ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)564
Vol.1979/0196

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)544 final
■rucscis ,16th October 1979
PROPOSED COUNCIL REGULATION
AMENDING REGULATION (EEC )No459/68ONPROTECTION
AGAINST DUMPING ORTHE GRANTING OFBOUNTIES OR
SUBSIDIES BYCOUNTRIES WHICH ARE NOT MEMBERS OF
THE EUROPEAN ECONOMIC COMMUNITY
(presented bytheCommission totheCouncil )
tVnd :
'<>
v->• fV'. rv ■,■■■■3
««( 79)M4 final

PROPOSED
.COUNCILREGULATION -
ar.e-r-.dingRegulation (EEC)N°459/68ohprotection' agsinstdumpingortlie-
grantingofbountiesorsubsidies bycountrieswhicharenotmembersof
theEuropeanEconomicCommunity ■
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles113and213thereof, ■
HavingregardtotheproposalfromtheCommission,
L'JfK-redstheEuropeanEconomicCommunity hasadoptedcommonruleson.
protection againstdumpingorthegrantingofbountiesorsubsidies by
countrieswhicharenotmembersoftheCommunitywhicharecontainedin
(1)CouncilRegulation (EEC)N°459/68,aslastamendedbyRegulation (EEC)
(2)
ioS1/79;.,
.v.'.iffcasthesecommonruleswereadoptedinconformity with,theexisting
■',-irnaticnal obligations,inparticular withthoseresultingfrom
.:i.eVIof-theGATTandthefirstAgreement onImplementation of'
-f.oieVIoftheGATT(1967Anti-Dumping Code);-
.r.ereastheMultilateralTra'deNegotiations concludedin1979haveresulted
inewAgreement onImplementation ofArticleVIGATT(1979Anti-Dumping
:o-c)andinanAgreement onInterpretation' andApplication ofArticlesVI
aVIandXXIIIoftheGATTrelatingtosubsidies andcountervailing .
T.^ciSuTôS/. . 1
\
y ' . >.' ----
ivhjreasitisthereforeappropriate t<5,aligntheCommunity' §regulations
onthe1979'Agreements,inparticular ontheir1provisior.swithregardto
subsidies andpossiblecountermeasures,tothedetermination ofinjury,
especially thecriteriatobeappliedandthenewrulesoncausality and
regionalprotection,toundertakings aridtheirmonitoring,totheduration
or-provisional dutiesandtothepossibleretroactive application of
»anti-dumping anacountervailing duties;
OJN°L93,17.04.1968,p.1
(2)OJi\'°L196,02.08.1979,p.1

2-
Whereasitisdesirablethattherulesfordetermining normalvalueshould
bepresented moreclearlyandingreaterdetaiI;'whereasitshouldbespecifically
providedthatsalesonthedomesticmarketofthecountryoforiginorexportwhich
rerelatively smallinrelationtothequantities soldforexportdonotnecessarily
formaproperbasisfordetermining thedampingmargin;whereasthecoststobe
usedwhererecourseismadetoaconstructed normalvaluemustbethosearising
intheordinarycourseoftrade;whereastheestablished international practiceof
permitting transactions betweenrelatedpartiestobedisregarded asnotbeing
;intheordinarycourseoftradeshouldbeexpresslyreflectedintheCommunity's
regulations ; '.
Whereasimportedproductsaresometimesfirstresoldtoanindependent buyerin
the-Communityataloss;whereasitseemsreasonable insuchcasestoallowthe
reconstruction oftheexportpricefromthepriceatwhichsuchresaletakesplace,
providedthatcertainstrictlydefinedcriteriaaremet;
Whereasthe,exportpriceandthenormalvalueshouldnormallybecomparedatthe
sameleveloftrade;whereasrulesshouldconsequently beprovidedforadjusting -
thesewheretheyareatdifferentlevelsoftrade;.
Whereositseemsadvisabletolaydowninsomedetailthemannerinwhichthe
amoufttofanysubsidyistobedetermined;
•Wr.ereasitseemsappropriate tosetoutcertainfactorswhichmayberelevant
forthedetermination ofathreatofinjury;
,Whereas'itseemsappropriate tomakeitclearthatincaseofwithdrawal ofa
complaintproceedings m^ybutneednotnecessarily beterminated;
-Whereastheexperience acquiredintheapplication oftheCommunity'sregulations
demonstrates thatitisappropriate tosimplifyproceduresespecially those
relatingtotheintroduction ofcomplaints andtheirsubsequent examination,
tothe'initiationofproceedings,theconductofinvestigations andthedisclosure
ofinformation ;;

Whereasitisappropriate toprovideforopenandfairproceduresforthe
reviewofmeasurestaken;
Whereasitisopportunetotakeadvantageoftheaboveamendmentstoproceed
to.ageneralstreamlining andlinguisticsimplification oftheregulations,
HASADOPTEDTHISREGULATION :

-4-
" ''
~ Article 1
1.ThetitleofRegulation (EEC)No,459/68ischangedtothefollowing :
"Regulation (EEC)No459/68oftheCouncilof5April1968on.
protectionagainstclumpedorsubsidizedimportsfromcountriesnot
membersoftheEuropeanEconomicCommunity." -
2.Article1(1)ofthatRegulationisreplacedbythefollowing :
"Article1-Applicability ' Ts_
ThisRegulationlaysdownprovisionsforprotectionagainstdumped
orsubsidizedimportsfromcountriesnotmembersoftheEuropean
EconomicCommunity."

