WORLD TRADE G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
ORGANIZATION 7April 1995
(95-0857)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
INDIA
Thefollowing communication, dated 15March 1995, hasbeenreceived fromthePermanent
Mission ofIndia.
_______________
Onbehalf oftheGovernment ofIndia, Ihavethehonour toforward acopyofTheCustoms
Tariff (Amendment) Ordinance, 1994 andtheRules framed thereunder bringing theIndian Laws on
imposition ofcountervailing andanti-dumping duties inconformity withtheAgreement onSubsidies
andCountervailing Measures andtheAgreement onImplementation ofArticle VIoftheGeneral
Agreement onTariffs andTrade 1994.G/ADP/N/1/IND/1
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Registered No.DL-33004/94
TheGazette ofIndia
EXTRAORDINARY
PART II-Section 1
PUBLISHED BYAUTHORITY
_________________________________________________________________________________
No.82 NewDelhi, Saturday, 31December 1994, Pausa 10,1916
_________________________________________________________________________________
Separate paging isgiven tothisPartinorder thatitmaybefiledasaseparate compilation
_________________________________________________________________________________
MINISTRY OFLAW, JUSTICE AND COMPANY AFFAIRS
(Legislative Department)
NewDelhi, the31stDecember 1994/Pausa 10,1916 (Saka)
THE CUSTOMS TARIFF (AMENDMENT) ORDINANCE 1994
No.14of1994
Promulgated bythePresident intheForty-fifth Year ofthe
Republic ofIndia
AnOrdinance further toamend theCustoms Tariff Act1975
WHEREAS, Parliament isnotinsession andthePresident issatisfied thatcircumstances exist
which render itnecessary forhimtotakeimmediate action;
NOW THEREFORE, inexercise ofthepowers conferred byclause (1)ofarticle 123ofthe
Constitution, thePresident ispleased topromulgate thefollowing Ordinance: -
1. (1) ThisOrdinance maybecalled theCustoms Tariff (Amendment) Ordinance 1994.
(2) Itshallcome intoforce onthe1stdayofJanuary 1995.
2. Forsections 9,9Aand9BoftheCustoms Tariff Act1975, thefollowing sections shallbe
substituted, namely: -
"9. (1) Whereanycountryorterritorypays,bestows,directlyorindirectly,anysubsidy
uponthemanufacture orproduction therein ortheexportation therefrom ofanyarticle including
anysubsidy ontransportation ofsucharticle, then, upon theimportation ofanysucharticle
intoIndia, whether thesameisimported directly fromthecountry ofmanufacture, production
orotherwise, andwhether itisimported inthesame condition aswhen exported from the
country ofmanufacture, production orotherwise, theCentral Government may,bynotification
intheOfficial Gazette, impose acountervailing dutynotexceeding theamount ofsuchsubsidy."G/ADP/N/1/IND/1
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Explanation - Forthepurposes ofthissection, asubsidy shallbedeemed toexistif-
(a) thereisfinancial contribution byagovernment, oranypublic bodywithin theterritory
oftheexisting orproducing country, thatis,where -
(i) agovernment practice involves adirect transfer offunds (including grants,
loans andequity infusion), orpotential direct transfer offunds orliabilities,
orboth;
(ii) governmentrevenuethatisotherwisedueisforegoneornotcollected(including
fiscal incentives);
(iii) agovernment provides goods orservices other thangeneral infrastructure or
purchases goods;
(iv) Agovernment makes payments toafunding mechanism, orentrusts ordirects
aprivate body tocarry outoneormore ofthetypeoffunctions specified in
clauses (i)to(iii)above which would normally bevested inthegovernment
andthepractice in,norealsense, differs from practices normally followed
bygovernments; or
(b) agovernment grants ormaintains anyformofincome orpricesupport, which operates
directly orindirectly toincrease export ofanyarticle from, ortoreduce import ofanyarticle
intoitsterritory,
andabenefit isthereby conferred.
(2) TheCentral Government may, pending thedetermination inaccordance withtheprovisions
ofthissection andtherulesmade thereunder oftheamount ofsubsidy, impose acountervailing duty
under thissub-section notexceeding theamount ofsuchsubsidy asprovisionally estimated byitand
ifsuchcountervailing dutyexceeds thesubsidy assodetermined, -
(a) theCentral Government shall, having regard tosuchdetermination andassoonasmay
beaftersuchdetermination, reduce suchcountervailing duty; and
(b) refund shallbemade ofsomuch ofsuchcountervailing dutywhich hasbeencollected
asisinexcess ofthecountervailing dutyassoreduced.
(3) Subject toanyrulesmade bytheCentral Government, bynotification intheOfficial Gazette,
thecountervailing dutyunder sub-section (1)orsub-section (2)shallnotbelevied unless itisdetermined
that-
(a) thesubsidy relates toexport performance;
(b) thesubsidy relates totheuseofdomestic goods overimported goods intheexport
article; or
(c) thesubsidyhasbeenconferredonalimitednumberofpersonsengagedinmanufacturing,
producing orexporting thearticle unless suchasubsidy isfor-G/ADP/N/1/IND/1
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(i) research activities conducted byoronbehalf ofpersons engaged inthe
manufacture, production orexport;
(ii) assistancetodisadvantagedregionswithintheterritoryoftheexportingcountry;
or
(iii) assistance topromote adaptation ofexisting facilities tonewenvironmental
requirements.
