World Trade G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Organization 7
April 1995
(95-0857)
Original: English
Committee
on Anti-Dumping Practices
Committee on Subsidies and
Countervailing Measures
NOTIFICATION
OF LAWS AND REGULATIONS
UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
INDIA
The
following communication, dated 15 March 1995, has been received from the
Permanent Mission of India.
_______________
On
behalf of the Government of India, I have the honour to forward a copy of The
Customs Tariff (Amendment) Ordinance, 1994 and the Rules framed thereunder
bringing the Indian Laws on imposition of countervailing and anti-dumping
duties in conformity with the Agreement on Subsidies and Countervailing Measures
and the Agreement on Implementation of Article VI of the General Agreement
on Tariffs and Trade 1994.
Registered
No. DL-33004/94
The
Gazette of India
EXTRAORDINARY
PART
II - Section 1
PUBLISHED
BY AUTHORITY
_________________________________________________________________________________
No. 82 New Delhi, Saturday, 31 December 1994, Pausa
10, 1916
_________________________________________________________________________________
Separate
paging is given to this Part in order that it may be filed as a separate
compilation
_________________________________________________________________________________
MINISTRY
OF LAW, JUSTICE AND COMPANY AFFAIRS
(Legislative
Department)
New
Delhi, the 31st December 1994/Pausa 10, 1916 (Saka)
THE
CUSTOMS TARIFF (AMENDMENT) ORDINANCE 1994
No.
14 of 1994
Promulgated
by the President in the Forty-fifth Year of the
Republic
of India
An
Ordinance further to amend the Customs Tariff Act 1975
WHEREAS,
Parliament is not in session and the President is satisfied that circumstances
exist which render it necessary for him to take immediate action;
NOW
THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of
the Constitution, the President is pleased to promulgate the following Ordinance:
-
1. (1) This
Ordinance may be called the Customs Tariff (Amendment) Ordinance 1994.
(2) It shall come into force on the 1st day
of January 1995.
2. For sections 9, 9A and 9B of the Customs Tariff Act 1975,
the following sections shall be substituted, namely: -
"9. (1) Where any country or territory pays,
bestows, directly or indirectly, any subsidy upon the manufacture or production
therein or the exportation therefrom of any article including any subsidy on
transportation of such article, then, upon the importation of any such article
into India, whether the same is imported directly from the country of
manufacture, production or otherwise, and whether it is imported in the same
condition as when exported from the country of manufacture, production or
otherwise, the Central Government may, by notification in the Official Gazette,
impose a countervailing duty not exceeding the amount of such subsidy."
Explanation - For
the purposes of this section, a subsidy shall be deemed to exist if -
(a) there is financial
contribution by a government, or any public body within the territory of the
existing or producing country, that is, where -
(i)a government practice involves
a direct transfer of funds (including grants, loans and equity infusion), or
potential direct transfer of funds or liabilities, or both;
(ii)government revenue that is
otherwise due is foregone or not collected (including fiscal incentives);
(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 specified in clauses (i) to (iii) above which
would normally be vested in the government and the practice in, no real sense,
differs from practices normally followed by governments; or
(b) a government grants or
maintains any form of income or price support, which operates directly or
indirectly to increase export of any article from, or to reduce import of any
article into its territory,
and a benefit is thereby
conferred.
(2) The Central Government may, pending the determination in
accordance with the provisions of this section and the rules made thereunder of
the amount of subsidy, impose a countervailing duty under this sub-section not
exceeding the amount of such subsidy as provisionally estimated by it and if
such countervailing duty exceeds the subsidy as so determined, -
(a) the Central Government
shall, having regard to such determination and as soon as may be after such
determination, reduce such countervailing duty;
and
(b) refund shall be made of
so much of such countervailing duty which has been collected as is in excess of
the countervailing duty as so reduced.
(3) Subject to any rules made by the Central Government, by
notification in the Official Gazette, the countervailing duty under sub-section
(1) or sub-section (2) shall not be levied unless it is determined that -
(a) the subsidy relates to
export performance;
(b) the subsidy relates to
the use of domestic goods over imported goods in the export article; or
(c) the subsidy has been
conferred on a limited number of persons engaged in manufacturing, producing or
exporting the article unless such a subsidy is for -
(i)research activities conducted
by or on behalf of persons engaged in the manufacture, production or export;
(ii)assistance to disadvantaged
regions within the territory of the exporting country; or
(iii)assistance to promote
adaptation of existing facilities to new environmental requirements.
(4) If the Central Government is of the opinion that the injury
to the domestic industry which is difficult to repair, is caused by massive
imports in a relatively short period, of the article benefiting from subsidies
paid or bestowed and where in order to preclude the recurrence of such injury,
it is necessary to levy countervailing duty retrospectively, the Central
Government may, by notification in the Official Gazette, levy countervailing
duty from a date prior to the date of imposition of countervailing duty under
sub-section (2) but not beyond 90 days from the date of notification under that
sub-section and notwithstanding anything contained in any law for the time
being in force, such duty shall be payable from the date as specified in the
notification issued under this sub-section.
(5) The countervailing duty chargeable under this section shall
be in addition to any other duty imposed under this Act or any other law for
the time being in force.
(6) The countervailing duty imposed under this section shall,
unless revoked earlier, cease to have effect on the expiry of five years from
the date of such imposition:
Provided
that if the Central Government, in a review, is of the opinion that the
cessation of such duty is likely to lead to continuation or recurrence of
subsidization and injury, it may, from time to time, extend the period of such
imposition for a further period of five years and such further period shall
commence from the date of order of such extension:
Provided
further that where a review initiated before the expiry of the aforesaid period
of five years has not come to a conclusion before such expiry, the
countervailing duty may continue to remain in force pending the outcome of such
a review for a further period not exceeding one year.
(7) The amount of any such subsidy as referred to in sub-section
(1) or sub-section (2) shall, from time to time, be ascertained and determined
by the Central Government, after such enquiry as it may consider necessary and
the Central Government may, by notification in the Official Gazette, make rules
for the identification of such article and for the assessment and collection of
any countervailing duty imposed upon the importation thereof under this
section.
(8) Every notification issued under this section shall, as soon
as may be after it is issued, be laid before each House of Parliament.
9A (1) Where any
article is exported from any country or territory (hereinafter in this section
referred to as the exporting country or territory) to India at less than its
normal value, then, upon the importation of such article into India, the
Central Government may, by notification in the Official Gazette, impose an
anti-dumping duty not exceeding the margin of dumping in relation to such
article.
Explanation - For the
purposes of this section, -
(a) "margin of
dumping", in relation to an article, means the difference between its
export price and its normal value;
(b) "export
price", in relation to an article, means the price of the article exported
from the exporting country or territory and in cases where there is no export
price or where the export price is unreliable because of association or a
compensatory arrangement between the exporter and the importer or a third
party, the export price may be constructed on the basis of the price at which
the imported articles are first resold to an independent buyer or if the
article is not resold to an independent buyer, or not resold in the condition
as imported, on such reasonable basis as may be determined in accordance with
the rules made under sub-section (6);
(c) "normal
value", in relation to an article, means -
(i)the comparable price, in the
ordinary course of trade, for the like article when meant for consumption in
the exporting country or territory as determined in accordance with the rules
made under sub-section (6); or
(ii)when there are no sales of
the like article in the ordinary course of trade in the domestic market of the
exporting country or territory, or when because of the particular market
situation or low volume of the sales in the domestic market of the exporting
country or territory, such sales do not permit a proper comparison, the normal
value shall be either -
(a) comparable representative price of the like article when
exported from the exporting country or territory or an appropriate third
country as determined in accordance with the rules made under sub-section
(6); or
(b) the cost of production of the said
article in the country of origin along with reasonable addition for
administrative, selling and general costs and for profits, as determined in
accordance with the rules made under sub-section (6):
Provided
that in the case of import of the article from a country other than the country
of origin and where the article has been merely transhipped though the country
of export or such article is not produced in the country of export or there is
no comparable price in the country of export, the normal value shall be
determined with reference to its price in the country of origin.
(2) The Central Government may, pending the
determination in accordance with the provisions of this section and the rules
made thereunder of the normal value and the margin of dumping in relation to
any article, impose on the importation of such article into India an
anti-dumping duty on the basis of a provisional estimate of such value and
margin and if such anti-dumping duty exceeds the margin as so determined:-
(a) the Central Government shall, having
regard to such determination and as soon as may be after such determination,
reduce such anti-dumping duty; and
(b) refund shall be made of so much of the
anti-dumping duty which has been collected as in excess of the anti-dumping
duty as so reduced.
(3)
If the Central Government, in
respect of the dumped article under enquiry, is of the opinion that -
(i)there
is a history of dumping which caused injury or that the importer was, or should
have been, aware that the exporter practices dumping and that such dumping
would cause injury; and
(ii)the
injury is caused by massive dumping of an article imported in a relatively
short time which in the light of the timing and the volume of imported article
dumped and other circumstances is likely to seriously undermine the remedial
effect of the anti-dumping duty liable to be levied,
the Central Government may, by
notification in the Official Gazette, levy anti-dumping duty retrospectively
from a date prior to the date of imposition of anti-dumping duty under
sub-section (2) but not beyond ninety days from the date of notification
under that sub-section, and notwithstanding anything contained in any law for
the time being in force, such duty shall be payable at such rate and from such
date as may be specified in the notification.
(4) The anti-dumping duty chargeable under
this section shall be in addition to any other duty imposed under this Act or
any other law for the time being in force.
(5) The anti-dumping duty imposed under this
section shall, unless revoked earlier, cease to have effect of the expiry of
five years from the date of such imposition:
Provided
that if the Central Government, in a review, is of the opinion that the
cessation of such duty is likely to lead to continuation or recurrence of
dumping and injury, it may, from time to time, extend the period of such
imposition for a further period of five years and such further period shall
commence from the date of order of such extension:
Provided
further that where a review initiated before the expiry of the aforesaid period
of five years has not come to a conclusion before such expiry, the anti-dumping
duty may continue to remain in force pending the outcome of such a review for a
further period not exceeding one year.