-5-
Article2
1.Article2ofRegulation (EEC)No459/68shallbearthetitleDumping.
Article2(1)ofthatRegulationshallbereplacedbythefollowing:
"Ananti-dumping dutymaybeappliedtoanydumpedproductwhose
introduction intoCommurtitycommercecausesinjury."
»
2.Article3(1)ofthatRegulation becomesArticle2(2).
/ ■ - .
3.Article3(2)ofthatRegulationbecomesArticle2(3),subjecttothe
~followingmodifications : '«
a)Subparagraph (a)(bb)isreplacedbythefollowing :
I
«
"(bb)whentherearenosalesofthelikeproductintheordinary
courseoftradeon'thedomesticmarketofthecountryoforigin
orexport,, orwhensuchsalesdonotpermitaproper
comparisonbecausetheyaretoosmallinrelationtothe
quantitiessoldforexport,orbecauseofotherparticular
marketsituations :/
i)thecomparablepriceofthelikeproductwhenexportedto
anythirdcountry,whichmaybethehighestsuchexportprice
butshouldbearepresentative price,or
ii)theconstructed value,i.e.,thecostsintheordinary
courseoftradeofmaterialsandmanufacture-including
overheads-inthecountryoforigin,plusareasonable
profitmargin;asageneralrule,andprovidedthataprofit
isnormallyrealizedonsalesofproductsofthesamegeneral
categoryonthedomesticmarketofthecountryoforigin,the
additionforprofitshallnotexceedsuchnormalprofit.In
othercases,theadditionshallbedetermined onanyreasonable
basis,usingavailableinformation." -

-6-
b)insubparagraph (b),fifthline,thewords"costofproduction".
arereplacedbythewords"costsofproduction,bothfixedand
variable/1; - -
c)Thefollowingnewtextbecomessubparagraph (e):
"e)Forthepurposeofdetermining normalvalue,transactions between
relatedpartiesmaybeconsideredasnotbeingintheordinary
courseoftradeunlesstheCommunityauthorities aresatisfied
thatthepricesandcostsinvolvedarecomparabletothose
involvedintransactions betweenunrelatedparties."
4.a)Article3(3)ofthatRegulationbecomesArticle2(4).(a)and(b)
b)Thefollowing newtextbecomesArticle2(4Hc):
"c)Theexportpricemayalsobeconstructed asintheprevious
paragraphwhenevertherearereasonablegroundsforbelievingor
suspectingthatthepriceatwhichanimportedproductisfirst
resoldtoanindependentbuyeris'lessthanitsexportpriceplus
alladditionalcosts-bothfixedandvariable ,–,dutiesand
•*/taxesincurredbetweenexportandresale,providedthatresales
•atsuchprices:
(aa)-havebeenmadeoveranextendedperiodoftimeandin
substantialquantities;and
(bb)arenotatpriceswhichpermitrecoveryofallcostswithin
areasonableperiodoftimeinthenormalcourseoftrade."
5.Article3(4)ofthatRegulationisreplacedbythefollowing,which
becomesArticle2(5):: " •*
"5.a)(For"thepurposesofafaircomparison,theexportpriceandthe
normalvalueshallbeonacomparablebasisasregardsphysical
characteristics oftheproduct,quantities,andconditionsand•

-7-
termsofsale.Theyshallnormallybecomparedatthesamelevel
oftrade,preferablyattheex-factorylevel,andasnearlyas
possibleatthesametime.
b)Iftheexportprice-andthenormalvaluearenotonacomparable
basisinrespectofthefactorsmentionedinthepreceding
subparagraph,dueallowanceshallbemadeineachcase,onits
merits,fordifferencesaffecting ,pricecomparability .Where
aninterestedpartyclaimssuchanallowance,itmustprovethat
itsclaimisjustified.Thefollowingguidelinesshallapply
indetermining theseallowances :
(aa)differences inphysicalcharacteristics oftheproduct:
allowanceforsuchdifferencesshallnormallybebasedon
theeffectonthemarketvalueinthecountryoforiginor
export;however,wheredomesticpricingdatainthat
countryarenotavailableordonotpermitafaircomparison,
thecalculation shallbebasedonthoseproductioncosts
accountingforsuchdifferences ;,
(bb)differences inquantities :allowancesshallbemadewhen
theamountofanypricedifferential iswhollyorpartlydue
toeither:
i)pricediscountsfbrquantitysaleswhichhavebeenmade
freelyavailableinthenormalcourseoftradeovera.
representative precedingperiodoftime,usuallynot
lessthansixmonths,andinrespectofasubstantial
proportion,usuallynotlessthan20%,ofthetotalsales
oftheproductunderconsideration madeonthedomestic
marketor,whereapplicable,onathird-country market;
deferreddiscountsmayberecognizediftheyarebased
onconsistentpracticeinpriorperiods,oronan
undertakingtocomplywiththeconditionsrequiredto
qualifyforthedeferreddiscount,or
ii)tosavingsinthecostofproducingdifferentquantities.

However,whentheexportpriceisbasedonquantities whichare
Lessthanthesmallestquantitysoldonthedomesticmarketor,
ifapplicable,tothirdcountries,thentheallowanceshall
bedeterminedinsuchamannerastoreflectthehigherprice .
forwhichthesmallerquantitywouLdbesoldonthedomestic ,
marketor,ifapplicable,onathird-country market;
(cc)differences inconditions andtermsofsale:allowancesshall
belimited,ingeneral,tothosedifferences whichbeara
directrelationship tothesalesunderconsideration and
.include,forexample,differencesindutiesandindirect
taxation,.creditterms,guarantees,warranties,technical
assistance,servicing,commissions orsalariespaidtosaLesmen,
packing,transport,insurance,handling,loadingandancillary
costs;allowancesgenerallywillnotbemadefordifferences
inoverheadsandgeneralexpenses,includingresearchand
development costs,oradvertising,unlesssuchcostsare
incurredonbehalfofapurchaser;theamountofthese
allowancesshallnormallybedetermined bythecostofsuch ,
differencestotheseller,thoughconsideration mayalsobe
giventotheireffectonthevalueoftheproduct;
(dd)differences intheleveloftrade:wheresalesatthesamelevel'
softradedonotexistorareinsufficient toberegardedas
representative ,theallowancetobemadeonsalesata"different
leveloftradeshallbebasedonthecostsdirectlyattributable
tothatdifference.
Cee)allocationofcosts:ingeneral,allcostcalculations shall,
bebasedonavailableaccountingdata,normallyallocated,,
wherenecessary,inproportiontotheturnoverforeachproduct
andmarketunderconsideration .
- • ^.
c)Noproductshallbeconsideredtohavebeendumpedbyreasonofthe
exemptionofsuchproductfromdutiesortaxesbornebytheLike
productwhendestinedforconsumption inthecountryoforiginor
export,orbyreasonoftherefundofsuchdutiesortaxes."

-9-
Article5ofthatRegulationisreplaced -bythefollowing,which
becomesArticle2(6): . '^
"6.ForthepurposeofthisRegulation,"likeproduct"meansaproduct
whichis.identical,i.e.,alikeinallrespectstotheproduct ,
underconsideration ,orintheabsenceofsuchaproduct,another
productwhichhascharacteristics closelyresemblingthoseofthe
productunderconsideration ."
Article3(5)ofthatRegulation becomesArticle2(7).