(4) IftheCentral Government isoftheopinion thattheinjury tothedomestic industry which is
difficult torepair, iscaused bymassive imports inarelatively short period, ofthearticle benefiting
from subsidies paidorbestowed andwhere inorder topreclude therecurrence ofsuchinjury, itis
necessary tolevycountervailing dutyretrospectively, theCentral Government may, bynotification
intheOfficial Gazette, levycountervailing dutyfrom adateprior tothedateofimposition of
countervailing dutyunder sub-section (2)butnotbeyond 90daysfromthedateofnotification under
thatsub-section andnotwithstanding anything contained inanylawforthetimebeing inforce, such
dutyshallbepayable from thedateasspecified inthenotification issued under thissub-section.
(5) Thecountervailing dutychargeable under thissection shallbeinaddition toanyother duty
imposed under thisActoranyother lawforthetimebeing inforce.
(6) Thecountervailing dutyimposed under thissection shall, unless revoked earlier, cease tohave
effect ontheexpiry offiveyears from thedateofsuchimposition:
Provided thatiftheCentral Government, inareview, isoftheopinion thatthecessation of
suchdutyislikely toleadtocontinuation orrecurrence ofsubsidization andinjury, itmay, fromtime
totime, extend theperiod ofsuchimposition forafurther period offiveyears andsuchfurther period
shallcommence from thedateoforder ofsuchextension:
Provided further thatwhere areview initiated before theexpiry oftheaforesaid period offive
years hasnotcome toaconclusion before suchexpiry, thecountervailing dutymaycontinue toremain
inforce pending theoutcome ofsuchareview forafurther period notexceeding oneyear.
(7) Theamount ofanysuchsubsidy asreferred toinsub-section (1)orsub-section (2)shall, from
timetotime, beascertained anddetermined bytheCentral Government, aftersuchenquiry asitmay
consider necessary andtheCentral Government may,bynotification intheOfficial Gazette, make rules
fortheidentification ofsucharticle andfortheassessment andcollection ofanycountervailing duty
imposed upon theimportation thereof under thissection.
(8) Every notification issued under thissection shall, assoonasmaybeafteritisissued, belaid
before eachHouse ofParliament.
9A (1) Where anyarticle isexported fromanycountry orterritory (hereinafter inthissection
referred toastheexporting country orterritory) toIndia atlessthanitsnormal value, then, uponthe
importation ofsucharticle intoIndia, theCentral Government may, bynotification intheOfficial
Gazette, impose ananti-dumping dutynotexceeding themargin ofdumping inrelation tosucharticle.
Explanation -Forthepurposes ofthissection, -
(a) "margin ofdumping", inrelation toanarticle, means thedifference between itsexport
price anditsnormal value;G/ADP/N/1/IND/1
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(b) "export price", inrelation toanarticle, means theprice ofthearticle exported from
theexporting country orterritory andincases where there isnoexport price orwhere the
export price isunreliable because ofassociation oracompensatory arrangement between the
exporter andtheimporter orathirdparty, theexport price maybeconstructed onthebasis
oftheprice atwhich theimported articles arefirstresold toanindependent buyer orifthe
article isnotresold toanindependent buyer, ornotresold inthecondition asimported, on
suchreasonable basis asmaybedetermined inaccordance withtherules made under sub-
section (6);
(c) "normal value", inrelation toanarticle, means -
(i) thecomparable price, intheordinary course oftrade, forthelikearticle when
meant forconsumption intheexporting country orterritory asdetermined in
accordance withtherules made under sub-section (6);or
(ii) when there arenosalesofthelikearticle intheordinary course oftrade in
thedomestic market oftheexporting country orterritory, orwhen because
oftheparticular market situation orlowvolume ofthesalesinthedomestic
market oftheexporting country orterritory, suchsalesdonotpermit aproper
comparison, thenormal value shallbeeither -
(a) comparable representative priceofthelikearticle when exported from
theexporting country orterritory oranappropriate thirdcountry asdetermined
inaccordance withtherules made under sub-section (6);or
(b) thecostofproduction ofthesaidarticle inthecountry oforigin along
withreasonable addition foradministrative, selling andgeneral costs andfor
profits, asdetermined inaccordance withtherulesmade under sub-section (6):
Provided thatinthecaseofimport ofthearticle fromacountry other
thanthecountry oforigin andwhere thearticle hasbeenmerely transhipped
though thecountry ofexport orsucharticle isnotproduced inthecountry
ofexport orthereisnocomparable priceinthecountry ofexport, thenormal
value shallbedetermined withreference toitsprice inthecountry oforigin.
(2) TheCentral Government may, pending thedetermination inaccordance withthe
provisions ofthissection andtherulesmade thereunder ofthenormal value andthemargin ofdumping
inrelation toanyarticle, impose ontheimportation ofsucharticle intoIndia ananti-dumping duty
onthebasisofaprovisional estimate ofsuchvalue andmargin andifsuchanti-dumping dutyexceeds
themargin assodetermined:-
(a) theCentral Government shall, having regard tosuchdetermination andassoon
asmaybeaftersuchdetermination, reduce suchanti-dumping duty; and
(b) refund shallbemade ofsomuch oftheanti-dumping dutywhich hasbeen
collected asinexcess oftheanti-dumping dutyassoreduced.