(6) The margin of dumping as referred to in
sub-section (1) or sub-section (2) shall, from time to time, be ascertained and
determined by the Central Government, after such enquiry as it may consider
necessary and the Central Government may, by notification in the Official
Gazette, make rules for the purposes of this section, and without prejudice to
the generality of the foregoing, such rules may provide for the manner in which
articles liable for any anti-dumping duty under this section may be identified,
and for the manner in which the export price and the normal value of, and the
margin of dumping in relation to, such articles may be determined and for the
assessment and collection of such anti-dumping duty.
(7) Every notification issued under this
section shall, as soon as may be after it is issued, be laid before each House
of Parliament.
9B (1) Notwithstanding
anything contained in section 9 or section 9A, -
(a) no article shall be subjected to both
countervailing duty and anti-dumping duty to compensate for the same situation
of dumping or export subsidization;
(b) the Central Government shall not levy
any countervailing duty or anti-dumping duty -
(i)under
section 9 or section 9A by reasons of exemption or such articles from duties or
taxes borne by the like article when meant for consumption in the country of
origin or exportation or by reason of refund of such duties or taxes;
(ii)under
sub-section (1) of each of these sections, on the import into India of any
article from a Member country of the World Trade Organization or from a country
with whom the Government of India has a most-favoured‑nation agreement
(hereinafter referred to as a specified country), unless in accordance with the
rules made under sub-section (2) of this section, a determination has been made
that import of such article into India causes or threatens material injury to
any established industry in India or materially retards the establishment of
any industry in India; and
(iii)under
sub-section (2) of each of these sections, on import into India of any article
from the specified countries unless in accordance with the rules made under
sub-section (2) of this section, a preliminary finding has been made of subsidy
or dumping and consequent injury to domestic industry; and a further determination has also been
made that a duty is necessary to prevent injury being caused during the
investigation:
Provided
that nothing contained in sub-clauses (ii) and (iii) of clause (b) shall
apply if a countervailing duty or an anti-dumping duty has been imposed on any article
to prevent injury of threat of an injury to the domestic industry of a third
country of exporting the like article to India;
(c) the Central Government may not levy -
(i)any
countervailing duty under section 9, at any time, upon receipt of satisfactory
voluntary undertakings from the government of the exporting country or
territory agreeing to eliminate or limit the subsidy or take other measures
concerning its effect, or the exporter agreeing to revise the price of the
article and if the Central Government is satisfied that the injurious effect of
the subsidy is eliminated thereby;
(ii)any
anti-dumping duty under section 9A, at any time, upon receipt of satisfactory
voluntary undertaking from any exporter to revise its prices or to cease exports
to the area in question at dumped price and if the Central Government is
satisfied that the injurious effect of dumping is eliminated by such action.
(2) The Central Government may, by
notification in the Official Gazette, make rules for the purposes of this
section, and without prejudice to the generality of the foregoing, such rules
may provide for the manner in which any investigation may be made for the
purposes of this section, the factors to which regard shall be at in any such
investigation and for all matters connected with such investigation.
9C. (1) An
appeal against the order of determination or review thereof regarding the
existence, degree and effect of any subsidy or dumping in relation to import of
any article shall lie to the Customs, Excise and Gold (Control) Appellate
Tribunal constituted under section 129 of the Customs Act, 1962 (hereinafter
referred to as the Appellate Tribunal).
(2) Every appeal under this section shall be
filed within ninety days of the date of order under appeal:
Provided
that the Appellate Tribunal may entertain any appeal after the expiry of the
said period of ninety days, if it is satisfied that the appellant was prevented
by sufficient cause from filing the appeal in time.
(3) The Appellate Tribunal may, after giving
the parties to the appeal an opportunity of being heard, pass such order
thereon as it thinks fit, confirming, modifying or annulling the order appealed
against.
(4) The provisions of sub-sections (1), (2),
(5) and (6) of section 129C of the Customs Act, 1962 shall apply to the
Appellate Tribunal in the discharge of its functions under this Act as they
apply to it in the discharge of its functions under the Customs Act, 1962.
(5) Every appeal under sub-section (1) shall
be heard by a Special Bench constituted by the President of the Appellate
Tribunal for hearing such appeals and such Bench shall consist of the President
and not less than two members and shall include one judicial member and one
technical member."
SHANKER
DAYAL SHARMA,
President
K.L.
MOHANPURIA
Secretary
to the Government of India
TO BE PUBLISHED IN PART II,
SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA EXTRAORDINARY, DATED THE
1ST JANUARY 1995
11
PAUSA, 1916 SAKA
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF REVENUE
NEW
DELHI, THE 1ST JANUARY, 1995
11
PAUSA, 1916 SAKA
NOTIFICATION
NO.
2/95-N.T. CUSTOMS
G.S.R.
No. 1-(E) In exercise of the powers
conferred by sub-section (6) of section 9A and sub-section (2) of section 9B of
the Customs Tariff Act, 1975 (51 of 1975) and in supersession of the Customs
Tariff (Identification, Assessment and Collection of Duty or Additional Duty on
Dumped Articles and for Determination of Injury) Rules, 1985, except as respect
things done or omitted to be done before such supersession, the Central
Government hereby makes the following rules, namely:-
1. Short title and commencement.-
(1) These rules may be
called the Customs Tariff (Identification, Assessment and Collection of
Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules,
1995.
(2) They shall come into
force on the 1st day of January 1995.
2. Definitions.- In these rules, unless the context otherwise
requires,-
(a) "Act" means
the Customs Tariff Act, 1975 (51 of 1975);
(b) "domestic
industry" means the domestic producers as a whole engaged in the
manufacture of the like article and any activity connected therewith or those
whose collective output of the said article constitutes a major proportion of
the total domestic production of that article except when such producers are
related to the exporters or importers of the alleged dumped article or are
themselves importers thereof in which case such producers shall be deemed not
to form part of domestic industry:
Provided that in
exceptional circumstances referred to in sub-rule (3) of rule 11, the domestic
industry in relation to the article in question shall be deemed to comprise two
or more competitive markets and the producers within each of such market a
separate industry, if -
(i)the
producers within such a market sell all or almost all of their production of
the article in question in that market;
and
(ii)the
demand in the market is not in any substantial degree supplied by producers of
the said article located elsewhere in the territory;
(c) "interested
party" includes -
(i)an
exporter or a foreign producer or the importer of an article subject to
investigation for being dumped in India, or a trade or business association a
majority of members of which are producers, exporters or importers of such an
article;
(ii) the government of the exporting
country; and
(iii)a
producer of the like article in India or a trade and business association a
majority of the members of which produce the like article in India;
(d) "like article"
means an article which is identical or alike in all respects to the article
under investigation for being dumped in India or in the absence of such an article, another article which although
not alike in all respects, has characteristics closely resembling those of the
articles under investigation;
(e) "provisional
duty" means an anti-dumping duty imposed under sub-section (2) of
section 9A of the Act;
(f) "specified
country" means a country or territory which is a member of the World Trade
Organization and includes the country or territory with which the Government of
India has an agreement for giving it the most-favoured-nation treatment;
(g) all words and
expressions used and not defined in these rules shall have the meanings
respectively assigned to them in the Act.
3. Appointment of designated authority.-
(1) The Central Government
may, by notification in the Official Gazette, appoint a person not below the
rank of a Joint Secretary to the Government of India or such other person as
that Government may think fit as the designated authority for purposes of these
rules.
(2) The Central Government
may provide to the designated authority the services of such other persons and
such other facilities as it deems fit.
4. Duties of the designated authority.-
(1) It shall be the duty of
the designated authority in accordance with these rules -
(a) to investigate as to the existence,
degree and effect of any alleged dumping in relation to import of any article;
(b) to identify the article liable for
anti-dumping duty;
(c) to submit its findings, provisional or
otherwise, to Central Government as to ‑
(i)normal
value, export price and the margin of dumping in relation to the article under
investigation and
(ii)the
injury or threat of injury to an industry established in India or material
retardation to the establishment of an industry in India consequent upon the
import of such article from the specified countries;
(d) to recommend the amount of anti-dumping
duty, which if levied would be adequate to remove the injury to the domestic
industry and the date of commencement of such duty; and
(e) to review the need for continuance of
anti-dumping duty.
5. Initiation of investigation.-
(1) Except as provided in
sub-rule (4), the designated authority shall initiate an investigation to
determine the existence, degree and effect of any alleged dumping only upon
receipt of a written application by or on behalf of the domestic industry.
(2) An application under
sub-rule (1) shall be in the form as may be specified by the designated
authority and the application shall be supported by evidence of
(a) dumping;
(b) injury, where applicable; and
(c) where applicable, a causal link between
such dumped imports and alleged injury.
(3) The designated authority
shall not initiate an investigation pursuant to an application made under
sub-rule (1) unless -
(a) it determines, on the basis of an
examination of the degree of support for, or opposition to the application
expressed by domestic procedures of the like product, that the application has
been made by or on behalf of the domestic industry:
Provided
that no investigation shall be initiated if domestic producers expressly
supporting the application account for less than 25 per cent of the total
production of the like article by the domestic industry; and
(b) it examines the accuracy and adequacy of
the evidence provided in the application and satisfies itself that there is
sufficient evidence regarding -
(i) dumping;
(ii) injury, where applicable; and
(iii)where
applicable, a causal link between such dumped imports and the alleged injury,
to justify the
initiation of an investigation.
Explanation:- For the purpose of this rule
the application shall be deemed to have been made by or on behalf of the
domestic industry, if it is supported by those domestic producers whose
collective output constitute more than 50 per cent of the total production of
the like article produced by that portion of the domestic industry expressing
either support for or opposition, as the case may be, to the application.