Article3
Article22ofRegulation (EEC)No459/68isreplacedbythefollowing,
whichbecomesArticle 3:
i ' •
Article 3-Subsidies
1.Acountervailing dutymaybeimposedforthepurposeofoffsetting any
subsidybestowed,directly ,orindirectly,inthecountryoforigin
orexport,uponthemanufacture,production,exportortransportof
anyproductwhoseintroduction intoCommunity commercecausesinjury.
2.Subsidiesbestowedonexportsinclude,butareriotlimitedto,the
practiceslistedinAnnexAtothisRegulation .
.. •I „
3.Theexemptionofaproductfromimportchargesorindirecttaxes,as
definedintheNotestoAnnexAtothisRegulation,effectively
bornebythelikeproductwhendestinedforconsumption inthecountry
.oforiginorexport,ortherefundofsuchchargesortaxes,shallnot
rbeconsidered asasubsidyfor'thepurposesofthisRegulation .
's. " . .
4.a)Theamountofthesubsidyshallbedetermined perunitofthe
-subsidizedproductexportedtotheCommunity.
:b)Inestablishing theamountofanysubsidythefollowingelements
shallbedeductedfromthetotalsubsidy: ,'
(aa)anyapplication fee,'deposit,orsimilarpaymentmadein.
. . »
ordertoqualifyfor,orreceivethebenefitof,thesubsidy,
<bb)exporttaxes,dutiesorotherchargesleviedontheexportof
vtheproducttotheCommunityspecifically intendedtooffset
thesubsidy.' " ,
Whereaninterestedpartyclaimssuchadeduction,itmustprove
thattheclaimisjustified.-' -

-11
c)wherethesubsidyisnotgrantedbyreferencetothequantities
manufactured ,produced,exportedortransported,theamountshall
bedetermined byallocatingthevalueofthesubsidyas
appropriate overthelevelofproductionorexportsoftheproduct
concernedduringasuitableperiod.Normallythisperiodshallbe
theaccountingyearofthebeneficiary.However,wherethe
subsidy -isusedtoacquireproductiveassetstheperiodshall
correspondtoareasonableperiodfordepreciation .
d.1Thevalueofsubsidizedloansorguaranteesshallgenerallybe
consideredasthedifferencebetweeninterestratespaidorpayable
bythebeneficiary andnormalcommercialrateseffectively
payableoncomparableloansorguarantees. ^
e)Inthecaseofimportsfromnon-market economycountriesandin
(1)particular *thosetowhichRegulations (EEC)Nos2532/78and
(2)925/79.apply,theamountofanysubsidymaybedetermined by
comparingtheexportpriceascalculatedinaccordancewith
Article2(4)withthenormalvalueasdeterminedinaccordance with
Article2(3)(c).
f)Wheretheamountofsubsidization varies,weightedaveragesmay
beestablished . -
(1)OJNoL306of31.10.1978,p.1
(2)OJNoL131of29.05.1979,p.1
!

-Article4
Article.4ofRegulation (EEC)No459/68isreplacedbythefollowing:
"Article4~Injury
1.Adetermination ofinjuryshallbemadeonlyifthedumpedor
subsidizedimportsare,throughtheeffectsofdumpingor
subsidization ,causinginjuryi.e.,causingor.threatening tocause
materialinjurytoanestablished Communityindustryormaterially
retardingtheestablishment ofsuchanindustry.Injuriescaused
byotherfactorswhich,individually orincombination,alsoadversely
affecttheCommunityindustrymustnotbeattributedtothedumped .
orsubsidizedimports. .-
2.Anexamination ofinjuryshallinvolvethefollowingfactors,noone
orseveralofwhichcannecessarilygivedecisiveguidance:
a)"volumeofdumpedorsubsidizedimports,inparticularwhetherthere
hasbeenasignificant increase,eitherinabsolutetermsor
relativetoproductionorconsumption intheCommunity;
b)thepricesofdumpedorsubsidizedimportsinparticularwhether'
therehasbeenasignificantpriceundercutting ascomparedwith
thepriceofalikeproductintheCommunity;'
c)theconsequentimpactontheindustryconcernedas,indicatedby
actualorpotentialtrendsintherelevanteconomicfactorssuchas:
--production .
-utilization ofcapacity
-stocks .~
-sales
-marketshare,, ■
-prices(i.e.,depressionofpricesorpreventionofpriceincreases
whichotherwise wouldhaveoccurred)

-13-
-profits ''
-returnoninvestment
-cashflow,
-employment.
3.Adetermination .ofthreatofinjurymayonlybemadewhereaparticular
situationislikelytodevelopintoactualinjury.Inthisregard
accountmaybetakenoffactorssuchas:
a)rate-ofincreaseofthedumpedorsubsidizedexportstothe
Community,. • .
\
b)capacityofthecountryoforiginorexporttogenerate ,further
suchexports,andthe.likelihoodthat§uchexportswillbetothe
Community,
c)thenatureofanysubsidyandthetradeeffectslikelytoarise
therefrom.
4.Theeffectofthedumpedorsubsidizedimportsshallbeassessedin
relationtotheCommunityproductionofthelikeproductwhen
availabledatapermititsseparateidentification .Whenthe
Communityproductionofthelikeproducthasnoseparateidentity,
^theeffectofthedumpedorsubsidizedimportsshallbeassessedin
'relationtotheproductionofthenarrowestgrouporrangeof
production whichincludesthelikeproductforwhichthenecessary
information canbefound.
5.Theterm"Communityindustry"shallbeinterpreted asreferringto
theCommunityproducersasawholeofthelikeproductortothose
.ofthemwhosecollectiveoutputoftheproductsconstitutes' amajor
proportionofthetotalCommunityproductionofthoseproducts
exceptthat:
-whenproducersarerelatedtotheexportersor.importersorare
themselvesimportersoftheallegedlydumpedorsubsidizedproduct
theterm"Communityindustry"maybeinterpreted asreferringto
therestoftheproducers:

inexceptional cireumstances theCommunitymay,fortheproduction
inquestion,bedividedintotwoormorecompetitive marketsand
theproducerswithineachmarketregardedasa.Communityindustry
a)theproducerswithinsuchmarketsellalloralmostalltheir
;productionoftheproductinquestioninthatmarketand
b)thedemandinthatmarket-isnottoanysubstantial degree
suppliedbyproducersoftheproductinquestionlocated
/elsewhereintheCommunity.
Insuchcircumstances injurymaybefoundtoexistevenwherea
majorportionofthetotalCommunityindustryisnotinjured
providedthereisaconcentration ofdumpedorsubsidizedimports
intosuchanisolatedmarketandprovidedfurtherthatthedumped
orsubsidizedimportsarecausinginjurytotheproducersofall.
oralmostalloftheproductionwithinsuchmarket.".

