CELEX: 51993PC0541
Language: en
Date: 1993-11-04
Title: Proposal for a COUNCIL REGULATION (EEC) on the introduction of time limits for investigations carried out under the Community instruments of commercial defence and modification of the relevant Council Regulations

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              C0M(93) 541 f mal
                                              Brussels, 4 November 1993
§«-..
                                   Proposal for a
                             COUNCIL REGULATION (EEC)
         on the Introduction of time limits for Investigations carried out
               under the Community Instruments of commercial defence
                                         and
                 modification of the relevant Council Regulations
                           (presented by the Commission)
 ---pagebreak---                            EXPLANATORY MEMORANDUM
1.  INTRODUCTION
    The effectiveness of the Community's instruments of commercial
    defence has been a major preoccupation in the Community for some
    time, particularly In view of the liberalization of trade due to
    the creation of the single market and the further push in this
    direction from the Uruguay Round. In June 1992, the Commission
    addressed part of this problem in its proposal on decision-making
    procedures*1) which is still before the Council.       There is,
    however, another aspect of the overall problem which remains to be
    addressed, i.e. the excessive duration of anti-dumping and anti-
    subsidy investigations which has provoked criticisms from the
    European Parliament, Member States, Community industries, importers
    and exporters, which have all condemned the length of these
    Community investigations.     Excessive time delays cause uncertainty
    in the market place, reduce the chances that measures, once taken,
    have the desired effect, and contribute to the creation of a lack
    of confidence in the effectiveness of Community commercial policy.
    Thus, to maintain the credibility of this aspect of commercial
    defence It is necessary to propose corrective action to improve
    efficiency.  For the same reasons, it is also appropriate to
    propose the same corrective action to improve efficiency of
    safeguard action* 2 ).
    In addition to the above-mentioned proposal on decision-making
    there is another proposal to modify Council Regulation (EEC) No
    288/82 which Is also before the Council* 3 ).   It should be noted
    that nothing in the existing proposal conflicts with those already
(1) Commission proposal of 30.6.92, SEC(92) 1097 FINAL
(2) Council   Reg.(EEC)    No  288/82  of  5.2.82, OJ   No  L35  of  9.2.82
(3) Commission    proposal      of     18.9.93,   C0M(92),     374    FINAL
                                                                            /ItL
 ---pagebreak---     before the Council.     It should be underlined that the latter are
    maintained and that the Commission considers their adoption as
    essential for an effective commercial defence.      The present
    proposal has been drafted In such a manner that it is compatible
    with the existing legislation and complements the proposals already
    before the Council on decision-making.      The common purpose of all
    these proposals is to improve the credibility of the Community's
    trade policy.
2.  THE PRESENT SITUATION - ANTI-DUMPING AND ANTI-SUBSIDY
    At present, investigations frequently take up to 18 months in the
    Community between the initiation and the provisional determination,
    which is nearly twice the time taken by, for example, the United
    States.   Annex A sets out the actual time limits in force in the
    United States and, by way of comparison, it also outlines the
    proposed time limits for the EC and the time taken at present to
    complete these cases.
    The short duration in the     United States is due to several reasons.
    First, the scope of their investigations is more limited in that
    they neither apply a public interest test nor a "lesser duty rule",
    i.e. they automatically apply the full margin of dumping as a duty
    rather than investigating whether a lower amount would suffice.
    Furthermore, they have a simple decision-making process and they
    operate in one language, a situation which is also true for Canada
    and Austral la.
    However, the main reason for the short duration is that these
    countries operate mandatory legal time limits*4) which they      are
    able   to apply because they have allocated sufficient resources to
    the problem.    In this respect, the United States,    employs
    approximately 5 times the number of staff for roughly the same
    number   of investigations as the EC and Canada 3 times the number
    of staff for one third the number of investigations in the EC.
    Moreover, they employ staff     specifically qualified for this work
    which requires auditing or accounting experience if it is to be
    carried out effectively.