(3) IftheCentral Government, inrespect ofthedumped article under enquiry, isofthe
opinion that-G/ADP/N/1/IND/1
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(i) there isahistory ofdumping which caused injury orthattheimporter was,
orshould havebeen, aware thattheexporter practices dumping andthatsuch
dumping would cause injury; and
(ii) theinjury iscaused bymassive dumping ofanarticle imported inarelatively
short timewhich inthelightofthetiming andthevolume ofimported article
dumped andother circumstances islikely toseriously undermine theremedial
effect oftheanti-dumping dutyliable tobelevied,
theCentral Government may, bynotification intheOfficial Gazette, levyanti-dumping duty
retrospectively fromadateprior tothedateofimposition ofanti-dumping dutyunder sub-section (2)
butnotbeyond ninety daysfrom thedateofnotification under thatsub-section, andnotwithstanding
anything contained inanylawforthetimebeing inforce, suchdutyshallbepayable atsuchrateand
from suchdateasmaybespecified inthenotification.
(4) Theanti-dumping dutychargeable under thissection shallbeinaddition toanyother
dutyimposed under thisActoranyother lawforthetimebeing inforce.
(5) Theanti-dumping dutyimposed under thissection shall, unless revoked earlier, cease
tohaveeffect oftheexpiry offiveyears from thedateofsuchimposition:
Provided thatiftheCentral Government, inareview, isoftheopinion thatthecessation of
suchdutyislikely toleadtocontinuation orrecurrence ofdumping andinjury, itmay, fromtimeto
time, extend theperiod ofsuchimposition forafurther period offiveyears andsuchfurther period
shallcommence from thedateoforder ofsuchextension:
Provided further thatwhere areview initiated before theexpiry oftheaforesaid period offive
years hasnotcome toaconclusion before suchexpiry, theanti-dumping dutymaycontinue toremain
inforce pending theoutcome ofsuchareview forafurther period notexceeding oneyear.
(6) Themargin ofdumping asreferred toinsub-section (1)orsub-section (2)shall, from
timetotime, beascertained anddetermined bytheCentral Government, aftersuchenquiry asitmay
consider necessary andtheCentral Government may,bynotification intheOfficial Gazette, make rules
forthepurposes ofthissection, andwithout prejudice tothegenerality oftheforegoing, suchrules
mayprovide forthemanner inwhich articles liable foranyanti-dumping dutyunder thissection may
beidentified, andforthemanner inwhich theexport price andthenormal value of,andthemargin
ofdumping inrelation to,sucharticles maybedetermined andfortheassessment andcollection of
suchanti-dumping duty.
(7) Every notification issued under thissection shall, assoonasmaybeafteritisissued,
belaidbefore eachHouse ofParliament.
9B (1) Notwithstanding anything contained insection 9orsection 9A,-
(a) noarticle shallbesubjected tobothcountervailing dutyandanti-dumping duty
tocompensate forthesame situation ofdumping orexport subsidization;
(b) theCentral Government shallnotlevyanycountervailing dutyoranti-dumping
duty-G/ADP/N/1/IND/1
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(i) under section 9orsection 9Abyreasons ofexemption orsucharticles
from duties ortaxes borne bythelikearticle when meant for
consumption inthecountry oforigin orexportation orbyreason of
refund ofsuchduties ortaxes;
(ii) under sub-section (1)ofeachofthesesections, ontheimport intoIndia
ofanyarticle fromaMember country oftheWorld Trade Organization
orfrom acountry withwhom theGovernment ofIndia hasamost-
favoured-nation agreement (hereinafter referred toasaspecified
country), unless inaccordance withtherulesmade under sub-section
(2)ofthissection, adetermination hasbeenmade thatimport ofsuch
article intoIndiacauses orthreatens material injury toanyestablished
industry inIndiaormaterially retards theestablishment ofanyindustry
inIndia; and
(iii) under sub-section (2)ofeachofthese sections, onimport intoIndia
ofanyarticle from thespecified countries unless inaccordance with
therules made under sub-section (2)ofthissection, apreliminary
finding hasbeenmade ofsubsidy ordumping andconsequent injury
todomestic industry; andafurther determination hasalsobeenmade
thatadutyisnecessary toprevent injury being caused during the
investigation:
Provided thatnothing contained insub-clauses (ii)and(iii)ofclause (b)
shallapply ifacountervailing dutyorananti-dumping dutyhasbeenimposed
onanyarticle toprevent injury ofthreat ofaninjury tothedomestic industry
ofathirdcountry ofexporting thelikearticle toIndia;
(c) theCentral Government maynotlevy-
(i) anycountervailing dutyunder section 9,atanytime, upon receipt of
satisfactory voluntary undertakings from thegovernment ofthe
exporting country orterritory agreeing toeliminate orlimitthesubsidy
ortakeother measures concerning itseffect, ortheexporter agreeing
torevise theprice ofthearticle andiftheCentral Government is
satisfied thattheinjurious effect ofthesubsidy iseliminated thereby;
(ii) anyanti-dumping dutyunder section 9A,atanytime, upon receipt
ofsatisfactory voluntary undertaking from anyexporter torevise its
prices ortocease exports totheareainquestion atdumped price and
iftheCentral Government issatisfied thattheinjurious effect of
dumping iseliminated bysuchaction.