-15-
Article5
1.Article5ofRegulation (EEC)No459/68shallbearthetitle"Complaint".
2.Article6(1)ofthatRegulationisreplacedbythefollowing,which
becomesArticle5(1): ■ •
"1."Anynaturalorlegalperson,oranyassociationnothavinglegal
personality,actingonbehalfofaCommunityindustrywhich
considersitselfinjuredorthreatened bydumpedorsubsidized
importsmaylodgeawrittencomplaint."
3.Article7ofthatRegulationisreplacedbythefollowing,which
becomesArticle5(2):
' ..../
2.Thecomplaintshallcontainsufficientevidenceoftheexistence
ofdumpingorsubsidization andtheinjuryresultingtherefrom."
-4.Article6(2)ofthatRegulationisreplacedbythefollowing,which
becomesArticle5(3):
"3.ThecomplaintmaybesubmittedtotheCommission,oraMember
State,whichshallforwardittotheCommission.TheCommission
shallinformMemberStatesofcomplaintsitreceives."
5.ThefollowingnewtextbecomesArticle5(4): •
"4iThecomplaintmaybewithdrawn,inwhichcaseproceedings maybe
terminatedunlesssuchtermination wouldnotbeintheinterest
oftheCommunity."
6.Article9ofthatRegulationisreplacedbythefollowing,which
becomesArticle5(5):- '
"5.Whereitbecomesapparentafterconsultation asprovidedforin
Article6thatthecomplaintdoesnotprovidesufficientevidence
tojustifyinitiating aninvestigation ,thenthecomplainant
shallbesoinformed."

-16-•
Article8(2)ofthatRegulationbecomesArticle5(6).Thewords
"orsubsidization "areinsertedaftertheword"dumping".
/

-17-
ArticLe6 •
1.Article6ofRegulation (EEC)No459/68shallbearthetitle
"Consultations "..
2.Article12ofthatRegulation becomesArticle6C1)to6(4).
3.Article13ofthatRegulationisreplacedbythefollowing,which
becomesArticle6(5): '/'
"5.Consultation shallinparticularcover: •
a)theexistenceofdumpingorofasubsidyandthemarginor
amountthereof;v
b)theexistenceandextentofinjury;
I
c)thecausallinkbetweenthedumpedorsubsidizedimports
andinjury; _
d)themeasureswhich,inthecircumstances ,areappropriate to
preventorremedytheinjurycausedbydumpingorthesubsidy
andthewaysandmeansforputtingsuchmeasuresintoeffect."

-18-
Article7
'1.Article7ofRegulation (EEC)No459/68shallbearthetitle
"Initiation andsubsequent investigation "..
2.Thefirstthreeparagraphs ofArticle10ofthatRegulation are
replacedbythefollowing,whichbecomesArticle7(1)and7(2):
"1.Where,afterconsultations withintheCommittee,itisapparent
thatthereissufficient evidencetojustifyinitiating a,
proceeding theCommissionshallimmediately :
a)announcetheinitiation ofaproceeding intheOfficialJournal
oftheEuropeanCommunities ;suchannouncements shallindicate
theproductandcountriesconcerned,giveasummaryofthe
information received,andprovidethatallrelevant
information istobecommunicated totheCommission;itshall
statetheperiodwithinwhichinterestedpartiesmayapplyto
beheardbytheCommission inaccordance withtheprovisions
ofparagraph 5;
^ •1
b)soadvisetheexporters andimporters knowntotheCommission
tobeconcerned aswellasrepresentatives oftheexporting
countryandthecomplainants ; '
c)commencetheinvestigation atCommunitylevel,actingin
co-operation withtheMember .States;suchinvestigation shall
coverbothdumpingorsubsidization andinjuryresulting
.therefrom andshallbecarriedoutinaccordance withthe
provisions ofparagraphs 2to8.

-19-
2.a)TheCommissionshallseekallinformationitdeemstobe
necessaryand,whereitconsidersitappropriate,examineand
verifytherecordsofimporters,exporters,traders,agents,
producers,tradeassociations andorganizations .
b)However,whenitisnecessarytocarryoutinvestigations in
thirdcountries,theCommissionshallhear'theopinionsexpressed
withintheCommitteebeforeproceeding.Theinvestigations of
theCommission maybecarriedoutonlyifthefirmsconcerned
givetheirconsentandthegovernmentofthecountryin
questionhasbeenofficiallynotifiedandraisesnoobjection.
TheCommissionshallbeassistedbyofficialsofthoseMember
Stateswhosorequest."
Article10(5)(a)ofthatRegulationisreplacedbythefollowing,
whichbecomesArticle7(3)(a): •
\... '
"3.a)TheCommission mayrequestMemberStates:
-tosupplyinformation ;
" v .... -
-tocarryoutallnecessarychecksandinspections,particularly
•amongstimporters,tradersandCommunityproducers;
-tocarryoutinvestigations inthirdcountries,provided
thefirmsconcernedgivetheirconsentandthegovernment
ofthecountryinquestionhasbeenofficiallynotifiedand
raisesnoobjection."
Ν
Article10(5)(b),(c)and(d)ofthatRegulationbecomeArticle7(3)(b),,
(c)and(d).
Article10(4)ofthatRegulationbecomesArticle7(4),withthe'
followingmodifications :
a)Insubparagraph (a)thewords"anti-dumping "aredeleted.
b)Thefollowingisinsertedinsubparagraph (b)after
thewords"subjecttotheinvestigation ":