(4) approximately 25 days to accept or reject a complaint and 6 months
    on average from initiation to provisional determination.
 ---pagebreak---   3.  THE PROPOSED SOLUTION AND PRECONDITIONS
  a)  Solution for Anti-dumping and Anti-subsidy
      Certain of the differences between the EC and US systems outlined
      above will, of course, always remain.    Therefore, the most feasible
      solution is the introduction of mandatory time limits based on the
      practice of our major trading partners but adapted to the
\     peculiarities of the EC.    Thus, the appropriate time limits for
      the EC would be :
      -   a maximum 1 month from receipt of complaint to initiation or
          rejection of complaint;
      -   a maximum 9 months between initiation of investigation and
          provisional measures***).
          a maximum 15 months between initiation of investigation and
          definitive conclusion.
  b)  Solution for Safeguard Action
      As far as safeguard measures under Regulation No 288/82 and other
      similar instruments are concerned, the limited number of
      investigations carried out by the Commission has not given rise, so
      far, to a problem of the same magnitude as that concerning anti-
      dumping or anti-subsidy   actions.   Nevertheless, delays   have
      occurred in certain cases.    It would appear appropriate, therefore,
      to introduce the same changes for safeguard action as is proposed
      for anti-dumping and anti-subsidy investigations.
  (5) The Commission understands the wish of European      industry to have
      shorter time limits than those indicated in the present proposal.
      The Commission  is prepared to propose to reduce these time limits
      further provided   it is assured of having the means to carry out
      reduced  delays.  The Commission    will  undertake a review of   the
      duration of these time limits within 2 years after their entry into
      force with a view to reducing them further.
 ---pagebreak---     In addition, in order to Introduce a more democratic and
   transparent system, it appears necessary to confer on Community
    industries the right to lodge complaints for safeguard measures in
   the same manner as for antI-dumping and anti-subsidy cases.
c) Preconditions
   For the imposition of time limits it is Imperative that strict,
   sufficiently short and legally binding deadlines be set for the
   Community Institutions concerned and the other participants in such
   procedures i.e. for the Community industry, exporters, importers,
   users and consumer organizations.     The same must apply for written
   or oral consultations of Member States.    The imposition of such
   deadlines will only be realistic if:
   -     Investigations of dumping and Injury/Community interest would
        have to be carried out separately and In parallel.   This would
        also increase the transparency and objectivity of these
         Investigations, as well as Improve the quality of the work
        carried out in these investigations which, as is well known, is
        under strict scrutiny by GATT panels and the European Court.
   -    Clarifications are made to existing provisions.   A more
        systematic use of sampling would have to be made where there
        are a large number of parties involved in the investigation.
        Moreover, the consequences of non-cooperation by interested
        parties have to be clarified.
   -    Staffing Is Increased.   In this respect, it has to be borne in
        mind that the changes envisaged will lead to a considerably
        increased workload for a staff which is already stretched to
        breaking point.   Moreover, adequate staff levels are essential
        to implement the reform given the implications of failing to
        meet the time limits where the legal right to continue the
        investigations would fail and the institutions would be exposed
        to serious legal consequences under Article 215 of The Treaty.
 ---pagebreak---         Indeed, since the quantity of work will not diminish but
        increase following Uruguay and liberalization vis-à-vis PECOs
        and the CIS* 6 ), then it is clear that more personnel is needed
        if the same work has to be done in a shorter period of time.
        The additional staff required to implement time limits and the
        other changes outlined has been calculated in relation to the
        number of investigating staff needed.       The methodology used to
        calculate this figure is set out in ANNEX B which shows a
        requirement for 146 investigators, an increase which naturally
        generates an increased hierarchy, policy and supporting staff
        requirement.     The total existing staff and the additional staff
        required to implement changes are set out in ANNEX C.        The
        calculations are based on the average of 56 new investigations
        per year* 7 ).   The staff required to carry out a deadlines
        based system, involving a 50% reduction in the duration of
         investigations for these new cases, means that more work has to
        be done in a shorter time, and thus extra staff is required.
