interpretation by the Community’s major trading partners, as reflected in 
legislation or established practice, 
 HAS ADOPTED THIS REGULATION: G/SCM/N/1/EU/1 
 
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  Article 1 
 
Principles 
 
1. A countervailing duty may be imposed for the purpose of offsetting any subsidy granted, 
directly or indirectly, for the manufacture, production, export or transport of any product whose release for free circulation in the Community causes injury. 
 
2. Notwithstanding paragraph 1, where products are not directly imported from the country of origin but are exported to the Community from an intermediate country, the provisions of this Regulation shall be fully applicable and the transaction or transactions shall, where appropriate, be 
regarded as having taken place between the country of origin and the Community. 
 
Article 2 
 
Definitions 
 
For the purpose of this Regulation: 
 
(a) a product is considered to be subsidised if it benefits from a countervailable subsidy as 
defined in Articles 3 and 4. Such subsidy may be granted by the government of the 
country of origin of the imported product, or by the government of an intermediate 
country from which the product is exported to the Community, known for the purpose of this Regulation as ‘the country of export’; 
 
(b) ‘government’ means a government or any public body within the territory of the 
country of origin or export; 
 
(c) ‘like product’ shall be interpreted to mean a product which is identical, that is to say, 
alike in all respects, to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics 
closely resembling those of the product under consideration; 
 (d) ‘injury’, unless otherwise specified, means material injury to the Community industry, 
threat of material injury to the Community industry or material retardation of the 
establishment of such an industry, and shall be interpreted in accordance with the provisions of Article 8. 
 
Article 3 
 
Definition of a subsidy 
 
A subsidy shall be deemed to exist if:  
1. (a) there is a financial contribution by a government in the country of origin or export, 
that is to say, where:  
(i) a government practice involves a direct  transfer of funds (for example, grants, 
loans, equity infusion), potential direct transfers of funds or liabilities (for example, loan guarantees); 
 
(ii) government revenue that is otherwise due is forgone or not collected (for 
example, fiscal incentives such as tax credits). In this regard, the exemption of an exported product from duties or taxes borne by the like product when 
destined for domestic consumption, or the remission of such duties or taxes in 
amounts not in excess of those which have been accrued, shall not be deemed to be a subsidy, provided that such an exemption is granted in accordance with 
the provisions of Annexes I, II and III; 
 (iii) a government provides goods or services other than general infrastructure, or 
purchases goods; 
 G/SCM/N/1/EU/1 
 
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  (iv) a government: 
 
— makes payments to a funding mechanism, or  
— entrusts or directs a private body to carry out one or more of the type of 
functions illustrated in points (i), (ii) and (iii) which would normally be vested in the government, and the practice, in no real sense, differs from practices 
normally followed by governments; 
 or  
(b) there is any form of income or price support within the meaning of 
Article XVI of the GATT 1994; and  
2. a benefit is thereby conferred. 
 
Article 4 
 
Countervailable subsidies 
 1. Subsidies shall be subject to countervailing measures only if they are specific, as defined in 
paragraphs 2, 3 and 4. 
 2. In order to determine whether a subsidy is specific to an enterprise or industry or group of 
enterprises or industries (hereinafter referred to as certain enterprises) within the jurisdiction of 
the granting authority, the following principles shall apply:  
(a) where the granting authority, or the legislation pursuant to which the granting 
authority operates, explicitly limits access to a subsidy to certain enterprises, such subsidy shall be specific; 
 
(b) where the granting authority, or the legislation pursuant to which the granting 
authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, specificity shall not exist, provided that the 
eligibility is automatic and that such criteria and conditions are strictly adhered to; 
 (c) if, notwithstanding any appearance of non-specificity resulting from the application of 
the principles laid down in points (a) and (b), there are reasons to believe that the 
subsidy may in fact be specific, other factors may be considered. Such factors are: use of a subsidy programme by a limited number of certain enterprises; predominant use by certain enterprises; the granting of disproportionately large amounts of 
subsidy to certain enterprises; and the manner in which discretion has been 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. 
 For the purpose of point (b), ‘objective criteria or conditions’ means criteria or conditions which are 
neutral, which do not favour certain enterprises ov er others, and which are economic in nature and 
horizontal in application, such as numbe r of employees or size of enterprise. 
 The criteria or conditions must be clearly set out by law, regulation, or other official document, so 
as to be capable of verification. 
 In applying point (c) of the first subparagrap h, account shall be taken of the extent of 
diversification of economic activities within the jurisdiction of the granting authority, as well as of 
the length of time during which the subsidy programme has been in operation.  
3. A subsidy which is limited to certain enterprises located within a designated geographical 
region within the jurisdiction of the granting auth ority 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/EU/1 
 
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  4. Notwithstanding paragraphs 2 and 3, the following subsidies shall be deemed to be specific: 
 
(a) subsidies contingent, in law or in fact, whether solely or as one of several other 
conditions, upon export performance, including those illustrated in Annex I; 
 
(b) subsidies contingent, whether solely or as one of several other conditions, upon the 
use of domestic over imported goods.  
 
For the purposes of point (a), subsidies shall be considered to be contingent in fact upon export performance when the facts demonstrate that the granting of a subsidy, without having been m a d e  l e g a l l y  c o n t i n g e n t  u p o n  e x p o r t  p e r f o r m a n c e ,  i s  i n  f a c t  t i e d  t o  a c t u a l  o r  a n t i c i p a t e d  
exportation or export earnings. The mere fact that a subsidy is accorded to enterprises which 
export shall not, for that reason alone, be considered to be an export subsidy within the meaning of this provision. 
 
5. Any determination of specificity under the provisions of this Article shall be clearly substantiated on the basis of positive evidence. 
 
Article 5 
 
Calculation of the amount of the countervailable subsidy  
 
The amount of countervailable subsidies shall be calculated in terms of the benefit conferred on the recipient which is found to exist during the investigation period for subsidisation. Normally this 
period shall be the most recent accounting year of  the beneficiary, but may be any other period of 
at least six months prior to the initiation of the investigation for which reliable financial and other relevant data are available.  
 
Article 6  
 
Calculation of benefit to the recipient  
 
As regards the calculation of benefit to the recipient, the following rules shall apply:   
(a) government provision of equity capital shall not be considered to confer a benefit, 
unless the investment can be regarded as inconsistent with the usual investment practice, including for the provision of risk capital, of private investors in the territory 
of the country of origin and/or export;  
 
(b) a loan by a government shall not be considered to confer a benefit, unless there is a 
difference 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 that event 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 th at 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 absenc e of the government guarantee. In this 
case the benefit shall be the difference be tween these two amounts, adjusted for any 
differences in fees;  
 
(d) the provision of goods or services or purc hase 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 fo r more than adequate remuneration. The 
adequacy of remuneration shall be determ ined in relation to prevailing market 
conditions for the product or service in question in the country of provision or 
purchase, including price, quality, availability, marketability, transportation and other 
conditions of purchase or sale. 
 G/SCM/N/1/EU/1 
 
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  If there are no such prevailing market terms and conditions for the product or service 
in question in the country of provision or purchase which can be used as appropriate benchmarks, the following rules shall apply: 
 
(i) the terms and conditions prevailing in the country concerned shall be adjusted, 
on the basis of actual costs, prices and other factors available in that country, by an appropriate amount which reflects normal market terms and conditions; 
or 
 (ii) when appropriate, the terms and conditions prevailing in the market of another 
country or on the world market which ar e available to the recipient shall be 
used. 
 
Article 7 
 
General provisions on calculation 
 
1. The amount of the countervailable subsidies shall be determined per unit of the subsidised 
product exported to the Community.  In establishing this amount the following elements may be deducted from the total subsidy: 
 
(a) any application fee, or other costs necessarily incurred in order to qualify for, or to 
obtain, the subsidy; 
 
(b) export taxes, duties or other charges levied on the export of the 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 refere nce 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 production, sales or exports of the 
products concerned during the investigation period for subsidisation. 
 
3. Where the subsidy can be linked to the acquisition or future acquisition of fixed assets, the amount of the countervailable subsidy shall be calculated by spreading the subsidy across a period 
which reflects the normal depreciation of such assets in the industry concerned. 
 The amount so calculated which is attributable to the investigation period, including that which derives from fixed assets acquired before this period, shall be allocated as described in 
paragraph 2. 
 Where the assets are non-depreciating, the subsidy shall be valued as an interest-free loan, and 
be treated in accordance with Article 6(b). 
 4. Where a subsidy cannot be linked to the acquisition of fixed assets, the amount of the 
benefit received during the investigation period shall in principle be attributed to this period, and 
allocated as described in paragraph 2, unless special circumstances arise justifying attribution over a different period.  
Article 8 
 
Determination of injury 
 
1. A determination of injury shall be based on positive evidence and shall involve an objective examination of: 
 
(a) the volume of the subsidised imports and the effect of the subsidised imports on 
prices in the Community market for like products; and 
 
(b) the consequent impact of those imports on the Community industry.  G/SCM/N/1/EU/1 
 
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2. 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 consumption in the Community. With regard to the effect of the subsidised imports 
on prices, consideration shall be given to whether there has been significant price undercutting by 
the subsidised imports as compared with the price of a like product of the 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 guidance.  3. 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 appropriate in light of the 
conditions of competition between imported products and the conditions of competition between the imported products and the like Community product.  
 
