CELEX: 
Language: en
Date: 2018-04-03
Title: Position of the Council at first reading with a view to the adoption of a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2016/1036 on protection against dumped imports from countries not members of the European Union and Regulation (EU) 2016/1037 on protection against subsidised imports from countries not members of the European Union

Council of the
                 European Union
                                                           Brussels, 3 April 2018
                                                           (OR. en)
                                                           5700/18
       Interinstitutional File:
          2013/0103 (COD)
                                                           WTO 11
                                                           ANTIDUMPING 1
                                                           COMER 10
                                                           CODEC 106
LEGISLATIVE ACTS AND OTHER INSTRUMENTS
Subject:            Position of the Council at first reading with a view to the adoption of a
                    REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
                    COUNCIL amending Regulation (EU) 2016/1036 on protection against
                    dumped imports from countries not members of the European Union and
                    Regulation (EU) 2016/1037 on protection against subsidised imports from
                    countries not members of the European Union
5700/18                                                                 DD/sr
                                             DGC 1A                                           EN
 ---pagebreak---                                     REGULATION (EU) 2018/…
                OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
                                                  of …
                                amending Regulation (EU) 2016/1036
                                on protection against dumped imports
                        from countries not members of the European Union
            and Regulation (EU) 2016/1037 on protection against subsidised imports
                        from countries not members of the European Union
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 207(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Acting in accordance with the ordinary legislative procedure 1,
1
        Position of the European Parliament of 16 April 2014 (OJ C 443, 22.12.2017, p. 934) and
        position of the Council at first reading of ... [(OJ ...)] [(not yet published in the Official
        Journal)]. Position of the European Parliament of ... [(OJ ...)] [(not yet published in the
        Official Journal)] [and decision of the Council of ...].
5700/18                                                                        DD/sr                     1
                                                 DGC 1A                                                EN
 ---pagebreak--- Whereas:
(1)     The common rules for protection against dumped and subsidised imports from countries
        which are not members of the Union are contained in Regulations (EU) 2016/1036 1 and
        (EU) 2016/1037 2 of the European Parliament and the Council (hereinafter jointly referred
        to as the 'Regulations'). The Regulations were initially adopted in 1968 and last
        significantly amended in 1996 following the conclusion of the Uruguay Round conducted
        within the framework of the General Agreement on Tariffs and Trade (GATT). Given that
        a number of amendments had been made to the Regulations since 1996, the legislators
        decided to codify the Regulations in the interest of clarity and rationality.
(2)     While the Regulations have been amended and codified, there has not been a fundamental
        review of their functioning. The Commission launched a review of the Regulations in
        order, inter alia, to better reflect the needs of business at the beginning of the twenty-first
        century.
1
      Regulation (EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016
      on protection against dumped imports from countries not members of the European Union
      (OJ L 176, 30.6.2016, p. 21).
2
      Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016
      on protection against subsidised imports from countries not members of the European Union
      (OJ L 176, 30.6.2016, p. 55).
5700/18                                                                     DD/sr                       2
                                                  DGC 1A                                           EN
 ---pagebreak--- (3)     Following that review, certain provisions of the Regulations should be amended in order to
        improve transparency and predictability, to provide for effective measures to fight against
        retaliation by third countries, to improve effectiveness and enforcement, and to optimise
        review practice. In addition, certain practices that have been applied in recent years in the
        context of anti-dumping and countervailing duty investigations should be included in the
        Regulations.
(4)     In order to improve the transparency and predictability of anti-dumping and countervailing
        duty investigations, parties which will be affected by the imposition of provisional
        antidumping and countervailing measures, in particular importers, should be made aware
        of the impending imposition of such measures. In addition, in investigations where it is not
        appropriate to impose provisional measures, it is desirable that parties are aware
        sufficiently in advance of such non-imposition. In order to limit the risk of a substantial
        rise in imports in the period of pre-disclosure, the Commission should register imports
        where possible. When providing for registration of imports during the period of
        pre-disclosure, it is necessary to consider that it requires a prospective analysis of the risks
        associated and the likelihood that these circumstances would undermine the remedial
        effects of the measures. Furthermore, the Commission should collect additional statistical
        information at the level of the Integrated Tariff of the European Union (TARIC) to ensure
        a proper factual basis of the analysis of the imports. Where registration is not possible, and
        a further substantial rise in imports takes place during the period of pre-disclosure, the
        Commission should reflect this additional injury in the injury margin.
5700/18                                                                     DD/sr                       3
                                                DGC 1A                                              EN
 ---pagebreak--- (5)     A short period of time in advance of the imposition of provisional measures should be
        allowed for exporters or producers to check the calculation of their individual dumping
        margin or amount of the countervailable subsidy and the margin adequate to remove injury
        to the Union industry. Calculation errors could then be corrected in advance of the
        imposition of measures.
(6)     In order to ensure that measures to fight against retaliation are effective, Union producers
        should be able to rely on the Regulations without fear of retaliation by third countries.
        Existing provisions, under special circumstances, provide for the initiation of an
        investigation without having received a complaint, where sufficient evidence exists of
        dumping or countervailable subsidies, and of injury and causal link. Such special
        circumstances should include the threat of retaliation by third countries.
(7)     Where an investigation is not initiated by a complaint, the Commission should request
        Union producers to provide the information necessary for the investigation to proceed, in
        order to ensure that sufficient information is available for carrying out the investigation in
        case of threats of retaliation by third countries.
5700/18                                                                    DD/sr                       4
                                                DGC 1A                                            EN
 ---pagebreak--- (8)     Third countries increasingly interfere in the trade of raw materials with a view to keeping
        raw materials in those countries for the benefit of domestic downstream users, for instance
        by imposing export taxes or operating dual pricing schemes. Such interference creates
        additional distortions of trade. As a result, the costs of raw materials do not reflect the
        operation of normal market forces of supply and demand for a given raw material. As a
        result, Union producers are not only harmed by dumping, but suffer from additional
        distortions of trade compared to third country downstream producers which engage in such
        practices. In order to adequately protect trade, due regard should be had to such distortions
        when determining the level of duties to be imposed.
(9)     The Commission should verify the existence of distortions on raw materials on the basis of
        the complaint received and the Organisation for Economic Co-operation and Development
        (OECD) 'Inventory on export restrictions on industrial raw materials' or any other OECD
        database which replaces that database and identifies distortions on raw materials.
(10)    Within the Union, countervailable subsidies are in principle prohibited pursuant to
        Article 107(1) of the Treaty on the Functioning of the European Union (TFEU). Therefore,
        countervailable subsidies granted by third countries are particularly distortive of trade. The
        amount of State aid authorised by the Commission has steadily been reduced over time.
        When determining the level of countervailing measures, it is, in general, no longer possible
        to apply the lesser duty rule.
5700/18                                                                    DD/sr                      5
                                                DGC 1A                                              EN
 ---pagebreak--- (11)    Where measures are not prolonged after the conclusion of an expiry review investigation
        because the conditions required for the continuation have not been found to exist during
        the investigation, duties collected during the investigation on goods that were
        customs-cleared should be reimbursed to importers.
(12)    The Commission should initiate interim reviews, where appropriate, in cases where the
        Union industry faces increased costs resulting from higher social and environmental
        standards. Furthermore, the Commission should also initiate interim reviews in cases of
        changed circumstances in exporting countries relating to social and environmental
        standards. For instance, if a country under measures withdraws from multilateral
        environmental agreements, and protocols thereunder, to which the Union is a party, or
        from International Labour Organisation (ILO) Conventions listed in Annex Ia to the
        Regulations, the interim review investigation could result in the withdrawal of acceptance
        of the undertakings in force. The scope of the review would depend on the precise nature
        of the change. Such interim reviews could be also initiated ex officio.
5700/18                                                                   DD/sr                    6
                                               DGC 1A                                          EN
 ---pagebreak--- (13)    It is possible for the Commission to adopt interpretative notices providing general guidance
        to possible interested parties on the application of the Regulations. In accordance with the
        established case-law of the Court of Justice, such notices are not legally binding and do not
        modify mandatory rules of Union law. On the basis of the general principles of equal
        treatment and legitimate expectations, the Commission applies such notices but it cannot
        waive by their adoption the discretion it enjoys in the area of the common commercial
        policy. Prior to adopting such notices, the Commission should carry out consultations in
        line with Article 11(3) of the Treaty on European Union (TEU). It is also possible for the
        European Parliament and the Council to express their views.