(2) TheCentral Government may, bynotification intheOfficial Gazette, make rulesfor
thepurposes ofthissection, andwithout prejudice tothegenerality oftheforegoing, suchrulesmay
provide forthemanner inwhich anyinvestigation maybemade forthepurposes ofthissection, the
factors towhich regard shallbeatinanysuchinvestigation andforallmatters connected withsuch
investigation.G/ADP/N/1/IND/1
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9C. (1) Anappeal against theorder ofdetermination orreview thereof regarding theexistence,
degree andeffect ofanysubsidy ordumping inrelation toimport ofanyarticle shalllietotheCustoms,
Excise andGold(Control) Appellate Tribunal constituted under section 129oftheCustoms Act,1962
(hereinafter referred toastheAppellate Tribunal).
(2) Every appeal under thissection shallbefiledwithin ninety daysofthedateoforder
under appeal:
Provided thattheAppellate Tribunal mayentertain anyappeal aftertheexpiry ofthesaidperiod
ofninety days, ifitissatisfied thattheappellant wasprevented bysufficient cause fromfiling theappeal
intime.
(3) TheAppellate Tribunal may, aftergiving theparties totheappeal anopportunity of
being heard, passsuchorder thereon asitthinks fit,confirming, modifying orannulling theorder
appealed against.
(4) Theprovisions ofsub-sections (1),(2),(5)and(6)ofsection 129C oftheCustoms
Act,1962shallapply totheAppellate Tribunal inthedischarge ofitsfunctions under thisActasthey
apply toitinthedischarge ofitsfunctions under theCustoms Act,1962.
(5) Every appeal under sub-section (1)shallbeheard byaSpecial Bench constituted by
thePresident oftheAppellate Tribunal forhearing suchappeals andsuchBench shallconsist ofthe
President andnotlessthantwomembers andshallinclude onejudicial member andonetechnical
member."
SHANKER DAYAL SHARMA,
President
K.L. MOHANPURIA
Secretary totheGovernment ofIndiaG/ADP/N/1/IND/1
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TOBEPUBLISHEDINPARTII,SECTION3,SUB-SECTION(i)OFTHEGAZETTE OFINDIA
EXTRAORDINARY, DATED THE 1STJANUARY 1995
11PAUSA, 1916 SAKA
GOVERNMENT OFINDIA
MINISTRY OFFINANCE
DEPARTMENT OFREVENUE
NEW DELHI, THE 1STJANUARY, 1995
11PAUSA, 1916 SAKA
NOTIFICATION
NO.2/95-N.T. CUSTOMS
G.S.R. No.1-(E) Inexercise ofthepowers conferred bysub-section (6)ofsection 9Aand
sub-section (2)ofsection 9BoftheCustoms Tariff Act,1975 (51of1975) andinsupersession ofthe
Customs Tariff (Identification, Assessment andCollection ofDuty orAdditional Duty onDumped
Articles andforDetermination ofInjury) Rules, 1985, except asrespect things doneoromitted tobe
donebefore suchsupersession, theCentral Government hereby makes thefollowing rules, namely:-
1. Short titleandcommencement.-
(1) These rulesmaybecalled theCustoms Tariff (Identification, Assessment andCollection
ofAnti-Dumping Duty onDumped Articles andforDetermination ofInjury) Rules, 1995.
(2) They shallcome intoforce onthe1stdayofJanuary 1995.
2. Definitions.- Inthese rules, unless thecontext otherwise requires,-
(a) "Act" means theCustoms Tariff Act,1975 (51of1975);
(b) "domesticindustry"meansthedomesticproducersasawholeengagedinthemanufacture
ofthelikearticle andanyactivity connected therewith orthose whose collective output ofthe
saidarticle constitutes amajor proportion ofthetotaldomestic production ofthatarticle except
when suchproducers arerelated totheexporters orimporters ofthealleged dumped article
orarethemselves importers thereof inwhich casesuchproducers shallbedeemed nottoform
partofdomestic industry:
Provided thatinexceptional circumstances referred toinsub-rule (3)ofrule11,the
domestic industry inrelation tothearticle inquestion shallbedeemed tocomprise twoormore
competitive markets andtheproducers within eachofsuchmarket aseparate industry, if-
(i) theproducers within suchamarket sellalloralmost alloftheirproduction
ofthearticle inquestion inthatmarket; and
(ii) thedemand inthemarket isnotinanysubstantial degree supplied byproducers
ofthesaidarticle located elsewhere intheterritory;G/ADP/N/1/IND/1
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(c) "interested party" includes -
(i) anexporter oraforeign producer ortheimporter ofanarticle subject to
investigation forbeing dumped inIndia, oratrade orbusiness association a
majority ofmembers ofwhich areproducers, exporters orimporters ofsuch
anarticle;
(ii) thegovernment oftheexporting country; and
(iii) aproducer ofthelikearticle inIndia oratrade andbusiness association a
majority ofthemembers ofwhich produce thelikearticle inIndia;
(d) "likearticle" means anarticle which isidentical oralikeinallrespects tothearticle
under investigation forbeing dumped inIndia orintheabsence ofsuch anarticle, another
article which although notalike inallrespects, hascharacteristics closely resembling those
ofthearticles under investigation;
(e) "provisional duty" means ananti-dumping dutyimposed under sub-section (2)of
section 9AoftheAct;
(f) "specified country" means acountry orterritory which isamember oftheWorld Trade
Organization andincludes thecountry orterritory withwhich theGovernment ofIndia has
anagreement forgiving itthemost-favoured-nation treatment;
(g) allwords andexpressions usedandnotdefined inthese rulesshallhavethemeanings
respectively assigned tothem intheAct.