4. The examination of the impact of the su bsidised imports on the Community industry 
concerned 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 magnitude 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, employ ment, wages, growth, ability to raise capital or 
investments and, in the case of agriculture, whether there has been an increased burden on 
government support programmes. This list is not exhaustive, nor can any one or more of these 
factors necessarily give decisive guidance. 
 5. It must be demonstrated, from all the relevant evidence presented in relation to 
paragraph 1, that the subsidised imports are causing injury. Specifically, this shall entail a 
demonstration that the volume and/or price levels identified pursuant to paragraph 2 are responsible for an impact on the Community industry  as provided for in paragraph 4, and that this 
impact exists to a degree which enables it to be classified as material. 
 6. Known factors, other than the subsidised imports which are injuring the Community industry at the same time, shall also be examined to ensure that injury caused by these other factors is not 
attributed to the subsidised imports pursuant to paragraph 5. Factors which may be considered in 
this respect include the volume and prices of non-subsidised imports, contraction in demand or changes in the patterns of consumption, restrict ive trade practices of, and competition between, 
third country and Community producers, developmen ts in technology and the export performance 
and productivity of the Community industry.  
7. The effect of the subsidised imports shall be  assessed in relation to the production of the 
Community industry of the like product when availa ble data permit the separate identification of 
that production on the basis of such criteria as the production process, producers’ sales and profits. If such separate identification of that  production is not possible, the effects of the 
subsidised imports shall be assessed by examinat ion of the production of the narrowest group or 
range of products including the like product, for which the necessary information can be provided.  
 
8. A determination of a threat of material injury shall be based on facts and not merely on 
allegations, conjecture or remote possibility. The change in circumstances which would create a 
situation in which the subsidy would cause injury must be clearly foreseen and imminent. 
 G/SCM/N/1/EU/1 
 
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  In making a determination regarding the existence of a threat of material injury, 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 
there from; 
 (b) a significant rate of increase of subsidised imports into the Community market 
indicating the likelihood of substantially increased imports; 
 (c) sufficient freely disposable capacity of the exporter or an imminent substantial 
increase in such capacity indicating the lik elihood of substantially increased subsidised 
exports to the Community, account being taken of 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 probably increase demand for further imports; and 
 
(e) inventories of the product being investigated.  
Not one of the factors listed above by itself can ne cessarily give decisive guidance but the totality 
of the factors considered must lead to the conclusion that further subsidised exports are imminent 
and that, unless protective action is taken, material injury will occur.  
Article 9 
 
Definition of Community industry 
 
1. For the purposes of this Regulation, the term  ‘Community industry’ shall be interpreted as 
referring to the 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 10(6), of the 
total Community production of those products, except that: 
 
(a) when producers are related to the expo rters 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; 
 
(b) 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 industry if: 
 
(i) the producers within such a market sell all or almost all of their production of 
the product in question in that market; and 
 
(ii) the demand in that market is not to any substantial degree met by producers of 
the product in question located elsewhere in the Community. 
 
In such circumstances, injury may be found to exist even where a major portion of the total 
Community industry is not injured, provided that there is a concentration of subsidised imports into such an isolated market and provided further that the subsidised imports are causing injury to the producers of all or almost all of the production within such a market. 
 
2. For the purpose of paragraph 1, producers shal l be considered to be related 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 person; 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 non-related producers. G/SCM/N/1/EU/1 
 
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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.  
3. Where the Community industry has been interpreted as referring to the producers in a 
certain region, the exporters or the government granting countervailable subsidies shall be given an opportunity to offer undertakings pursuant to Article 13 in respect of the region concerned. In 
such cases, when evaluating the Community interest of the measures, special account shall be 
taken of the interest of the region. If an adequate undertaking is not offered promptly or if the situations set out in Article 13(9) and (10) apply, a provisional or definitive countervailing duty may be imposed in respect of the Community as a whole. In such cases the duties may, if 
practicable, be limited to specific producers or exporters. 
 4. The provisions of Article 8(7)  shall apply to this Article. 
 
Article 10 
 
Initiation of proceedings 
 1. Except as provided for in paragraph 8, an investigation to determine 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.  
The complaint may be submitted 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 delivery 
to the Commission by registered mail or the is suing 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 Community industry, it shall immediately communicate 
such evidence to the Commission.  
2. A complaint, as referred to in paragraph 1, shall include sufficient evidence of the existence 
of countervailable subsidies (including, if possible, of their 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 de scription 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 list of all known Community producers of the like product (or associations of Community producers of 
the like product) and, to the extent possibl e, a description of the volume and value of 
Community production of the like product accounted for by such producers;  
 
(b) a complete 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 pers ons 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 Community market and the consequent impact of the imports on the Community industry, as demonstrated by 
relevant factors and indices having a bearin g on the state of the Community industry, 
such as those listed in Article 8(2) and (4). 
 G/SCM/N/1/EU/1 
 
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  3. The Commission 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.  
4. An investigation may be initiated in order to determine whether or not the alleged subsidies 
are ‘specific’ within the meaning of Article 4(2) and (3).  
5. An investigation may also be initiated in respect of measures of the type listed in Annex IV, 
to the extent that they contain an element of subsidy as defined by Article 3, in order to determine whether the measures in question fully conform to the provisions of that Annex.  
6. An investigation shall not be initiated pursuant to paragraph 1 unless it has been 
determined, on the basis of an examination as to the degree of support for, or opposition to, the 
complaint expressed by Community producers of th e 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 production of the like product produced by the Community industry. 
 
7. 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 consultations with the aim of clarifying the situation as to 
matters referred to in paragraph 2 and arriving at a mutually agreed solution. 
 8. If, in special circumstances, the Commission decides to initiate an investigation without having received a written complaint by or on behalf of the Community industry for the initiation of 
such investigation, this shall be done on the ba sis of sufficient evidence of the existence of 
countervailable subsidies, injury and causal link, as described in paragraph 2, to justify such initiation. 
 
9. The evidence both of subsidies and of injury shall be considered simultaneously in the decision on whether or not to initiate an investigation. A complaint shall be rejected where there is 
insufficient evidence of either countervailable subsidies or of injury to justify proceeding with the 
case. Proceedings shall not be initiated against countries whose imports represent a market share of below 1%, unless such countries collectively account for 3% or more of Community consumption.  
 
10. The complaint may be withdrawn prior to initiation, in which case it shall be considered not to have been lodged.  
 
11. 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 the European Union . Where insufficient evidence has been 
presented, the complainant shall, after consultation , be so informed within 45 days of the date on 
which the complaint is lodged with the Commission.   
12. The notice of initiation of the proceedings shall announce the initiation of an investigation, 
indicate the product and countries concerned, give a summary of the information received, and provide that all relevant information is to be communicated to the Commission. 
 
It shall state the periods within which interest ed parties may make themselves known, present 
their views in writing and submit information, if such views and information are to be taken into 
account during the investigation. It shall also state the period within which interested parties may 
apply to be heard by the Commission in accordance with Article 11(5).  13. The Commission shall advise the exporters, importers and representative associations of 
importers or exporters known to it to be concerned, as well as the country of origin and/or export G/SCM/N/1/EU/1 
 
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  and the complainants, of the initiation of the procee dings and, with due regard to the protection of 
confidential information, provide the full text of the written complaint referred to in paragraph 1 to the known exporters and to the authorities of the country of origin and/or export, and make it available upon request to other interested pa rties 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.   
14. A countervailing duty investigation shall not hinder the procedures of customs clearance.  
 
Article 11 
 
The 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 simultaneously.   
For the purpose of a representative finding, an investigation period shall be selected which, in the 
case of subsidisation shall, normally, cover the investigation period provided for in Article 5.  Information relating to a period subsequent to the investigation period shall not, normally, be 
taken into account. 
 2. Parties receiving questionnaires used in a countervailing duty investigation shall be given at 
least 30 days to reply. The time limit for exporters shall be counted from the date of receipt of the 
questionnaire, which for this purpose shall be deemed to have been received one week from the day on which it was sent to the respondent or transmitted to the 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 request Member States to supply information, and Member States 
shall take whatever steps are necessary in order to give effect to such requests.   
They shall send to the Commission the information 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-confidential summary shall be forwarded.  
4. The Commission may request Member States to carry out all necessary checks and 
inspections, particularly amongst importers, traders and Community producers, and to carry out investigations in third countries, provided that the firms concerned give their consent and that the 
government of the country in question has been officially notified and raises no objection. 
 Member States shall take whatever steps are necessa ry in order to give effect to such requests 
from the Commission. 
 Officials of the Commission shall be authorised, if the Commission or a Member State so requests, to assist the officials of Member States in carrying out their duties. 
 
5. The interested parties which have made themselves known in accordance with the second subparagraph of Article 10(12), shall be heard if they have, within the period prescribed in the 
notice published in the Official Journal of the European Union , made a written request for a 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 pr ovided for the importers, exporters and the 
complainants, which have made themselves known in accordance with the second subparagraph of Article 10(12), and the government of the country of origin and/or export, to meet those parties G/SCM/N/1/EU/1 
 
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  having adverse interests, so that opposing views may be presented and rebuttal arguments 
offered.  Provision of such opportunities 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 it is subsequently confirmed in writing. 
 
7. The complainants, the government of the co untry of origin and/or export, importers and 
exporters and their representative associations, users and consumer organisations, which have 
made themselves known in accordance with the second subparagraph of Article 10(12), may, upon 
written request, inspect all information made available to the Commission by any party to an investigation, as distinct from internal documents prepared by the authorities of the Community or 
its Member States, which is relevant to the presentation of their cases and is not confidential 
within the meaning of Article 29, and is used in the investigation.  Such parties may respond to such information and their comments shall be taken into 
consideration wherever they are sufficiently substantiated in the response. 
 8. Except in circumstances provided for in Article 28, the 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 10(11), an investigation shall, whenever 
possible, be concluded within one year. In any event, such investigations shall in all cases be concluded within 13 months of their initiation, in accordance with the findings made pursuant to Article 13 for undertakings or the findings made pursuant to Article 15 for definitive action. 
 
10. 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 solution. 
 