(14)    Union industry should no longer be defined by reference to the initiation thresholds set out
        in the Regulations.
(15)    The Commission should ensure that all interested parties have the best possible access to
        information by putting in place an information system whereby interested parties are
        notified when new non-confidential information is added to the investigation files and by
        making such information accessible to those parties through a web-based platform.
(16)    In initial investigations where the dumping margin or the amount of the countervailable
        subsidy has been found to be less than the de minimis thresholds, the investigation should
        be immediately terminated in relation to the exporters concerned and such exporters will
        not be subject to subsequent review investigations.
5700/18                                                                   DD/sr                      7
                                               DGC 1A                                           EN
 ---pagebreak--- (17)    The Commission should only accept an offer for an undertaking where it is satisfied, based
        on a prospective analysis, that it effectively eliminates the injurious effect of dumping.
(18)    Where the conditions exist for the initiation of an anti-circumvention investigation, imports
        should in all cases be made subject to registration.
(19)    Experience in anti-circumvention investigations has shown that, sometimes, although
        producers of the product concerned are found not to be engaged in circumvention practices
        themselves, they are found to be related to a producer that is subject to the original
        measures. In such cases, producers should not be denied an exemption merely on the
        grounds that they are related to a producer that is subject to the original measures.
        Therefore, the condition that in order to be granted an exemption from registration or
        extended duties, producers of the product concerned should not be related to any producer
        that is subject to the original measures, should be removed. In addition, where the
        circumvention practice takes place in the Union, the fact that importers are related to
        producers that are subject to the measures should not be decisive in determining whether
        the importer may be granted an exemption.
(20)    Where the number of Union producers is so large that resort must be made to sampling, a
        sample of producers should be chosen from among all Union producers and not just those
        producers submitting the complaint.
5700/18                                                                     DD/sr                   8
                                                DGC 1A                                            EN
 ---pagebreak--- (21)    In cases of distortions on raw materials as identified in Article 7(2a) of Regulation (EU)
        2016/1036, as amended by this Regulation, the Commission should conduct a
        Union-interest test as laid out in Article 7(2b) of that Regulation. If the Commission
        decides, when establishing the level of duties subject to Article 7 of that Regulation, to
        apply Article 7(2) of that Regulation, it should carry out the Union-interest test in
        accordance with Article 21 of that Regulation on the basis of the measures determined
        pursuant to Article 7(2).
(22)    In applying the Union-interest test, the opportunity to provide comments should be given
        to all Union producers and not just those producers submitting the complaint.
(23)    The annual report by the Commission to the European Parliament and to the Council on its
        implementation of the Regulations allows for the regular and timely monitoring of the
        trade defence instruments. There should be an exchange of views about that report in the
        European Parliament and such exchange should also cover the functioning of the trade
        defence instruments. It should be possible for the Council to attend such exchange.
5700/18                                                                    DD/sr                    9
                                                DGC 1A                                            EN
 ---pagebreak--- (24)    The Commission should extend the application and collection of anti-dumping and
        countervailing duties to the continental shelf of a Member State or the exclusive economic
        zone declared by a Member State pursuant to the United Nations Convention on the Law
        of the Sea (UNCLOS), provided that the product subject to measures is used in any of both
        places with the purpose of exploring or exploiting of the non-living natural resources of the
        seabed and its subsoil or in order to produce energy from the water, currents and winds,
        and provided that the product subject to measures is consumed there in significant
        quantities. The intention to extend the application in that manner should be set out in the
        notice of initiation of proceedings, and should be supported by sufficient evidence in the
        request. In order to ensure uniform conditions for the implementation of this Regulation,
        implementing powers should be conferred on the Commission to specify the arrangements
        for the application and collection of anti-dumping and countervailing duties. Those powers
        should be exercised in accordance with Regulation (EU) No 182/2011 of the European
        Parliament and of the Council 1.
1
      Regulation (EU) No 182/2011 of the European Parliament and of the Council of
      16 February 2011 laying down the rules and general principles concerning mechanisms for
      control by Member States of the Commission's exercise of implementing powers (OJ L 55,
      28.2.2011, p. 13).
5700/18                                                                  DD/sr                      10
                                               DGC 1A                                            EN
 ---pagebreak--- (25)    In order to update the list identifying distortions on raw materials by adding further
        distortions on raw materials if the OECD 'Inventory on export restrictions on industrial raw
        materials', or any OECD database which replaces that inventory, identifies distortions on
        raw materials in addition to those included in the list, the power to adopt acts in accordance
        with Article 290 TFEU should be delegated to the Commission in respect of amending the
        list of distortions on raw materials referred to in Article 7(2a) of
        Regulation (EU) 2016/1036. Furthermore, in order to address appropriately a substantial
        rise in imports in the event it occurs during the period of pre-disclosure, the power to adopt
        acts in accordance with Article 290 TFEU should be delegated to the Commission in
        respect of increasing or decreasing the duration of the period of pre-disclosure. The period
        of pre-disclosure should be decreased if the substantial rise in imports occurs but the
        Commission is not able to address it. Nevertheless, if a substantial rise in imports has not
        occurred or if the Commission is able to address it, the period of pre-disclosure should be
        increased in order to ensure predictability for Union operators. It is of particular
        importance that the Commission carry out appropriate consultations during its preparatory
        work, including at expert level, and that those consultations be conducted in accordance
        with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on
        Better Law-Making 1. In particular, to ensure equal participation in the preparation of
        delegated acts, the European Parliament and the Council receive all documents at the same
        time as Member States' experts, and their experts systematically have access to meetings of
        Commission expert groups dealing with the preparation of delegated acts.
1
      OJ L 123, 12.5.2016, p. 1.
5700/18                                                                     DD/sr                   11
                                                DGC 1A                                            EN
 ---pagebreak--- (26)    Regulations (EU) 2016/1036 and (EU) 2016/1037 should therefore be amended
        accordingly,
HAVE ADOPTED THIS REGULATION:
5700/18                                                            DD/sr           12
                                          DGC 1A                                  EN
 ---pagebreak---                                               Article 1
Regulation (EU) 2016/1036 is amended as follows:
(1)     in Article 4(1), the introductory wording is replaced by the following:
        '1.   For the purposes of this Regulation, the term "Union industry" shall be interpreted as
              referring to the Union producers as a whole of the like products or to those of them
              whose collective output of the products constitutes a major proportion of the total
              Union production of those products, except that:'.
(2)     Article 5 is amended as follows:
        (a)   in paragraph 1, a subparagraph is inserted after the first subparagraph as follows:
              'Complaints may also be submitted jointly by the Union industry, or by any natural
              or legal person or any association not having legal personality acting on behalf
              thereof, and trade unions, or be supported by trade unions. This does not affect the
              possibility for the Union industry to withdraw the complaint.';
5700/18                                                                    DD/sr                   13
                                              DGC 1A                                            EN
 ---pagebreak---         (b) the following paragraph is inserted:
            '1a. The Commission shall facilitate access to the trade defence instrument for
                  diverse and fragmented industry sectors, largely composed of small and
                  medium-sized enterprises (SMEs), through a dedicated SME Helpdesk, for
                  example by awareness raising, by providing general information and
                  explanations on procedures and on how to submit a complaint, by releasing
                  standard questionnaires in all official languages of the Union and by replying
                  to general, non-case-specific queries.
                  The SME Helpdesk shall make available standard forms for statistics to be
                  submitted for standing purposes and questionnaires.'.