3. Appointment ofdesignated authority.-
(1) TheCentral Government may,bynotification intheOfficial Gazette, appoint aperson
notbelow therankofaJoint Secretary totheGovernment ofIndia orsuchother person as
thatGovernment maythink fitasthedesignated authority forpurposes ofthese rules.
(2) TheCentral Government mayprovide tothedesignated authority theservices ofsuch
other persons andsuchother facilities asitdeems fit.
4. Duties ofthedesignated authority.-
(1) Itshallbethedutyofthedesignated authority inaccordance withthese rules -
(a) toinvestigate astotheexistence, degree andeffect ofanyalleged dumping
inrelation toimport ofanyarticle;
(b) toidentify thearticle liable foranti-dumping duty;
(c) tosubmit itsfindings, provisional orotherwise, toCentral Government asto-
(i) normal value, export price andthemargin ofdumping inrelation to
thearticle under investigation andG/ADP/N/1/IND/1
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(ii) theinjury orthreat ofinjury toanindustry established inIndia or
material retardation totheestablishment ofanindustry inIndia
consequent upontheimport ofsucharticle fromthespecified countries;
(d) torecommend theamount ofanti-dumping duty, which iflevied would be
adequate toremove theinjury tothedomestic industry andthedateofcommencement
ofsuchduty; and
(e) toreview theneedforcontinuance ofanti-dumping duty.
5. Initiation ofinvestigation.-
(1) Except asprovided insub-rule (4),thedesignated authority shallinitiate aninvestigation
todetermine theexistence, degree andeffect ofanyalleged dumping onlyupon receipt ofa
written application byoronbehalf ofthedomestic industry.
(2) Anapplication under sub-rule (1)shall beintheform asmaybespecified bythe
designated authority andtheapplication shallbesupported byevidence of
(a) dumping;
(b) injury, where applicable; and
(c) whereapplicable,acausallinkbetweensuchdumpedimportsandallegedinjury.
(3) Thedesignated authority shallnotinitiate aninvestigation pursuant toanapplication
made under sub-rule (1)unless -
(a) itdetermines, onthebasis ofanexamination ofthedegree ofsupport for,or
opposition totheapplication expressed bydomestic procedures ofthelikeproduct,
thattheapplication hasbeenmade byoronbehalf ofthedomestic industry:
Provided thatnoinvestigation shallbeinitiated ifdomestic producers expressly
supporting theapplication account forlessthan25percentofthetotalproduction of
thelikearticle bythedomestic industry; and
(b) itexamines theaccuracy andadequacy oftheevidence provided inthe
application andsatisfies itself thatthere issufficient evidence regarding -
(i) dumping;
(ii) injury, where applicable; and
(iii) where applicable, acausal linkbetween suchdumped imports andthe
alleged injury,
tojustify theinitiation ofaninvestigation.G/ADP/N/1/IND/1
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Explanation:- Forthepurpose ofthisruletheapplication shallbedeemed tohavebeenmade
byoronbehalf ofthedomestic industry, ifitissupported bythose domestic producers whose
collective output constitute more than50percentofthetotalproduction ofthelikearticle
produced bythatportion ofthedomestic industry expressing either support fororopposition,
asthecasemaybe,totheapplication.
4. Notwithstanding anything contained insub-rule (1)thedesignated authority mayinitiate an
investigation suomotu ifitissatisfied from theinformation received from theCollector ofCustoms
appointed under theCustoms Act,1962(52of1962) orfromanyother source thatsufficient evidence
exists astotheexistence ofthecircumstances referred toinclause (b)ofsub-rule (3).
5. Thedesignated authority shallnotify thegovernment oftheexporting country before proceeding
toinitiate aninvestigation.
6. Principles governing investigations.-
(1) Thedesignated authority shall, afterithasdecided toinitiate investigation todetermine
theexistence, degree andeffect ofanyalleged dumping ofanyarticle, issue apublic notice
notifying itsdecision andsuchpublic notice shall, interalia,contain adequate information
onthefollowing:-
(i) thename oftheexporting country orcountries andthearticle involved;
(ii) thedateofinitiation oftheinvestigation;
(iii) thebasis onwhich dumping isalleged intheapplication;
(iv) asummary ofthefactors onwhich theallegation ofinjury isbased;
(v) theaddress towhich representations byinterested parties should bedirected;
and
(vi) thetime-limits allowed tointerested parties formaking theirviews known.