        This requirement to carry out work in a shorter time is
        continuous, as is the influx of new cases.        The consequence of
        the new system will be a gradual reduction in the number of
        cases in progress at any given time but, given the deadlines,
        an increased workload at any point in time.        Therefore, the
         result will not lead to unused resources but will stop the
         tendency towards ever-increasing periods of time necessary for
         completion of cases.     Finally, in this respect, it should be
         understood that no margin of security has been incorporated
         into the staffing figures for increases in case numbers, which
         will certainly happen due to the liberalization of the internal
         market and the further push in this direction resulting from
         the Uruguay Round and the PECOS/CIS negotiations.
(6) For example the elimination of quantitative restrictions, granting
    of market economy status, etc.
(7) This    figure    should   not   be   confused    with   the   number  of
    investigations in progress at any given time - SEE ANNEX D WHICH
    SETS OUT THE NUMBER OF NEW CASES        INITIATED AND   INVESTIGATIONS IN
    PROGRESS FOR THE PERIOD 1981 - 1992.
 ---pagebreak--- Member States play their role in, firstly, explaining to
 interested parties how Community legislation operates and,
secondly, in ensuring a more effective enforcement of measures
once they are imposed.
The extra staff required for this purpose is treated as being
additional to other requirements of the Commission.
The figures set out in Annex C Include provision for the
transformation of 23 national expert posts into permanent
posts.   This is necessary because of the time required for
training and the short duration of contracts which has made
national expert staffing particularly unsuited to working under
a deadlines-based approach.
Annex C also specifies that there will be a requirement for an
additional translator in each language given that translations
will have to be made under tight deadlines.
The recruitment of the necessary staff takes place In tandem
with the implementation of time limits.   In this respect, the
calendar for recruitment, the method of recruitment, the
budgetary implications and the timing of the introduction of
time limits and other changes are addressed in paragraph 4
below.
The budgets for training and computerization, as well as
missions, are   increased.  The need for increased spending on
training and computerization is self-evident.   With regard to
missions, the split of dumping and injury investigations would
result in more missions which would have to be compressed
within legally binding time limits.
 ---pagebreak---     Finally, this occasion should be used to give users and consumers a
    greater input into the whole process.     They have been pressing for
    years to obtain interested party status in these investigations, a
    demand which was even pursued, unsuccessfully, before the European
    Court of Justice.    The Commission should now accommodate them in
    order to increase the transparency in this important area of trade
     poIi cy.
4
  -  Timetable for Action
     a)  Calendar for recruitment of additional staff
         Assuming the Council approves the Commission's proposal on the
          implementation of deadlines by the end of 1993, it should be
         borne in mind that it will take some time to put the necessary
          administrative structure into place, and that it is imperative
          that the implementation of time limits and the recruitment of
          staff be accomplished in tandem.   In this respect, it has to be
          borne in mind that the Edinburgh Summit imposed strict
          budgetary ceilings until 1995 and, consequently, a realistic
          timetable for supplying the necessary statutory staff would be
          10 posts in 1994, 59 in 1995 and the remaining 59 in 1996* 8 ).
     b)   External Recruitment of qualified personnel
          Apart from legal and economic specialists who are available in
          house or as a result of general open competitions, this type of
          work requires staff with auditing or accounting experience.
          Accountants or auditors, in the numbers required, are Just not
          available from within the Commission and, therefore,
          redeployment cannot work.  Thus, special external competitions
          may have to be organised, early in 1994, to recruit the
          suitably qualified personnel.
 (8) For non-statutory staff, the figures are 14 in 1995 and 6 in 1996,
 ---pagebreak--- c) Implementation of time limits
   Given the above timetable on staff recruitment, the most
   realistic date for entry into effect of time limits with
   respect to new cases (as opposed to pending cases or reviews)
   would be 1.4.1995.