Article 12 
 
Provisional measures 
 1. Provisional duties may be imposed if: 
 
(a) proceedings have been initiated in accordance with Article 10;  
(b) a notice has been given to that effect and interested parties have been given 
adequate opportunities to submit information and make comments in accordance with the second subparagraph of Article 10(12); 
 
(c) a provisional affirmative determination has been made that the imported product 
benefits from countervailable subsidies and of consequent injury to the Community industry; and 
 
(d) the Community interest calls for intervention to prevent such injury. 
 
The provisional duties shall be imposed no earlier than 60 days from the initiation of the 
proceedings but no later than nine months from the initiation of the proceedings.  
The amount of the provisional countervailing 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 adequate to remove the injury to the Community industry.   G/SCM/N/1/EU/1 
 
- 16 - 
 
  2. Provisional duties shall be secured by a guar antee and the release of the products concerned 
for free circulation in the Community shall be conditional upon the provision of such guarantee.   3. 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 latest, after notification to the Member States of the action taken by the Commission.   
4. Where a Member State requests immediate intervention by the Commission and where the 
conditions of the first and second subparagraphs of paragraph 1 are met, the Commission shall, within a maximum of five working days from receipt of the request, decide whether a provisional countervailing duty shall be imposed. 
 
5. The Commission shall forthwith inform the Council and the Member States of any decision taken under paragraphs 1 to 4. The Council, acting by a qualified majority, may decide differently.  
 
6. Provisional countervailing duties shall be imposed for a maximum period of four months.   
Article 13 
 
Undertakings 
 
1. Upon condition that a provisional affirmative determination of subsidisation and injury has 
been made, the Commission may accept satisfactory  voluntary undertakings offers under which:  
 
(a) the country of origin and/or export agrees to eliminate or limit the subsidy or take 
other measures concerning its effects; or 
 
(b) any exporter undertakes to revise its prices or to cease exports to the area in question 
as long as such exports benefit from countervailable subsidies, so that the Commission, after specific consultation of the Advisory Committee, is satisfied that the injurious effect of the subsidies is thereby eliminated. 
 
In such a case and as long as such undertakings are in force, the provisional duties imposed by the Commission in accordance with Article 12(3) and the definitive duties imposed by the Council 
in accordance with Article 15(1) shall not apply to the relevant imports of the product concerned 
manufactured by the companies referred to in the Commission decision accepting undertakings and in any subsequent amendment of such decision. 
 
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 subsidies 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. Undertakings shall not be sought or accepted from countries or exporters unless a provisional affirmative determination of subsidisation and injury caused by such subsidisation has been made. 
 
Save in exceptional circumstances, undertakings may not be offered later than the end of the period during which representations may be made pursuant to Article 30(5). 
 
3. Undertakings offered need not be accepted if their acceptance is considered impractical, such as where the number of actual or potential exporters is too great, or for other reasons, 
including reasons of general policy. The exporter and/or the country of origin and/or export 
concerned may be provided with the reasons for which it is proposed to reject the offer of an undertaking and may be given an opportunity to make comments thereon. The reasons for rejection shall be set out in the definitive decision. 
 G/SCM/N/1/EU/1 
 
- 17 - 
 
  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 
Commission shall submit to the Council forthwith a report on the results of the consultation, together with a proposal that the investigation be terminated. The investigation shall be deemed 
terminated if, within one month, the Council, acting by qualified majority, has not decided 
otherwise.  6. If the undertakings are accepted, the investigation of subsidisation and injury shall normally 
be completed. In such a case, if a negative determination of subsidisation or injury is made, the 
undertaking shall automatically lapse, except in cases where such a determination is due in large 
part to the existence of an undertaking. In such ca ses, it may be required that an undertaking be 
maintained for a reasonable period. 
 In the event that an affirmative determination of subsidisation and injury is made, the undertaking 
shall continue consistent with its terms and the provisions of this Regulation.  
 7. The Commission shall require any country or exporter from whom undertakings have been accepted to provide, periodically, information relevant to the fulfilment of such undertaking, and to 
permit verification of pertinent data. Non-compliance with such requirements shall be construed as 
a breach of the undertaking.  
8. Where undertakings are accepted from certain exporters during the course of an 
investigation, they shall, for the purpose of Arti cles 18, 19, 20 and 22, be deemed to take effect 
from the date on which the investigation is concluded for the country of origin and/or export. 
 
9. In case of breach or withdrawal of undertaki ngs by any party to the undertaking, or in case 
of withdrawal of acceptance of the undertaki ng by the Commission, the acceptance of the 
undertaking shall, after consultation, be withdrawn by Commission Decision or Commission 
Regulation, as appropriate, and the provisional duty which has been imposed by the Commission 
in accordance with Article 12 or the definitive duty which has been imposed by the Council in 
accordance with Article 15(1), shall apply, provided  that the exporter concerned, or the country of 
origin and/or export has, except in the case of withdrawal of the undertaking by the exporter or 
such country, been given an opportunity to comment.  
Any interested party or Member State may submit information, showing prima facie evidence of a 
breach of an undertaking. The subsequent assessment of whether or not a breach of an undertaking has occurred shall normally be concluded within six months, but in no case later than nine months following a duly substantiated request. 
 
The Commission may request the assistance of the competent authorities of the Member States in the monitoring of undertakings. 
 
10. A provisional duty may, after consultation, be  imposed in accordance with Article 12 on the 
basis of the best information available, where there is reason to believe that an undertaking is 
being breached, or in case of breach or withdr awal of an undertaking where the investigation 
which led to the undertaking has not been concluded.  
Article 14 
 
Termination without measures 
 
1. Where the complaint 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 and there is no objection 
raised within the Advisory Committee, the investigation or proceedings shall be terminated. In all other cases, the Commission shall submit to the Council forthwith a report on the results of the consultation, together with a proposal that the proceedings be terminated. The proceedings shall G/SCM/N/1/EU/1 
 
- 18 - 
 
  be deemed terminated if, within one month, the Council, acting by a qualified majority, has not 
decided otherwise.  3. There shall be immediate termination of the proceedings where it is determined that the 
amount of countervailable subsidies is de minimis , in accordance with paragraph 5, or where the 
volume of subsidised imports, actual or potential, or the injury, is negligible.  
4. For proceedings initiated pursuant to Articl e 10(11), injury shall normally be regarded as 
negligible where the market share of the imports is less than the amounts set out in Article 10(9). 
With regard to investigations concerning imports from developing countries, the volume of subsidised imports shall also be considered 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 the countervailable subsidies shall be considered to be de minimis if such 
amount is less than 1% ad valorem , except where, as regards investigations concerning imports 
from developing countries, the de minimis threshold shall be 2% ad valorem , provided that it is 
only the investigation that shall be terminated where the amount of the countervailable subsidies is below the relevant de minimis level for individual exporters, which shall remain subject to the 
proceedings and may be reinvestigated in any subsequent review carried out for the country 
concerned pursuant to Articles 18 and 19. 
 
Article 15 
 
Imposition of definitive duties 
 
1. Where the facts as finally established show the existence of countervailable subsidies and 
injury caused thereby, and the Community interest calls for intervention in accordance with Article 31, a definitive countervailing duty shall be imposed by the Council, acting on a proposal 
submitted by the Commission after consultation of the Advisory Committee. 
 
The proposal shall be adopted by the Council unless it decides by a simple majority to reject the proposal, within a period of one month after its submission by the Commission.  
 
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. 
 
No measures shall be imposed if the subsidy or subsidies are withdrawn or it has been demonstrated that the subsidies no longer co nfer any benefit on the exporters involved.  
 
The amount of the countervailing duty shall not exceed the amount of countervailable subsidies 
established but it should be less than the total amount of countervailable subsidies if such lesser duty would be adequate to remove the injury to the 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 sources from which undertakings 
under the terms of this Regulation have been ac cepted. 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 27, any 
countervailing duty applied to imports from exporters or producers which have made themselves known in accordance with Article 27 but were not included in the examination shall not exceed 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 countervailable subsidies established in the 
circumstances referred to in Article 28.  Individual duties shall be applied to imports from any exporter or producer for which an individual 
amount of subsidisation has been calculated as provided for in Article 27. G/SCM/N/1/EU/1 
 
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Article 16 
 
Retroactivity 
 
1. Provisional measures and definitive countervailing duties shall only be applied to products which enter free circulation after the time when the measure taken pursuant to Article 12(1) or 
Article 15(1), as the case may be, enters into force, subject to the exceptions set out in this 
Regulation.  2. Where a provisional duty has been applied and the facts as finally established show the 
existence of countervailable subsidies and injury, th e 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, ‘injury’ 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 high er than the provisional duty, the difference shall 
not be collected. If the definitive duty is lower than the provisional duty, the duty shall be recalculated. Where a final determination is negative, the provisional duty shall not be confirmed. 
 
4. A definitive countervailing duty may be levied on products which were entered for consumption no more than 90 days prior to the date of application of provisional measures but not 
prior to the initiation of the investigation. 
 The first subparagraph shall apply, provided that:  
(a) the imports have been registered in accordance with Article 24(5); 
 
(b) the importers concerned have been given an opportunity to comment by the 
Commission; 
 
(c) there are critical circumstances where for the subsidised product in question injury 
which is difficult to repair is caused by massive imports in a relatively short period of a 
product benefiting from countervailable subsidies under the terms of this Regulation; and 
 
(d) it is deemed necessary, in order to preclude the recurrence of such injury, to assess 
countervailing duties retroactively on those imports. 
 
