. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/W/466
24 September 2001
(01-4519)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
IMPLEMENTATION-RELATED ISSUES REFERRED TO THE
COMMITTEE AT THE REQUEST OF THE CHAIRMAN OF
THE GENERAL COUNCIL ON 31 JULY 2001
Review by the SCM Committee of the Provisions of the Agreement on Subsidies and
Countervailing Measures Regarding Countervailing Duty Investigations
Communication from India
The following communication, dated 21 September 2001, has been received from the
Permanent Mission of India.
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In reference to India's proposal on tiret-80 of the implementation issues regarding
countervailing duty measures, in our view the issues which require clarification/amendments etc. are
as under:
(a) Limiting the countervailing duty to the
amount of remission, exemption anddrawback of duty in excess of these
levied on inputs consumed and addition
of an amount of interest on the benefit
conferred.    - India is merely seeking that countervailing
duty imposed should be in consistencywith the obligations under the Agreement.
(b) Suggestion regarding determination of
average useful life of an asset.    - SCM Agreement is silent.
(c) Suggestion that subsidy be deemed to
exist if the exporter concerned hasreceived the subsidy benefit during the
investigation period.    - Clarification of Article 1 of the SCM
Agreement.
(d) Deductions and adjustment on account of
expenses which the exporter has to incurfor obtaining the alleged subsidy.    - Additional disciplines required under
Article 14 of the SCM Agreement.
(e) Definition of domestic industry (major
proportion of total domestic production).    - Clarification of Article 16 of the ASCM.
(f) Likeness of the product.     - Clarification of footnote 46.G/SCM/W/466
Page 2
(g) Review of CVD on submission of
positive information regarding procedural
mistake or manifest error of apprehension
and withdrawal of subsidy schemes
considered to confer benefit.    - Additional disciplines required under
Article 21.2 of the SCM Agreement.
(h) Review regarding benefits conferred by
subsidy schemes which have been
subsequently terminated.    - Additional disciplines required under
Article 12.2 of the SCM Agreement.
(i) Resort to facts available.     - Clarification under Article 12.7 of the
SCM Agreement.
No change in the existing provisions is required.  At some places as indicated above,
additional disciplines may be required to take account of certain concerns in keeping with the thrust of
the Agreement.
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