Community provisions that are
applicable to imports affected
by subsidies are Decisions 457,
when the imports affected by
dumping are native to an Andean
Community Member Country and
283, when those products
originated in a third country
and affect the products exported
from one Member Country to
another, or when two or more
Member Countries are affected by
subsidies and the product is
subject to the Common External
Tariff.
A
subsidy exists if the recipient
is benefited by a direct
government or public transfer of
funds, tax remission or failure
to collect public taxes,
furnishing of goods or services
that are not a part of the
general infrastructure, or
procurement of goods at a cost
higher than the market price, or
the existence of some sort of
income or price support.
The subsidy must also be "specific"
–in other words, it must favor a
given company, industry, or
group of enterprises or
industries above others.
The amount of the subsidy must
be determined by quantifying the
net benefit obtained per unit of
measurement of a product, that
is to say, by deducting the
expenses incurred in order to
enjoy the subsidy.
Another condition that must be
met in the case of imports
affected by subsidies is that
the national production of the
affected Member Country that is
intended for the domestic market
or for export, as the case may
be, must be seriously harmed or
in danger of serious harm
because of the subsidy.
The investigation period is six
months, which can be extended
for a further two months, in the
case of complaints made under
Decision 457 and four months,
which can be extended for a
further two months, in the case
of complaints made pursuant to
Decision 283.
The measure to be taken in the
case of subsidies is the
application of so-called "compensatory
measures" to all of the products
imported from the exporting
country that engages in that
practice.