Regulation (EU) 2016/1037 of the European Parliament and of the CouncilDangos y teitl llawn

Article 3 U.K. Definition of a subsidy

A subsidy shall be deemed to exist if:

1.

(a)

there is a financial contribution by a government in the country of origin or export, that is to say, where:

(i)

a government practice involves a direct transfer of funds (for example, grants, loans, equity infusion), potential direct transfers of funds or liabilities (for example, loan guarantees);

(ii)

government revenue that is otherwise due is forgone or not collected (for example, fiscal incentives such as tax credits). In this regard, the exemption of an exported product from duties or taxes borne by the like product when destined for domestic consumption, or the remission of such duties or taxes in amounts not in excess of those which have been accrued, shall not be deemed to be a subsidy, provided that such an exemption is granted in accordance with the provisions of Annexes I, II and III;

(iii)

a government provides goods or services other than general infrastructure, or purchases goods;

(iv)

a government:

• makes payments to a funding mechanism, or

• entrusts or directs a private body to carry out one or more of the type of functions illustrated in points (i), (ii) and (iii) which would normally be vested in the government, and the practice, in no real sense, differs from practices normally followed by governments;

or

(b)

there is any form of income or price support within the meaning of Article XVI of the GATT 1994; and

2.

a benefit is thereby conferred.