19.10.2002 Official Journal of the European Communities L 281/15 COMMISSION COMMISSION DECISION of 8 October 2002 under the provisions of Council Regulation (EC) No 3286/94 concerning trade practices maintained by Korea affecting trade in commercial vessels (notified under document number C(2002) 3652) (2002/818/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community's rights under international trade rules, in particular those established under the auspices of the World Trade Organisation (), as amended by Regulation (EC) No 356/95 (3, and in particular Articles 13 and 14 thereof, After consulting the Advisory Committee, Whereas: A. PROCEDURE (1)  On 24 October 2000 the Commission received a complaint pursuant to Article 3 and Article 4 of Council Regulation (EC) No 3286/94 (hereafter the ‘Regulation’). The complaint was lodged by the Committee of European Union Shipbuilders Associations (CESA). (2)  The complaint concerned certain alleged Korean trade practices which adversely affect Community sales of commercial vessels ?). In particular, the complaint contained information on adverse trade effects and injury suffered by Community shipbuilders resulting from subsidies granted to, or otherwise benefiting, Korean shipbuilding companies by the Republic of Korea in violation of Articles 3 and 5 of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agree- () OJ L 349, 31.12.1994, p. 71. () OJ L 41, 23.2.1995, p. 3. () The affected products are commercial vessels for international commerce, including, more specifically: bulk carriers, container ships, oil tankers, product and c]iuemical tankers, liquified natural gas carriers, passenger and rofro ferries, other non-cargo vessels (including offshore units) and cruise ships. () O] C, 345 of 2.12.2000. ment). On that basis, the complainant asked the Commission to take the necessary action. The complaint contained sufficient evidence to justify the initiation of a Community examination procedure pursuant to Article 8 of the Regulation. Consequently, the Commission initiated the procedure after consulting with the Member States in the framework of the Advi- sory Committee, on 2 December 2000 (*). Following the initiation of the examination procedure the Commission carried out an investigation, which has led to the conclusions indicated below. B. FINDINGS REGARDING THE EXISTENCE OF AN OBSTACLE TO TRADE The investigation was directed against subsidies allegedly granted by the Government of the Republic of Korea to its shipbuilding industry that benefited production between 1997 and 2000 and will benefit future produc- tion. Alleged Korean subsidies have included, export contingent financing, debt forgiveness, debt-for-equity- swaps, interest relief and special tax concessions in the context of preferential restructuring packages provided in order to save various shipbuilding enterprises from imminent financial collapse. The Korean shipbuilding enterprises claimed to have benefited from Korean Government subsidies included Samho Heavy Industries, Daedong Shipbuilding Co., Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries, Hyundai Mipo, Samsung Heavy Indus- tries and Hanjin Heavy Industries & Construction Co.