(2) Acopyofthepublic notice shallbeforwarded bythedesignated authority totheknown
exporters ofthearticle alleged tohavebeendumped, thegovernments oftheexporting countries
concerned andother interested parties.
(3) Thedesignated authority shallalsoprovide acopy oftheapplication referred toin
sub-rule (1)ofrule5to-
(i) theknown exporters ortotheconcerned trade association where thenumber
ofexporters islarge; and
(ii) thegovernments oftheexporting countries:
Provided thatthedesignated authority shallalsomake available acopyoftheapplication
toanyother interested party whomakes arequest therefor inwriting.G/ADP/N/1/IND/1
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(4) Thedesignated authority mayissueanotice calling foranyinformation, insuchform
asmaybespecified byit,from theexporters, foreign producers andother interested parties
andsuchinformation shallbefurnished bysuchpersons inwriting within 30daysfrom the
dateofreceipt ofthenotice orwithin suchextended period asthedesignated authority may
allow onsufficient cause being shown.
Explanation: Forthepurpose ofthissub-rule, thenotice calling forinformation andother
documents shallbedeemed tohavebeenreceived oneweek from thedateonwhich itwas
sentbythedesignated authority ortransmitted totheappropriate diplomatic representative
oftheexporting country.
(5) Thedesignated authority shallalsoprovide opportunity totheindustrial users ofthe
article under investigation, andtorepresentative consumer organizations incases where the
article iscommonly soldattheretail level, tofurnish information which isrelevant tothe
investigation regarding dumping, injury where applicable, andcausality.
(6) Thedesignated authority mayallow aninterested party oritsrepresentative topresent
theinformation relevant totheinvestigation orally butsuchoralinformation shallbetaken
intoconsiderationbythedesignatedauthorityonlywhenitissubsequentlyreproducedinwriting.
(7) Thedesignated authority shall make available theevidence presented toitbyone
interested party totheother interested parties, participating intheinvestigation.
(8) Inacasewhere aninterested party refuses access to,orotherwise doesnotprovide
necessary information within areasonable period, orsignificantly impedes theinvestigation,
thedesignated authority mayrecord itsfindings onthebasis ofthefactsavailable toitand
makesuchrecommendationstotheCentralGovernmentasitdeemsfitundersuchcircumstances.
7. Confidential information.-
(1) Notwithstanding anything contained insub-rules (2),(3),and(7)ofrule6,sub-rule (2)
ofrule12,sub-rule (4)ofrule15andsub-rule (4)ofrule(17), thecopies ofapplications
received under sub-rule (1)ofrule5,oranyother information provided tothedesignated
authority onaconfidential basis byanyparty inthecourse ofinvestigation, shall, upon the
designated authority being satisfied astoitsconfidentiality, betreated assuchbyitandno
suchinformation shallbedisclosed toanyother party without specific authorization ofthe
party providing suchinformation.
(2) Thedesignated authority mayrequire theparties providing information onconfidential
basis tofurnish non-confidential summary thereof andif,intheopinion ofaparty providing
suchinformation, suchinformation isnotsusceptible ofsummary, suchparty maysubmit to
thedesignated authority astatement ofreasons whysummarization isnotpossible.
(3) Notwithstandinganythingcontainedinsub-rule(2),ifthedesignatedauthorityissatisfied
thattherequest forconfidentiality isnotwarranted orthesupplier oftheinformation iseither
unwilling tomake theinformation public ortoauthorize itsdisclosure inageneralized or
summary form, itmaydisregard suchinformation.
8. Accuracy oftheinformation.- Except incasesreferred toinsub-rule (8)ofrule6,thedesignated
authority shallduring thecourse ofinvestigation satisfy itself astotheaccuracy oftheinformation
supplied bytheinterested parties upon which itsfindings arebased.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page14
9. Investigation intheterritory ofother specified countries.- Thedesignated authority maycarry
outinvestigation intheterritories ofother countries, ifthecircumstances ofacasesowarrant:
Provided thatthedesignated authority obtains theconsent oftheperson concerned andnotifies
therepresentatives oftheconcerned government andtheconcerned government doesnotobject tosuch
investigation.
10. Determination ofnormal value, export price andmargin ofdumping.- Anarticle shallbe
considered asbeing dumped ifitisexported from acountry orterritory toIndia ataprice lessthan
itsnormal value andinsuchcircumstances thedesignated authority shalldetermine thenormal value,
export price andthemargin ofdumping taking intoaccount, interalia,theprinciples laiddown in
Annexure Itothese rules.
11. Determination ofinjury.-
(1) Inthecaseofimports from specified countries, thedesignated authority shallrecord
afurther finding thatimport ofsucharticle intoIndia causes orthreatens material injury to
anyestablished industry inIndia ormaterial retards theestablishment ofanyindustry inIndia.
(2) Thedesignated authority shalldetermine theinjury todomestic industry, threat ofinjury
todomestic industry, material retardation toestablishment ofdomestic industry andacausal
linkbetween dumped imports andinjury, taking intoaccount allrelevant facts, including the
volume ofdumped imports, theireffect onprice inthedomestic market forlikearticles and
theconsequent effect ofsuchimports ondomestic producers ofsucharticles andinaccordance
withtheprinciples setoutinAnnexure IItothese rules.