5. In cases of breach or withdrawal of undertak ings, definitive duties may be levied on goods 
entered for free circulation no more than 90 days before the application of provisional measures, provided that the imports have been registered in accordance with Article 24(5) and that any such 
retroactive assessment shall not apply to imports en tered before the breach or withdrawal of the 
undertaking.  
Article 17 
 
Duration 
 
A countervailing measure shall remain in force only as long as, and to the extent that, it is 
necessary to counteract the countervailable subsidies which are causing injury.  G/SCM/N/1/EU/1 
 
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  Article 18 
 
Expiry reviews 
 
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 be likely to lead to a continuation or recurrence of 
subsidisation and injury. Such an expiry review shall be initiated on the initiative of the 
Commission, or upon a request made by or on behalf of Community producers, and the measure 
shall remain in force pending the outcome of such review.  
2. An expiry review shall be initiated where th e request contains sufficient evidence that the 
expiry of the measures would be likely to result in a continuation or recurrence of subsidisation and injury. Such a likelihood may, for exampl e, be indicated by evidence of continued 
subsidisation and injury or evidence that the removal of injury is partly or solely due to the 
existence of measures or evidence that the circum stances of the exporters, or market conditions, 
are such that they would indicate the likelihood of further injurious subsidisation. 
 
3. In carrying out investigations under this Arti cle, the exporters, importers, the country of 
origin and/or export and the Community producer s shall be provided with the opportunity to 
amplify, rebut or comment on the matters set out in the review request, and conclusions shall be 
reached with due account taken of all relevant  and duly documented evidence presented in 
relation to the question as to whether the expiry of measures would be likely, or unlikely, to lead 
to the continuation or recurrence of subsidisation and injury. 
 
4. A notice of impending expiry shall be published in the Official Journal of the European Union 
at an appropriate time in the final year of the pe riod of application of the measures as defined in 
this Article. Thereafter, the Community producers sh all, no later than three months before the end 
of the five-year period, be entitled to lodge a re view request in accordance with paragraph 2. A 
notice announcing the actual expiry of measures under this Article shall also be published.  
Article 19 
 
Interim reviews 
 
1. The need for the continued imposition of measures may also be reviewed, where warranted, on the initiative of the Commission or at the request of a Member State or, provided that a 
reasonable period of time of at least one year has elapsed since the imposition of the definitive 
measure, upon a request by any exporter, importer  or by the Community producers or the country 
of origin and/or export which contains sufficien t evidence substantiating the need for such an 
interim review. 
 
2. An interim review shall be initiated where the request contains sufficient evidence that the continued imposition of the measure is no longer necessary to offset the countervailable subsidy 
and/or that the injury would be unlikely to continue or recur if the measure were removed or 
varied, or that the existing measure is not, or is no longer, sufficient to counteract the countervailable subsidy which is causing injury. 
 
3. Where the countervailing duties imposed are less than the amount of countervailable subsidies found, an interim review may be initiated if the Community producers or any other interested party submit, normally within two years from the entry into force of the measures, 
sufficient evidence that, after the original investigation period and prior to or following the 
imposition of measures, export prices have decr eased or that there has been no movement, or 
insufficient movement of resale prices of the imported product in the Community. If the 
investigation proves the allegations to be correct, countervailing duties may be increased to 
achieve the price increase required to remove in jury. However, the increased duty level shall not 
exceed the amount of the countervailable subsidies. 
 
The interim review may also be initiated, under the conditions set out above, at the initiative of the Commission or at the request of a Member State.  G/SCM/N/1/EU/1 
 
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  4. In carrying out investigations 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 8. In these respects, account shall be taken in the final 
determination of all relevant and duly documented evidence. 
 
Article 20 
 
Accelerated reviews 
 Any exporter whose exports are subject to a definitive countervailing duty but which was not 
individually investigated during the original investigation for reasons other than a refusal to 
cooperate with the Commission, shall be entitled, upon request, to an accelerated review in order that the Commission 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 18, an importer ma y 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 level which is below the level of the duty in force.   
2. In requesting a refund of countervailing duti es, 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 were released for free circulation, within six months of the date on which the amount of the definitive duties to be levied was duly determined by the competent authorities or of the 
date on which a decision was made definitively to collect the amounts secured by way of 
provisional duty. Member States shall forward the request to the Commission forthwith.  
3. An application for refund shall be considered to be duly supported by evidence only where it 
contains precise information on the amount of refund of countervailing duties claimed and all customs documentation relating to the calculation and payment of such amount. It shall also 
include evidence, for a representative period, of the amount of countervailable subsidies for the 
exporter or 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 
reduced or eliminated, as specified in this Article, and that the relevant supporting evidence will be provided to the Commission. Where such eviden ce is not forthcoming from the exporter or 
producer within a reasonable period of time the application shall be rejected. 
 4. The Commission shall, after consultation of the Advisory 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 norm ally be made by Member States within 90 days 
of the decision referred to in the first subparagraph. 
 G/SCM/N/1/EU/1 
 
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  Article 22 
 
General provisions on reviews and refunds 
 
1. The relevant provisions of this Regulation with regard to procedures and the conduct of 
investigations, excluding those relating to time limits, shall apply to any review carried out pursuant to Articles 18, 19 and 20. 
 
Reviews carried out pursuant to Articles 18 and 19 shall be carried out expeditiously and shall normally be concluded within 12 months of the da te of initiation of the review. In any event, 
reviews pursuant to Articles 18 and 19 shall in all cases be concluded within 15 months of 
initiation. 
 Reviews pursuant to Article 20 shall in all cases be concluded within nine months of the date of 
initiation. 
 If a review carried out pursuant to Article 18 is initiated while a review under Article 19 is ongoing 
in the same proceedings, the review pursuant to Article 19 shall be concluded at the same time as 
foreseen above for the review pursuant to Article 18.  The Commission shall submit a proposal for action to the Council no later than one month before 
the expiry of the above deadlines. 
 If the investigation is not completed within the above deadlines, the measures shall: 
 
(a) expire in investigations pursuant to Article 18;  
(b) expire in the case of investigations carried out pursuant to Articles 18 and 19 in 
parallel, where either the investigation pursuant to Article 18 was initiated while a review under Article 19 was ongoing in the same proceedings or where such reviews were initiated at the same time; or 
 
(c) remain unchanged in investigations pursuant to Articles 19 and 20.  
A notice announcing the actual expiry or maintenance of the measures pursuant to this paragraph 
shall be published in the Official Journal of the European Union . 
 
2. Reviews pursuant to Articles 18, 19 and 20 shall be initiated by the Commission after 
consultation of the Advisory Committee.  3. Where warranted by reviews, measures shall be repealed or maintained pursuant to 
Article 18, or repealed, maintained or amended pursuant to Articles 19 and 20, by the Community 
institution responsible for their introduction.   
4. Where measures are repealed for individual exporters, but not for the country as a whole, 
such exporters shall remain subject to the proceedings and may be reinvestigated in any subsequent review carried out for that country pursuant to this Article.  
 
5. Where a review of measures pursuant to Articl e 19 is in progress at the end of the period of 
application of measures as defined in Article 18, the measures shall also be investigated under the provisions of Article 18.  
 
6. In all review or refund investigations carried out pursuant to Articles 18 to 21, the Commission shall, provided that circumstances have not changed, apply the same methodology as 
in the investigation which led to the duty, with due account being taken of Articles 5, 6, 7 and 27.  
 G/SCM/N/1/EU/1 
 
- 23 - 
 
  Article 23 
 
Circumvention 
 
1. Countervailing duties imposed pursuant to this Regulation may be extended to imports from 
third countries, of the like product, whether slightly  modified or not, or to imports of the slightly 
modified like product from the country subject to measures, or to parts thereof, when 
circumvention of the measures in force is taking place. 
 2. Countervailing duties not exceeding the residu al countervailing duty imposed in accordance 
with Article 15(2) may be extended to imports from companies benefiting from individual duties in 
the countries subject to measures when circumvention of the measures in force is taking place. 
 3. Circumvention shall be defined as a change in the pattern of trade between third countries 
and the Community or between individual companie s in the country subject to measures and the 
Community, which stems from a practice, process or work for which there is insufficient due cause or economic justification other than the impositi on of the duty, and wher e there is evidence of 
injury or that the remedial effects of the duty are being undermined in terms of the prices and/or 
quantities of the like product and that the imported like product and/or parts thereof still benefit from the subsidy.  
The practice, process or work referred to in the first subparagraph includes, inter alia: 
 
(a) the slight modification of the product concerned to make it fall under customs codes 
which are normally not subject to the measures, provided that the modification does 
not alter its essential characteristics; 
 
(b) the consignment of the product subject to measures via third countries; and 
 (c) the reorganisation by exporters or producers of their patterns and channels of sales in 
the country subject to measures in order to eventually have their products exported to 
the Community through producers benefiting from an individual duty rate lower than 
that applicable to the products of the manufacturers. 
 
4. Investigations shall be initiated pursuant to this Article on the initiative of the Commission or 
at the request of a Member State or of any intere sted party on the basis of sufficient evidence 
regarding the factors set out in paragraphs 1, 2 and 3. Initiations shall be made, after consultation 
of the Advisory Committee, by Commission Regulation which may also instruct the customs 
authorities to make imports subject to registration in accordance with Article 24(5) or to request guarantees.  
Investigations shall be carried out by the Commission, which may be assisted by customs 
authorities and shall be concluded within nine months.  
If the facts as finally ascertained justify the extension of measures, this shall be done by the 
Council, acting on a proposal submitted by the Commission after consultation of the Advisory Committee. The proposal shall be adopted by the Council unless it decides by a simple majority to 
reject the proposal, within a period of one month after its submission by the Commission. 
 The extension shall take effect from the date on which registration was imposed pursuant to Article 24(5) or on which guarantees were requeste d. The relevant procedural provisions of this 
Regulation with regard to initiations and the conduct of investigations shall apply pursuant to this 
Article.  
5. Imports shall not be subject to registration pursuant to Article 24(5) or measures where 
they are traded by companies which benefit from exemptions.  
6. Requests for exemptions duly supported by evidence shall be submitted within the time 
limits established in the Commission Regulation initiating the investigation.  Where the circumventing practice, process or work takes place outside the Community, 
exemptions may be granted to producers of the product concerned that can show that they are not G/SCM/N/1/EU/1 
 
- 24 - 
 
  related to any producer subject to the measur es and that are found not to be engaged in 
circumvention practices as defined in paragraph 3.  Where the circumventing practice, process or work  takes place inside the Community, exemptions 
may be granted to importers that can show that they are not related to producers subject to the 
measures.  
These exemptions are granted by decision of th e Commission after consultation of the Advisory 
Committee or decision of the Council imposing measures and shall remain valid for the period and under the conditions set down therein.  
Provided that the conditions set in Article 20 are met, exemptions may also be granted after the 
conclusion of the investigation leading to the extension of the measures.  
7. Provided that at least one year has lapsed from the extension of the measures, and in case 
the number of parties requesting or potentially requesting an exemption is significant, the 
Commission may decide to initiate a review of the extension of the measures. Any such review 
shall be conducted in accordance with the provisions of Article 22(1) as applicable to reviews under 
Article 19.  8. Nothing in this Article shall preclude the normal application of the provisions in force 
concerning customs duties. 
 