-20-
and,'inthecaseofsubsidization ,therepresentatives ofthe
V
countryoforiginorexport".
c)Insubparagraphs (a.)and(cHbb),thereference
toArticle11becomesareferencetoArticle8;
d)Subparagraph <c)<aa)iiii)isreplacedbythefollowing:
"iii)bereceived,incaseswhereaprovisional dutyhasbeen
applied,notlaterthantwoweeksafterpublication ofthe
impositionofthatduty."
e)Insubparagraph (c)(cc)thereferencetoArticle17becomesa
referencetoArticle12andtheword"normally"isinsertedafter
thefirsttwowordsofthatsubparagraph .
6.Article10(6)(a)and10(6)(b)ofthatRegulationbecomerespectively
Article7(5)and7(6).
• - *
»
7.Article10(7)ofthatRegulationisreplacedbythefollowing,which
becomesArticle7(7):
"7.a)TheprovisionsofthisarticleshallnotprecludetheCommunity
authorities fromreachingpreliminarydeterminations orfrom
applyingprovisional measuresexpeditiously .
b)Incasesinwhichanyinterestedpartyorthirdcountry
refusesaccessto,orotherwisedoesnotprovidenecessary
information withinareasonableperiodorsignificantly
impedestheinvestigation,preliminary orfinalfindings,
affirmativeornegative,maybemadeonthebasisofthefacts
Ψ
available.
8.Article .19(6)ofthatRegulationbecomesArticle7(8).Thewords"or
countervailing "areinsertedaftertheword"anti-dumping".

-21-
9.ThefollowingnewtextbecomesArticle7(9):
"9.Aproceedingisconcludedeitherbyitstermination orby
definitiveaction.Conclusionshouldnormallytakeplacewithin
oneyearofinitiationoftheproceeding."

-22-
Article8
\
1.Article8ofRegulation (EEC)No459/68shallbeartheturtle
"Confidentiality ".
2.Article11(1)and(2)ofthatRegulation becomerespectively
Article8(1)and8(2)(a).Thewords"orcountervailing "areinserted
aftertheword"anti-dumping ".
3.Thefollowing newtextbecomesArticle8(2)(b)and8(3)ofthat
Regulation :
"2.b)Eachrequestforconfidential treatmentshallindicatewhythe
information isconfidential .-TheCommission mayrequirethat
anon-confidential summaryoftheinformation,orastatement
ofthereasonswhytheinformation isnotsusceptible ofsuch
summary,beprovided.
3.Informationwillordinarilybe.consideredtobeconfidentialif
itsdisclosureislikelytohaveasignificantly adverseeffect
uponthesupplierorthesourceofsuchinformation." ;
4.Article11(3)ofthatRegulation becomesArticle8(4).
5.Article11(4)ofthatRegulationisreplacedbythefollowing,which
becomesArticle8(5):
"5.Theprovisions ofthisArticleshallnotprecludethedisclosure
ofgeneralinformation bytheCommunityauthorities andin
particular ofthereasonsonwhichdecisionstakeninpursuance
ofthisRegulation arebased.Suchdisclosure musttakeinto
accountthelegitimateinterestoftheinterestedpartiesthat
theircommercial secretsshouldnotbedivulged."

•a23-
Article9
1.Article9ofRegulation (EEC)No459/68shallbearthetitle
"Terminationofproceedingwhereprotectivemeasuresareunnecessary".
2.Article14(1)ofthatRegulationbecomesArticle9(1).Thewords
."fromconsultation asprovidedforin.Article.13"'arereplacedby
•thewords"afterconsultations withintheCommittee".Thewords_
;"standterminated"arereplacedbythewords"beterminated".
3.Article14(1)(b)ofthatRegulationisreplacedbythe'following,
whichbecomesArticle9(2):
"2.TheCommissionshallinformanyrepresentatives ofthecountry
oforiginorexportandthepartiesknowntohaveaninterest
andshallannouncethetermination intheOfficialJournalofthe
EuropeanCommunitiessettingforthitsbasicconclusions anda
summaryofthereasonstherefore."

-24-
Article10
Article14(2)(a)to(d)ofRegulation (EEC)No459/68isreplacedbythe
following,whichbecomesArticle10:
"Article10-Undertakings
1..Whereduringthecourseofaninvestigation undertakings areoffered
whichtheComnrission^afterconsultations withintheCommittee,
considersacceptable,anti-dumping /anti-subsidyproceedings maybe
terminated withouttheimposition ofprovisional ordefinitive duties.
Suchtermination shallbedecidedinconformity withtheprocedure ?
laiddowninArticle9(1)andinformation shallbegivenandnotice
publishedinaccordance withArticle9(2).Suchtermination doeshot
precludethedefinitive collectionofamountssecuredbywayof
provisional dutiespursuanttotheprovisionsofArticle12(2).
2.Theundertakings referredtoundertheprecedingparagrapharethose
underwhich:
a)thesubsidyiseliminated orlimited,orothermeasuresconcerning
>itsinjuriouseffectstakenAbythegovernmentofthecountryof
originorexport;or
•b)pricesarerevisedorexportsceasetotheextentthattheCommission
issatisfiedthateitherthemarginofdumpingortheamountofthe
■*subsidy/ortheinjuriouseffectsthereof,areeliminated.Incase
ofsubsidization theconsentofthecountryoforiginorexport
shallbeobtained.
3.Undertakings maybesuggested bytheCommission,butthefactthat
suchundertakings arenotofferedoraninvitationtodosoisnot
accepted,shallnotprejudicetheconsideration ofthecase.However,
thecontinuation ofdumpedorsubsidized importsmaybetakenas
evidencethatthesituationismorelikelytodevelopinto
injury. , ,

Iftheundertakings areaccepted,theinvestigation ofinjuryshall
nevertheless becompletediftheCommission,afterconsultations
withintheCommittee,sodecidesorifrequestismade,inthecaseof
dumping,byexportersrepresenting asignificantpercentageofthetrade
involvedor,inthecaseofsubsidization,bythecountryoforigin
orexport.Insuchacase,iftheCommission,afterconsultations
withintheCommittee/makesadetermination ofnoinjury,theunder­
takingshallautomatically lapse.However,whereadetermination of
nothreatofinjuryisduemainlytotheexistenceofanundertaking
theCommission mayrequirethattheundertaking bemaintained.
TheCommission may'requireanypartyfromwhomanundertaking hasbeen
acceptedtoprovideperiodically informationrelevanttothefulfill-
mentofsuchundertakings,andtopermitverification ofpertinent
data.Non-compliance withsuchrequirements shallbeconstruedas
aviolationoftheundertaking .
Whereanundertaking hasbeenwithdrawnorwheretheCommission has
reasontobelieveorsuspectthatithasbeenviolatedandthat
furtherinvestigation iswarranted,itshallforthwithinformthe
MemberStatesandreopentheproceeding.Furthermore,wherethe
Communityinterestscallforsuchintervention,itshallimmediately
applyprovisional measuresusingtheinformationavailable."

