INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [62 STAT. graph would not require, for example, the repeal of existing national legislation authorizing local governments to impose internal taxes which, although technically inconsistent with the letter of article III are not in fact inconsistent with its spirit, if such repeal would result in a serious financial hardship for the local governments or authorities concerned. With regard to taxation by local governments or author- ities which is inconsistent with both the letter and spirit of article III, the term 'reasonable measures' would permit a contracting party to eliminate the inconsistent taxation gradually over a transition period, if abrupt action would create serious administrative and financial difficulties. "Paragraph2 "A tax conforming to the requirements of the first sentence of para- Ate, p. 3680 . graph 2 would be considered to be inconsistent with the provisions of the second sentence only in cases where competition was involved between, on the one hand, the taxed product and on the other hand, a directly competitive or substitutable product which was not similarly taxed. "Paragraph6 "Regulations consistent with the provisions of the first sentence of Anke, p. 381. paragraph 5 shall not be considered to be contrary to the provisions of the second sentence in any case in which all of the products sub- ject to the regulations are produced domestically in substantial quan- tities. A regulation cannot be justified as being consistent with the provisions of the second sentence on the ground that the proportion or amount allocated to each of the products which are the subject of the regulation constitutes an equitable relationship between imported and domestic products." 618tat., Pt.5,p.A86. (ii) The texts of the interpretative notes to article VI in Annex I shall read: "AD ARTICLE VI "Paragraph1 AWe,p.s 2. "Hidden dumping by associated houses (that is, the sale by an importer at a price below that corresponding to the price invoiced by an exporter with whom the importer is associated, and also below the price in the exporting country) constitutes a form of price dumping with respect to which the margin of dumping may be calculated on the basis of the price at which the goods are resold by the importer. "Paragraphs2 and 3 "Note 1 An, p. 3682. "As in many other cases in customs administration, a contracting party may require reasonable security (bond or cash deposit) for the payment of anti-dumping or countervailing duty pending final deter- mination of the facts in any case of suspected dumping or subsidization. "Note 2 "Multiple currency practices can in certain circumstances consti- tute a subsidy to exports which may be met by countervailing duties 3690
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