5700/18                                                                 DD/sr                   14
                                            DGC 1A                                            EN
 ---pagebreak--- (3)     Article 6 is amended as follows:
        (a)   in paragraph 7, the first subparagraph is replaced by the following:
              '7.    The Union producers, trade unions, importers and exporters and their
                     representative associations, users and consumer organisations, which have
                     made themselves known in accordance with Article 5(10), as well as the
                     representatives of the exporting country, may, upon written request, inspect all
                     information made available by any party to an investigation, as distinct from
                     internal documents prepared by the authorities of the Union or its
                     Member States, which is relevant to the presentation of their cases and not
                     confidential within the meaning of Article 19, and is used in the investigation.';
        (b)   paragraph 9 is replaced by the following:
              '9.    For proceedings initiated pursuant to Article 5(9), an investigation shall,
                     whenever possible, be concluded within one year. In any event, such
                     investigations shall in all cases be concluded within 14 months of initiation, in
                     accordance with the findings made pursuant to Article 8 for undertakings or the
                     findings made pursuant to Article 9 for definitive action. Investigation periods
                     shall, whenever possible, especially in the case of diverse and fragmented
                     sectors largely composed of SMEs, coincide with the financial year.';
5700/18                                                                    DD/sr                     15
                                                 DGC 1A                                           EN
 ---pagebreak---         (c)   the following paragraphs are added:
              '10. Union producers of the like product are requested to cooperate with the
                     Commission in investigations that have been initiated pursuant to Article 5(6).
              11.    The Commission shall have in place the office of the Hearing Officer whose
                     powers and responsibilities are set out in a mandate adopted by the
                     Commission and who shall safeguard the effective exercise of the procedural
                     rights of the interested parties.'.
(4)     Article 7 is amended as follows:
        (a)   paragraph 1 is replaced by the following:
              '1.    Provisional duties may be imposed if:
                     (a)   proceedings have been initiated in accordance with Article 5;
                     (b)   a notice has been given to that effect and interested parties have been
                           given an adequate opportunity to submit information and make
                           comments in accordance with Article 5(10);
                     (c)   a provisional affirmative determination has been made of dumping and
                           consequent injury to the Union industry; and
5700/18                                                                    DD/sr                   16
                                                DGC 1A                                            EN
 ---pagebreak---         (d)    the Union interest calls for intervention to prevent such injury.
        The provisional duties shall be imposed no earlier than 60 days from the
        initiation of the proceedings and normally not later than seven months, but in
        any event not later than eight months, from the initiation of the proceedings.
        Provisional duties shall not be imposed within three weeks of the information
        being sent to interested parties in accordance Article 19a (period of
        pre-disclosure). The provision of such information shall not prejudice any
        subsequent related decision that may be taken by the Commission.
        The Commission shall review by ... [two years from the date of entry into force
        of this amending Regulation], whether a substantial rise in imports has
        occurred during the period of pre-disclosure and whether, if such rise has
        occurred, it has caused additional injury to the Union industry, despite the
        measures that the Commission might have taken based on Article 14(5a) and
        Article 9(4). It shall rely in particular on data collected on the basis of
        Article 14(6) and any relevant information at its disposal. The Commission
        shall adopt a delegated act in accordance with Article 23a to amend the
        duration of the period of pre-disclosure to two weeks in the case of a
        substantial rise of imports that have caused additional injury and to four weeks
        where this is not the case.
5700/18                                                         DD/sr                  17
                                     DGC 1A                                          EN
 ---pagebreak---                   The Commission shall make public on its website its intention to impose
                  provisional duties, including information on the possible duty rates, at the same
                  time when it provides interested parties with the information pursuant to
                  Article 19a.';
        (b) the following paragraphs are inserted:
            '2a. When examining whether a duty lower than the margin of dumping would be
                  sufficient to remove injury, the Commission shall take into account whether
                  there are distortions on raw materials with regard to the product concerned.
                  For the purposes of this paragraph, distortions on raw materials consist of the
                  following measures: dual pricing schemes, export taxes, export surtax, export
                  quota, export prohibition, fiscal tax on exports, licensing requirements,
                  minimum export price, value added tax (VAT) refund reduction or withdrawal,
                  restriction on customs clearance point for exporters, qualified exporters list,
                  domestic market obligation, captive mining if the price of a raw material is
                  significantly lower as compared to prices in the representative international
                  markets.
5700/18                                                                  DD/sr                    18
                                             DGC 1A                                            EN
 ---pagebreak---         The Commission is empowered to adopt delegated acts in accordance with
        Article 23a to amend this Regulation by adding further distortions on raw
        materials on to the list referred to in the second subparagraph of this paragraph,
        if the OECD "Inventory on export restrictions on industrial raw materials", or
        any OECD database which replaces this inventory, identifies other types of
        measures.
        The investigation shall cover any distortion on raw materials identified in the
        second subparagraph of this paragraph, for the existence of which the
        Commission has sufficient evidence pursuant to Article 5.
        For the purpose of this Regulation, a single raw material, whether unprocessed
        or processed, including energy, for which a distortion is found, must account
        for not less than 17 % of the cost of production of the product concerned. For
        the purpose of this calculation, an undistorted price of the raw material as
        established in representative international markets shall be used.
5700/18                                                        DD/sr                    19
                                    DGC 1A                                           EN
 ---pagebreak---         2b. Where the Commission, on the basis of all the information submitted, can
            clearly conclude that it is in the Union's interest to determine the amount of the
            provisional duties in accordance with paragraph 2a of this Article, paragraph 2
            of this Article shall not apply. The Commission shall actively seek information
            from interested parties enabling it to determine whether paragraph 2 or 2a of
            this Article shall apply. In this regard, the Commission shall examine all
            pertinent information such as spare capacities in the exporting country,
            competition for raw materials and the effect on supply chains for Union
            companies. In the absence of cooperation the Commission may conclude that it
            is in accordance with the Union interest to apply paragraph 2a of this Article.
            When carrying out the Union-interest test in accordance with Article 21,
            special consideration shall be given to this matter.
        2c. When the injury margin is calculated on the basis of a target price, the target
            profit used shall be established taking into account factors such as the level of
            profitability before the increase of imports from the country under
            investigation, the level of profitability needed to cover full costs and
            investments, research and development (R&D) and innovation, and the level of
            profitability to be expected under normal conditions of competition. Such
            profit margin shall not be lower than 6 %.
5700/18                                                             DD/sr                   20
                                        DGC 1A                                           EN
 ---pagebreak---               2d.    When establishing the target price, the actual cost of production of the Union
                     industry, which results from multilateral environmental agreements, and
                     protocols thereunder, to which the Union is a party, or from International
                     Labour Organisation (ILO) Conventions listed in Annex Ia to this Regulation,
                     shall be duly reflected. Moreover, future costs, which are not covered in
                     paragraph 2c of this Article, which result from those agreements and
                     conventions, and which the Union industry will incur during the period of the
                     application of the measure pursuant to Article 11(2), shall be taken into
                     account.'.
(5)     Article 8 is amended as follows:
        (a)   paragraph 1 is replaced by the following:
              '1.    Where a provisional affirmative determination of dumping and injury has been
                     made, the Commission may, in accordance with the advisory procedure
                     referred to in Article 15(2), accept satisfactory voluntary undertaking offers
                     submitted by any exporter to revise its prices or to cease exports at dumped
                     prices, if the injurious effect of the dumping is thereby eliminated.
5700/18                                                                     DD/sr                   21
                                                 DGC 1A                                           EN
 ---pagebreak---                   In such a case and as long as such undertakings are in force, provisional duties
                  imposed by the Commission in accordance with Article 7(1), or definitive
                  duties imposed in accordance with Article 9(4), as the case may be, shall not
                  apply to the relevant imports of the product concerned manufactured by the
                  companies referred to in the Commission decision accepting undertakings, as
                  subsequently amended.
                  Price increases under such undertakings shall not be higher than necessary to
                  eliminate the margin of dumping and they shall be less than the margin of
                  dumping if such increase would be adequate to remove the injury to the
                  Union industry.