Article 24 
 
General provisions 
 
1. Provisional or definitive countervailing duties  shall be imposed by Regulation, and collected 
by Member States in the form, at the rate specified and according to the other criteria laid down in the Regulation imposing such duties. 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 Regulations or Decisions accepting undertakings or terminating investigations or proceedings, shall be published 
in the Official Journal of the European Union . 
 Such Regulations or Decisions shall contain in particular, and with due regard to the protection of confidential information, the name s of the exporters, if possible, or of the countries involved, a 
description of the product and a summary of the fa cts and considerations relevant to the subsidy 
and injury determinations. In each case, a copy of the Regulation or Decision shall be sent to known interested parties. The provisions of this paragraph shall apply mutatis mutandis to 
reviews. 
 3. Special provisions, in particular with regard to the common definition of the concept of 
origin, as contained in Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the 
Community Customs Code
1, may be adopted pursuant to this Regulation. 
 4. In the Community interest, measures imposed pursuant to this Regulation may, after 
consultation of the Advisory Committee, be su spended by a decision of the Commission for a 
period of nine months. The suspension may be extended for a further pe riod, not exceeding one 
year, if the Council so decides, acting  on a proposal from the Commission. 
 
The proposal shall be adopted by the Council unless it decides by a simple majority to reject the proposal, within a period of one month after its submission by the Commission. 
 
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 
                                               
1 OJ L 302, 19.10.1992, p. 1. G/SCM/N/1/EU/1 
 
- 25 - 
 
  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 applicable.  
5. The Commission may, after consultation of the Advisory Committee, 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 fo llowing a request from the Community industry 
which contains sufficient evidence to justify such action.  
Registration shall be introduced by Regulation which shall specify the purpose of the action and, if 
appropriate, the estimated amount of possible future  liability. Imports shall not be made subject to 
registration for a period longer than nine months. 
 
6. Member States shall report to the Commission every month on the import trade of products subject to investigation and to measures, and on the amount of duties collected pursuant to this 
Regulation. 
 7. Without prejudice to paragraph 6, the Commission may request Member States, on a case-by-case basis, to supply information necessary to monitor efficiently the application of 
measures. In this respect, the provisions of Articles 11(3) and (4) shall apply. Any data submitted 
by Member States pursuant to this Article shall be covered by the provisions of Article 29(6).  
Article 25  
 
Consultations  
 
1. Any consultations provided for in this Regulation, except those referred to in Articles 10(7) and 11(10), shall take place within an Advisory Committee, which shall consist of representatives of each Member State, with a representative of the Commission as chairman. Consultations 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 Committee shall meet when convened by  its chairman. He shall provide the Member 
States, as promptly as possible, but no later th an 10 working days before the meeting, 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 specify 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 this Regulation to be adhered to. 
 
4. Consultation shall cover, in particular:  
(a) the existence of countervailable subsid ies 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. 
 G/SCM/N/1/EU/1 
 
- 26 - 
 
  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 absence 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 question and that the 
latter does not object to the investigation. As soon as the agreement of the firms concerned has 
been obtained the Commission should notify the country of origin and/or export of the names and addresses of the firms to be visited and the dates agreed. 
 
3. The firms concerned shall be advised of the na ture 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 during 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, the Commission shall be 
assisted by officials of those Member States which so request. 
 
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 which are 
statistically valid on the basis of information available at the time of the selection; or  
 (b) the largest representative volume of the production, sales or exports which can 
reasonably be investigated within the time available. 
 2. The selection of parties, types of products or  transactions made under this Article shall rest 
with the Commission, though preference shall be given to choosing a sample in consultation with, 
and with the consent of, the parties concerned, provided that such parties make themselves known and make 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 lim ited in accordance with this Article, an 
individual amount of countervailable subsidisation shall be calculated for any exporter or producer 
not initially selected who submits the necessary information within the time limits provided for in 
this Regulation, except where the number of export ers 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 of the parties selected which is likely to materially affect the outcome of the investigation, a new sample 
may be selected. 
 However, if a material degree of non-cooperation persists or there is insufficient time to select a 
new sample, the relevant provisions of Article 28 shall apply.  G/SCM/N/1/EU/1 
 
- 27 - 
 
   
Article 28 
 
Non-cooperation 
 
1. In cases in which any interested party refuses access to, or otherwise does not provide necessary information within the time limits provided in this Regulation, or significantly impedes 
the investigation, provisional or final findings, affirmative or negative, may be made on the basis 
of the facts available.  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.  
 
2. Failure to give a computerised response sha ll not be deemed to constitute non-cooperation, 
provided that the interested party shows that pres enting the response as requested would result in 
an unreasonable extra burden or unreasonable additional cost.  
 3. Where the information submitted by an interested party is not ideal in all respects it should nevertheless not be disregarded, 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 therefore and shall be granted an oppo rtunity 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 
reference to information from other independent sources which may be available, such as published price lists, official import statistics an d customs returns, or information obtained from 
other interested parties during the investigation. Such information may include relevant data 
pertaining to the world market or other representative markets, where appropriate.   
6. If an interested party does not cooperate, or cooperates only partially, so that relevant 
information is thereby withheld, the result 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 advantage to a compet itor 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.  
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 of 
summary. In such exceptional circumstances, a statement of the reasons why summarisation is not possible must be provided. 
 
3. If it is considered that a request for confiden tiality is not warranted and if the supplier of the 
information is either unwilling to make the information available or to authorise its disclosure in generalised or summary form, such information may be disregarded unless it can be satisfactorily G/SCM/N/1/EU/1 
 
- 28 - 
 
  demonstrated from appropriate sources that the information is correct. Requests for confidentiality 
shall not be arbitrarily rejected.  4. This Article shall not preclude the disclosure of general information by the 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 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 Council, the Commission and the Member Stat es, or the officials of any of these, shall 
not reveal any information received pursuant to this Regulation for which confidential treatment 
has been requested by its supplier, without specif ic permission from the supplier. Exchanges of 
information between the Commission and Member States, or any information relating to 
consultations made pursuant to Article 25, or consultations described in Articles 10(7) and 11(10), 
or any internal documents prepared by the auth orities 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.  
This provision shall not preclude the use of information received in the context of one investigation 
for the purpose of initiating other investigations within the same proceedings concerning the same like product. 
 
Article 30 
 
Disclosure 
 
1. The complainants, importers and exporters and their representative associations, and the country of origin and/or export, may request discl osure 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 may request final disclosure of the essential facts and considerations on the basis of which it is intended to recommend the imposition of definitive 
measures, or the termination of an 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.  
3. Requests for final disclosure shall be addressed to the Commission in writing and be 
received, in cases where a provisional duty has been applied, no later than one month after publication of the imposition of that duty. Where a provisional duty has not been imposed, parties 
shall be provided with an opportunity to request final disclosure within time limits set by the 
Commission.  
4. Final disclosure shall be given in writing. It shall be made, with due regard to the protection 
of confidential information, as soon 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 14 and 15. Where the Commission is not in a position to disclose certain facts or 
considerations at that time, they shall be disclosed as soon as possible thereafter. 
 Disclosure shall not prejudice any subsequent decision which may be taken by the Commission or 
the Council but where such decision is based on any different facts and considerations they shall 
be disclosed as soon as possible.  
5. Representations made after final disclosure is given shall be taken into consideration only if 
received within a period to be set by the Commission in each case, which shall be at least 10 days, due consideration being given to the urgency of the matter.  G/SCM/N/1/EU/1 
 
- 29 - 
 
  Article 31 
 
Community interest 
 
1. A determination as to whether the Community interest calls for intervention should be based 
on an appraisal of all the various interests taken as a whole, including the interests of the domestic industry and users and consumers. A determination pursuant to this Artic le shall be made only 
where all parties have been given the opportunity to make their views known pursuant to 
paragraph 2. In such an examination, the need to eliminate the trade-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, with in the time limits specified in the notice of 
initiation of the countervailing duty investigation, make themselves known and provide information to the Commission. Such information, or appropri ate 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 may request a hearing. Such 
requests shall be granted when they are submitte d within the time limits set in paragraph 2, and 
when they set out the reasons, in terms of th e Community interest, why the parties should be 
heard. 
 
4. The parties which have acted in conformity with paragraph 2 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 made available to other parties who shall be entitled to respond to 
such comments.  
5. The Commission shall examine the information which is properly submitted and the extent 
to which it is representative, and the results of such analysis, together with an opinion on its merits, shall be transmitted to the Advisory Co mmittee. The balance of views expressed in the 
Committee shall be taken into account by the Commission in any proposal made pursuant to 
Articles 14 and 15.  6. The parties which have acted in conformity with paragraph 2 may request that the facts and 
considerations on which final decisions are likely to be taken be made available to them. Such 
information shall be made available to the extent possible and without prejudice to any subsequent decision taken by the Commission or the Council. 
 
