EEC - Regulation on Imports of Parts and Components
EEC Parts and Components (Source: GATT Analytical Index)
EEC - Council Regulation 1761/87 of 22 June 1987
Products at Issue
|Products at issue||
Assembled products / electronic products (electronic typewriters and electronic scales)
|Type of product||
Machinery; electrical and electronic equipment
Key legal aspects
|Chairperson||Joseph A. Greenwald (United States)|
|Other members||Christopher Thomas (Canada), Timothy Groser (New Zealand)|
|Legal basis at issue||
|Claims at issue||
|Defences at issue||
|No of Pages (total / legal reasoning)||77|
|Request for consultations|
|Request for conciliation|
|Request for establishment|
|Adoption of report|
|Outcome of the proceedings||
|Additional Info||C/M/207 (30/03/1987) Minutes of Council Meeting (04/03/1988) European Economic Community - Proposed amendment to anti-dumping regulations. Under "Other Business" on EC proposed amendment of anti-dumping regulations to be automatically applied to parts and components.
C/M/220 (08/06/1988) Minutes of Council Meeting (04/05/1988) European Economic Community - Amendment to anti-dumping regulations. Under "Other Business" Japan expressed its concern on the adoption of the anti-dumping regulation against local production using imported parts of 22/06/1987 (ADP/1/Add.1/Suppl.5). Under that regulation, the EEC decided on 18/04/1988 to impose anti-dumping duties, and Japan requested a special meeting of the Committee on Anti-Dumping Practices.
L/6381 (08/08/1988) Request for consultations under GATT Article XXIII:1 and AD Code Article 15:2 (29/07/1988) concerning Council Regulation 1761/87 of 22/06/1987
06/09/1988 Consultations held without a mutually agreeable solution.
L/6410 (07/10/1988) European Economic Community - Regulation on Imports of Parts and Components. Recourse to Consultations under GATT Article XXIII:1. Request for the establishment of a Panel (06/10/1988) Claims: contravention of GATT Articles I, II, III and VI by Council Regulation (EEC) No. 1761/87 of 22/06/1987, incorporated into Council Regulation (EEC) No. 2423/88 of 11/07/1988.
ADP/39 (10/10/1988) Request for Conciliation under SCM Article 15:3.
C/M/224 (17/10/1988) Minutes of Council Meeting (22/09/1988). European Economic Community - Regulation on imports of parts and components - Recourse to Article XXIII:1 by Japan. Council took note of consultations.
C/M/226 (02/11/1988) Minutes of Council Meeting (19-20/10/1988). European Economic Community - Regulation on imports of parts and components - Recourse to Article XXIII:2 by Japan. Claim: inconsistent with GATT Article VI; defense: GATT Article XX(d). The EC agreed to establishment of a Panel. The Council established a Panel. Japan reserved its rights to dispute settlement procedures under the AD Code.
C/165 (09/05/1989) European Economic Community - Regulation on imports of parts and components - Recourse to Article XXIII:2 by Japan. Note by the Chairman providing terms of reference and Panel composition.
L/6657 (02/03/1990) EEC - Regulation on Imports of Parts and Components - Report by the Panel: The Panel noted that the issues before it arose from a provision in the EEC anti-dumping regulation (Article 13:10 of Council Regulation No. 2423/88) intended to prevent the circumvention of anti-dumping duties on finished products through the importation of parts or materials for use in the assembly or production of like finished products within the EEC. The Panel found that the anti-circumvention duties were not levied "on or in connection with importation" within the meaning of Article II:1(b), and consequently did not constitute customs duties. The Panel also found that the anti-circumvention duties on the finished products subjected imported parts and materials indirectly to an internal charge in excess of that applied to like domestic products and were consequently contrary to Article III:2, first sentence.
The Panel did not examine the possible justification under Article VI, because the EEC had only defended the anti-circumvention duties under Article XX(d). The Panel found that Article XX(d) covered only measures related to the enforcement of obligations under laws or regulations consistent with the General Agreement and not more generally measures which prevented actions consistent with laws or regulations but undermined their objectives. The general anti-dumping Regulation of the EEC, as opposed to the individual regulations imposing definitive anti-dumping duties, did not establish obligations that required enforcement but a legal framework for the authorities of the EEC. The Panel could, therefore, not establish that the anti-circumvention duties "secure[d] compliance with" obligations under the EEC's anti-dumping regulations.
The Panel further concluded that the decisions of the EEC to suspend proceedings under Article 13:10 conditional on undertakings by enterprises in the EEC to limit the use of parts or materials originating in Japan in their assembly or production operations were inconsistent with Article III:4, and could likewise not be considered to "secure compliance with" the EEC's anti-dumping regulations. Finally, the Panel found that the mere existence of the anti-circumvention provision in the EEC's anti-dumping Regulation was not inconsistent with the EEC's obligations under the General Agreement and, although it would, from the perspective of the overall objectives of the General Agreement, be desirable if the EEC were to withdraw the anti-circumvention provision, the EEC would meet its obligations if it were to cease to apply the provision in respect of contracting parties.
L/6657 (22/03/1990) EEC - Regulation on Imports of Parts and Components. Report by the Panel.
C/M/240 (04/05/1990) Minutes of Council Meeting (03/04/1990) EEC did not agree to the adoption of the Panel report; Council to revert to it in the next meeting.
C/M/241 (08/06/1990) Minutes of Council Meeting (16/05/1990) Panel adopted and report derestricted.
L/6676 EEC Comments on the Panel Report on EEC - Regulation on Imports of Parts and Components (L/6489 CP April 1989 Decision on Improvements to the GATT dispute settlement rules and procedures, Section G.2: objections to Panel report to be provided in writing.)
Note: The Report by the Panel (L/6657) was not published at the time but its contents were discussed in the Council and then it was reported. It was also covered in the GATT newsletter "Focus".
There was an inconclusive discussion at the Committee meeting of 24, 25 and 27 October 1988 (cf. ADP/M/24, document date: 9 Jan 1989) on the appropriateness of Japan's conciliation request (ADP/39) and having two parallel dispute settlement proceedings on the same matter.