                  When examining whether price increases under such undertakings lower than
                  the margin of dumping would be sufficient to remove injury,
                  Article 7(2a), (2b), (2c) and (2d) shall apply accordingly.';
        (b) in paragraph 2, the third subparagraph is replaced by the following:
            'Save in exceptional circumstances, undertakings may not be offered later than five
            days prior to the end of the period during which representations may be made
            pursuant to Article 20(5), so as to ensure the opportunity to comment for other
            parties.';
5700/18                                                                 DD/sr                    22
                                             DGC 1A                                           EN
 ---pagebreak---         (c) paragraphs 3 and 4 are replaced by the following:
            '3.  Undertakings offered need not be accepted if their acceptance is considered
                 impractical, such as where the number of actual or potential exporters is too
                 great, or for other reasons, including reasons of general policy which comprise
                 in particular the principles and obligations set out in multilateral environmental
                 agreements and protocols thereunder, to which the Union is a party, and of
                 ILO Conventions listed in Annex Ia to this Regulation. The exporter concerned
                 may be provided with the reasons for which it is proposed to reject the offer of
                 an undertaking and may be given an opportunity to make comments thereon.
                 The reasons for rejection shall be set out in the definitive decision.
            4.   Parties which offer an undertaking shall be required to provide a
                 non-confidential version of such undertaking that is meaningful in the sense of
                 Article 19, so that it may be made available to interested parties to the
                 investigation, to the European Parliament and to the Council.
                 Furthermore, before accepting any such offer, the Union industry shall be
                 given an opportunity to comment with regard to the main features of the
                 undertaking.'.
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                                            DGC 1A                                            EN
 ---pagebreak--- (6)     in Article 9, paragraphs 3 and 4 are replaced by the following:
        '3.   For a proceeding initiated pursuant to Article 5(9), injury shall normally be regarded
              as negligible where the imports concerned represent less than the volumes set out in
              Article 5(7). For the same proceeding, there shall be immediate termination where it
              is determined that the margin of dumping is less than 2 %, expressed as a percentage
              of the export price.
        4.    Where the facts as finally established show that there is dumping, and injury caused
              thereby, and the Union interest calls for intervention in accordance with Article 21, a
              definitive anti-dumping duty shall be imposed by the Commission acting in
              accordance with the examination procedure referred to in Article 15(3). Where
              provisional duties are in force, the Commission shall initiate that procedure no later
              than one month of the expiry of such duties.
              The amount of the anti-dumping duty shall not exceed the margin of dumping
              established but it should be less than the margin if such lesser duty would be
              adequate to remove the injury to the Union industry. Article 7(2a), (2b) (2c) and (2d),
              shall apply accordingly.
5700/18                                                                   DD/sr                     24
                                               DGC 1A                                            EN
 ---pagebreak---               Where the Commission has not registered imports, but where it finds, based on an
              analysis of all relevant information at its disposal when adopting definitive measures,
              that a further substantial rise in imports subject to the investigation occurs during the
              period of pre-disclosure, the Commission shall reflect the additional injury resulting
              from such increase in the determination of the injury margin for a period no longer
              than that referred to in Article 11(2).'.
(7)     Article 11 is amended as follows:
        (a)   in paragraph 2, the second subparagraph is replaced by the following:
              'An expiry review shall be initiated where the request contains sufficient evidence
              that the expiry of the measures would likely result in a continuation or recurrence of
              dumping and injury. Such likelihood may, for example, be indicated by evidence of
              continued dumping and injury or evidence that the removal of injury is partly or
              solely due to the existence of measures or evidence that the circumstances of the
              exporters, or market conditions, are such that they would indicate the likelihood of
              further injurious dumping, or by evidence of continued distortions on raw materials.';
5700/18                                                                     DD/sr                     25
                                                 DGC 1A                                           EN
 ---pagebreak---         (b) in paragraph 5, the following subparagraph is added:
            'If, following an investigation pursuant to paragraph 2, the measure expires, any
            duties collected from the date of the initiation of such investigation on goods that
            were customs-cleared shall be repaid provided that this is requested from national
            customs authorities and granted by those authorities in accordance with the
            applicable Union customs legislation concerning repayment and remission of duty.
            Such repayment shall not give rise to the payment of interest by the national customs
            authorities concerned.'.
5700/18                                                                 DD/sr                    26
                                             DGC 1A                                            EN
 ---pagebreak--- (8)     Article 13 is amended as follows:
        (a)   in paragraph 3, the first subparagraph is replaced by the following:
              '3.   Investigations shall be initiated pursuant to this Article on the initiative of the
                    Commission or at the request of a Member State or any interested party on the
                    basis of sufficient evidence regarding the factors set out in paragraph 1 of this
                    Article. Initiations shall be made by means of a Commission regulation which
                    shall also instruct customs authorities to subject imports to registration in
                    accordance with Article 14(5) or to request guarantees. The Commission shall
                    provide information to the Member States once an interested party or a
                    Member State has submitted a request justifying the initiation of an
                    investigation and the Commission has completed its analysis thereof, or where
                    the Commission has itself determined that there is a need to initiate an
                    investigation.';
        (b)   in paragraph 4, the first, second, third and fourth subparagraphs are replaced by the
              following:
              '4.   Imports shall not be subject to registration pursuant to Article 14(5) or
                    measures where they are traded by companies which benefit from exemptions.
5700/18                                                                    DD/sr                       27
                                                DGC 1A                                              EN
 ---pagebreak---         Requests for exemptions duly supported by evidence shall be submitted within
        the time-limits established in the Commission regulation pursuant to which the
        investigation is initiated.
        Where the circumventing practice, process or work takes place outside the
        Union, exemptions may be granted to producers of the product concerned that
        are found not to be engaged in circumvention practices as defined in
        paragraphs 1 and 2 of this Article.
        Where the circumventing practice, process or work takes place inside the
        Union, exemptions may be granted to importers that can show that they are not
        engaged in circumvention practices as defined in paragraphs 1 and 2 of this
        Article.'.
5700/18                                                    DD/sr                     28
                                    DGC 1A                                        EN
 ---pagebreak--- (9)     Article 14 is amended as follows:
        (a)   paragraph 3 is replaced by the following:
              '3.   Special provisions, in particular with regard to the common definition of the
                    concept of origin, as contained in Regulation (EU) No 952/2013 of the
                    European Parliament and of the Council*, and with regard to the application
                    and collection of an anti-dumping duty in the continental shelf of a
                    Member State or the exclusive economic zone declared by a Member State
                    pursuant to the United Nations Convention on the Law of the Sea (UNCLOS),
                    may be adopted pursuant to this Regulation.
              ________________
              *
                    Regulation (EU) No 952/2013 of the European Parliament and of the Council
                    of 9 October 2013 laying down the Union Customs Code (OJ L 269,
                    10.10.2013, p. 1).';
5700/18                                                                   DD/sr                   29
                                              DGC 1A                                            EN
 ---pagebreak---         (b) paragraph 5 is replaced by the following:
            '5.   As of the initiation of the investigation and having informed the Member States
                  in due time, the Commission may direct the customs authorities to take the
                  appropriate steps to register imports, so that measures may subsequently be
                  applied against those imports from the date of such registration. Imports shall
                  be made subject to registration following a request, from the Union industry,
                  which contains sufficient evidence to justify such action. Imports may also be
                  made subject to registration on the Commission's own initiative. Registration
                  shall be introduced by Commission regulation. Such regulation shall specify
                  the purpose of the action and, if appropriate, the estimated amount of possible
                  future liability. Imports shall not be made subject to registration for a period
                  longer than nine months.';
        (c) the following paragraph is inserted:
            '5a. The Commission shall, unless it has sufficient evidence within the meaning of
                  Article 5 that the requirements either under point (c) or (d) of Article 10(4) are
                  not met, register imports pursuant to paragraph 5 of this Article during the
                  period of pre-disclosure pursuant to Article 19a. When deciding on registration,
                  the Commission shall in particular analyse the information collected based on
                  the creation of Integrated Tariff of the European Union (TARIC) codes for the
                  product under investigation pursuant to paragraph 6 of this Article.';
5700/18                                                                  DD/sr                     30
                                             DGC 1A                                              EN
 ---pagebreak---         (d) paragraph 6 is replaced by the following:
            '6.   Member States shall report to the Commission every month on the import trade
                  in products subject to investigation and to measures, and on the amount of
                  duties collected pursuant to this Regulation. When initiating an investigation
                  pursuant to Article 5, the Commission shall create TARIC codes corresponding
                  to the product under investigation. Member States shall use those TARIC codes
                  in order to report on imports of the product under investigation as of the
                  initiation of the investigation. The Commission may, upon receiving a specific
                  reasoned request from an interested party, decide to provide them with a
                  non-confidential summary of the information on aggregated import volumes
                  and values of the products concerned.';
        (e) the following paragraph is added:
            '8.   Whenever the Commission intends to adopt any document providing general
                  guidance to possible interested parties on the application of this Regulation, a
                  public consultation in line with Article 11(3) TEU shall be carried out. The
                  European Parliament and the Council may also express their views.'.
