WORLD TRADE
ORGANIZATIONG/ADP/Q1/EEC/22/Corr.1 *
G/SCM/Q1/EEC/22/Corr.1
12 September 2003
(03-4765)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Replies to the Questions Posed by the UNITED STATES1
Regarding the Notification of the EUROPEAN COMMUNITIES2
Corrigendum
Please note the following amendment in bold type  face to the reply to question 2 on the
second page of the document.
Q2. What type of "non-commercial processing arrangements" does the EC believe would
give rise to a "particular market situation"  pursuant to Article 1.2 of the Regulation?
Reply
Again, the lack of practical experience in this field makes it difficult to give comprehensive
guidance in this respect.  In the light of this pr oviso, the EC would like to clarify that a simple
processing arrangement which implies an arm's length remuneration of the processor would certainly
not fall under this term.  However, if there are indications that the remuneration is not sufficient to
cover the full costs of the processing and/or if there are reasons to believe that other than purelycommercial considerations might have had an impact on the terms of the agreement , this might point
to the existence of a particular market situation .  It is expected that this provision will mostly be
relevant for non-commercial processing arrangements  concerning the product in question but it could
potentially also cover such arrangements relating to upstream products.
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*  In English only
1 G/ADP/Q1/EEC/21-G/SCM/Q1/EEC/21
2 G/ADP/N/1/EEC/2/Suppl.3