   It can be expected that all cases, including reviews, would be
   subject to the "new system from 1.7.1996, when the full
   administrative structure will be In place.
d) The budgetary implications of the above are set out in the
   attached "fiche financière".
 ---pagebreak---     5. CONCLUSION
       To achieve the above and in order to meet the preoccupations
       frequently expressed by the European Parliament, Member States and
       the Community industry, the Commission herewith submits   to the
       Counc iI :
>
  *
       -   a proposal to amend the Community's basic anti-dumping and
           anti-subsidy and safeguard   legislation.
       This proposal is principally aimed at:
           a)    incorporating time limits,
           b)   providing a basis for sampling where there are a large
                number of parties involved and clarifying the provisions
                with regard to interested parties and the treatment of non
                or partial cooperators; and
           c)   permitting the imposition of provisional measures for a
                full 6 months rather than the current situation where they
                are first imposed for 4 months and then, if necessary,
                extended for a further two months by the Council; and
           d)   conferring on Community industries the right to lodge
                safeguard complaints.
 ---pagebreak---                                 10
The above proposai is   made, of course, on the assumption that the
necessary financial resources are provided by the Council for the
budgetary years 1995 and 1996.   In effect, the credibility of the
Community vis-à-vis its own industries and third countries is
involved in this policy.   Therefore, every effort must be made to
achieve the above objectives, including the question of additional
resources.   If these are not forthcoming, the Commission would have
to reconsider its position.
 ---pagebreak---                                                     ANNEX A
                                                     (Explan. Memo)
                        ANTI-DUMPING - US TIME LIMITS
Adequacy of complaint                     20 days after it is lodged
Prel. injury finding                      45 days after it is lodged
Pre I. dumping finding                   160 days after it is lodged
                                              (210 in complex cases)
Final dumping finding                     75 days after prel. dump, finding
                                              (135 in complex cases)
Final injury finding                      45 days after final dump, finding
investigations may be finished in a period ranging from a minimum of 280
days for simple cases or a maximum of 390 days in complex cases.
                         PROPOSED TIME LIMITS FOR EC
Adequacy of complaint                     1 month
Prel. dumping and injury finding          9 months
Final dumping and injury finding         15 months
                       THE TIME TAKEN AT PRESENT IN EC
Adequacy of complaint                     2- 3 months
Prel. dumping and injury finding         15-18 months
Final dumping and injury finding         21-24 months
                                                                            /M
 ---pagebreak---                                                                ANNEX B
                      Ant I-dumping and ant I-subsidy -
                   Calculation of number of Investigators
DUMP ING
        investigators would work in teams of two and would not be
        involved in more than two cases at the same time;
       56 cases are on-going at any one time, 13 of which are
       complicated, 25 of which are normal and 18 of which are simple-,
       two teams of two officials would work on each complicated case,
       though the second team would also have to do a simple case at the
       same time, i.e accounting for 26 cases and 26 teams or 52
        investigators;
       for the remaining 30 cases (5 simple and 25 normal), 1 team of
       two would work on 2 cases at the same time, i.e 15 teams of 2
        investigators or 30 investigators;
       the above would give a total requirement of 82 Investigators.
INJURY
       investigators would work in teams of two and would not be
       involved in more than two cases at the same time;
       48 cases are on-going at any one time, 8 of which are
       complicated, 27 which are normal and 13 of which are simple;
       two teams of two officials would work on each complicated case,
       though the second team would also have to do a simple case at the
       same time, i.e accounting for 16 cases and 16 teams or 32
       investigators.
       for the remaining 32 cases, 1 team of two would work on 2 cases
       at the same time, i.e 16 teams of 2 investigators or 32
       investigators;
       the above would give a total requirement of 64 investigators.
                                                                         41
 ---pagebreak---                                                 ANNEX C
                                                (Explan. Memo.)
