Where no designation fee is validly paid by expiry of the period specified in Rule 39(1), the application is deemed to be withdrawn.
Rule 39(3), old version
If no designation fees are paid on time leading to a deemed withdrawal of the application under Rule 39(3), old version, the EPO sends the applicant a communication according to Rule 112(1) notifying him of this loss of rights. In response to this communication, the applicant can request further processing according to Art. 121 and Rule 135 in respect of this total loss of rights (see E‑VIII, 2).
Where the application is deemed to have been withdrawn because of failure to pay the designation fees, the loss of rights ensues on expiry of the normal period under Rule 39(1). Similarly, the deemed withdrawal of a designation of a contracting state takes effect upon expiry of the normal period under Rule 39(1), and not upon expiry of the period for further processing (see G 4/98, mutatis mutandis). The applicant is notified of the loss of rights and can remedy it by requesting further processing according to the procedures explained in A‑III, 11.3.2.