5700/18                                                                DD/sr                      31
                                              DGC 1A                                           EN
 ---pagebreak--- (10)    the following Article is inserted:
        'Article 14a
        Continental shelf or exclusive economic zone
        1.     An anti-dumping duty may also be imposed on any dumped product brought in
               significant quantities to an artificial island, a fixed or floating installation or any
               other structure in the continental shelf of a Member State or the exclusive economic
               zone declared by a Member State pursuant to UNCLOS, where this would cause
               injury to the Union industry. The Commission shall adopt implementing acts laying
               down the conditions for the incurrence of such duties, as well as the procedures
               relating to the notification and declaration of such products and the payment of such
               duties, including recovery, repayment and remission (customs tool). Those
               implementing acts shall be adopted in accordance with the examination procedure
               referred to in Article 15(3).
        2.     The Commission shall only impose duties as referred to in paragraph 1 as of the date
               the customs tool referred to in paragraph 1 is operational. The Commission shall
               inform all economic operators that the customs tool is operational by separate
               publication in the Official Journal of the European Union.'.
5700/18                                                                       DD/sr                     32
                                                 DGC 1A                                                EN
 ---pagebreak--- (11)    in Article 17, paragraphs 1 and 2 are replaced by the following:
        '1.   In cases where the number of Union producers, exporters or importers, types of
              product or transactions is large, the investigation may be limited to a reasonable
              number of parties, products or transactions by using samples which are statistically
              valid, on the basis of information available at the time of the selection, or to the
              largest representative volume of production, sales or exports which can reasonably
              be investigated within the time available.
        2.    The final selection of parties, types of products or transactions made under these
              sampling provisions shall rest with the Commission. However, in order to enable the
              selection of a representative sample preference shall be given to choosing a sample in
              consultation with, and with the consent of, the parties concerned, provided that such
              parties make themselves known and make sufficient information available within one
              week of initiation of the investigation.'.
5700/18                                                                    DD/sr                    33
                                                DGC 1A                                             EN
 ---pagebreak--- (12)    the following Article is inserted:
        'Article 19a
        Information at provisional stage
        1.     Union producers, importers and exporters and their representative associations, and
               representatives of the exporting country, may request information on the planned
               imposition of provisional duties. Requests for such information shall be made in
               writing within the time limit prescribed in the notice of initiation. Such information
               shall be provided to those parties three weeks before the imposition of provisional
               duties. Such information shall include: a summary of the proposed duties for
               information purposes only, and details of the calculation of the dumping margin and
               the margin adequate to remove the injury to the Union industry, due account being
               taken of the need to respect the confidentiality obligations contained in Article 19.
               Parties shall have a period of three working days from the supply of such information
               to provide comments on the accuracy of the calculations.
        2.     In cases where it is intended not to impose provisional duties but to continue the
               investigation, interested parties shall be informed of the non-imposition of duties
               three weeks before the expiry of the deadline mentioned in Article 7(1) for the
               imposition of provisional duties.'.
5700/18                                                                    DD/sr                     34
                                                DGC 1A                                            EN
 ---pagebreak--- (13)    Article 21 is amended as follows:
        (a)   paragraph 2 is replaced by the following:
              '2.   In order to provide a sound basis on which the Commission can take account of
                    all views and information in the decision as to whether or not the imposition of
                    measures is in the Union's interest, the Union producers, trade unions,
                    importers and their representative associations, representative users and
                    representative consumer organisations may, within the time-limits specified in
                    the notice of initiation of the anti-dumping proceedings, make themselves
                    known, and provide information, to the Commission. Such information, or
                    appropriate summaries thereof, shall be made available to the other parties
                    specified in this Article, and they shall be entitled to respond to such
                    information.';
        (b)   paragraph 4 is replaced by the following:
              '4.   The parties which have acted in accordance with paragraph 2 may provide
                    comments on the application of any provisional duties. Such comments shall be
                    received within 15 days of the date of application of such measures if they are
                    to be taken into account and they, or appropriate summaries thereof, shall be
                    made available to other parties who shall be entitled to respond to such
                    comments.'.
5700/18                                                                     DD/sr                 35
                                                DGC 1A                                          EN
 ---pagebreak--- (14)    Article 23 is amended as follows:
        (a)   paragraph 1 is replaced by the following:
              '1.   The Commission shall, with due regard to the protection of confidential
                    information within the meaning of Article 19, present an annual report on the
                    application and implementation of this Regulation to the European Parliament
                    and to the Council.
                    That report shall include information about the application of provisional and
                    definitive measures, the termination of investigations without measures,
                    undertakings, reinvestigations, reviews, significant distortions and verification
                    visits, and the activities of the various bodies responsible for monitoring the
                    implementation of this Regulation and fulfilment of the obligations arising
                    therefrom. The report shall also cover the use of trade defence instruments by
                    third countries targeting the Union and appeals against the measures imposed.
                    It shall include the activities of the Hearing Officer of the Commission's
                    Directorate General for Trade and those of the SME Helpdesk in relation to the
                    application of this Regulation.
5700/18                                                                    DD/sr                    36
                                                DGC 1A                                            EN
 ---pagebreak---                      The Report shall also include how social and environmental standards have
                     been considered and taken into account in the investigations. Such standards
                     shall cover those embodied in multilateral environmental agreements to which
                     the Union is party and in ILO Conventions listed in Annex Ia to this
                     Regulation, as well as equivalent national legislation of the exporting country.';
        (b)    the following paragraph is added:
               '4.   By … [five years from the date of entry into force of this amending
                     Regulation] and every five years thereafter, the Commission shall submit, to
                     the European Parliament and to the Council, a review of the application of
                     Articles 7(2a), 8(1) and 9(4), including an evaluation of that application. Such
                     a review may, where appropriate, be accompanied by a legislative proposal.'.
(15)    the following Article is inserted:
        'Article 23a
        Exercise of the delegation
        1.     The power to adopt delegated acts is conferred on the Commission subject to the
               conditions laid down in this Article.
5700/18                                                                   DD/sr                     37
                                               DGC 1A                                             EN
 ---pagebreak---         2. The power to adopt delegated acts referred to in Article 7(1) shall be conferred on the
           Commission for a period of two years from …[the date of entry into force of this
           amending Regulation] and it can be exercised only once.
           The power to adopt delegated acts referred to in Article 7(2a) shall be conferred on
           the Commission for a period of five years from …[the date of entry into force of this
           amending Regulation]. The Commission shall draw up a report in respect of the
           delegation of power not later than nine months before the end of the five-year period.
           The delegation of power shall be tacitly extended for a period of an identical
           duration, unless the European Parliament or the Council opposes such extension not
           later than three months before the end of each period.
        3. The delegation of power referred to in Article 7(1) and (2a) may be revoked at any
           time by the European Parliament or by the Council. A decision to revoke shall put an
           end to the delegation of the power specified in that decision. It shall take effect the
           day following the publication of the decision in the Official Journal of the European
           Union or at a later date specified therein. It shall not affect the validity of any
           delegated acts already in force.
        4. Before adopting a delegated act, the Commission shall consult experts designated by
           each Member State in accordance with the principles laid down in the
           Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
5700/18                                                                  DD/sr                     38
                                            DGC 1A                                              EN
 ---pagebreak---         5.    As soon as it adopts a delegated act, the Commission shall notify it simultaneously to
              the European Parliament and to the Council.
        6.    Delegated acts adopted pursuant to Article 7(1) and (2a) shall enter into force only if
              no objection has been expressed either by the European Parliament or by the Council
              within a period of two months of notification of that act to the European Parliament
              and to the Council or if, before the expiry of that period, the European Parliament
              and the Council have both informed the Commission that they will not object. That
              period shall be extended by two months at the initiative of the European Parliament
              or of the Council.'.