     The Existing and Additional Staff Required to Implement Changes
       DG1                         Existing    Additional
1.     A Grade (stat)               32           57
2.     B Grade (stat)               22           42
3.     C Grade (stat)               18           20
       Sub-Total                    72          109 (new posts of which 55
                                                        in 1995, and 54 in
                                                       1996)
4.     A Grade (stat. temp)         13           10*D
5.     National Experts and
       replacements                 23* 2 )       23* 3 )
6.     C Grade (non-stat)           11            17*4)
Translation Service
7.     LA Grade (stat)                             9 (new posts)
8.     C Grade (non-stat)                           3*4)
 (1) To be supplied from existing resources.
 (2) These are national experts to be replaced by permanent staff.
 (3) These  are  statutory  replacements    for    national    experts  achieved
     through a transfer of employment credits.
 (4) These  are non-statutory   staff  which     will     require  supplementary
     credits.
                                                                                 Ji
 ---pagebreak---                                                                                                                           ANNEX 0
                                                                                                                       (EXPLAN/MEM)
                                ANTI-OUPINO ANO ANTI-SUBSIDY INVESTIGATIONS OURINQ THE PERICO 1981 -  1992
                                                                                                  l        1      1      1
                              1981    1982    1983    1984    1985    1986   1987    1988    1989    1990  I 1991 I 1992
Investigations In progress ot
the beginning of the period    29      46      53      33      40             21      39      53      60      59    46
Investigations Inltloted
during the period              46      58      38      49      36      24     39      40      27      43      20    39
Investigations In progress
during the period              77     104              82      76      68     60      79      80     103      79    85
Investigations concluded by :
- Imposition of definitive
  duty                         10              20                                     18      10       18     19    16
- occeptonce of price
  undertaking                   7      35      27      27       4      25                                       3
- determination of no dimplng   7       3                6      2       4                                       1
- determination of no
   subsldlsatIon                                                 1
- determination of no Injury                                   15                                      13
- other  reasons                                                2                                       5
Total Investigations
concluded during the period    31      51      58      42      32      47     21      26      20      45      33    28
Investigations In progress
at the end of the period       46      53      33      40      44      21     39      53      60      58      46    57
Provltlonol duties  Imposed
during the period                      18      22       11                            28      10      23       19   18
                                                            J       L
 ---pagebreak---                                                                                                                   ANNEX D
                                 REVIEWS Of ANTI-OUPINO AND ANT I-SUBSIDY INVESTIGATIONS DURING 1981 - 1992      (EXPLAN .MEM)
                                     1       1       1       1       1       1      1        1
                               1981    1982 I 1983     1984    1985    1986    1987 I 1988 I 1989     1990  1991   1992
   Reviews In progress ot the
   beginning of the period              16      24               2      20      27      11     20      15    21     21
   Reviews opened during the
   period                               24      10              30      24       8     24      17      26    16     27
   Reviews In progress during
    the period                  18      40      34              32      44      35     35      37      41    37     48
   Reviews concluded by :
   - ImpoaltIon of de/InltIve
      duty In I leu of price
      undertaking
   - omendment of definitive
      duty                                      11                                                                  11
   - suspension of definitive
      duty
   - occeptonce of price
      undertoklng In I leu of
      defInltlve duty
   - amendment of price
      undertoklng                       13
   - repeal or explry of
      defInltlve duty
   - repeol or expiry of price
      undertoklng
   - repeal of regional duty
   - no change of the measures
      In force
   Total reviews terminated
   during the period                    16      32              12      17      24     15      22      20    15
   Reviews In progress at the
   end of the period            16      24                      20      27      11     20      15      21    22     30
   Provisional duties Imposed
   during the reviews                   13
                                     J       l                              J       L
y>
 ---pagebreak---                                  PROPOSAL FOR
                         Council Regulation (EEC) No
On the introduction of time limits for investigations carried out under
the Community   instruments of commercial defence and modification of the
relevant Council Regulations
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having   regard   to   the   Treaty  establishing   the  European   Economic
Community, and in particular Article 113 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas   the   common   commercial   policy   must  be  based   on  uniform
principles, notably with regard to commercial defence,
Whereas instruments of commercial defence, in particular       in respect of
unfair  trade   practices, are    an  indispensable complement   to an open
market  and  fair  trading   system,  thus contributing  to the harmonious
development of world trade,
                                                                             /(
 ---pagebreak--- Whereas,  to  this end,  the  following  two Community  instruments     were
established, inter alia:
    Council  regulation   (EEC)  No   2423/88  of  11  July   1988 1 ),   on
    protection against dumped or subsidised   imports from countries not
    members of the European Economic Community,
    Council Regulation (EEC) No 288/82 of 5 February 1982 2 ), on common
    rules for imports (as last amended^))
1) OJ No L 209, 2.8.1988, p.1
2)  OJ No L 35, 9.2.1982, p.1
3)  OJ No L 284, 12.10.1991, p.1
                                                                             '"?
