No supplementary European search performed 
As a rule a supplementary European search is carried out. Dispensation applies and no search fee is to be paid under Rule 159(1)(e) EPC only if the EPO acted as ISA or SISA for the application in the international phase.
If dispensation applies, it also applies where instead of an ISR a declaration of non-establishment under Article 17(2)(a) PCT was issued.
If no supplementary European search report is drawn up, the Euro-PCT application immediately falls within the competence of the examining division and will, after formalities examination, be passed on for substantive examination on condition that a request for examination has been validly filed (see points 5.10.001 ff).
Any third-party observations filed during the international phase and forwarded by the IB to the EPO as designated or elected Office will be considered in the first office action of the examining division, provided they are substantiated and meet all formal requirements. Provided they were not filed anonymously and the third party has explicitly so requested, the issuing of the first office action will be expedited. 

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