-26-
Article11
-1.Article11ofRegulation {EEC)No459/68shallbearthetitle
"Provisional duties".
2..Article15(1)(a)and(b)ofthatRegulationisreplacedbythe
following,whichbecomesArticle11(1)and11(2)(a):
"1.Wherepreliminary examination showsthatdumpingorasubsidy
existsandthatthereissufficient evidenceofinjurycaused
therebyandtheinterestsoftheCommunitycallforintervention
topreventinjurybeingcausedduringtheproceeding,the
Commission,actingattherequestofaMemberStateoronits
owninitiative,shallimposeaprovisional anti-dumping or
countervailing duty.Insuchcasesentryoftheproductsconcerned
forCommunityconsumption shallbeconditional upontheprovision
ofsecurityfortheamountoftheprovisional duty,definitive
•v
collectionofwhichshallbedetermined bythesubsequent
decisionoftheCouncilunderArticle12(2).
!
2.a)TheCommissionshalltakesuchprovisional actionafter
consultations withintheCommittee,or,incasesofextreme
.urgency,afterinformingtheMemberStates.Inthislatter
case>consultations shalltakeplacewithintheCommittee
tendaysatthelatestafternotification totheMemberStates
oftheactiontakenbytheCommission."
3.Article16(1)ofthatRegulationisreplacedbythefollowing,which :
becomesArticle11(2)(b):
"b)TheCouncil,actingbyaqualifiedmajority,waydecidedifferently."
4.Article15(1)(c)ofthatRegulation becomesArticle11(3).Thewords
"anti-dumping duty"arereplacedbythewords"anti-dumping or
countervailing duty".

-27-
5.ArtlcLe.15(2)(a)ofthatRegulationisreplacedbythefollowing,
whichbecomesArticle11(4):
"4.Provisionaldutiesshallhaveamaximumperiodofvalidityof
fourmonths.However,whereexportersrepresenting asignificant
percentageofthetradeinvolvedsorequestor,pursuanttoa
writtennoticeofintentionfromtheCommission,donotobject,
provisional anti-dumping dutiesmaybeextendedforafurther
periodoftwomonths."
6.Article16(2)ofthatRegulationisreplacedbythefollowing,which
becomesArticle11(5):
"5.Anyproposalforfinalaction,orforextensionofprovisional
measures,shallbesubmittedtotheCouncilbytheCommissionnot
laterthanonemonthbeforeexpiryoftheperiodofvalidityof
provisional duties."
7..Article15(2)(b)ofthatRegulationisreplacedbythefollowing,which
becomesArticle11(6):
"6.Afterexpirationoftheperiodofvalidity
thesecurityshallbereleasedaspromptly
extentthattheCouncilhasnotdecidedtoofprovisional duties,
aspossibletothe
collectitdefinitively

Article12
Article12ofRegulation (EEC)No459/68shallbearthetitle
"Definitive action".
Article17(1)ofthatRegulationisreplacedbytirefollowing,which
becomesArticle12(1):
"1.Wherethefactsasfinallyestablished showthatthereisdumping
orsubsidization ,andinjurycausedthereby,andtheinterestsof
theCommunitycallforCommunityintervention,adefinitive
anti-dumping orcountervailing dutyshallbeimposedbytheCounciL
actingbyqualifiedmajorityonaproposalsubmitted bythe
Commission afterconsultation withintheCommittee."
Article17(2)(a)ofthatRegulation becomesArticle12(2)(a).Thewords
'anti-dumping duty"arereplacedbythewords"anti-dumping or
countervailing duty".
Article17(2)(b)ofthatRegulationisreplacedbythefollowing,
whichbecomesArticle12(2)(b):
"2.b)Thedefinitive collection ofsuchamountshallnotbedecided
uponunlessthefactsasfinallyestablished showthatthere
hasbeendumpingorsubsidization ,andinjury.Forthis
purpose,"injury"shal Inotincludematerialretardation ofthe
establishment ofaCommunityindustry;northreatofmaterial
injury,exceptwhereitisfoundthatthiswould,intheabsence
ofprovisional measures,havedevelopedintomaterialinjury."-

-29-
Article13
1.Article13ofRegulation (EEC)No459/68shallbearthetitle
"Generalprovisions onduties".
2.Article19(1)ofthatRegulationbecomesArticle13(1).Thewords
"anti-dumpingduties"arereplacedbythewords"anti-dumping or*
countervailing duties".
3.Article20(1)and(2)ofthatRegulationisreplacedbythe
following,whichbecomesArticle13(2):
"2.Suchregulationsshallindicateinparticulartheamountand
typeofdutyimposed;theproductcovered;thecountryoforigin
orexport;thenameofthesupplier,ifpracticable;thereasons
onwhichtheyarebased."
4.Article19(3)and23ofthatRegulationarereplacedbythefollowing,
whichbecomesArticle13(3):
"3.Theamountofsuchdutiesshallnotexceedthemarginofdumping
provisionally estimatedorfinallyestablished ortheamountof
thesubsidyprovisionally estimatedorfinallyestablished;it
shouldbelessifsuchlesserdutywouldbeadequatetoremove
theinjury."
5.Articles19(2)(a)and(b)arereplacedbythefollowing,which
becomesArticle13(4): v-
"4.a)Anti-dumping andcountervailing dutiesshall.beneitherimposed
norincreasedwithretroactiveeffectandshallapplytothe
productswhich,afterentryintoforceofsuchduties>are
enteredforCommunityconsumption.Forthispurpose,thedate
ofacceptancebythecustomsauthorities <ifthedeclarant's
statementofhisintention ,toenterthegoodsforconsumption
shallbedeterminant .,