 ---pagebreak---                                       - 3
 Whereas the completion of the single market in 1992 makes it appropriate
 to improve the functioning of these instruments of commercial datcncï,
 in particular     in respect of the length of the Investigations carried
 out under these Instruments,
Whereas    it is, therefore, appropriate and necessary to introduce time
 Hmits for procedures carried out under the above-mentioned Regulations,
Whereas for complaints lodged against dumped or subsidized imports ii is
necessary to set time limits for the initiation of investigations and
for   the   provisional   and  final   determinations;    whereas   it  is  also
appropriate to ensure that final decisions, either positive or negative,
are taken quickly to ensure compliance        with international obligations,
Whereas in order that the time limits can be respected, it is essential
to provide     for  sampling where   there are    a  large number    of  parties
 involved in an investigation, to clarify the periods within which views
and information have to be submitted to the Commission in order for them
to be taken into account in the investigation, to define more precisely
the parties     which may inspect   Information available to the Commission
and may    request to be informed of the essential facts on the basis of
which   definitive    measures  are  to   be   proposed   and  to  clarify   the
consequences of partial or non-cooperation by these         parties,
Whereas   it is also essential to ensure that consultations with Member
States within the Advisory Committee         are held   in sufficient   time to
allow the time limits to be respected,
                                                                                 n
 ---pagebreak---                                       - 4 -
Whereas it is also appropriate to simplify procedures by providing that
provisional duties can be imposed for a full six month period             rather
than for an initial four month period        which may then be extended for a
further two months,
Whereas, review investigations should also be completed expeditiously,
Whereas, for Community surveillance and protective measures it is also
necessary to set time limits for the initiation of           investigations and
for determinations as to whether, or not, measures are appropriate, with
a view to ensuring that such determinations are made quickly, in order
to increase legal certainty for the economic operators concerned,
Whereas,   in addition,     in order   to   introduce   a more   accessible and
transparent   system,    it   appears   necessary    to   confer  on   Community
industries the right to lodge complaints for safeguard measures in the
same manner as for anti-dumping and anti-subsidy cases,
Whereas, In addition,     it is imperative to link the        implementation of
this Regulation    to the establishment of       the necessary administrative
structure   within   the   Commission's    services;    whereas,   the  Council,
therefore, should specify in a decision to be adopted in accordance with
Article   113  of   the   EEC   Treaty,   the   complaints,    proceedings   and
investigations to which this Regulation will apply.
HAS ADOPTED THIS REGULATION:
                                                                                 11
 ---pagebreak---                                     TITLE I
                    Anti-dumping and countervailing duties
                                  Article 1
 1.  Article 2, paragraph 13, of Council Regulation (EEC) No 2423/88 is
     ret it led "G Averaging Techniques" and the third indent is deleted.
2.  The following sentence is added to Article 5, paragraph 3:
     "A complaint    shall  be deemed  to have been   lodged on   the first
    worlcing day following its delivery to the Commission by registered
    mail    or  the   issuing of  an  acknowledgement  of  receipt   by the
    Commission."