7. Information shall be taken into account only where it is supported by actual evidence which substantiates its validity. 
 
Article 32 
 
Relationships between countervailing duty  measures and multilateral remedies 
 
If an imported product is made subject to any countermeasures imposed following recourse to the dispute settlement procedures of the Subsidies Ag reement, and such measures are appropriate to 
remove the injury caused by the countervailable subsidies, any countervailing duty imposed with 
regard to that product shall immediately be suspended, or repealed, as appropriate.  G/SCM/N/1/EU/1 
 
- 30 - 
 
  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) the Community Regulations in the agricultural sector and Council Regulations (EEC) 
No 2783/75
1, (EC) No 3448/932 and (EC) No 1667/20063. This Regulation shall 
operate by way of complement to those regulations and in derogation from any 
provisions thereof which preclude the application of countervailing duties; 
 
(c) special measures, provided that such action does not run counter to obligations under 
the GATT. 
 
Article 34 
 
Repeal 
 
Regulation (EC) No 2026/97 is repealed. 
 References to the repealed Regulation shall be co nstrued as references to this Regulation and be 
read in accordance with the correlation table set out in Annex VI. 
 
Article 35 
 
Entry into force 
 This Regulation shall enter into force on the 20
th day following its publication in the Official Journal 
of the European Union . 
  
 
  
 
 This Regulation shall be binding in its entirety and directly applicable in all Member States.  
Done at Luxembourg, 11 June 2009. 
  
 
 For the Council 
 The President 
 G. SLAME ČKA 
 
_______________ 
 
                                               
1 OJ L 282, 1.11.1975, p. 104. 
2 OJ L 318, 20.12.1993, p. 18. 
3 OJ L 312, 11.11.2006, p. 1. G/SCM/N/1/EU/1 
 
- 31 - 
 
  ANNEX I 
ILLUSTRATIVE LIST OF EXPORT SUBSIDIES 
 
(a) The provision by governments of direct subsid ies 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 charges on export shipments, provided or mandated by governments, on terms more favourab le than for domestic shipments.  
 
(d) The provision by governments or their agen cies either directly or indirectly through 
government-mandated schemes, of imported or domestic products or services for use in the production of exported goods, on terms or conditio ns more favourable than for provision of like or 
directly competitive products or services for use in the production of goods for domestic 
consumption, if (in the case of products) such terms or conditions are more favourable than those commercially 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 welfare charges paid or payable by industrial or commercial enterprises3.  
 
(f) The allowance of special deductions directly re lated to exports or export  performance, over and 
above those granted in respect of production for domestic consumption, in the calculation of the base on which direct taxes are charged.  
 
(g) The exemption or remission, in respect of the pr oduction and distribution of exported products, 
of indirect taxes
4 in excess of those levied in respect of the production and distribution of like 
products 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 pr oducts in excess of the exemption, remission or 
deferral of like prior-stage cumulative indirect taxe s on goods or services used in the production of 
like products when sold for domestic consumption; provided, however, that prior-stage cumulative indirect taxes may be exempted, remitted or deferred on exported products even when not 
exempted, remitted or deferred on like products when sold for domestic consumption, if the prior-
stage cumulative indirect taxes are levied on inputs that are consumed in the production of the 
                                               
1 ‘Commercially available’ means that the choice  between domestic and imported products is 
unrestricted and depends only on  commercial considerations.  
 
2 For the purpose of this Regulation: 
— ‘direct taxes’ means taxes on wages, profits, in terests, rents, royalties, and al l other forms of 
income, and taxes on the ownership of real property, 
— ‘import charges’ means tariffs, duties, and other fiscal charges not elsewhere enumerated in this 
note that are levied on imports, 
— ‘indirect taxes’ means sales, excise, turnover, va lue added, franchise, stamp,  transfer, inventory and 
equipment taxes, border taxes and all taxes ot her than direct taxes and import charges, 
— ‘prior-stage’ indirect taxes are those levied on goods or services used directly or indirectly in making 
the product, 
— ‘cumulative’ indirect taxes are multi-staged taxes levied where there is no mechanism for 
subsequent crediting of the tax if the goods or serv ices subject to tax at one stage of production are 
used in a succeeding state of production, 
— ‘remission’ of taxes includes th e refund or rebate of taxes, 
— ‘remission or drawback’ includes the full or pa rtial exemption or deferra l of import charges.  
 
3 Deferral may not amount to an export subsidy wher e, for example, appropriate interest charges are 
collected.  
 
4 See footnote 2. 
5 See footnote 2. G/SCM/N/1/EU/1 
 
- 32 - 
 
  exported product (making normal allowance 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 that 
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 imported inputs as a substitute for 
them in order to benefit from this provision if the import and the corresponding export operations 
both occur within a reasonable time period, not to exceed two years. This item shall be interpreted 
in accordance with the guidelines on consumption of 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 controlled 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.  
 (k) The grant by governments (or special institutions controlled by and/or acting under the authority of governments) of export credits at ra tes below those which they actually have to pay 
for the funds so employed (or would have to pay if they borrowed on international capital markets 
in order to obtain funds of the same maturity an d other credit terms and denominated in the same 
currency as the export credit), or the payment by  them of all or part of the costs incurred by 
exporters or financial institutions in obtaining credits, in so far as they are used to secure a 
material advantage in the field of export credit terms.  
Provided, however, that if a Member of the WTO is a party to an international undertaking on 
official export credits to 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 relevant undertaking, an export 
credit practice which is in conformity with those provisions shall not be considered an export 
subsidy.   
(l) Any other charge on the public account constituting an export subsidy in the sense of 
Article XVI of the GATT 1994.  
_______________ 
                                               
6 Point (h) does not apply to valu e added tax systems and border-tax adjustment in lieu thereof; the 
problem of the excessive remission of value adde d taxes is exclusively covered by point (g). 
7 See footnote 2. G/SCM/N/1/EU/1 
 
- 33 - 
 
  ANNEX II  
GUIDELINES ON CONSUMPTION OF IN PUTS IN THE PRODUCTION PROCESS1 
 
I 
 
1. Indirect tax rebate schemes can allow for ex emption, remission or deferral of prior-stage 
cumulative indirect taxes levied on inputs that are consumed in the production of the exported 
product (making normal allowance for waste). Similarly, drawback schemes can allow for the 
remission or drawback of import charges levied on  inputs that are consumed in the production of 
the exported product (making normal allowance for waste).  
2. The illustrative list of export subsidies in Annex I makes reference to the term ‘inputs that 
are consumed in the production of the exported pr oduct’ in points (h) and (i). Pursuant to point 
(h), indirect tax rebate schemes can constitute an export subsidy to the extent that they result in 
exemption, remission or deferral of prior-stage cu mulative indirect taxes in excess of the amount 
of such taxes actually levied on inputs that are consumed in the production of the exported product. Pursuant to point (i), drawback schemes can constitute an export subsidy to the extent 
that they result in a remission or drawback of import charges in excess of those actually levied on 
inputs that are consumed in the production of th e exported product. Both points stipulate that 
normal allowance for waste must be made in findings regarding consumption of inputs in the production of the exported product. Point (i) also  provides for substitution, where appropriate.  
 
II 
 
3. In examining whether inputs are consumed in  the production of the exported product, as 
part of a countervailing duty investigation pursuant to this Regulation, the Commission must normally proceed on the following basis.  
 
4. Where it is alleged that an indirect tax rebate scheme, or a drawback scheme, conveys a 
subsidy by reason of over-rebate or excess drawback  of indirect taxes or import charges on inputs 
consumed in the production of the exported product, the Commission must normally first 
determine whether the government of the exportin g country has in place and applies a system or 
procedure to confirm which inputs are consumed in the production of the exported product and in what amounts. Where such a system or procedure is determined to be applied, the Commission 
must normally then examine the system or procedure to see whether it is 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 26(2), 
certain practical 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 found not to be applied or not to be applied effectively, 
a further examination by the exporting country base d on the actual inputs involved will normally 
need to be carried out in the context of determ ining whether an excess payment occurred. If the 
Commission deems it necessary, a further examination may be carried out in accordance with 
point 4.  
6. The Commission must normally treat inputs as physically incorporated if such inputs are 
used in the production process and are physically present in the product exported. An input need not be present in the final product in the same form in which it entered the production process.   
7. In determining the amount of a particular in put that is consumed in the production of the 
exported product, a ‘normal allowance for waste’ must normally be taken into account, and such waste must normally be treated as consumed in th e production of the exported product. The term 
                                               
1 Inputs consumed in the production process are in puts physically incorporated, 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. G/SCM/N/1/EU/1 
 
- 34 - 
 
  ‘waste’ refers to that portion of a given input which does not serve an independent function in the 
production process, is not consumed in the produc tion 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 for waste is ‘normal’ 
must normally take into account the production pr ocess, the average experience of the industry in 
the country of export, and other technical factors, as appropriate. The Commission must bear in 
mind that an important question is whether the authorities in the exporting country have 
reasonably calculated the amount of waste, when such an amount is intended to be included in the tax or duty rebate or remission. 
 
 
_______________ 
 G/SCM/N/1/EU/1 
 
- 35 - 
 
  ANNEX III 
GUIDELINES IN THE DETERMINATION OF 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 pr oduct and where the export of this latter product 
contains domestic inputs having the same quality and characteristics as those submitted for the 
imported inputs. Pursuant to point (i) of Annex I,  substitution drawback systems can constitute an 
export subsidy to the extent that they result in  an excess drawback of the import charges levied 
initially on the imported inputs for which drawback is being claimed.  
 