4. Notwithstanding anything contained in sub-rule (1) the
designated authority may initiate an investigation suo motu if it is
satisfied from the information received from the Collector of Customs appointed
under the Customs Act, 1962 (52 of 1962) or from any other source that
sufficient evidence exists as to the existence of the circumstances referred to
in clause (b) of sub-rule (3).
5. The designated authority shall notify the government of the
exporting country before proceeding to initiate an investigation.
6. Principles governing investigations.-
(1) The designated authority
shall, after it has decided to initiate investigation to determine the
existence, degree and effect of any alleged dumping of any article, issue a
public notice notifying its decision and such public notice shall, inter
alia, contain adequate information on the following:-
(i) the name of the exporting country or
countries and the article involved;
(ii) the date of initiation of the
investigation;
(iii) the basis on which dumping is alleged in
the application;
(iv) a summary of the factors on which the
allegation of injury is based;
(v)the
address to which representations by interested parties should be directed; and
(vi) the time-limits allowed to interested
parties for making their views known.
(2) A copy of the public
notice shall be forwarded by the designated authority to the known exporters of
the article alleged to have been dumped, the governments of the exporting
countries concerned and other interested parties.
(3) The designated authority
shall also provide a copy of the application referred to in sub‑rule (1)
of rule 5 to -
(i)the
known exporters or to the concerned trade association where the number of
exporters is large; and
(ii) the governments of the exporting
countries:
Provided that the
designated authority shall also make available a copy of the application to any
other interested party who makes a request therefor in writing.
(4) The designated authority
may issue a notice calling for any information, in such form as may be
specified by it, from the exporters, foreign producers and other interested
parties and such information shall be furnished by such persons in writing
within 30 days from the date of receipt of the notice or within such extended
period as the designated authority may allow on sufficient cause being shown.
Explanation: For the purpose of this
sub-rule, the notice calling for information and other documents shall be
deemed to have been received one week from the date on which it was sent by the
designated authority or transmitted to the appropriate diplomatic
representative of the exporting country.
(5) The designated authority
shall also provide opportunity to the industrial users of the article under
investigation, and to representative consumer organizations in cases where the
article is commonly sold at the retail level, to furnish information which is
relevant to the investigation regarding dumping, injury where applicable, and
causality.
(6) The designated authority
may allow an interested party or its representative to present the information
relevant to the investigation orally but such oral information shall be taken
into consideration by the designated authority only when it is subsequently
reproduced in writing.
(7) The designated authority
shall make available the evidence presented to it by one interested party to
the other interested parties, participating in the investigation.
(8) In a case where an
interested party refuses access to, or otherwise does not provide necessary
information within a reasonable period, or significantly impedes the
investigation, the designated authority may record its findings on the basis of
the facts available to it and make such recommendations to the Central
Government as it deems fit under such circumstances.
7. Confidential information.-
(1) Notwithstanding anything
contained in sub-rules (2), (3), and (7) of rule 6, sub-rule (2) of rule
12, sub-rule (4) of rule 15 and sub-rule (4) of rule (17), the copies of
applications received under sub-rule (1) of rule 5, or any other information
provided to the designated authority on a confidential basis by any party in
the course of investigation, shall, upon the designated authority being
satisfied as to its confidentiality, be treated as such by it and no such
information shall be disclosed to any other party without specific
authorization of the party providing such information.
(2) The designated authority
may require the parties providing information on confidential basis to furnish
non-confidential summary thereof and if, in the opinion of a party providing
such information, such information is not susceptible of summary, such party
may submit to the designated authority a statement of reasons why summarization
is not possible.
(3) Notwithstanding anything
contained in sub-rule (2), if the designated authority is satisfied that the
request for confidentiality is not warranted or the supplier of the information
is either unwilling to make the information public or to authorize its
disclosure in a generalized or summary form, it may disregard such information.
8. Accuracy of the information.- Except in cases referred to in sub-rule (8)
of rule 6, the designated authority shall during the course of investigation
satisfy itself as to the accuracy of the information supplied by the interested
parties upon which its findings are based.
9. Investigation in the territory of other specified countries.- The designated authority may carry out
investigation in the territories of other countries, if the circumstances of a
case so warrant:
Provided
that the designated authority obtains the consent of the person concerned and
notifies the representatives of the concerned government and the concerned
government does not object to such investigation.
10. Determination of normal value, export price and margin of
dumping.- An article shall be considered
as being dumped if it is exported from a country or territory to India at a
price less than its normal value and in such circumstances the designated
authority shall determine the normal value, export price and the margin of
dumping taking into account, inter alia, the principles laid down in
Annexure I to these rules.
11. Determination of injury.-
(1) In the case of imports
from specified countries, the designated authority shall record a further
finding that import of such article into India causes or threatens material
injury to any established industry in India or material retards the
establishment of any industry in India.
(2) The designated authority
shall determine the injury to domestic industry, threat of injury to domestic
industry, material retardation to establishment of domestic industry and a
causal link between dumped imports and injury, taking into account all relevant
facts, including the volume of dumped imports, their effect on price in the
domestic market for like articles and the consequent effect of such imports on
domestic producers of such articles and in accordance with the principles set
out in Annexure II to these rules.
(3) The designated authority
may, in exceptional cases, give a finding as to the existence of injury even
where a substantial portion of the domestic industry is not injured, if -
(i) there is a concentration of dumped
imports into an isolated market; and
(ii)the
dumped articles are causing injury to the producers of all or almost all of the
production within such market.
12. Preliminary findings,-
(1) The designated authority
shall proceed expeditiously with the conduct of the investigation and shall, in
appropriate cases, record a preliminary finding regarding export price, normal
value and margin of dumping, and in respect of imports from specified countries,
it shall also record a further finding regarding injury to the domestic
industry and such finding shall contain sufficiently detailed information for
the preliminary determinations on dumping and injury and shall refer to the
matters of fact and law which have led to arguments being accepted or
rejected. It will also contain -
(i)the
names of the suppliers, or when this is impracticable, the supplying countries
involved;
(ii) a description of the article which is
sufficient for customs purposes;
(iii)the
margins of dumping established and a full explanation of the reasons for the
methodology used in the establishment and comparison of the export price and
the normal value;
(iv) considerations relevant to the injury
determination; and
(v) the main reasons leading to the
determination.
(2) The designated authority
shall issue a public notice recording its preliminary findings.
13. Levy of provisional duty.-
The Central Government may, on the basis of the preliminary findings
recorded by the designated authority, impose a provisional duty not exceeding
the margin of dumping:
Provided
that no such duty shall be imposed before the expiry of 60 days from the date
of the public notice issued by the designated authority regarding its decision
to initiate investigations:
Provided
further that such duty shall remain in force only for a period not exceeding
six months which may upon request of the exporters representing a
significant percentage of the trade involved be extended by the Central Government
to nine months.
14. Termination of investigation.- The designated authority shall, by issue of a
public notice, terminate an investigation immediately if -
(a) it receives a request
in writing for doing so from or on behalf of the domestic industry affected, at
whose instance the investigation was initiated:
(b) it is satisfied in the
course of an investigation, that there is not sufficient evidence of dumping
or, where applicable, injury to justify the continuation of the investigation;
(c) it determines that the
margin of dumping is less than 2 per cent of the export price;
(d) it determines that the
volume of the dumped imports, actual or potential, from a particular country
accounts for less than 3 per cent of the imports of the like produce, unless,
the countries which individually account for less than 3 per cent of the
imports of the like product, collectively account for more than 7 per cent of
the import of the like product; or
(e) it determines that the
injury where applicable is negligible.
15. Suspension or termination of investigation on price
undertaking.-
(1) The designated authority
may suspend or terminate an investigation if the exporter of the article in
question,-
(i)furnishes
an undertaking in writing to the designated authority to revise the prices so
that no exports of the said article are made to India at dumped prices; or
(ii)in
the case of imports from specified countries undertake to revise the prices so
that injurious effect of dumping is eliminated and the designated authority is
satisfied that the injurious effect of the dumping is eliminated:
Provided further that
the designated authority shall complete the investigation and record its
finding, if the exporter so desires, or it so decides.
(2) No undertaking as
regards price increase under clause (ii) of the sub-rule (1) shall be accepted
from any exporter unless the designated authority had made preliminary
determination of dumping and the injury.
(3) The designated authority
may also not accept undertakings offered by any exporter, if it considers that
acceptance of such undertaking is impractical or is unacceptable for any other
reason.
(4) The designated authority
shall intimate the acceptance of an undertaking and suspension or termination
of investigation to the Central Government and also issue a public notice in
this regard. The public notice shall
contain, inter alia, the non-confidential part of the undertaking.
(5) In cases where an
undertaking has been accepted by the designated authority the Central
Government may not impose a duty under sub-section (2) of section 9A of the Act
for such period the undertaking acceptable to the designated authority remains
valid.
(6) Where the designated
authority has accepted any undertaking under sub-rule (1), it may require the
exporter from whom such undertaking has been accepted to provide, from time to
time, information relevant to the fulfilment of the undertaking and to permit
verification of relevant data:
Provided that in case
of any violation of an undertaking, the designated authority shall intimate to
the Central Government regarding such violation and complete the investigation
expeditiously.
(7) The designated authority
shall, suo motu or on the basis of any request received from exporters
or importers of the article in question or any other interested party, review,
from time to time, the need for the continuance of any undertaking given
earlier.
16. Disclosure of information.-
The designated authority shall, before giving its final findings, inform
all interested parties of the essential facts under consideration which form
the basis for its decision.