3.  The following text is added to Article 5, paragraph 5 in fine:
    "within 1 month of the date on which the complaint       is lodged with
    the Commission."
4.  "The following text is added to Article 6, paragraph 1 in fine:
    "within a time frame which allows the time limits set by the present
    Regulation to be respected."
6.  The words "or to request an oral consultation" are deleted from the
    end of Article 6, paragraph 3 in fine:
                                                                            lo
 ---pagebreak---                                    - 6-
6. The word "immediately" In the first sentence of Article 7, paragraph
   1   is deleted   and Article   7, paragraph   1, sub-paragraph     (a) is
   amended to read as follows:
   "Initiate a proceeding     within one month of     the   lodging of   the
   complaint   and  publish  a notice   in the Official     Journal  of  the
   European Communities; such notice      shall  indicate the product and
   countries concerned, give a summary of the information received, and
   provide that all relevant information is to be communicated to the
   Commission;    it shall  state  the  periods  within   which   interested
   parties may make their views known 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 orally by the Commission in
   accordance with paragraph 5 of this Article."
7. The following sub-paragraph (c) is added to Article 7, paragraph 2 :
   "Where    there  are   a  large   number   of  parties    involved,   the
   investigation may be limited to a sample of the parties, products or
   transactions which can be investigated in the time available."
                                                                             ii
 ---pagebreak---                                      - 7-
 8.  The text "The complainant and the importers and exporters" at the
     beginning of Article 7, paragraph 4, sub-paragraph (a) is deleted
     and replaced by the following:
     "The    complainants,   importers,   exporters,  users  and   consumer
    organisations"
9.  Article 7, paragraph 7, sub-paragraph       (b) is amended to read as
     fol lows:
    "In cases in which any interested party or third country refuses
    access    to, or otherwise does not     provide, necessary  information
    within the time limits set by this Regulation or by the Commission
    under this Regulation, or significantly impedes the investigation,
    preliminary or final findings, affirmative or negative, may be made
    on the basis of the facts available.        Where the Commission finds
    that any    interested party or   third country has supplied    it with
    false or misleading information, it may make use of facts available
    in place of such information.
10. Article 7, paragraph 9, sub-paragraph       (a) is amended to read as
    fol lows:
    "Investigations should normally be concluded within one year.        In
    any event, an     investigation  shall be concluded within 15 months
    from its initiation either by its termination pursuant to Article 9
    or by definitive action pursuant to Article 12."
                                                                            ii
 ---pagebreak---                                    - 8-
11. The following text   is added to the first sentence of Article 11,
    paragraph 1 :
    "no later than 9 months from the initiation of the investigation"
12. Article 11, paragraph 5, is amended to read as follows:
    "Provisional duties shall have a maximum period of validity of four
    months.  However,   where   exporters  representing   a  significant
    percentage of the trade involved so request or do not object upon
    notification by the Commission, provisional anti-dumping duties may
    have a period of validity of six months."
13. The following sentence is added to Article 14. paragraph 2:
    "Review investigations shall normally be completed no later than 15
    months from the date of the initiation of the review."
                                                                         <u
 ---pagebreak--- f /
                                         - 9 -
                                       TITLE II
                 Community surveillance and protective measures
                                      Article 2
    1. The   following    paragraphs   are   added   to   Article   3   of  Council
       Regulation (EEC) No 288/82 :
       "2. Under the same circumstances a written complaint may be lodged
           with  the Commission by any natural         or   legal  person, or any
           association not having legal personality, acting on behalf of a
           Community industry which considers itself injured or threatened
           by  such   imports. This complaint       shall   contain   the evidence
           referred to in paragraph 1 above.        The Commission shall inform
           the Member States of such complaint forthwith.
       3.  A complaint shall be deemed to have been           lodged on the first
           working   day    following   its   delivery    to   the  Commission   by
           registered mail or the Issuing of an acknowledgement of receipt
           by the Commission.