                                              Article 2
Regulation (EU) 2016/1037 is amended as follows:
(1)     in Article 9(1), the introductory wording is replaced by the following:
        '1.   For the purposes of this Regulation, the term "Union industry" shall be interpreted as
              referring to the Union producers as a whole of the like products or to those of them
              whose collective output of the products constitutes a major proportion of the total
              Union production of those products, except that:'.
5700/18                                                                    DD/sr                   39
                                               DGC 1A                                           EN
 ---pagebreak--- (2)     Article 10 is amended as follows:
        (a)   in paragraph 1, a subparagraph is inserted after the first subparagraph as follows:
              'Complaints may also be submitted jointly by the Union industry, or by any natural
              or legal person or any association not having legal personality acting on behalf
              thereof, and trade unions, or be supported by trade unions. This does not affect the
              possibility for the Union industry to withdraw the complaint.';
        (b)   the following paragraph is inserted:
              '1a. The Commission shall facilitate access to the trade defence instrument for
                    diverse and fragmented industry sectors, largely composed of small and
                    medium-sized enterprises (SME) through a dedicated SME Helpdesk, for
                    example by awareness raising, by providing general information and
                    explanations on procedures and on how to submit a complaint, by releasing
                    standard questionnaires in all official languages of the Union and by replying
                    to general, non-case-specific queries.
                    The SME Helpdesk shall make available standard forms for statistics to be
                    submitted for standing purposes and questionnaires.'.
5700/18                                                                    DD/sr                   40
                                              DGC 1A                                            EN
 ---pagebreak--- (3)     Article 11 is amended as follows:
        (a)   in paragraph 7, the first subparagraph is replaced by the following:
              '7.   The Union producers, the government of the country of origin and/or export,
                    trade unions, importers and exporters and their representative associations,
                    users and consumer organisations, which have made themselves known in
                    accordance with the second subparagraph of Article 10(12), may, upon written
                    request, inspect all information made available to the Commission by any party
                    to an investigation, as distinct from internal documents prepared by the
                    authorities of the Union or its Member States, which is relevant to the
                    presentation of their cases and is not confidential within the meaning of
                    Article 29, and is used in the investigation.';
        (b)   paragraph 9 is replaced by the following:
              '9.   For proceedings initiated pursuant to Article 10(11), an investigation shall,
                    whenever possible, be concluded within one year. In any event, such
                    investigations shall in all cases be concluded within 13 months of their
                    initiation, in accordance with the findings made pursuant to Article 13 for
                    undertakings or the findings made pursuant to Article 15 for definitive action.
                    Investigation periods shall, whenever possible, especially in the case of diverse
                    and fragmented sectors largely composed of SMEs, coincide with the financial
                    year.';
5700/18                                                                   DD/sr                    41
                                                DGC 1A                                           EN
 ---pagebreak---         (c)   the following paragraphs are added:
              '11. Union producers of the like product are requested to cooperate with the
                    Commission in investigations that have been initiated pursuant to Article 10(8).
              12.   The Commission shall have in place the office of the Hearing Officer whose
                    powers and responsibilities are set out in a mandate adopted by the
                    Commission and who shall safeguard the effective exercise of the procedural
                    rights of the interested parties;'.
(4)     Article 12 is amended as follows:
        (a)   paragraph 1 is replaced by the following:
              '1.   Provisional duties may be imposed if:
                    (a)   proceedings have been initiated in accordance with Article 10;
                    (b)   a notice has been given to that effect and interested parties have been
                          given an adequate opportunity to submit information and make
                          comments in accordance with the second subparagraph of Article 10(12);
                    (c)   a provisional affirmative determination has been made that the imported
                          product benefits from countervailable subsidies and consequent injury to
                          the Union industry; and
5700/18                                                                   DD/sr                   42
                                               DGC 1A                                            EN
 ---pagebreak---         (d)    the Union interest calls for intervention to prevent such injury.
        The provisional duties shall be imposed no earlier than 60 days from the
        initiation of the proceedings but no later than nine months from the initiation of
        the proceedings.
        The amount of the provisional countervailing duty shall correspond to the total
        amount of countervailable subsidies as provisionally established.
        Where the Commission, on the basis of all the information submitted, can
        clearly conclude provisionally that it is not in the Union's interest to impose the
        provisional duty at that amount, the provisional countervailing duty shall be the
        amount adequate to remove the injury to the Union industry, if this is lower
        than the total amount of countervailable subsidies.
        Provisional duties shall not be imposed within a period of three weeks after the
        information is sent to interested parties under Article 29a (period of
        pre-disclosure). The provision of such information shall not prejudice any
        subsequent related decision that may be taken by the Commission.
5700/18                                                        DD/sr                     43
                                   DGC 1A                                             EN
 ---pagebreak---         The Commission shall review by ... [two years from the date of entry into force
        of this amending Regulation], whether a substantial rise in imports has
        occurred during the period of pre-disclosure and whether, if such rise has
        occurred, it has caused additional injury to the Union industry, despite the
        measures that the Commission might have taken based on Article 24(5a) and
        Article 15(1). It shall rely in particular on data collected on the basis of
        Article 24(6) and any relevant information at its disposal. The Commission
        shall adopt a delegated act in accordance with Article 32b to amend the
        duration of the period of pre-disclosure to two weeks in the case of a
        substantial rise of imports that have caused additional injury and to four weeks
        where this is not the case.
        The Commission shall make public on its website its intention to impose
        provisional duties, including information on the possible duty rates, at the same
        time when it provides interested parties with the information pursuant to
        Article 29a.';
5700/18                                                         DD/sr                  44
                                    DGC 1A                                           EN
 ---pagebreak---         (b) the following paragraphs are inserted:
            '1a. When the injury margin is calculated on the basis of a target price, the target
                  profit used shall be established taking into account factors such as the level of
                  profitability before the increase of imports from the country under
                  investigation, the level of profitability needed to cover full costs and
                  investments, research and development (R&D) and innovation, and the level of
                  profitability to be expected under normal conditions of competition. Such
                  profit margin shall not be lower than 6 %.
            1b.   When establishing the target price, the actual cost of production of the Union
                  industry, which results from multilateral environmental agreements, and
                  protocols thereunder, to which the Union is a party, or from International
                  Labour Organisation (ILO) Conventions listed in Annex Ia to this Regulation,
                  shall be duly reflected. Moreover, future costs, which are not covered in
                  paragraph 1a of this Article, which result from those agreements and
                  conventions, and which the Union industry will incur during the period of the
                  application of the measure pursuant to Article 18(1), shall be taken into
                  account.'.
5700/18                                                                  DD/sr                    45
                                             DGC 1A                                            EN
 ---pagebreak--- (5)     Article 13 is amended as follows:
        (a)   paragraph 1 is replaced by the following:
              '1.   Where a provisional affirmative determination of subsidisation and injury has
                    been made, the Commission may, in accordance with the advisory procedure
                    referred to in Article 25(2), accept satisfactory voluntary undertakings offers
                    under which:
                    (a)   the country of origin and/or export agrees to eliminate or limit the
                          subsidy or take other measures concerning its effects; or
                    (b)   any exporter undertakes to revise its prices or to cease exports to the area
                          in question as long as such exports benefit from countervailable
                          subsidies, if the injurious effect of the subsidies is thereby eliminated.
                    In such a case and as long as such undertakings are in force, provisional duties
                    imposed by the Commission in accordance with Article 12(3), or definitive
                    duties imposed in accordance with Article 15(1), as the case may be, shall not
                    apply to the relevant imports of the product concerned manufactured by the
                    companies referred to in the Commission decision accepting undertakings, as
                    subsequently amended.
5700/18                                                                    DD/sr                     46
                                                DGC 1A                                             EN
 ---pagebreak---                   Price increases under such undertakings shall not be higher than necessary to
                  offset the amount of countervailable subsidies.