17. Final findings.-
(1) The designated authority
shall, within one year from the date of initiation of an investigation,
determine as to whether or not the article under investigation is being dumped
in India and submit to the Central Government its final finding-
(a) as to,-
(i)the
export price, normal value and the margin of dumping of the said article;
(ii)whether import of
the said article into India, in the case of imports from specified countries,
causes or threatens material injury to any industry established in India or
materially retards the establishment of any industry in India;
(iii) a causal link, where applicable, between
the dumped imports and injury;
(iv)whether
a retrospective levy is called for and if so, the reasons therefor and date of
commencement of such retrospective levy;
Provided
that the Central Government may, in circumstances of exceptional nature, extend
further the aforesaid period of one year by six months:
Provided
further that in those cases where the designated authority has suspended the
investigation on the acceptance of a price undertaking as provided in rule 15
and subsequently resumes the same on violation of the terms of the said
undertaking, the period for which investigation was kept under suspension shall
not be taken into account while calculating the period of said one year.
(b) recommending the amount of duty which,
if levied, would be adequate to remove the injury where applicable, to domestic
industry.
(2) The final finding, if
affirmative, shall contain all information on the matter of facts and law and
reasons which have led to the conclusion and shall also contain information
regarding-
(i)the
names of the suppliers, or when this is impracticable, the supplying countries
involved;
(ii) a description of the product which is
sufficient for customs purposes;
(iii)the
margins of dumping established and a full explanation of the reasons for the
methodology used in the establishment and comparison of the export price and
the normal value;
(iv) considerations relevant to the injury
determination; and
(v) the main reasons leading to the
determination.
(3) The designated authority
shall determine an individual margin of dumping for each known exporter or
producer concerned of the article under investigation. Provided that in cases where the number of
exporters, producers, importers or types of articles involved are so large as
to make such determination impracticable, it may limit its findings either to a
reasonable number of interested parties or articles by using statistically
valid samples based on information available at the time of selection, or to
the largest percentage of the volume of the exports from the country in
question which can reasonably be investigated, and any selection, of exporters,
producers or types of articles made under this proviso shall preferably be made
in consultation with and with the consent of the exporters, producers of
importers concerned:
Provided further that
the designated authority shall determine an individual margin of dumping for
any exporter or producer, though not selected initially, who submit necessary
information in time, except where the number of exporters or producers are so
large that individual examination would be unduly burdensome and prevent the
timely completion of the investigation.
(4) The designated authority
shall issue a public notice recording its final findings.
18. Levy of duty.-
(1) The Central Government
may, within three months of the date of publication of final findings by the
designated authority under rule 17, impose by notification in the Official
Gazette, upon importation into India of the article covered by the final
finding, anti-dumping duty not exceeding the margin of dumping as determined
under rule (17). Provided that in case
of imports from the specified countries the amount of duty shall not exceed the
amount which has been found adequate to remove the injury to domestic industry.
(2) In cases where the
designated authority has selected percentage of the volume of the exports from
a particular country, as referred to sub-rule (3) of rule 17, any anti-dumping
duty applied to imports from exporters or producers not included in the
examination shall not exceed-
(i)the
weighted average margin of dumping established with respect to the selected
exporters or producers; or
(ii)where
the liability for payment of anti-dumping duties is calculated on the basis of
a prospective normal value, the difference between the weighted average normal
value of the selected exporters or producers and the export prices of exporters
or producers not individually examined:
Provided that the
Central Government shall disregard for the purpose of this sub-rule any zero
margin, margins which are less than 2 per cent expressed as the percentage of
export price and margins established in the circumstances detailed in sub-rule
(8) of rule 6. The Central Government
shall apply individual duties to imports from any exporter or producer not
included in the examination who has provided the necessary information during
the course of the investigation as referred to in the second proviso to
sub-rule (3) of rule 17.
(3) Notwithstanding anything
contained in sub-rule (1), where a domestic industry has been interpreted
according to the proviso to sub-clause (b) of rule 2, a duty shall be levied
only after the exporters have been given opportunity to cease exporting at
dumped prices to the area concerned or otherwise give an undertaking pursuant
to rule 15 and such undertaking has not been promptly given and in such cases
duty shall not be levied only on the articles of specific producers which
supply the area in question.
(4) If the final finding of
the designated authority is negative that is contrary to the evidence on whose
basis the investigation was initiated, the Central Government shall, within
forty five days of the publication of final findings by the designated
authority under rule 17, withdraw the provisional duty imposed, if any.
19. Imposition of duty on non-discriminatory
basis.- Any provisional duty imposed
under rule 13 on an anti-dumping duty imposed under rule 18 shall be on a
non-discriminatory basis and applicable to all imports of such articles, from
whatever sources found dumped and, where applicable, causing injury to domestic
industry except in the case of imports from those sources from which
undertaking in terms of rule 15 has been accepted.
20. Commencement of duty.-
(1) The anti-dumping duty
levied under rule 13 and rule 19 shall take effect from the date of its
publication in the Official Gazette.
(2) Notwithstanding anything
contained in sub-rule (1)-
(a) where a provisional duty has been
levied and where the designated authority has recorded a final finding of
injury or where the designated authority has recorded a final finding of threat
of injury and a further finding that the effect of dumped imports in the
absence of provisional duty would have led to injury, the anti-dumping duty may
be levied from the date of imposition of provisional duty;
(b) in the circumstances referred to in
sub-section (3) of section 9A of the Act, the anti-dumping duty may be levied
retrospectively from the date commencing ninety days prior to the imposition of
such provisional duty:
Provided that no duty
shall be levied retrospectively on imports entered for home consumption before
initiation of the investigation:
Provided further that
in the cases of violation of price undertaking referred to in sub-rule (6) of
rule 15, no duty shall be levied retrospectively on the imports which have
entered for home consumption before the violation of the terms of such
undertaking.
21. Refund of duty.-
(1) If the anti-dumping duty imposed by the
Central Government on the basis of the final findings of the investigation
conducted by the designated authority is higher than the provisional duty
already imposed and collected the differential shall not be collected from the
importer.
(2) If, the anti-dumping duty fixed after
the conclusion of the investigation is lower than the provisional duty already
imposed and collected, the differential shall be refunded to the importer.
(3) If the provisional duty imposed by the
Central Government is withdrawn in accordance with the provisions of sub-rule
(4) of rule 18, the provisional duty already imposed and collected, if any,
shall be refunded to the importer.
22. Margin of dumping, for
exporters not originally investigated. -
(1) If a product is subject to anti-dumping
duties, the designated authority shall carry out a periodical review for the
purpose of determining individual margins of dumping for any exporters or
producers in the exporting country in question who have not exported the
product to India during the period of investigation, provided that these
exporters or producers show that they are not related to any of the exporters
or producers in the exporting country who are subject to the anti-dumping
duties on the product.
(2) The Central Government shall not levy
anti-dumping duties under sub-section (i) of section 9A of the Act on imports
from such exporters or producers during the period of review as referred to in
sub-rule (1) of this rule:
Provided that the Central Government
may resort to provisional assessment and may ask a guarantee from the importer
if the designated authority so recommends and if such a review results in a
determination or dumping in respect of such products or exporters, it may levy
duty in such cases retrospectively from the date of the initiation of the
review.
23. Review. -
(1) The designated authority shall, from
time to time, review the need for the continued imposition of the anti-dumping
duty and shall if it is satisfied on the basis of information received by it
that there is no justification for the continued imposition of such duty
recommend to the Central Government for its withdrawal.
(2) Any review initiated under sub-rule (1)
shall be concluded within a period not exceeding twelve months from the date of
initiation of such review.
(3) The provisions of rules 6, 7, 8, 9, 10,
11, 16,17, 18, 19, and 20 shall be mutatis mutandis applicable in the
case of review.
24. Dumping causing injury
to a third country. -
(1) The designated authority may initiate
investigation into any dumping alleged to be taking place into India and
causing injury to the domestic industry of any third country which is a Member
of the World Trade Organization.
(2) The designated authority in such cases
shall follow the procedures laid down in Article 14 of the Agreement on
Implementation of Article VI of the General Agreement on Tariffs and Trade,
1994, as contained in the Final Act of the Uruguay Round Multilateral Trade
Negotiations.
_______________
ANNEXURE
I
(See
rule 8)
Principles
Governing the Determination of Normal Value, Export Price
and
Margin of Dumping
The designated
authority while determining the normal value, export price and margin of
dumping shall take into account, inter alia, the following principles. -
1. The elements of costs referred to in
the context of determination of normal value shall normally be determined on
the basis of records kept by the exporter or producer under investigation,
provided such records are in accordance with the generally accepted accounting
principles of the exporting country, and such records reasonably reflect the
cost associated with production and sale of the article under consideration.
2. Sales of the like product in the
domestic market of the exporting country or sales to a third country at prices
below per unit (fixed and variable) costs of production plus administrative,
selling and general costs may be treated as not being in the ordinary course of
trade by reason of price. The designated
authority may disregard these sales, in determining normal value, provided it
has determined that -
(i)such
sales are made within a reasonable period of time (not less than six months) in
substantial quantities, i.e. when the weighted average selling price of the article
is below the weighted average per unit costs or when the volume of the sales
below per unit costs represents not less than twenty per cent of the volume
sold in transactions under consideration, and
(ii)such
sales are at prices which do not provide for the recovery of all costs within a
reasonable period of time. The said
prices will be considered to provide for recovery of costs within a reasonable
period of time if they are above weighted average per unit costs for the period
of investigation, even though they might have been below per unit costs at the
time of sale.
3.(i)the
said authority in the course of investigation shall consider all available
evidence on the proper allocation of costs, including that which is made
available by the exporter or producer provided that such allocation has been
historically utilized by the exporter or producer, in relation to establishing
appropriate amortization and depreciation periods and allowances for capital
expenditure and other development costs.
(ii)unless
already reflected in allocation of costs referred to in clause (1) and
sub-clause (i) above, the designated authority, will also make appropriate
adjustments for those non-recurring items of cost which benefit further and/or
current production, or for circumstances in which costs during the period of
investigation are affected by start up operator.
