Common use of Where it is alleged that a substitution drawback system conveys Clause in Contracts

Where it is alleged that a substitution drawback system conveys. a subsidy, the investigating authorities should first proceed to determine whether the government of the exporting Member has in place and applies a verification system or procedure. Where such a system or procedure is determined to be applied, the investigating authorities should then examine the verification procedures to see whether they are reasonable, effective for the purpose intended, and based on generally accepted commercial practices in the country of export. To the extent that the procedures are determined to meet this test and are effectively applied, no subsidy should be presumed to exist. It may be deemed necessary by the investigating authorities to carry out, in accordance with paragraph 6 of Article 12, certain practical tests in order to verify information or to satisfy themselves that the verification procedures are being effectively applied.

Where it is alleged that a substitution drawback system conveys. a subsidy, the investigating authorities should first proceed to determine whether the government of the exporting Member has in place and applies a verification system verificationsystem or procedure. Where such a system or procedure is determined to be applied, the investigating authorities theinvestigatingauthorities should then examine the verification procedures theverificationprocedures to see whether they are reasonable, effective for the purpose intended, and based on generally accepted commercial practices in the country of export. To the extent that the procedures are determined to meet this test and are effectively applied, no subsidy should be presumed to exist. It may be deemed necessary by the investigating authorities to carry out, in accordance with paragraph 6 of Article 12, certain practical tests in order to verify information or to satisfy themselves that the verification procedures are being effectively applied.