-30-
b;However,where:
Caa)fordumpedproducts,theCouncildeterminesthatthereis
ahistoryofdumpingwhichcausedinjuryorthatthe
importerwas,orshouldhavebeen,awarethattheexporter
practicesdumpingandthatsuchdumpingwouldcause
injury,andthattheinjuryiscausedbysporadicdumping
i.e.,massivedumpedimportsofaproductinarelatively
shortperiod,tosuchanextentthat,inordertopreclude
itrecurring,itappearsnecessarytoimposeananti-
dumpingdutyretroactively onthoseimportsor
(bb)forsubsidizedproductstheCouncildeterminesincritical
circumstances thatinjurywhichisdifficulttorepairis
causedbymassiveimportsinarelativelyshortperiodofa
productbenefitting fromexportsubsidiespaidorbestowed
inconsistently withtheprovisionsofthe6ATTandofthe
Agreementoninterpretation andapplication ofArticlesVI,.
XVIandXXIIIoftheGATTandwhereitisdeemednecessary *
*inordertoprecludetherecurrenceofsuchinjury,to
assesscountervailing dutiesretroactively onthese
importsor
Ccc)fordumpedorsubsidizedproducts,theCouncildetermines
thatanundertaking hasbeenviolated .
thedefinitiveanti-dumping orcountervailing dutiesmaybe
imposedonproductswhichwereenteredforCommunityconsumption
notmorethanninetydayspriortothedateofapplication of
provisionalduties,exceptthatinthecaseofviolationofan*
undertaking suchretroactive assessmentshallnotapplyto
importsenteredbeforetheviolation."

-31-
6.Article19(2)(c)ofthatRegulationisreplacedbythefollowing,which
becomesArticle13(5):
"5.WhereaproductisimportedintotheCommunityfrommorethanone
country,dutyshallbeleviedatanappropriate amountonanon-
discriminatory basisonallimportsofsuchproductfoundto
bedumpedorsubsidizedandcausinginjury,otherthanimports
fromthosesourcesinrespectofwhichundertakings havebeen
;accepted."
7.Article19(5)ofthatRegulationisreplacedbythefollowing,which
9becomesArticle13(6):
"6.WheretheCommunityindustryhasbeeninterpreted asreferringto
theproducersinacertainregion,theCommissionshallgive
exportersanopportunity toofferundertakings pursuantto
Article10inrespectoftheregionconcerned.Ifanadequate
undertakingisnotgivenpromptlyorisnotfulfilled,a
provisionalordefinitivedutymaybeimposedinrespectofthe
Communityasawhole."
8.Articles20(3)and21ofthatRegulationbecome,respectively,
Articles13(7)and13(8).Thewords"orcountervailing "areinserted
ineachcaseaftertheword"dumping".
9.Article24ofthatRegulationbecomesArticle13(9).Thewords
"bountyor"aredeleted. -

32-
\
î Article 14
0Articles18(1),14(2)(e)and18(2)ofRegulation (EEC)No459/68are
Ijireplacedbythefollowing,whichbecomesArticle14:
«il * –'
!!■■ '>.■'
Article14-Review'
>
j'1.Theregulationsimposingprovisionalordefinitiveanti-dumpingor
5 countervailing dutiesandthedecisionstoacceptundertakings shall
;! besubjecttoreviewwherewarranted.Suchreviewmaybeheldeither
j•attherequestofaMemberStateorontheinitiativeoftheCommission
j orifanyinterestedpartysorequestsandsubmitspositiveinformation
|'substantiating theneedforreview-Suchrequestsshallbeaddressed
i ■eithertoaMemberStateortotheCommission .AMemberState
receiving anysuchrequestshall"informtheCommission,whichshall
notifytheotherMemberStates.WheretheCommission receivesthe
request,itshallinformtheMemberStates.
2.Where,afterconsultations withintheCommittee*itbecomesapparent
thatreviewiswarranted,theproceedings shallbere-openedin
accordance withArticle7wherethecircumstances sorequire.Such.
re-openingshallnotperseaffectthemeasuresinoperation.
V : ..
3.Wherewarranted bythereview,carriedouteitherwithorwithout
re-openingoftheproceeding,themeasuresshallbeamended,repealed
orannulledbytheCommunityinstitution competent "fortheir
introduction .However,wheremeasureshavebeentakenunderthe
transitional provisions ofanActofAccessiontheCommissionshall
•itselfamend,repealorannulthemandshallreportthistothe:
Council;thelattermay,actingbyaqualifiedmajority,decidethat
differentactionbetaken."
/

ArticLe.15
1.Article15ofRegulation (EEC)No459/68shallbearthetitle"Refund".
2.Article19(4)(a)ofthatRegulationisreplacedbythefollowing,
whichbecomesArticle15(1):
"1.Whereanimportercanshowthatthedutycollectedexceedsthe
actualdumpingmarginortheamount'ofthesubsidy,consideration
beinggiventoanyapplication ofweightedaverages,theexcess
amountshallbereimbursed;uhereprovisional measuresweretaken,
thesameshallapplyinrespectofreleaseofsecurities."
3.Article19(4)(b)becomesArticle15(2).

-34-
Article16
Articles1(2)and1(3)arereplacedbythefollowing -whichbecomes
Article16:
"Article16-Finalprovisions
ThisRegulationshallnotprecludetheapplication of:
1.anyspecialruleslaiddowninagreements concluded betweenthe
/
-Community andthirdcountries;
t
2.theCommunityRegulations intheagricultural sectorandRegulations
Nos1059/69/EEC(1),2730/75/EECC2)and2783/75/EECC3);thepresent
RegulationshalloperatebywayofcomplementtothoseRegulations
andinderogation fromanyprovisions thereofwhichprecludethe
application ofanti-dumping orcountervailing duties.
3.specialmeasures,providedthatsuchactiondoesnotruncounter
toobligations undertheGATT.
(1)OJNoL141of12.06.69
(2)OJNoL281of01.11.75
(3)OJNoL282of01.11.75"

Article17
AnnexAtothisRegulationshallbecometheAnnextoRegulation
(EEC)No459/68.
Article18
Articles2(2),8(1),8(3)and25ofRegulation (EEC)No459/68are
deleted.
Article19
TheprovisionsofRegulation (EEC)No459/68asamendedbythepresent
RegulationarepublishedasAnnexBtothepresentRegulation.
Article20
ThisRegulationshallenterintoforceon1January1980.