4. The amounts for administrative, selling
and general costs and for profits as referred to in sub-section (i) of section
9A of the Act, shall be based on actual data pertaining to production and sales
in the ordinary course of trade, of the like article by the exporter or
producer under investigation. When such
amounts cannot be determined on this basis, the amounts may be determined on
the basis of:
(i)the actual amounts incurred
and realized by the exporter or producer in question, in respect of production
and sales in the domestic market of the country of origin of the same general
category of article;
(ii)the
weighted average of the actual amounts incurred and realized by other exporters
or producers subject to investigation in respect of production and sales of the
like article in the domestic market of the country of origin; or
(iii)any
other reasonable method, provided that the amount for profit so established
shall not exceed the profit normally realized by the exporters or producers on
sales of products of the same general category in the domestic market of the
country of origin.
5. The designated authority, while
arriving at a constructed export price, shall give due allowance for costs
including duties and taxes, incurred between importation and resale and for
profits.
6.(i)While
arriving at margin of dumping, the designated authority shall make a fair
comparison between the export price and the normal value. The comparison shall be made at the same
level of trade, normally at the ex-factory level and in respect of sales made
at as nearly as possible the same time.
Due allowance shall be made in each case, on its merits, for differences
which effect price comparability, including differences in conditions and terms
of sale, taxation, levels of trade, quantities, physical characteristics, and
any other differences which are demonstrated to affect price comparability.
(ii)In the
cases where export price is a constructed price, the comparison shall be made
only after establishing the normal value at equivalent level of trade.
(iii)When
the comparison under this paragraph
requires a conversion of currencies, such conversion should be made by
using the rate of exchange on the date of sale, provided that when a sale or
foreign currency on forward markets is directly linked to the export sale
involved the rate of exchange in the forward sale shall be used. Fluctuations in exchange rates shall be ignored
and in an investigation the exporters shall be given at least sixty days to
have adjusted their export prices to reflect sustained movements in exchange
rates during the period of investigation.
(iv)Subject
to the provisions governing comparison in this paragraph, the existence of
margin of dumping during the investigation phase shall normally be established
on the basis of a comparison of a weighted average normal value and export
prices on a transaction-to-transaction basis.
A normal value established on a weighted average basis may be compared
to prices of individual export transactions if it is found that a pattern of
export prices which differ significantly among different purchases, regions or
time periods, and if an explanation is provided as to why such differences
cannot be taken into account appropriately by the use of a weighted
average-to-weighted average or transaction-to-transaction comparison.
ANNEXURE
II
(See
rule 9)
Principles
for Determination of Injury
The designated authority
while determining the injury or threat of material injury to domestic industry
or material retardation of the establishment of such an industry hereinafter
referred to as "injury" and causal link between dumped imports and
such injury, shall, inter alia, take following principles under consideration -
(i)A
determination of injury shall involve an objective examination of both (a) the
volume of the dumped imports and the effect of the dumped imports on prices in
the domestic market for like article and (b) the consequent impact of these
imports on domestic producers of such products.
(ii)While
examining the volume of dumped imports, the said authority shall consider
whether there has been a significant increase in the dumped imports, either in
absolute terms or relative to production or consumption in India. With regard to the effect of the dumped
imports on prices as referred to in sub-rule (2) of rule 18 the designated
authority shall consider whether there has been a significant price under
cutting by the dumped imports as compared with the price of like product in
India, or whether the effect of such imports is otherwise to depress prices to
a significant degree or prevent price increase which otherwise would have
occurred, to a significant degree.
(iii)In
cases where imports of a product from more than one country are being
simultaneously subjected to an anti-dumping investigation, the designated
authority will cumulatively assess the effect of such imports, only when it
determines that (a) the margin of dumping established in relation to the
imports from each country is more than two per cent expressed as a percentage
of export price and the volume of the imports from each country is three per
cent of the import of like article or where the export of individual countries
less than three per cent, the imports collectively account for more than severn
per cent of the import of like article and (b) cumulative assessment of the
effect of imports is appropriate in light of the conditions of competition between
the imported article and the like domestic articles.
(iv)The
examination of the impact of the dumped imports on the domestic industry
concerned, shall include and evaluation of all relevant economic factors and
indices having a bearing on the state of the industry, including natural and
potential decline in sales, profits, output, market share, productivity, return
on investments or utilization of capacity:
factors affecting domestic prices:
the magnitude of the margin of dumping:
actual and potential negative effects on cash flow, inventories,
employment, wages, growth, ability to raise capital investments.
(v)It must
be demonstrated that the dumped imports are, through the effects of dumping, as
set forth in paragraphs (ii) and (iv) above, causing injury to the domestic
industry. The demonstration of a causal relationship between the dumped
imports and the injury to the domestic injury shall be based on an examination of
relevant evidence before the designated authority. The designated authority shall also examine
any know factors other than the dumped imports which at the same time are
insuring the domestic industry, and the injury caused by these other factors
must not be attributed to the dumped imports.
Factors which may be relevant in this respect include, inter alia, the
volume and prices of imports not sold at dumping prices, contraction in demand
or changes in the patterns of consumption, trade restrictive practices of and
competition between the foreign and domestic producers, developments in
technology and the export performance and the productivity of the domestic
industry.
(vi)The effect of the dumped
imports shall be assessed in relation to the domestic production of the like
article when available data permit the separate identification of that
production on the basis of such criteria as the production process, producers'
sales and profits. If such separate
identification of that production is not possible, the effects of the dumped
imports shall be assessed by the examination of the production of the narrowest
group or range of products, which includes the like product, for which the
necessary information can be provided.
(vii)A
determination of a threat of material injury shall be based on facts and not
merely on allegation, conjecture or remote possibility. The change in circumstances which would
create a situation in which the dumping would cause injury must be clearly
foreseen and imminent. In making a
determination regarding the existence of a threat of material injury, the designated
authority shall consider, inter alia, such factors as:
(a) a significant rate of increase of
dumped imports into India indicating the likelihood of substantially increased
importation;
(b) sufficient freely disposable, or an
imminent, substantial increase in, capacity of the exporter indicating the
likelihood of substantially increased dumped exports to Indian market, taking
into account the availability of other export markets to absorb any additional
exports;
(c) whether imports are entering at prices
that will have a significant depressing or suppressing effect on domestic
prices, and would likely increase demand for further imports; and
(d) inventories of the article being
investigated.
(S.
M. BHATNAGAR)
UNDER
SECRETARY TO THE GOVERNMENT OF INDIA
F. No. 525/2/94 - CUS.(TU)
TO BE PUBLISHED IN PART II,
SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF
INDIA
EXTRAORDINARY, DATED 1ST JANUARY 1995
11 PAUSA 1916 (SAKA)
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF REVENUE
NEW
DELHI, 1st January 1995
11 Pausa 1916 (Saka)
NOTIFICATION
No.
1/95-N.T. CUSTOMS
G.S.R. No. 2 - (E) In
exercise of the powers conferred by sub-section (7) of section 9 and
sub-section (2) of section 9B of the Customs Tariff Act, 1975 (51 of 1975) and
in supersession of the Customs Tariff (Identification Assessment and Collection
of Duty or Additional Duty on Bounty-fed Articles and for Determination of
Injury) Rules, 1985, except as respect things done or omitted to be done before
such supersession, the Central Government hereby makes the following rules,
namely:-
1. Short title and
commencement. -
(1) These rules may be called the Customs
Tariff (Identification, Assessment and Collection of Countervailing Duty on
Subsidized Articles and for Determination of Injury) Rules, 1995.
(2) They shall come into force on the 1st
day of January, 1995.
2. Definitions. - In these rules, unless the context otherwise
requires, -
(a) "Act" means the Customs
Tariff Act, 1975 (51 of 1975);
(b) "domestic industry" means the
domestic producers as a whole of the like article, or domestic producers whose
collective output of the said article constitutes a major proportion of the
total domestic production of that article, except when such producers are
related to the exporters or importers of the alleged subsidized article, or are
themselves importers thereof, in which case such producers shall be deemed not
to form part of domestic industry:
Provided that in exceptional circumstances
referred to in sub-rule (3) of rule 13, the domestic industry in relation to
the article in question shall be deemed to comprise two or more competitive
markets and the producers within each of such market be deemed as a separate
industry if, -
(i)the
producers within such market sell all or almost all of their production of the
article in question in that market, and
(ii)the
demand in the market is not in any substantial degree supplied by producers
of the said article located elsewhere in
the territory;
(c) "interested party" includes -
(i)an
exporter or foreign producer or the importer of an article subject to
investigation for being subsidized or a trade or business association a
majority of the members of which are producers, exporters or importers of such
an article; and
(ii)a
producer of the like article in India or a trade and business association a
majority of the members of which produce the like article in India;
(d) "provisional duty" means a
countervailing duty imposed under sub-section (2) of section 9A of the
Act;
(e) "specified country" means a
country or territory which includes the country or territory with which the
Government of India has an agreement for giving it the most-favoured-nation
treatment;
(f) all words and expressions used in these
rules, but not defined, shall have the meaning respectively assigned to them in
the Act.
3. Appointment of
designated authority. -
(1) The Central Government may, by
notification in the Official Gazette, appoint a person not below the rank of a
Joint Secretary to the Government of India or such other person as that
Government may think fit as the designated authority for purposes of these
rules.
(2) The Central Government may provide to
the designated authority the services of such other persons and such other
facilities as it deems fit.
4. Duties of the designated
authority. - It shall be the duty of the
designated authority in accordance with these rules -
(a) to investigate the existence, degree
and effect of any subsidy in relation to the import of an article;
(b) to identify the article liable for
countervailing duty;
(c) to submit its findings, provisional or
otherwise to the Central Government as to -
(i) the nature and amount of subsidy in
relation to an article under investigation.
(ii)the
injury or threat of injury to an industry established in India or material
retardation to the establishment of an industry in India consequent upon the
import of such articles from the specified countries.