II 
 
In examining any substitution drawback system as part of a countervailing duty investigation 
pursuant to this Regulation, the Commission mu st normally proceed on the following basis:  
 
1. point (i) of Annex I stipulates that home market inputs may be substituted for imported 
inputs in the production of a product for export pr ovided such inputs are equal in quantity to, and 
have the same quality and characteristics as, the imported inputs being substituted. The existence 
of a verification system or procedure is important because it enables the government of the 
exporting country to ensure and demonstrate that the quantity of inputs for which drawback is 
claimed does not exceed the quantity of similar products exported, in whatever form, and that 
there is not drawback of import charges in excess of  those originally levied on the imported inputs 
in question; 
 2. where it is alleged that a substitution dr awback 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 proc edure. Where such a system or procedure is 
determined to be applied, the Commission shall no rmally 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 a pplied, no subsidy will be presumed to exist. It 
may be deemed necessary by the Commission to carry out, in accordance with Article 26(2), 
certain practical tests in order to verify information or to satisfy itself that the verification 
procedures are being effectively applied;  
3. where there are no verification procedures, where they are not reasonable, or where such 
procedures are instituted and considered reasonable but are found not to be actually applied or not to be applied effectively, there may be a subsid y. In such cases, further examination by the 
exporting country based on the actual transactions involved would need to be carried out to 
determine whether an excess payment occurred. If  the Commission deems it necessary, a further 
examination may be carried out in accordance with point 2;  
4. the existence of a substitution drawback provision under which exporters are allowed to 
select particular import shipments on which drawback  is claimed should not of itself be considered 
to convey a subsidy;  
 
5. an excess drawback of import charges within  the meaning of point (i) of Annex I would be 
deemed to exist where governments paid interest  on any monies refunded under their drawback 
schemes, to the extent of the interest actually paid or payable. 
 
_______________ G/SCM/N/1/EU/1 
 
- 36 - 
 
  ANNEX IV  
(This Annex reproduces Annex 2 to the Agreement on Agriculture. Any terms or expressions which 
are not explained herein or which are not self-explanatory are to be interpreted in the context of that Agreement.) 
DOMESTIC SUPPORT: THE BASIS OF EXEMPTION FROM THE REDUCTION COMMITMENTS 
1. Domestic support measures for which exemption from the reduction commitments is claimed 
shall meet the fundamental requirement that they have no, or at most minimal, trade-distorting 
effects or effects on production. Accordingly, al l measures for which exemption is claimed shall 
conform to the following basic criteria:  
(a) the support in question shall be prov ided 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 support to 
producers;  
 
plus policy-specific criteria and conditions as set out below. 
 Government service programmes   
2. General services 
 
Policies in this category involve expenditures (or revenue foregone) in relation 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 
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 advisory services, including the provision of means to facilitate the 
transfer of information and the results of research to producers and consumers;  
(e) inspection services, including general inspection services and the inspection of 
particular products for health, safety, grading or standardisation 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 selling price or confer a direct 
economic benefit to purchasers; and  
(g) infrastructural services, including: electricity reticulation, roads and other means of 
transport, market and port facilities, wa ter supply facilities, dams and drainage 
schemes, and infrastructural works associated with environmental programmes. In all 
cases the expenditure shall be directed to the provision or construction of capital works only, and shall exclude the subsidised provision of on-farm facilities other than 
for the reticulation of generally available public utilities. It shall not include subsidies 
to inputs or operating costs, or preferential user charges. 
 3. Public stockholding fo r food security purposes
1 
                                               
1 For the purpose of point 3 of this Annex, govern mental stockholding progra mmes for food security 
purposes in developing countries whose operation is tr ansparent and conducted in accordance with officially 
published objective criteria or guidelines shall be considered to be in conformity with the provisions of this point, including programmes under which stocks of food stuffs for food security purposes are acquired and 
released at administered prices, provided that the di fference between the acquisition price and the external 
reference price is accounted for in the AMS. 
 G/SCM/N/1/EU/1 
 
- 37 - 
 
   
Expenditures (or revenue foregone) in relation to the accumulation and holding of stocks of p r o d u c t s  w h i c h  f o r m  a n  i n t e g r a l  p a r t  o f  a  f o o d  s e c u r i t y  p r o g r a m m e  i d e n t i f i e d  i n  n a t i o n a l  legislation. This may include government aid to private storage of products as part of such a 
programme. 
 The volume and accumulation of such stocks shall correspond to predetermined targets related 
solely to food security. The process of stock accumulation and disposal shall be financially 
transparent. Food purchases by the government sh all be made at current market prices and sales 
from food security stocks shall 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.   
Eligibility to receive the food aid shall be subject to clearly-defined criteria related to nutritional 
objectives. Such aid shall be in the form of dire ct provision of food to those concerned or the 
provision of means to allow eligible recipients to buy food either 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 individual types of direct payment as set 
out in points 6 to 13. Where exemption from reduct ion is claimed for any existing or new type of 
direct payment other than those specified in points 6 to 13, it shall conform to criteria set out in points 6(b) to (e), in addition to the general criteria set out in point 1.  
 
6. Decoupled income support  
(a) Eligibility for such payments shall be determined by clearly-defined criteria such as 
income, status as a producer or landowner, factor use or production level in a defined 
and fixed base period.  
(b) The amount of such payments in any given year shall 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 order 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 agricult ure, which exceeds 30 % of average gross 
income or the equivalent in net income terms (excluding any payments from the same 
or similar schemes) in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and the lowest entry. Any 
producer meeting this condition shall be eligible to receive the payments.  
(b) The amount of such payments shall comp ensate for less than 70 % of the producer’s 
income loss in the year the producer becomes eligible to receive this assistance.  
                                               
1 For the purposes of points 3 and 4 of this Annex, th e provision of foodstuffs at subsidised 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 point. 
 G/SCM/N/1/EU/1 
 
- 38 - 
 
  (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 (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 authorities that a natural or like disaster (including disease outbreaks, pest infestations, nuclear accidents, and war on the territory of the Member 
concerned) has occurred or is occurring; and shall be determined by a production loss 
which exceeds 30% of the average of production in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest 
and the lowest entry. 
(b) Payments made following a disaster shall be applied only in respect of losses of 
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 no t exceed the level required to prevent or 
alleviate further loss as defined in criterion set out in point (b).  
(e) Where a producer receives in the 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 provid ed through producer retirement programmes  
 
(a) Eligibility for such payments shall be determined by reference to clearly defined 
criteria in programmes designed to facilitate the retirement of persons engaged in marketable agricultural production, or their movement to non-agricultural activities.  
(b) Payments shall be conditional upon the total and permanent retirement of the 
recipients from marketable agricultural production.  
 
10. Structural adjustment assistance provid ed through resource retirement programmes  
 
(a) Eligibility for such payments shall be determined by reference to clearly defined 
criteria in programmes designed to remo ve land or other resources, including 
livestock, from marketable agricultural production.  
(b) Payments shall be conditional upon the retirement of land from marketable 
agricultural production for a minimum of three years, and in the case of livestock on 
its slaughter or definitive permanent disposal.  
(c) Payments shall not require or specify any alternative use for such land or other 
resources which involves the production of marketable agricultural products.  
(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 given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer in any year after the base period other than as provided for under criterion 
(e).  G/SCM/N/1/EU/1 
 
- 39 - 
 
  (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 
of 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 limited to the amount required to compensate for the structural 
disadvantage.  
 
12. Payments under environmental programmes  
 
(a) Eligibility for such payments shall be determined as part of a clearly-defined 
government environmental or conservation programme and be dependent on the 
fulfilment 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 involved 
in complying with the government programme.  
 13. Payments under regional assistance programmes  
 
(a) Eligibility for such payments shall be li mited to producers in disadvantaged regions. 
Each such region must be a clearly designated contiguous geographical area with a 
definable economic and administrative iden tity, 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 
circumstances.  
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer in any year after the base period  other than to reduce that production.  
(c) The amount of such payments in any given year shall not be 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.  
(f) The payments shall be limited to the ex tra costs or loss of income involved in 
undertaking agricultural production in the prescribed area. 
 
_______________ 
 G/SCM/N/1/EU/1 
 
- 40 - 
 
  ANNEX V  
REPEALED REGULATION WITH LIST OF ITS SUCCESSIVE AMENDMENTS  
Council Regulation (EC) No 2026/97 
(OJ L 288, 21.10.1997, p. 1)  
 
Council Regulation (EC) No 1973/2002 (OJ L 305, 7.11.2002, p. 4)  
 
Council Regulation (EC) No 461/2004    O n l y  A r t i c l e  2  
(OJ L 77, 13.3.2004, p. 12)  
_______________ 
 G/SCM/N/1/EU/1 
 
- 41 - 
 
 
 ANNEX VI  
CORRELATION TABLE  
Regulation (EC) No 2026/97  This Regulation  
Article 1(1)  
Article 1(2), introductory wording  Article 1(2), final wording  Article 1(3), first subparagraph  Article 1(3), second subparagraph  Article 1(4)  Article 1(5)  Article 2  Article 3(1)  Article 3(2), first subparagrap h, introductory wording  
Article 3(2), first subpa ragraph, point (a)  
Article 3(2), first subpara graph, point (b), first 
sentence  
Article 3(2), first subparagr aph, point (b), second 
sentence  
Article 3(2), first subparagraph, point (b), third 
sentence  
Article 3(2), first subpa ragraph, point (c)  
Article 3(2), second subparagraph  Article 3(3)  Article 3(4), first subparagrap h, introductory wording  
Article 3(4), first subpara graph, point (a), first 
sentence  
Article 3(4), first subparagrap h, point (a), second and 
third sentences  
Article 3(4), first subpa ragraph, point (b)  
Article 3(5)  Article 5  Article 6  Article 7(1) and (2)  Article 7(3), first subparagraph, first sentence  Article 7(3), first subparagraph, second sentence  Article 7(3), second subparagraph  Article 7(4)  Article 8(1)  Article 8(2) to (9)  Article 9  Article 10(1) to (4)  Article 10(7) to (13)  
Article 10(14), first sentence  
Article 10(14), second and third sentences  Article 10(15), and (16)  Article 11(1), first and second sentences  Article 11(1), third sentence  Article 11(1), fourth sentence  Article 11(2)   Article 1(1)  
Article 2, introductory wording  Article 2(a), initial sentence  Article 2(a), final sentence  Article 2(b)  Article 1(2)  Article 2(c)  Article 3  Article 4(1)  Article 4(2), first subparagrap h, introductory wording  
Article 4(2), first subpa ragraph, point (a)  
Article 4(2), first subpa ragraph, point (b)  
 