ANNEX A
Illustrative List ofExoort Subsidies
' •'
a)Theprovision bygovernments ofdirect subsidies toa
firm oranindustry contingent upon export' performance .
b)Currency retention schemes oranysimilar practices
which involve abonus onexports .
» ..
c)Internal tratsport and -freight charges onexport ;
shipments ,prov' dedormandated bygovernments ,on t
terms more favourable than fordomestic shipments . .
!- I
d)Thedelivery bygovernments ortheir agencies of
I -• ;
imported ordomestic products orservices foruse in ?
theproduction ofexported goods ,onterms orconditions'
more favourable than fordelivery oflike ordirectly j
competitive products orservices foruse .onthepro- J
duction ofgoods fordomestic consumption ,if(inthe
case ofproducts )such terms orconditions aremore
favourable than .those commercially available onworld i
i
markets totheil *exporters .
1
e)Thefull orMartial exemption ,remission ,ordeferral |
specifically re'lated toexports ,ofdirect taxes or
social welfare charges paid orpayable byindustrial i
«
orcommercial enterprises .Notwithstanding thefore- '
<
going ,deferral oftaxes and charges referred toabove
need notamount toanexport subsidy where ,forexample ,;
appropriate interest charges are collected .

f>Theallowanceofspecialdeductionsdirectlyrelated
toexportsorexport-performance,overandabovethose
grantedinrespecttoproductionfordomesticconsumption
• «
inthecalculationofthebaseonwhichdirecttaxes
arecharged.
g)Theexemptionorremissioninrespectofthe
productionanddistributionofexportedproducts,of
indirecttaxesinexcessofthoseleviedinrespect
oftheproductionanddistribution oflikeproductswhen
soldfordomesticconsumption.Theproblemofthe
excessiveremissionofvalueaddedtaxisexclusively
coveredbythisparagraph.
h)Theexemption,remissionordeferralofpriorstage
cumulativeindirecttaxesongoodsorservicesusedin
theproductionofexportedproductsinexcessofthe
exemption,remissionordeferraloflikepriorstage-
cumulativeindirecttaxesongoodsorservicesusedin
theproductionoflikeproductswhensoldfordomestic
consumption;provided,however,thatpriorstage
cumulativeindirecttaxesmaybeexempted,remittedor
deferredonexportedproductsevenwhennotexempted,
remittedordeferredonlikeproductswhensoldfor
domesticconsumption,ifthepriorstagecumulative
indirecttaxesareleviedongoodsthatarephysically
incorporated (makingnormalallowanceforwaste)inthe
exportedproduct.Thisparagraphdoesnotapplyto
valueaddedtaxsystemsandbordertaxadjustmentsin
lieuthereof.
i)Theremissionordrawbackofimportchargesinexcess
ofthoseleviedonimportedgoodsthatarephysically
incorporated (makingnormalallowanceforwaste)in
theexportedproduct;provided,however,thatinparti"
cularcasesafirmmayuseaquantityofhomemarket
goodsequalto,andhavingthesamequalityand
characteristics as,theimportedgoodsasasubstitute
fortheminordertobenefitfromthisprovisionifthe
importandthecorresponding exportoperationsboth
occurwithinareasonabletimeperiod,normallynotto
exceed-two_years.

j)Theprovisionbygovernments (orspedialinstitutions
controlled bygovernments)ofexportcreditguaranteeor
insuranceprogrammes,£>finsuranceorguarantee
programmesagainstincreasesinthecostsofexported
productsorofexchangeriskprogrammes/atpremium
rates,whicharemanifestlyinadequatetocoverthe
long-termoperatingcostsandlossesoftheprogrammes.
k)Thegrantbygovernments (orspecialinstitutions
Controlled byand/ofacllnyuhdeftheauthoHtyOf
governments )ofexportcreditsatratesbelowthose
whichtheyactuallyhavetopayforthefundssoemployed
(orwouldha^i?topayiftheyborrowedoninternational
capitalmarketsinordertoobtainfundsofthesame
maturityanddenominated inthesamecurrencyasthe
export .credit),orthepaymentbythemofall,orpart
ofthecostsincurredbyexportersorfinancialinsti­
tutionsinoltainingcredits,insofarastheyareused
tosecure,aMaterialadvantageinthefieldofexport
creditterms*
•«•f
Provided,however,thatifthecountryoforigin-or
exportisapartytoaninternational undertaking on
• ιofficialexportcreditstowhichatleasttwelve
originalsignatoriestotheAgreementoninterpretation
andapplication ofArticlesVI,XVIandXXIIIofthe
GATTarepar'iiesasof1January1979(orasuccessor
undertaking whichhasbeenadoptedbythoseoriginal
signatories )*orifinpracticethecountryoforigin
orexportap.Uiestheinterestrateprovisionsofthe
relevantundertaking,anexportcreditpracticewhich
isinconformitywiththoseprovisionsshallnotbe
considered anexportsubsidy.
I)Anyotherchargeonthepublicaccountconstituting
anexport-subsidyinthesenseofArticleXVIofthe
GATT.

NOTES . :
»
ForthepurposesofthisAnnexthefollowingdefinitions
apply: - *
1.Theterm"directtaxes"shallmeantaxesonwages,.
profits,interest,rents,royalties,andallotherforms
ofincome,andtaxes-ontheownershipofrealproperty.
2.Theterm"importcharges"shallmeantariffs,duties,
andotherfiscalchargesnotelsewhereenumeratedin
thisparagraphthatareleviedonimports.
ι
3.Theterm"indirecttaxes"shallmeansales,excise,
turnover,valueadded,franchise,stamp,transfer,
inventoryandequipmenttaxes,bordertaxesandall
taxesotherthandirecttaxesandimportcharges.
U."Prior-stage"indirecttaxesarethoseLeviedongoods
•orservicesuseddirectlyorindirectlyinmakingthe
! .'product.
5."Cumulative"indirecttaxesaremulti-stagedtaxes
•leviedwherethereisnomechanismforsubsequent
,creditingofthetaxifthegoodsorservicessubjectto
'taxatonestageofproductionareusedinasucceeding
!stageofproduction.
i
1 1 - . .-
6."Remission"oftaxesincludestherefundofrebate
oftaxes.