(d) to recommend the amount of
countervailing duty, which if levied would be adequate to remove the injury to
the domestic industry and the date of commencement of such duty: and
(e) to review the need for continuance of
countervailing duty.
5. Decision as to country
of origin. - in cases where articles are not imported directly from the country
of origin but are imported from an intermediate country, the provisions of
these rules shall be fully applicable and any such transaction shall, for the
purpose of these rules be regarded as having taken place between the country of
origin and the country of importation.
6. Initiation of
investigation.
(1) Except as provided in sub-rule (4) the
designated authority shall initiate an investigation to determine the
existence, degree and effect of alleged subsidy only upon receipt of a written
application by or on behalf of the domestic industry.
(2) An application under sub-rule (1) shall
be in the form as may be specified by the designated authority in this behalf
and the application shall be supported by evidence of
(a) subsidy
and, if possible, its amount
(b) injury
where applicable, and
(c) where
applicable, a causal link between such subsidized imports and alleged injury.
(3) The designated authority shall not
initiate an investigation pursuant to an application made under sub-rule (1)
unless-
(a) it determines, on the basis of an
examination of the degree of support for, or opposition to the application
expressed by domestic producers of the like article, that the application has
been made by or on behalf of the domestic industry:
Provided that no
investigation shall be initiated if domestic producers expressly supporting the
application account for less than twenty five per cent of the total production
of the like product by the domestic industry, and
(b) it examines, the accuracy and adequacy
of the evidence provided in the application and satisfies itself that there is
sufficient evidence regarding-
(i) subsidy,
(ii) injury,
where applicable; and
(iii)where
applicable, a causal link between such subsidized imports and the alleged
injury, to justify the initiation of an investigation.
Explanation.- For the purpose of this rule, the application
shall be considered to have been made "by or on behalf of domestic
industry" if it is supported by those domestic producers whose collective
output constitutes more than fifty per cent of the total production of the like
article produced by that portion of the domestic industry expressing either
support for or opposition as the case may be, to the application.
(4) Notwithstanding anything
contained in sub-rule (1), the designated authority may initiate an
investigation, suo motu, if it is satisfied from the information
received from the Collector of Customs appointed under the Customs Act, 1962
(51 of 1962) or any other source that sufficient evidence exists as to the
existence of the circumstances referred to in sub clause (b) of sub-rule (3).
(5) The designated authority shall notify
the government of the exporting country before proceeding to initiate an
investigation.
7. Principles governing investigations.-
(1) The designated authority
shall, after it has decided to initiate investigation to determine the
existence, degree and effect of any alleged subsidization of any article, issue
a public notice notifying its decision.
Public notice regarding initiation of investigation shall, inter alia,
contain adequate information on the following:
(i) the
name of the exporting countries and the article involved;
(ii)the date of initiation of the
investigation;
(iii)a description of the subsidy
practice or practices to be investigated;
(iv) a
summary of the factors on which the allegation of injury is based;
(v)the
address to which representations by interested countries and interested parties
should be directed; and
(vi)the
time-limits allowed to interested countries and interested parties for making
their views known.
(2) A copy of the public notice shall be
forwarded by the designated authority to the known exporters of the article
alleged to have been subsidized, the government of the exporting country
concerned and other interested parties.
(3) The designated authority shall also
provide a copy of the application referred to in sub-rule (1) rule 6 to -
(i)the
known exporters or the concerned trace association where the number of
exporters is large, and
(ii) the government of the exporting country:
Provided that the designated
authority shall also make available a copy of the application, upon request in
writing, to any other interested party.
(4) The designated authority may issue a
notice calling for any information in such form as may be specified by it from
the exporters, foreign producers and governments of interested countries and
such information shall be furnished by such persons in writing within thirty
days from the date of receipt of the notice or within such extended period as
the designated authority may allow on sufficient cause being shown.
Explanation. - For the
purpose of this sub-rule the public notice and other documents shall be deemed
to have been received one week from the date on which these documents were sent
by the designated authority or transmitted to the appropriate diplomatic
representative of the exporting country.
(5) The designated authority shall also
provide opportunity to the industrial users of the article under investigation,
and to representative consumer organizations in cases where the article is
commonly sold at retail level, to furnish information which is relevant to the
investigation regarding subsidization and where applicable injury and
causality.
(6) The designated authority may allow an
interested country or an interest party or its representative to present
information relevant to he investigation orally also, but such oral information
shall be taken into consideration only when it is subsequently reproduced in
writing.
(7) The designated authority shall make
available the evidence presented by one party to other interested parties
participating in the investigation.
(8) In a case where an interested party
refuses access to, or otherwise does not provide necessary information within a
reasonable period, or significantly impedes the investigation, the designated
authority may record its findings on the basis of facts available to it and
make such recommendations to the Central Government as it deems fit under such
circumstances.
8. Confidential
information.-
(1) Notwithstanding anything contained in
sub-rule (1), (2), (3) and (7) of rule 7, sub-rule (2) of rule 14,
sub-rule (4) of rule 17 and sub-rule (3) of rule 19 copies of applications
received under sub-rule (1) of rule 6 or any other information provided to the
designated authority on a confidential basis by any party in the course of
investigation, shall, upon the designated authority being satisfied as to its
confidentiality, be treated as such by it and no such information shall be
disclosed to, any other party without specific authorization of the party
providing such information.
(2) The designated authority may require the
parties providing information on confidential basis to furnish non-confidential
summary thereof in sufficient details to permit a reasonable understanding of
the substance of the confidential information and if, in the opinion of a party
providing such information, such information is not susceptible of summary,
such party may submit to the designated authority a statement of reasons why
summarization is not possible.
(3) Notwithstanding anything contained in
sub-rule (2), if the designated authority, is satisfied that the request for
confidentiality is not warranted or the supplier of the information is either
unwilling to make the information public or to authorize its disclosure in
generalized or summary form, it may disregard such information.
9. Accuracy of the
information. - Except in cases referred to in sub-rule (8) of rule 7 the
designated authority shall during the course of investigation satisfy itself as
to the accuracy of the information supplied by the interested parties upon
which its findings are based.
10. Investigation in the
territory of other specified countries. -
(1) The designated authority may carry out
investigations in the territories of other countries, in order to verify the
information provided or to obtain further details:
Provided that the designated
authority notifies to such country in advance and such country does not object
to such investigation.
(2) The designated authority may also carry
out investigations at the premises of any commercial organization and may
examine its records if such organization agrees and if the country in whose
territory the said commercial organization is situated, is notified and has not
raised any objection for the conduct of such investigation.
11. Nature of subsidy. -
(1) The designated authority while
determining the subsidy shall ascertain as to whether the subsidy under
investigation -
(a) relates
to export performance, or
(b) relates to the use of domestic goods
over imported goods in the export article, or
(c) it has been conferred on a limited
number of persons, engaged in manufacturing, producing or exporting the article
unless such a subsidy is for -
(i)research
activities conducted by or on behalf of persons engaged in the manufacture,
production or export; or
(ii)assistance
to disadvantaged regions within the territory of the exporting country; or
(iii)assistance
to promote adaptation of existing facilities to new environmental requirements:
Provided that for the purposes of
sub-clauses (a) and (b), subsidies of a kind mentioned in the Agreement on
Agriculture, contained the Final Act of the Uruguay Round of Multilateral Trade
Negotiations, shall not be taken into consideration.
Explanation. -
(1) For the purposes of sub-clause (i) of
clause (c) the term "subsidy for research activity" means assistance
for research activities conducted by commercial organizations or by higher
education or research establishments on a contract basis with the commercial
organizations if the assistance covers not more than seventy five per cent of
the costs of industrial research or fifty per cent of the costs of
pre-competitive development activity and provided that such assistance is
limited exclusively to -
(i)costs
of personnel (researchers, technicians and other supporting staff employed
exclusively in the research activity);
(ii)costs
of instruments, equipment, land and buildings used exclusively and permanently
(except when disposed of on a commercial basis) for the research activity;
(iii)costs
of consultancy and equivalent services used exclusively for the research
activity, including bought in research, technical knowledge, patents, etc.;
(iv)additional
overhead costs incurred directly as a result of the research activity; and
(v)other
running costs (such as those of materials, supplies and the like), incurred
directly as a result of the research activity.
(2) For the purposes of sub-clause (ii) of
clause (c), the term "subsidy for assistance to disadvantaged
regions" means assistance to disadvantaged regions within the territory of
the exporting country given pursuant to a general framework of regional
development and such subsidy has not been conferred on limited number of
enterprises within the eligible region:
Provided that -
(a) each disadvantaged region must be a
clearly designated contiguous geographical area with a definable economic and
administrative identity;
(b) the region is considered as
disadvantaged on the basis of neutral and objective criteria, indicating that
the region's difficulties arise out of more than temporary circumstances; such criteria must be clearly spelled out in
law, regulation, or other official document, so as to be capable of
verification:
(c) the criteria shall include a
measurement of economic development which shall be based on at least one of the
following factors. -
(i)one of either income par capita
or household income per capita, or Gross Domestic Product per capita, which
must not be above eighty five per cent of the average for the territory
concerned;
(ii)unemployment
rate, which must be at least one hundred and ten per cent of the average for
the territory concerned, as measured over a three-year period; such measurement, however, may be a composite
one and may include other factors.
(3) For the purpose of sub-clause (iii) of
clause (c), "subsidy for assistance to promote adaptation of existing
facilities to new environmental requirements" means assistance to promote
adaptation of existing facilities to new environmental requirements imposed by
law and/or regulations which result in greater constraints and financial burden
on commercial organizations:
Provided that the
assistance -
(i) is a one-time non-recurring
measure; and
(ii) is limited to twenty per cent of the
cost of adaptation; and
(iii)does
not cover the cost of replacing and operating the assisted investment, which
must be fully borne by commercial organizations; and
(iv)is
directly linked to and proportionate to a commercial organization's planned
reduction of nuisances and pollution, and does not cover any manufacturing cost
savings which may be achieved; and
(v)is
available to all firms which can adopt the new equipment and/or production
processes.
