ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)424
Vol.1973/0070

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COMMISSION OFTHBEUROPEAN COMMUNITIES
COM(73)424 final
Brussels ,21March 1973
Amendments totheproposal foraRegulation
(EEC)oftheCouncil amending Council Regu­
lation (EEC)NO459/68^onprotection
against dumping orthe granting ofbounties
orsubsidies bycountries which arenot
members oftheEuropean Economic Community
(Submitted totheCouncil bytheCommission
pursuant tothesecond paragraph ofArticle
149oftheEECTreaty )
COF(73 )424final

Explanatory memorandum
On31May1972theCommissionproposed ,tothe.Councilanumberofamendments
1\_.-___../v r_-./ci()toCouncilRegulation(EEC)NO459/68of5AprilI968()onprotection
againstdumpingorthegrantingof"bountiesorsubsidiesbycountrieswhioh
arenotmembersoftheEEC.ThediscussionsintheCouncilontheseamendments
–themainout-linesofwhiohwereapprovedbythemajorityofthe
delegations–wereinterruptedinordertoawait,andthenassess,the
resultsofthelastmeetingoftheGATTAnti-dumping Committee.Inthe
interveningperiod,theCommissionandexpertsfromtheMemberStateswere
oftheopinionthat,inthelightofoertainrecentexperiences,the
Regulationshouldbeamendedfurther.inthreerespects.(^)
Thefirstconcernstheoperationofthe.AdvisoryCommitteesetupunder .
Articles12and13oftheRegulation.Underthosearticlesconsultation .
presupposesameetingoftheoompetentexperts,whilethisprocedurehas
provedsatisfactory inthemajorityofcases,therearecircumstances ,-
whenthequestionsinvolvedarenotsuchastorequire athorough
airinginopendiscussion,inwhiohitmaybeinappropriate tosummona
meetingofotherrelevantnationalspecialists ,whogenerallyhaveagreat
dealofotherimportantbusinesstoattendto.
TheCommissionaccordinglyproposesthatawrittenprocedurebeintroduced,
permittingsimplifiedandrapidconsultation andavoidingthecostand
inconvenience ofthenormalprocedure.Suchaprocedurewouldhoweverbe
limitedinscopeandwouldbeoptional:thusanyMemberStatewouldbe
entitled,ifit-BOdesired,tocallafullmeetingoftheCommittee.
Thesecondandthirdpointsrelateto"undertakings enteredintoby
expo:rters M(hereinaftercalled"understandings ")forthepurposeofending
hatc-fuldmpingpraotioes.Itshouldfirstbepointedoutthatsuchunder­
•••!»♦•
()DocumentC0M(72)620,~31May1972
(2)OJKoL93,17April1968
()Theproposedadditiontoarticle12providingthattheproceedingsof
theCommitteearetobetreatedasconfidential hasbeendiscarded,
sincesuchconfidentiality isimplioitinthenatureofthose
proceedings ,sothatanexpressprovisiontothiseffectcould
onlyraisedoubtsonthepoint.

standings have assumed ,agreat importance inCommunity practice .Thus inseven
outofeight proceedings completed bytheCommission todate under standings
were reached which dispensed with thenecessity ofintroducing stronger
protective measures .Taking account oftheimportance these understandings
have assumed ,itisessential that more detailed provisions "bedrawn upto
regulate them ,andthat they "begiven amore effective legal "basis .
Thefirst omission oftheRegulation concerns the case where theunderstanding
isrepudiated orviolated .Although itistrue that insuch acase afresh
complaint mayalways bemade pursuant toArticles 8and 9oftheRegulation ,
itisquite clear that starting alltheproceedings afresh would becumbersome
andwould cause further delays which might not suit theurgency ofthesituation .
Itwould therefore bedesirable togive theCommission ,which isresponsible for
ensuring theobservance ofunderstandings (which itdoes indirectly inparticular
through regular reports from exporters ),thepower tore-commence immediately
itsfresh examination ofthefacts ,after having informed theMember States
accordingly .This would place understandings onaparallel with antidumping duties
forwhich both collection andpenalty forinfringement areautomatic .Clearly ,
upon fresh examination ofthefacts ,theproceeding would follow itsnormal course ,
inparticular asregards thepublication ofthenotice ofproceedings inthe
Official Journal oftheEuropean Communities .
Asecond lacuna appears intheCommunity practice asregards theoperation of
understandings over along period .Itisinfact indispensable that provision be
made forthere-examination and ,where necessary ,adaptation ofunderstandings ,
upon consideration both oftheir effect and ofchanges which mayhave arisen in
theconditions attaching totheir application .Asaprocedure with alike aim is
already provided for tinder Article 18oftheRegulation asregards protective
measures this could ,byanalogy ,beextended tocover matters relevant tothe
operation ofunderstandings .
Forthese reasons ,theCommission proposes thefollowing additional amendments
totheRegulation cited above .

Amendmentsto"theproposalforaRegulation(EBC)ofthe
CouncilamendingCouncilRegulation(EEC)n°459/68on
protectionagainstdumpingorthegrantingofbountiesor
subsidiesbycountrieswhicharenotmembersofthe
EuropeanEconomioCommunity
Thefollowingreoitalsshouldbeaddedafterthelastrecitalofthe
originalproposal:
Whereasitisdesirablethatawrittenpr-ooedureforconsultation withinthe
Committeebeintroduced;
Whereasundertakings byexporterstoenddumpingpraticosharmfultoCommunity
productionhaveanimportantplaceinthepracticalapplication ofthe
Regulation ;whereasthereforeitisessentialthattheCommunitytake.
precautionsagainstthebreachorwithdrawalofsuchundertakings ."bystipulating
thattheCommission mayre-commence examination ofthefactsa3soonasithas
informedtheMemberStatesandthat,whilstsuchunderstandings areinforce,
itshouldbepossible,;afterconsideration 'oftheireffectoroftheconditions
attachingtotheirapplication,toreviewand,whereniecessary,amendor
terminatethem.
ThefollowingthreeArticlesshouldbeaddedafterArticle5oforiginal
proposal:
ArtTcle
Article12ofRegulation(EEC)N°459/68isamendedbytheadditionofthe
followingparagraph4:
11Wherenecessary,consultation maybeinwritingonly;insuchcasethe
CommissionshallnotifytheMemberStatesandshallspecifyaperiodwithin
whichtheyshallbeentitledtoexpresstheiropinionsortorequestanoral
consultation ,"

Article5b
Article14(2)oftheRegulation(SEC)n°459/68isamendedbytheaddition
ofthefollowingsub-paragraph :
"(d)WheretheCommissionfindsthattheundertakingofexportersisbeing
1evadedornolongerobservedorhasbeenwithdrawnandthat,asaresult,
protectivemeasuresmightbenecessary,itshallforthwithsoinform
theMemberStatesandshallre-commence theexamination ofthefacts
inaccordancewithArticle10."
ArticleSe
Article18ofRegulation(EEC)n°459/ySisamendedbytheadditionof
thefollowingparagraph3J
"(3)ThisArticleapplies,byanalogy,toundertakingsgivenby
exporterspursuanttoArticle14(2)