                  Where the Commission, on the basis of all the information submitted, can
                  clearly conclude provisionally that it is not in the Union's interest to determine
                  the price increase under such undertakings, in accordance with the third
                  subparagraph of paragraph 1 of this Article, the increase under such
                  undertakings shall be less than the amount of countervailable subsidies if such
                  increase would be adequate to remove the injury to the Union industry.';
        (b) in paragraph 2, the third subparagraph is replaced by the following:
            'Save in exceptional circumstances, undertakings may not be offered later than five
            days prior to the end of the period during which representations may be made
            pursuant to Article 30(5), so as to ensure the opportunity to comment for other
            parties.';
5700/18                                                                 DD/sr                      47
                                             DGC 1A                                              EN
 ---pagebreak---         (c) paragraphs 3 and 4 are replaced by the following:
            '3.  Undertakings offered need not be accepted if their acceptance is considered
                 impractical, such as where the number of actual or potential exporters is too
                 great, or for other reasons, including reasons of general policy which comprise
                 in particular the principles and obligations set out in multilateral environmental
                 agreements and protocols thereunder, to which the Union is a party, and of
                 ILO Conventions listed in Annex Ia to this Regulation. The exporter and/or the
                 country of origin and/or export concerned may be provided with the reasons for
                 which it is proposed to reject the offer of an undertaking and may be given an
                 opportunity to make comments thereon. The reasons for rejection shall be set
                 out in the definitive decision.
            4.   Parties which offer an undertaking shall be required to provide a
                 non-confidential version of such undertaking that is meaningful in the sense of
                 Article 29, so that it may be made available to interested parties to the
                 investigation, to the European Parliament and to the Council.
                 Furthermore, before accepting any such offer, the Union industry shall be
                 given an opportunity to comment with regard to the main features of the
                 undertaking.'.
5700/18                                                                 DD/sr                    48
                                            DGC 1A                                            EN
 ---pagebreak--- (6)     in Article 14, paragraph 5 is replaced by the following:
        '5.    The amount of the countervailable subsidies shall be considered to be de minimis if
               such amount is less than 1 % ad valorem. However, as regards investigations
               concerning imports from developing countries, the de minimis threshold shall be 2 %
               ad valorem.'.
(7)     in Article 15(1), the third subparagraph is replaced by the following:
        'The amount of the countervailing duty shall not exceed the amount of countervailable
        subsidies established.
        Where the Commission, on the basis of all the information submitted, can clearly conclude
        that it is not in the Union's interest to determine the amount of measures in accordance with
        the third subparagraph, the amount of the countervailing duty shall be less if such lesser
        duty would be adequate to remove the injury to the Union industry.
        Where the Commission has not registered imports, but where the Commission finds, based
        on an analysis of all relevant information at its disposal when adopting definitive measures,
        that a further substantial rise in imports subject to the investigation occurs during the
        period of pre-disclosure, the Commission shall reflect the additional injury resulting from
        such increase in the determination of the injury margin for a period no longer than that
        referred to in Article 18(1).'.
5700/18                                                                     DD/sr                  49
                                                  DGC 1A                                          EN
 ---pagebreak--- (8)     in Article 18(1), the following subparagraph is added:
        'If, following an investigation pursuant to this Article, the measure expires, any duties
        collected from the date of the initiation of such investigation on goods that were
        customs-cleared shall be repaid provided that this is requested from national customs
        authorities and granted by those authorities in accordance with the applicable Union
        customs legislation concerning repayment and remission of duty. Such repayment shall not
        give rise to the payment of interest by the national customs authorities concerned.'.
(9)     Article 23 is amended as follows:
        (a)     in paragraph 4, the first subparagraph is replaced by the following:
                '4.   Investigations shall be initiated pursuant to this Article on the initiative of the
                      Commission or at the request of a Member State or any interested party on the
                      basis of sufficient evidence regarding the factors set out in paragraphs 1, 2
                      and 3 of this Article. Initiations shall be made by means of a Commission
                      regulation which shall also instruct customs authorities to subject imports to
                      registration in accordance with Article 24(5) or to request guarantees. The
                      Commission shall provide information to the Member States once an interested
                      party or a Member State has submitted a request justifying the initiation of an
                      investigation and the Commission has completed its analysis thereof, or where
                      the Commission has itself determined that there is a need to initiate an
                      investigation.';
5700/18                                                                      DD/sr                       50
                                                  DGC 1A                                              EN
 ---pagebreak---         (b)   in paragraph 6, the second and third subparagraphs are replaced by the following:
              'Where the circumventing practice, process or work takes place outside the Union,
              exemptions may be granted to producers of the product concerned that are found not
              to be engaged in circumvention practices as defined in paragraph 3.
              Where the circumventing practice, process or work takes place inside the Union,
              exemptions may be granted to importers that can show that they are not engaged in
              circumvention practices as defined in paragraph 3.'.
(10)    Article 24 is amended as follows:
        (a)   paragraph 3 is replaced by the following:
              '3.   Special provisions, in particular with regard to the common definition of the
                    concept of origin, as contained in Regulation (EU) No 952/2013 of the
                    European Parliament and of the Council*, and with regard to the application
                    and collection of a countervailing duty in the continental shelf of a
                    Member State or the exclusive economic zone declared by a Member State
                    pursuant to the United Nations Convention on the Law of the Sea (UNCLOS),
                    may be adopted pursuant to this Regulation.
              ________________
              *
                    Regulation (EU) No 952/2013 of the European Parliament and of the Council
                    of 9 October 2013 laying down the Union Customs Code (OJ L 269,
                    10.10.2013, p. 1).';
5700/18                                                                   DD/sr                   51
                                              DGC 1A                                            EN
 ---pagebreak---         (b) paragraph 5 is replaced by the following:
            '5.   As of the initiation of the investigation and having informed Member States in
                  due time, the Commission may direct the customs authorities to take the
                  appropriate steps to register imports, so that measures may subsequently be
                  applied against those imports from the date of such registration. Imports shall
                  be made subject to registration following a request, from the Union industry,
                  which contains sufficient evidence to justify such action. Imports may also be
                  made subject to registration on the Commission's own initiative. Registration
                  shall be introduced by Commission regulation. Such regulation shall specify
                  the purpose of the action and, if appropriate, the estimated amount of possible
                  future liability. Imports shall not be made subject to registration for a period
                  longer than nine months.';
        (c) the following paragraph is inserted:
            '5a. The Commission shall, unless it has sufficient evidence within the meaning of
                  Article 10 that the requirements either under point (c) or (d) of Article 16(4)
                  are not met, register imports pursuant to paragraph 5 of this Article during the
                  period of pre-disclosure pursuant to Article 29a. When deciding on registration,
                  the Commission shall in particular analyse the information collected based on
                  the creation of Integrated Tariff of the European Union (TARIC) codes for the
                  product under investigation pursuant to paragraph 6 of this Article.';
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                                             DGC 1A                                              EN
 ---pagebreak---         (d) paragraph 6 is replaced by the following:
            '6.   Member States shall report to the Commission every month on the import trade
                  in products subject to investigation and to measures, and on the amount of
                  duties collected pursuant to this Regulation. When initiating an investigation
                  pursuant to Article 10, the Commission shall create TARIC codes
                  corresponding to the product under investigation. Member States shall use
                  those TARIC codes in order to report on imports of the product under
                  investigation as of the initiation of the investigation. The Commission may,
                  upon receiving a specific reasoned request from an interested party, decide to
                  provide them with a non-confidential summary of the information on
                  aggregated import volumes and values of the products concerned.';
        (e) the following paragraph is added:
            '8.   Whenever the Commission intends to adopt any document providing general
                  guidance to possible interested parties on the application of this Regulation, a
                  public consultation in line with Article 11(3) TEU shall be carried out. The
                  European Parliament and the Council may also express their views.'.
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                                             DGC 1A                                            EN
 ---pagebreak--- (11)    the following Article is inserted:
        'Article 24a
        Continental shelf of a Member State or exclusive economic zone
        1.     A countervailing duty may also be imposed on any subsidised product brought in
               significant quantities to an artificial island, a fixed or floating installation or any
               other structure in the continental shelf of a Member State or the exclusive economic
               zone declared by a Member State pursuant to UNCLOS, where this would cause
               injury to the Union industry. The Commission shall adopt implementing acts laying
               down the conditions for the incurrence of such duties, as well as the procedures
               relating to the notification and declaration of such products and the payment of the
               such duties, including recovery, repayment and remission (customs tool). Those
               implementing acts shall be adopted in accordance with the examination procedure
               referred to in Article 25(3).