(3) The designated authority while
determining the subsidy of a kind as referred to in sub-clause (c) to sub-rule
(1) shall take into account, inter alia, the principles laid down in
Annexure II to these rules.
12. Conferment of benefit.
- The designated authority while
determining the conferment of benefit to the recipient, pursuant to a subsidy,
shall take into account the following guidelines -
(a) government provision of equity capital
shall not be considered as conferring a benefit, unless the investment decision
can be regarded as inconsistent with the usual investment practice (including
for the provision of risk capital) of private investors in the territory of the
granting country.
(b) a loan by a government shall not be
considered as conferring a benefit, unless there is a difference between the
amount that the commercial organization receiving the loan pays on the
government loan and the amount it would pay on a comparable commercial loan
which it could actually obtain on the market.
In this case the benefit shall be the difference between these two
amounts:
(c) a loan guarantee by a government shall
not be considered as conferring a benefit, unless there is a difference between
the amount that the commercial organization receiving the guarantee pays on a
loan guaranteed by the government and the amount that it would pay on a
comparable commercial loan in the absence of the government guarantee. In this case the benefit shall be the
difference between these two amounts adjusted for any differences in fees;
(d) the provision of goods or services or
purchase of goods by a government shall not be considered as conferring a
benefit unless the provision is made for less than adequate remuneration, or
the purchase is made for more than adequate remuneration. The adequacy of remuneration shall be
determined in relation to prevailing market conditions for the goods or service
in question in the country of provision or purchase (including price, quality,
availability, marketability, transportation and other conditions of purchase or
sale).
13. Determination of injury.
-
(1) In the case of imports from specified
countries, the designated authority shall give a further finding that the
import of such article into India causes or threatens material injury to any
industry established in India, or materially retards the establishment of an
industry in India.
(2) Except when a finding of injury is made
under sub-rule (3), the designated authority shall determine the injury, threat
of injury, material retardation to the establishment of an industry and the
causal link between the subsidized import and the injury, taking into account,
inter alia, the principle laid down in Annexure I to the rule.
(3) The designated authority may, in
exceptional cases, give a finding as to the existence of injury even where a
substantial portion of the domestic industry is not injured if -
(i) there is a concentration of subsidized
imports into an isolated market and,
(ii)the
subsidized imports are causing injury to the producers of almost all of the
production within such market.
14. Preliminary findings. -
(1) The designated authority
shall proceed expeditiously with the conduct of the investigation and shall, in
appropriate cases, record a preliminary finding regarding existence of a
subsidy and its nature and in respect of imports from specified countries. It shall also record its preliminary finding
regarding injury to the domestic industry and such finding shall contain
sufficiently detailed explanation for the preliminary determination on the
existence of a subsidy and injury and shall refer to the matter of fact and law
which have led to arguments being accepted or rejected. Such finding shall contain -
(i)the
names of the suppliers or, when this is impracticable, the supplying countries
involved;
(ii) a description of the product which is sufficient
for customs purposes;
(iii)the
amount of subsidy established and the basis on which the existence of a subsidy
has been determined:
(iv) considerations relevant to the injury
determination; and
(v) the main reasons leading to the
determination.
(2) The designated authority shall issue a
public notice recording its preliminary findings.
15. Levy of provisional
duty. - The Central Government may, in accordance with the provisions of
sub-section (2) of section 9 of the Act, impose a provisional duty on the basis
of the preliminary findings recorded by the designated authority.
Provided that no such
duty shall be imposed before the expiry of sixty days from the date of issue of
the public notice by the designated authority regarding its decision to
initiate investigations.
Provided further that
such duty shall remain in force for a period not exceeding four months.
16. Termination of
investigation. -
(1) The designated authority shall, by issue
of a public notice terminate an investigation immediately if -
(a) it receives a request in writing for
doing so from or on behalf of the domestic industry affected, at whose instance
the investigation was initiated;
(b) it is satisfied in the course of an
investigation, that there is no sufficient evidence either for subsidization
or, where applicable, injury to justify continuation of the investigation;
(c) it determines that the amount of
subsidy is less than one per cent ad valorem or in the case of a product
originating from a developing country the amount of subsidy is less than two
per cent.
(d) it determines that the volume of the
subsidized imports, actual or potential or injury where applicable, is
negligible or in the case of a product originating in a developing country the
volume of the subsidized imports represents less than four per cent of the
total imports of the like product into India, unless imports from developing
countries whose individual share of total imports represent less than four per
cent collectively account for more than nine per cent of the total imports of
the like product into India.
17. Suspension or
termination of investigation on acceptance of price undertaking. -
(1) The designated authority may suspend or
terminate an investigation, if -
(a) the government of the exporting country
-
(i) furnishes an undertaking that it would
withdraw the subsidy.
(ii)in
case of specified countries, undertakes to limit the quantum of subsidy within
reasonable limit, or to take other suitable measures to neutralize the effect
of such subsidy, provided that the designated authority is satisfied that the
injurious effect of the subsidy is eliminated, or
(b) in case of specified countries the
exporters concerned agree to revise their prices so that injurious effect of
subsidy is eliminated and the designated authority is satisfied that the
injurious effect of the subsidy is eliminated:
Provided that increase in price as a
result of this clause is not higher than what is necessary to eliminate the
amount of subsidy:
Provided further that the designated
authority shall complete the investigation and record its finding, if the
Central Government so desires or the government of the exporting country so
decides.
(2)(i)No
undertaking as regards price increase under sub-rule (1) shall be accepted
unless the designated authority had made preliminary determination of
subsidization and the injury:
Provided that an undertaking from an
exporter shall be accepted only when the designated authority has also obtained
the consent of the exporting country.
(3) The designated authority, may also not
accept undertakings offered by any country or any exporter, if it considers the
acceptance of such undertaking as impracticable or as unacceptable for any
other reason.
(4) The designated authority shall intimate
the acceptance of an undertaking and suspension or termination of investigation
to the Central Government and also issue a public notice in this regard. The public notice shall, contain, inter alia,
the non-confidential part of the undertaking.
(5) In cases where an undertaking has been
accepted by the designated authority the Central Government may not impose a
duty under sub-section (2) of section 9 of the Act for such a period the
undertaking acceptable to the designated authority remains valid.
(6) Where the designated authority has
accepted any undertaking under sub-rule (1), it may require the government of
the exporting country, or the exporter from whom such undertaking has been
accepted to provide from time to time information relevant to the fulfilment of
the undertaking and to permit verification of relevant data:
Provided that in case of any
violation of any undertaking, the designated authority will intimate the
Central Government and complete the investigation expeditiously.
(7) The designated authority shall suo
motu or on the basis of any request received from exporters or importers of
the article in question or any other interested person review from time to time
the need for the continuance of any undertaking given earlier.
18. Disclosure of
information. - The designated authority, shall, before giving its final
findings, inform all interested parties and interested countries of the
essential facts under consideration which form the basis of its decision and
permit the interested parties to defend their interest.
19. Final findings. -
(1) The designated authority shall, within
one year from the date of initiation of an investigation determine as to
whether or not the article under investigation is being subsidized and submit
to the Central Government its final finding, as to -
(a)(i)the
nature of subsidy being granted in respect of the article under investigation
and the quantum of such subsidy;
(ii)whether
imports of such articles into India in the case of imports from specified
countries, cause or threaten material injury to an industry established in
India or materially retards the establishment of any industry in India and
causal link between the subsidized imports and such injury: and
(iii)whether
a retrospective levy is called for and if so, the reasons therefore and the
date of commencement of such levy.
(b) its recommendation as to the amount of
duty which if levied, would be adequate to remove the injury to the domestic
industry.
Provided that the Central Government
may in circumstances of exceptional nature extend further the aforesaid period
of one year by six months.
Provided further that in those cases
where the designated authority has suspended the investigation on the
acceptance of a price undertaking as provided in rule 17 and subsequently
resumes the same on violation of the terms of the said undertaking, the period
for which investigation was kept under suspension shall not be taken into
account while calculating the said period of one year.
(2) The final finding if affirmative, shall
contain all information on the matter of facts and law and reasons which have
led to the conclusion and shall also contain information regarding -
(i)the
names of the suppliers or, when this is impractical, the supplying countries
involved;
(ii) a description of the product with is
sufficient for customs purposes;
(iii)the
amount of subsidy established and the basis on which the existence of a subsidy
has been determined;
(iv) considerations relevant to the injury
determination; and
(v) the main reasons leading to the
determination.
(3) The designated authority shall issue a
public notice regarding its final findings.
20. Levy of duty. -
(1) The Central Government may, within three
months of the date of publication of the final findings by the designated
authority under rule 19, impose, by notification in the Official Gazette, upon
importation into India of the article covered under the final finding, a
countervailing duty not exceeding the amount of subsidy as determined by the
designated authority under rule 19.
Provided that in case of imports
from specified countries the amount of duty shall not exceed the amount which
has been found adequate to remove the injury to the domestic industry.
(2) Notwithstanding anything contained in
sub-rule (1) where a domestic industry has been interpreted according to the
proviso to clause (b) of rule 2, a countervailing duty shall be levied only
after the exporters have been given opportunity to cease exporting at subsidized
prices to the area concerned or otherwise give an undertaking pursuant to rule
17 and such undertaking has not been promptly given and in such cases duty
cannot be levied only on the product of specified producers which supply the
area in question.
(3) If the final finding of the designated
authority is negative, that is contrary to the prima facie evidence on whose
basis the investigation was initiated, the Central Government shall within
forty five days of the publication of final findings by the designated
authority under rule 19, withdraw the provisional duty, imposed if any.
21. Imposition of duty on
non-discriminatory basis. - Any countervailing duty imposed under rule 15
or 20 shall be on a non-discriminatory basis and applicable to all imports of
such article, if found to be subsidized and where applicable, causing injury
except in the case of imports from those sources from which undertakings in
terms of rule 17 have been accepted.