(3) Thedesignated authority may, inexceptional cases, giveafinding astotheexistence
ofinjury evenwhere asubstantial portion ofthedomestic industry isnotinjured, if-
(i) there isaconcentration ofdumped imports intoanisolated market; and
(ii) thedumped articles arecausing injury totheproducers ofalloralmost allof
theproduction within suchmarket.
12. Preliminary findings,-
(1) Thedesignatedauthorityshallproceedexpeditiouslywiththeconductoftheinvestigation
andshall, inappropriate cases, record apreliminary finding regarding export price, normal
value andmargin ofdumping, andinrespect ofimports fromspecified countries, itshallalso
record afurther finding regarding injury tothedomestic industry andsuchfinding shallcontain
sufficiently detailed information forthepreliminary determinations ondumping andinjury and
shallrefertothematters offactandlawwhich haveledtoarguments being accepted orrejected.
Itwillalsocontain -
(i) thenamesofthesuppliers,orwhenthisisimpracticable,thesupplyingcountries
involved;
(ii) adescription ofthearticle which issufficient forcustoms purposes;G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page15
(iii) themargins ofdumping established andafullexplanation ofthereasons for
themethodology usedintheestablishment andcomparison oftheexport price
andthenormal value;
(iv) considerations relevant totheinjury determination; and
(v) themain reasons leading tothedetermination.
(2) Thedesignated authority shallissueapublic notice recording itspreliminary findings.
13. Levyofprovisionalduty.-TheCentralGovernmentmay,onthebasisofthepreliminaryfindings
recorded bythedesignated authority, impose aprovisional dutynotexceeding themargin ofdumping:
Provided thatnosuchdutyshallbeimposed before theexpiry of60daysfrom thedateof
thepublic notice issued bythedesignated authority regarding itsdecision toinitiate investigations:
Provided further thatsuchdutyshallremain inforceonlyforaperiod notexceeding sixmonths
which mayupon request oftheexporters representing asignificant percentage ofthetrade involved
beextended bytheCentral Government toninemonths.
14. Termination ofinvestigation.- Thedesignated authority shall, byissue ofapublic notice,
terminate aninvestigation immediately if-
(a) itreceives arequest inwriting fordoing sofromoronbehalf ofthedomestic industry
affected, atwhose instance theinvestigation wasinitiated:
(b) itissatisfied inthecourse ofaninvestigation, thatthere isnotsufficient evidence of
dumping or,where applicable, injury tojustify thecontinuation oftheinvestigation;
(c) itdetermines thatthemargin ofdumping islessthan2percentoftheexport price;
(d) itdetermines thatthevolume ofthedumped imports, actual orpotential, from a
particular country accounts forlessthan3percentoftheimports ofthelikeproduce, unless,
thecountries which individually account forlessthan3percentoftheimports ofthelike
product, collectively account formore than7percentoftheimport ofthelikeproduct; or
(e) itdetermines thattheinjury where applicable isnegligible.
15. Suspension ortermination ofinvestigation onprice undertaking.-
(1) Thedesignated authority maysuspend orterminate aninvestigation iftheexporter of
thearticle inquestion,-
(i) furnishes anundertaking inwriting tothedesignated authority torevise the
prices sothatnoexports ofthesaidarticle aremade toIndiaatdumped prices;
or
(ii) inthecaseofimports fromspecified countries undertake torevise theprices
sothatinjurious effect ofdumping iseliminated andthedesignated authority
issatisfied thattheinjurious effect ofthedumping iseliminated:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page16
Providedfurtherthatthedesignatedauthorityshallcompletetheinvestigationandrecord
itsfinding, iftheexporter sodesires, oritsodecides.
(2) Noundertaking asregards price increase under clause (ii)ofthesub-rule (1)shallbe
accepted fromanyexporter unless thedesignated authority hadmade preliminary determination
ofdumping andtheinjury.
(3) Thedesignated authority mayalsonotaccept undertakings offered byanyexporter,
ifitconsiders thatacceptance ofsuchundertaking isimpractical orisunacceptable forany
other reason.
(4) Thedesignated authority shallintimate theacceptance ofanundertaking andsuspension
ortermination ofinvestigation totheCentral Government andalsoissue apublic notice in
thisregard. Thepublic notice shall contain, inter alia,thenon-confidential partofthe
undertaking.
(5) Incaseswhere anundertaking hasbeenaccepted bythedesignated authority theCentral
Government maynotimpose adutyunder sub-section (2)ofsection 9AoftheActforsuch
period theundertaking acceptable tothedesignated authority remains valid.
(6) Where thedesignated authority hasaccepted anyundertaking under sub-rule (1),it
mayrequire theexporter from whom suchundertaking hasbeenaccepted toprovide, from
timetotime, information relevant tothefulfilment oftheundertaking andtopermit verification
ofrelevant data:
Provided thatincaseofanyviolation ofanundertaking, thedesignated authority shall
intimate totheCentral Government regarding suchviolation andcomplete theinvestigation
expeditiously.
(7) Thedesignated authority shall, suomotuoronthebasisofanyrequest received from
exporters orimporters ofthearticle inquestion oranyother interested party, review, from
timetotime, theneedforthecontinuance ofanyundertaking given earlier.