       4.  For the purposes of this Regulation a Community industry means
           the producers as a whole of the         like or directly competitive
           products    to    the  imported    products    operating    within   the
           territory of the Community, or those whose collective output of
           the  like or directly competitive products constitute a major
           proportion of the total Community production of those products.
           In case of a complaint concerning only one or more regions of
           the Community, the industry concerned shall be identified in the
           same manner as described above, but in relation to the region or
           regions concerned.
                                                                                    ?4
 ---pagebreak---                                       10 -
2. Article   6,  paragraph   1, sub-paragraph    (a) of   Council    Regulation
    (EEC) No 288/82 is amended to read as follows :
   "Initiate an    investigation within one month of the receipt of an
    information by a Member State or the lodging of a complaint by a
   Community   industry and publish a notice in the Official Journal of
   the European Communities; such notice shall give a summary of the
    information received, and provide that all relevant         information is
   to be communicated      to the Commission;   it shall    state the period
   within   which   interested   parties may  make   known    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
   orally by the Commission       in accordance with paragraph 4 of this
   Article;"
3. The following text     Is added to Article 6, paragraph 2 of Council
   Regulation (EEC) No 288/82 :
   "The   complainant,    importers,  exporters   and   users    and   consumer
   organizations known to be concerned, as well as the representatives
   of the exporting country, may 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, provided that      it is relevant to the defence of
   their interests and not confidential within the meaning of Article 8
   and that it is used by the Commission in the investigation.          To this
   end,   they  shall   address    a written   request   to   the    Commission
   indicating the information required."
                                                                                ^5T
 ---pagebreak---                                     - 11 -
4. Article 6, paragraph 5 of Council Regulation (EEC) No 288/82 Is
    amended to read as follows :
    "Where information. is not supplied within the time limits set by
    this Regulation or by the Commission under this Regulation, or the
    investigation is significantly impeded, findings may be made on the
   basis of the facts available.      Where the Commission finds that any
    interested party or third country       has supplied    it with false or
   misleading information, it may make use of facts available in place
   of such information."
5. The following paragraph is inserted after Article 6, paragraph 5 of
   Council Regulation (EEC) No 288/82 :
   "5b is   Where  it becomes apparent, after       consultations, that  the
            complaint   lodged by a Community     industry does not provide
            sufficient evidence to Justify initiating an investigation,
            then the Commission shall, within one month of the date on
            which   the   complaint   is   lodged,   decide   to  reject the
            complaint.   The complainant shall be informed accordingly."
6. Article 7, paragraph 2 of Council Regulation          (EEC) No 288/82 is
   amended to read as follows :
   "Where no Community surveillance or protective measures have been
   taken within nine months of the initiation of the investigation, the
   investigation shall be terminated, after consulting the Committee,
   within one month and the decision published in the Official Journal
   of the European Communities, stating the main conclusions of the
   investigation and a summary of the reasons therefor."
                                                                             2£
 ---pagebreak---                                  - 12
7. The following text Is added to Article 7, paragraph 3, in fine, of
   Council Regulation (EEC) No 288/82 :
   "No later than nine months from the initiation of the investigation.
   In exceptional circumstances, this time limit   may be extended by a
   further maximum  period of   two months; the Commission   shall then
   publish a notice in the Official Journal of the European Communities
   setting forth the duration of the extension and a summary of the
   reasons therefor."
                                                                        ?"?
 ---pagebreak---                               - 13 -
                            TITLE III
                            Article 3
The present   Regulation shall   enter   into force on the third     day
following  its publication in the Official Journal of the European
Communities.   It shall, however, only apply to complaints       lodged,
proceedings   initiated and  review    investigations  initiated   after
dates which   the Council  shall  specify    in a decision  adopted   in
accordance with Article 113 of the Treaty.
                                                                         ?*
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(93) 541 final
                                                      DOCUMENTS
EN                                                                              02
                                 Catalogue number : CB-CO-93-588-EN-C
                                                             ISBN 92-77-60729-7
Office for Official Publications of the European Communities
L-??35 Lïtxemboure