22. Date of commencement of
duty. -
(1) The countervailing duty levied under
rule 15 and 20 shall take effect from the date of publication of the
notification in the Official Gazette.
(2) Notwithstanding anything contained in
sub-rule (1) -
(a) where a provisional duty has been
levied and where the designated authority has recorded a finding of injury or
where the designated authority recorded a finding of threat of injury and a
further finding that the subsidized imports, in the absence of provisional duty
would have led to injury, the countervailing duty may be imposed from the date
of imposition of provisional duty:
(b) in the circumstances referred to in
sub-section (4) of section 9 of the Act, the countervailing duty may be levied
retrospectively from the date commencing ninety days prior to the imposition of
provisional duty:
Provided that in case
of violation of an undertaking referred to in sub-rule (6) or rule 17, no
duty shall be levied retrospectively on imports which have entered for home
consumption before violation of such terms of the undertaking.
23. Refund of duty. -
(1) If the countervailing duty imposed by the
Central Government on the basis of the final findings of the investigation
conducted by the designated authority is higher than the provisional duty
already imposed and collected the differential shall not be collected from the
importer.
(2) If the countervailing duty fixed after
the conclusions of the investigation is lower than the provisional duty already
imposed and collected, the differential shall be refunded to the importer.
(3) If the provisional duty imposed by the
Central Government is withdrawn in accordance with the provisions of sub-rule
(3) of rule 20, the provisional duty already imposed and collected, if any,
shall be refunded to the importer.
24. Review. -
(1) The designated authority shall, from
time to time, review the need for continued imposition of the countervailing
duty and shall, if it is satisfied on the basis of information received by it
that there is no justification for the continued imposition of such duty or
additional duty, recommend to the Central Government for its withdrawal.
(2) Any review initiated under sub-rule (1)
shall be concluded within a period not exceeding 12 months from the date of
initiation of such review.
(3) The provisions of rules 6, 7, 8, 9, 10,
11, 12, 13, 16, 17, 18, 19, 20, 22 and 23 shall mutatis mutandis apply
in the case of review.
_______________
ANNEXURE I
PRINCIPLES
GOVERNING THE DETERMINATION OF INJURY
The designated
authority shall take into account, inter alia, the following principles while
determining injury:-
1.(1) A determination of injury for purposes of
rule 13 shall be based on positive evidence and involve an objective
examination of both (a) the volume of
the subsidized imports and the effect of the subsidized imports on prices in
the domestic market for like products and (b) the consequent impact of these
imports on the domestic producers of such products.
(2) With regard to the volume of the
subsidized imports, the designated authority shall, inter alia, consider
whether there has been a significant increase in subsidized importers, either
in absolute terms or relative to production or consumption in India.
(3) With regard to the effect of the
subsidized import on prices, the designated authority shall, consider whether
there has been a significant price undercutting by the subsidized imports as
compared with the price of a like article in India, or whether the effect of
such imports is otherwise to depress prices to a significant degree or to prevent
price increases, which otherwise would have occurred, to a significant degree.
(4) Where imports of a product from more
than one country are simultaneously subject to countervailing duty
investigations, the designated authority may cumulatively assess the effect of
such imports only if it determines that (a) the amount of subsidization
established in relation to the imports from each country is more than one per
cent ad valorem and the volume of imports from each country is not negligible
and (b) a cumulative assessment of the effects of the imports is appropriate in
light of the conditions of competition between the imported products and the
like domestic product.
(5) The designated authority while examining
the impact of the subsidized imports on the domestic industry shall include and
evaluation of all relevant economic factors and indices having a bearing on the
state of the industry, including actual and potential decline in output, sales,
market share, profits, productivity, return on investments, or utilization or
capacity; factors affecting domestic prices;
actual and potential negative effects on cash flow, inventories,
employment, wages, growth, ability to raise capital investments and, in the
case of agriculture, whether there has been an increased burden on government
support programmes.
2.(1) It must be demonstrated that the
subsidized imports are, through the effects of subsidies, causing injury. The demonstration of a causal relationship
between the subsidized imports and the injury to the domestic industry shall be
based on an examination of all relevant evidence before the designated
authority. The designated authority
shall also examine any known factors other than the subsidized imports which at
the same time are injuring the domestic
industry, and the injuries caused by these other factors must not be attributed
to the subsidized imports. Factors which
may be relevant in this respect include, inter alia, the volumes and prices on
non-subsidized imports of the products in question, contraction in demand or
changes in the patterns of consumption, trade restrictive practices of and
competition between the foreign and domestic producers, developments in
technology and the export performance and productivity of the domestic
industry.
(2) The effect of the subsidized imports shall be assessed in
relation to the domestic production of the like product when available data
permit the separate identification of the production on the basis of such
criteria as the production process, producers sales and profits. If such separate identification of that
production is not possible, the effects of the subsidized imports shall be
assessed by the examination of the production of the narrowest group or range of
products, which includes the like product for which the necessary information
can be provided.
3. A determination of a
threat of material injury shall be based on facts and not merely on allegation,
conjecture or remote possibility. The
change in circumstances which would create a situation in which the subsidy
would cause injury must be clearly foreseen and imminent. In making a determination regarding the
existence of a threat of material injury, the designated authority shall
consider, inter alia, such factors as:
(i)nature
of the subsidy or subsidies in question and the trade effects likely to arise
therefrom;
(ii)a
significant rate of increase of subsidized imports into the domestic market
indicating the likelihood of substantially increased importation;
(iii)sufficient
freely disposable, or an imminent, substantial increase in, capacity of the
exporter indicating the likelihood of substantially increased subsidized
exports to Indian market, taking into account the availability of other export
markets to absorb any additional exports;
(iv)whether
imports are entering at prices that will have a significant depressing or
suppressing effect on domestic prices, and would likely increase demand for
further imports; and
(v) inventories of the product being
investigated.
ANNEXURE
II
PRINCIPLES FOR DETERMINATION
OF SUBSIDY WHICH HAS BEEN CONFERRED
ON A LIMITED
NUMBER OF PERSONS AS REFERRED TO IN RULE 11
1. The designated authority
in order to determine as to whether a subsidy has been conferred on a limited
number of persons engaged in the manufacture of production of an article, shall
take the following principles into consideration:-
(a) whether the granting authority or the
legislation pursuant to which the granting authority operates, explicitly
limits access to a subsidy to certain enterprises. However, where the granting authority, or the
legislation pursuant to which the granting authority operates, establishes
objective criteria or conditions governing the eligibility for, and the amount
of, a subsidy, such subsidy shall not be considered to have been conferred on a
limited number of persons engaged in the manufacture or production of an
article, provided that the eligibility is automatic and such criteria or
conditions are strictly adhered to and such criteria and conditions have been
clearly spelt out in the law, regulation or other official document of the
granting country or territory and are capable of verification.
Explanation: For the purposes of the above paragraph
objective criteria or conditions mean criteria or condition which are neutral,
which do not favour certain enterprises over others, and which are economic in
nature and horizontal in application, such as number of employees or size of
enterprises.
(b) Notwithstanding the determination that a
subsidy is not being granted to a limited number of enterprises in terms of the
provisions contained in paragraph (a) above.
If the designated authority has reason to believe that the subsidy has
in fact been conferred to a limited number of enterprises, it may consider other
factors like (1) use of a subsidy programme by a limited number of certain
enterprises or predominant use by certain enterprises (2) granting of
disproportionately large amounts of subsidy to certain enterprises and (3)
manner in which discretion has been exercised by the granting authority in
decision to grant a subsidy, for determination of a subsidy. The designated authority, in applying this
clause, shall take into account, the extent of diversification of economic
activities within the jurisdiction of the granting authority, as well as the
length of time during which the subsidy programme has been in operation.
(c) A subsidy which is limited to certain
persons engaged in the manufacture or production of an article located within a
designated geographical region within the jurisdiction of the granting
authority shall be considered to have been granted to a limited number of
persons engaged in the manufacture or production.
(S.
M. BHATNAGAR)
UNDER
SECRETARY TO THE GOVERNMENT OF INDIA
F.No.525/2/94-CUS.(TU):
TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii) OF THE GAZETTE
OF INDIA EXTRAORDINARY, DATED 1ST JANUARY 1995.
11 PAUSA 1916 (SAKA)
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF REVENUE
NEW
DELHI, 1st January 1995.
11 Pausa 1916 (SAKA)
NOTIFICATION
NO.
3/95-NT-CUSTOMS
G.S.R. NO. 3 (E) - In exercise of the powers conferred by sub-rule (1)
rule 3 of the Customs Tariff (Identification, Assessment and Collection of Countervailing
Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, the
Central Government hereby appoints the Additional Secretary to the Government
of India in the Ministry of Commerce, as the designated authority for the
purposes of said rules.
(S.
M. BHATNAGAR)
UNDER
SECRETARY TO THE GOVERNMENT OF INDIA
F.No.525/2/94-CUS.(TU):
TO BE
PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii) OF THE
GAZETTE OF INDIA
EXTRAORDINARY, DATE 1ST JANUARY 1995.
11
PAUSA 1916 (SAKA)
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF REVENUE
NEW
DELHI, 1st January, 1995
11 Pausa 1916 (SAKA)
NOTIFICATION
NO.
4/95-NT-CUSTOMS
G.S.R. No. 4 (E) - In exercise of the powers conferred by sub-rule (1)
of rule 3 of the Customs Tariff (Identification, Assessment and Collection of
Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules,
1995, the Central Government hereby appoints the Additional Secretary to the
Government of India in the Ministry of Commerce, as the designated authority
for the purposes of said rules.
(S.
M. BHATNAGAR)
UNDER
SECRETARY TO THE GOVERNMENT OF INDIA
F.NO.525/2/94-CUS.(TU):