Article 4(2), second subparagraph  
 
Article 4(2), third subparagraph  
 
Article 4(2), first subpa ragraph, point (c)  
Article 4(2), fourth subparagraph  Article 4(3)  Article 4(4), first subparagrap h, introductory wording  
Article 4(4), first subpa ragraph, point (a)  
 
Article 4(4), second subparagraph  
 
Article 4(4), first subpa ragraph, point (b)  
Article 4(5)  Article 5  Article 6  Article 7(1) and (2)  Article 7(3), first subparagraph  Article 7(3), second subparagraph  Article 7(3), third subparagraph  Article 7(4)  Article 2(d)  Article 8(1) to (8)  Article 9  Article 10(1) to (4)  Article 10(5) to (11)  
Article 10(12), first subparagraph  
Article 10(12), second subparagraph  Article 10(13) and (14)  Article 11(1), first subparagraph  Article 11(1), second subparagraph  Article 11(1), third subparagraph  Article 11(2)   G/SCM/N/1/EU/1 
 
- 42 - 
 
 
  
Regulation (EC) No 2026/97  This Regulation  
Article 11(3), first sentence  
Article 11(3), second sentence  Article 11(3), third sentence  Article 11(4), first sentence  Article 11(4), second sentence  Article 11(4), third sentence  Article 11(5)  Article 11(6), first sentence  Article 11(6), second sentence  Article 11(6), third sentence  Article 11(6), fourth sentence  Article 11(7), first sentence  Article 11(7), second sentence  Article 11(8), (9) and (10)  Article 12  Article 13(1)  Article 13(2), first and second sentences  Article 13(2), third and fourth sentences  Article 13(2), fifth sentence  Article 13(3), (4) and (5)  Article 13(6), first, second and third sentences  Article 13(6), fourth sentence  Article 13(7) and (8)  
Article 13(9), first subparagraph  
Article 13(9), second subparagraph, first and second 
sentences  
Article 13(9), second subparagraph, third sentence  Article 13(10)  Article 14(1) to (4)  Article 14(5) introductory wording  Article 14(5)(a)   
Article 14(5)(b)  
Article 14(5), final wording  Article 15(1), first sentence  Article 15(1), second sentence  Article 15(1), third sentence  Article 15(1), fourth sentence  Article 15(1), fifth sentence  Article 15(2)  Article 15(3), first sentence  Article 15(3), second sentence  Article 15(3), third sentence  Article 16(1)  Article 16(2), first sentence  
Article 16(2), second and third sentences  
 Article 11(3), first subparagraph  
Article 11(3), second subparagraph  Article 11(3), third subparagraph  Article 11(4), first subparagraph  Article 11(4), second subparagraph  Article 11(4), third subparagraph  Article 11(5)  Article 11(6), first subparagraph  Article 11(6), second subparagraph  Article 11(6), third subparagraph  Article 11(6), fourth subparagraph  Article 11(7), first subparagraph  Article 11(7), second subparagraph  Article 11(8), (9) and (10)  Article 12  Article 13(1)  Article 13(2), first subparagraph  Article 13(2), second subparagraph  Article 13(2), third subparagraph  Article 13(3), (4) and (5)  Article 13(6), first subparagraph  Article 13(6), second subparagraph  Article 13(7) and (8)  
Article 13(9), first subparagraph  
Article 13(9), second subparagraph   
Article 13(9), third subparagraph  
Article 13(10)  Article 14(1) to (4)  Article 14(5) first part  of the sentence  
Article 14(5), second part of the sentence, from ‘as 
regards’ to ‘ ad valorem ’  
—  Article 14(5), last part of the sentence  Article 15(1), first subparagraph  Article 15(1), second subparagraph  Article 15(1), third subparagraph  Article 15(1), fourth subparagraph  Article 15(1), fifth subparagraph  Article 15(2)  Article 15(3), first subparagraph  Article 15(3), second subparagraph  Article 15(3), third subparagraph  Article 16(1)  Article 16(2), first subparagraph  
Article 16(2), second subparagraph  
 G/SCM/N/1/EU/1 
 
- 43 - 
 
 
  
 Regulation (EC) No 2026/97 This Regulation  
Article 16(3)  
Article 16(4), introductory  wording, first part  
Article 16(4), introductory wording, second part  
 
Article 16(4)(a) and (b)  
Article 16(5)  Article 17  Article 18  Article 19  Article 20, first sentence  Article 20, second sentence  Article 21(1), (2) and (3)  Article 21(4), first sentence  Article 21(4), second sentence  Article 21(4), third sentence  Article 22(1), first subparagraph, first sentence  Article 22(1), first subparagraph, second and third 
sentences  
Article 22(1), first subparagr aph, fourth sentence  
Article 22(1), first subpara graph, fifth sentence  
Article 22(1), second subparagraph  Article 22(1), third subparagraph, introductory 
wording  
Article 22(1), third subparag raph, first, second and 
third indents  
Article 22(1), fourth subparagraph  Article 22(2), first sentence  Article 22(2), second sentence  Article 22(2), third sentence  Article 22(3)  Article 22(4)  Article 23(1), first subparagraph, first sentence  Article 23(1), first subparagraph, second sentence  Article 23(1), first subparagraph, third sentence  Article 23(1), second subparagraph, from ‘The 
practice’ to ‘inter alia’ 
Article 23(1), second subparagraph, from ‘the slight 
modification’ to ‘the manufacturers’ 
Article 23(2), first and second sentences Article 23(2), third sentence Article 23(2), fourth and fifth sentences Article 23(2), sixth and seventh sentences Article 23(3), first subparagraph, first sentence Article 23(3), first subparagraph, second sentence Article 23(3), first subparagraph, third sentence 
Article 23(3), first subpara graph, fourth sentence 
Article 23(3), second subparagraph Article 23(3), third subparagraph  Article 16(3)  
Article 16(4), first subparagraph  Article 16(4), second subparagraph, introductory 
wording and points (a) and (b)  
Article 16(4), second subpara graph, points (c) and (d) 
 
Article 16(5)  
Article 17  Article 18  Article 19  Article 20, first paragraph  Article 20, second paragraph  Article 21(1), (2) and (3)  Article 21(4), first subparagraph  Article 21(4), second subparagraph  Article 21(4), third subparagraph  Article 22(1), first subparagraph  Article 22(1), second subparagraph   
Article 22(1), third subparagraph  
Article 22(1), fourth subparagraph  Article 22(1), fifth subparagraph  Article 22(1), sixth subparagraph, introductory 
wording  
Article 22(1), sixth subpara graph, points (a), (b) 
and (c)  
Article 22(1), seventh subparagraph  Article 22(2)  Article 22(3)  Article 22(4)  Article 22(5)  Article 22(6)  Article 23(1)  Article 23(2)  Article 23(3), first subparagraph  Article 23(3), second subparagraph, initial wording 
 
 Article 23(3), second subparagraph, points (a), (b) 
and (c) 
Article 23(4), first subparagraph Article 23(4), second subparagraph Article 23(4), third subparagraph Article 23(4), fourth subparagraph Article 23(5) Article 23(6), first subparagraph Article 23(6), second subparagraph 
Article 23(6), third subparagraph 
Article 23(6), fourth subparagraph Article 23(6), fifth subparagraph  
 
 G/SCM/N/1/EU/1 
 
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 Regulation (EC) No 2026/97 This Regulation  
Article 23(3), fourth subparagraph  
Article 23(4)  Article 24(1), first and second sentences  Article 24(1), third sentence  Article 24(2), first sentence  Article 24(2), second and third sentences  Article 24(3)  
Article 24(4), first and second sentences  
Article 24(4), third sentence  Article 24(4), fourth and fifth sentences  Article 24(5), first sentence  Article 24(5), second sentence  Article 24(5), third and fourth sentences  Article 24(6) and (7)  Article 25  Article 26  Article 27(1), (2) and (3)  Article 27(4), first sentence  Article 27(4), second sentence  Article 28  Article 29(1) to (5)  Article 29(6), first sentence  Article 29(6), second sentence  Article 30(1), (2) and (3)  Article 30(4), first, second and third sentences  Article 30(4), final sentence  Article 30(5)  Article 31  Article 32  Article 33  
Article 34  
—  Article 35  Annexes I to IV  —  —   Article 23(7)  
Article 23(8)  Article 24(1), first subparagraph  Article 24(1), second subparagraph  Article 24(2), first subparagraph  Article 24(2), second subparagraph  Article 24(3)  
Article 24(4) first subparagraph  
Article 24(4) second subparagraph  Article 24(4) third subparagraph  Article 24(5) first subparagraph  Article 24(5), second subparagraph  Article 24(5), third subparagraph  Article 24(6) and (7)  Article 25  Article 26  Article 27(1), (2) and (3)  Article 27(4), first subparagraph  Article 27(4), second subparagraph  Article 28  Article 29(1) to (5)  Article 29(6), first subparagraph  Article 29(6), second subparagraph  Article 30(1), (2) and (3)  Article 30(4), first subparagraph  Article 30(4), second subparagraph  Article 30(5)  Article 31  Article 32  Article 33  
—  
Article 34  Article 35  Annexes I to IV  Annex V  Annex VI   
 
 
__________