        2.     The Commission shall only impose duties as referred to in paragraph 1 as of the date
               the customs tool referred to in paragraph 1 is operational. The Commission shall
               inform all economic operators that the customs tool is operational by separate
               publication in the Official Journal of the European Union.'.
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                                                 DGC 1A                                                EN
 ---pagebreak--- (12)    in Article 27, paragraphs 1 and 2 are replaced by the following:
        '1.   In cases where the number of Union producers, exporters or importers, types of
              product or transactions is large, the investigation may be limited to a reasonable
              number of parties, products or transactions by using samples which are statistically
              valid, on the basis of information available at the time of the selection, or to the
              largest representative volume of production, sales or exports which can reasonably
              be investigated within the time available.
        2.    The final selection of parties, types of products or transactions made under those
              sampling provisions shall rest with the Commission. However, in order to enable the
              selection of a representative sample preference shall be given to choosing a sample in
              consultation with, and with the consent of, the parties concerned, provided that such
              parties make themselves known and make sufficient information available, within
              one week of initiation of the investigation.'.
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                                                DGC 1A                                             EN
 ---pagebreak--- (13)    the following Article is inserted:
        'Article 29a
        Information at provisional stage
        1.     Union producers, importers and exporters and their representative associations, and
               the country of origin and/or export, may request information on the planned
               imposition of provisional duties. Requests for such information shall be made in
               writing within the time limit prescribed in the notice of initiation. Such information
               shall be provided to those parties three weeks before the imposition of provisional
               duties. Such information shall include: a summary of the proposed duties for
               information purposes only, and details of the calculation of the amount of the
               countervailable subsidy and the margin adequate to remove the injury to the Union
               industry, due account being taken of the need to respect the confidentiality
               obligations contained in Article 29. Parties shall have a period of three working days
               from the supply of such information to provide comments on the accuracy of the
               calculations.
        2.     In cases where it is intended not to impose provisional duties but to continue the
               investigation, interested parties shall be informed of the non-imposition of duties
               three weeks before the expiry of the deadline mentioned in Article 12(1) for the
               imposition of provisional duties.'.
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                                                DGC 1A                                            EN
 ---pagebreak--- (14)    Article 31 is amended as follows:
        (a)   paragraph 2 is replaced by the following:
              '2.   In order to provide a sound basis on which the Commission can take account of
                    all views and information in the decision as to whether or not the imposition of
                    measures is in the Union's interest, the Union producers, trade unions,
                    importers and their representative associations, representative users and
                    representative consumer organisations may, within the time-limits specified in
                    the notice of initiation of the countervailing duty proceedings, make
                    themselves known, and provide information, to the Commission. Such
                    information, or appropriate summaries thereof, shall be made available to the
                    other parties specified in this Article, and they shall be entitled to respond to
                    such information.';
        (b)   paragraph 4 is replaced by the following:
              '4.   The parties which have acted in accordance with paragraph 2 may provide
                    comments on the application of any provisional duties. Such comments shall be
                    received within 15 days of the date of application of such measures if they are
                    to be taken into account and they, or appropriate summaries thereof, shall be
                    made available to other parties who shall be entitled to respond to such
                    comments.'.
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                                                DGC 1A                                             EN
 ---pagebreak--- (15)    the following Articles are inserted:
        'Article 32a
        Report
        1.     The Commission shall, with due regard to the protection of confidential information
               within the meaning of Article 29, present an annual report on the application and
               implementation of this Regulation to the European Parliament and to the Council.
               That report shall include information about the application of provisional and
               definitive measures, the termination of investigations without measures,
               undertakings, reinvestigations, reviews, significant distortions and verification visits,
               and the activities of the various bodies responsible for monitoring the
               implementation of this Regulation and fulfilment of the obligations arising
               therefrom. The report shall also cover the use of trade defence instruments by third
               countries targeting the Union and appeals against the measures imposed. It shall
               include the activities of the Hearing Officer of the Commission's Directorate General
               for Trade and those of the SME Helpdesk in relation to the application of this
               Regulation.
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                                                DGC 1A                                            EN
 ---pagebreak---               The Report shall also include how social and environmental standards have been
              considered and taken into account in the investigations. Such standards shall cover
              those embodied in multilateral environmental agreements to which the Union is party
              and in ILO Conventions listed in Annex Ia to this Regulation, as well as equivalent
              national legislation of the exporting country.
        2.    By …[five years from the date of entry into force of this amending Regulation] and
              every five years thereafter, the Commission shall submit, to the European Parliament
              and to the Council, a review of the application of the third and fourth subparagraphs
              of Article 12(1), the third and fourth subparagraphs of Article 13(1), and of the third
              and fourth subparagraphs of Article 15(1), including an evaluation of this
              application. Such a review may, where appropriate, be accompanied by a legislative
              proposal.
        Article 32b
        Exercise of the delegation
        1.    The power to adopt delegated acts is conferred on the Commission subject to the
              conditions laid down in this Article.
        2.    The power to adopt delegated acts referred to in Article 12(1) shall be conferred on
              the Commission for period of two years from …[the date of entry into force of this
              amending Regulation] and it can be exercised only once.
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                                               DGC 1A                                            EN
 ---pagebreak---         3. The delegation of power referred to in Article 12(1) may be revoked at any time by
           the European Parliament or by the Council. A decision to revoke shall put an end to
           the delegation of the power specified in that decision. It shall take effect the day
           following the publication of the decision in the Official Journal of the European
           Union or at a later date specified therein. It shall not affect the validity of any
           delegated acts already in force.
        4. Before adopting a delegated act, the Commission shall consult experts designated by
           each Member State in accordance with the principles laid down in the
           Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
        5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to
           the European Parliament and to the Council.
        6. A delegated act adopted pursuant to Article 12(1) shall enter into force only if no
           objection has been expressed either by the European Parliament or by the Council
           within a period of two months of notification of that act to the European Parliament
           and to the Council or if, before the expiry of that period, the European Parliament
           and the Council have both informed the Commission that they will not object. That
           period shall be extended by two months at the initiative of the European Parliament
           or of the Council.'.
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                                            DGC 1A                                              EN
 ---pagebreak---                                                Article 3
The Annex to this Regulation shall be added as Annex Ia to Regulation (EU) 2016/1036 and to
Regulation (EU) 2016/1037.
                                               Article 4
This Regulation shall enter into force on the day following that of its publication in the Official
Journal of the European Union.
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                                               DGC 1A                                               EN
 ---pagebreak---                                                 Article 5
This Regulation shall apply to all investigations for which the notice of initiation pursuant to
Article 5(9) of Regulation (EU) 2016/1036 or Article 10 (11) of Regulation (EU) 2016/1037 has
been published in the Official Journal of the European Union after the date of entry into force of
this Regulation.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament                                  For the Council
The President                                                The President
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                                                DGC 1A                                           EN
 ---pagebreak---                                             ANNEX
                                          'ANNEX Ia
                ILO CONVENTIONS REFERRED TO IN THIS REGULATION
1.      Convention concerning Forced or Compulsory Labour, No 29 (1930)
2.      Convention concerning Freedom of Association and Protection of the Right to Organise,
        No 87 (1948)
3.      Convention concerning the Application of the Principles of the Right to Organise and to
        Bargain Collectively, No 98 (1949)
4.      Convention concerning Equal Remuneration of Men and Women Workers for Work of
        Equal Value, No 100 (1951)
5.      Convention concerning the Abolition of Forced Labour, No 105 (1957)
6.      Convention concerning Discrimination in Respect of Employment and Occupation,
        No 111 (1958)
7.      Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
8.      Convention concerning the Prohibition and Immediate Action for the Elimination of the
        Worst Forms of Child Labour, No 182 (1999)'
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ANNEX                                       DGC 1A                                           EN