16. Disclosure ofinformation.- Thedesignated authority shall, before giving itsfinalfindings,
inform allinterested parties oftheessential factsunder consideration which form thebasis forits
decision.
17. Final findings.-
(1) Thedesignated authority shall, within oneyearfrom thedateofinitiation ofan
investigation, determine astowhether ornotthearticle under investigation isbeing dumped
inIndia andsubmit totheCentral Government itsfinalfinding-
(a) asto,-
(i) theexport price, normal value andthemargin ofdumping ofthesaid
article;G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page17
(ii) whether import ofthesaidarticle intoIndia, inthecaseofimports
from specified countries, causes orthreatens material injury toany
industry established inIndia ormaterially retards theestablishment
ofanyindustry inIndia;
(iii) acausallink,whereapplicable,betweenthedumpedimportsandinjury;
(iv) whether aretrospective levyiscalled forandifso,thereasons therefor
anddateofcommencement ofsuchretrospective levy;
Provided thattheCentral Government may, incircumstances ofexceptional
nature, extend further theaforesaid period ofoneyearbysixmonths:
Providedfurtherthatinthosecaseswherethedesignatedauthorityhassuspended
theinvestigation ontheacceptance ofaprice undertaking asprovided inrule15and
subsequently resumes thesame onviolation oftheterms ofthesaidundertaking, the
period forwhich investigation waskeptunder suspension shallnotbetaken intoaccount
while calculating theperiod ofsaidoneyear.
(b) recommendingtheamountofdutywhich,iflevied,wouldbeadequatetoremove
theinjury where applicable, todomestic industry.
(2) Thefinalfinding, ifaffirmative, shallcontain allinformation onthematter offacts
andlawandreasons which have ledtotheconclusion andshall alsocontain information
regarding-
(i) thenamesofthesuppliers,orwhenthisisimpracticable,thesupplyingcountries
involved;
(ii) adescription oftheproduct which issufficient forcustoms purposes;
(iii) themargins ofdumping established andafullexplanation ofthereasons for
themethodology usedintheestablishment andcomparison oftheexport price
andthenormal value;
(iv) considerations relevant totheinjury determination; and
(v) themain reasons leading tothedetermination.
(3) Thedesignated authority shalldetermine anindividual margin ofdumping foreach
known exporter orproducer concerned ofthearticle under investigation. Provided thatin
cases where thenumber ofexporters, producers, importers ortypes ofarticles involved are
solarge astomake suchdetermination impracticable, itmaylimit itsfindings either toa
reasonable number ofinterested parties orarticles byusing statistically valid samples based
oninformation available atthetimeofselection, ortothelargest percentage ofthevolume
oftheexports from thecountry inquestion which canreasonably beinvestigated, andany
selection, ofexporters, producers ortypes ofarticles made under thisproviso shallpreferably
bemade inconsultation withandwiththeconsent oftheexporters, producers ofimporters
concerned:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page18
Provided further thatthedesignated authority shalldetermine anindividual margin
ofdumping foranyexporter orproducer, though notselected initially, whosubmit necessary
information intime, except where thenumber ofexporters orproducers aresolarge that
individual examination would beunduly burdensome andprevent thetimely completion of
theinvestigation.
(4) Thedesignated authority shallissue apublic notice recording itsfinalfindings.
18. Levy ofduty.-
(1) TheCentral Government may, within three months ofthedateofpublication offinal
findings bythedesignated authority under rule17,impose bynotification intheOfficial Gazette,
upon importation intoIndia ofthearticle covered bythefinalfinding, anti-dumping dutynot
exceeding themargin ofdumping asdetermined under rule(17). Provided thatincaseof
imports from thespecified countries theamount ofdutyshallnotexceed theamount which
hasbeenfound adequate toremove theinjury todomestic industry.
(2) Incases where thedesignated authority hasselected percentage ofthevolume ofthe
exports fromaparticular country, asreferred tosub-rule (3)ofrule17,anyanti-dumping duty
applied toimports fromexporters orproducers notincluded intheexamination shallnotexceed-
(i) theweighted average margin ofdumping established withrespect totheselected
exporters orproducers; or
(ii) where theliability forpayment ofanti-dumping duties iscalculated onthebasis
ofaprospective normal value, thedifference between theweighted average
normal value oftheselected exporters orproducers andtheexport prices of
exporters orproducers notindividually examined:
Provided thattheCentral Government shalldisregard forthepurpose ofthissub-rule
anyzeromargin, margins which arelessthan2percentexpressed asthepercentage ofexport
priceandmargins established inthecircumstances detailed insub-rule (8)ofrule6.TheCentral
Government shallapply individual duties toimports fromanyexporter orproducer notincluded
intheexamination whohasprovided thenecessary information during thecourse ofthe
investigation asreferred tointhesecond proviso tosub-rule (3)ofrule17.
(3) Notwithstanding anything contained insub-rule (1),where adomestic industry has
beeninterpreted according totheproviso tosub-clause (b)ofrule2,adutyshallbelevied
onlyaftertheexporters havebeengiven opportunity tocease exporting atdumped prices to
theareaconcerned orotherwise giveanundertaking pursuant torule15andsuchundertaking
hasnotbeenpromptly given andinsuchcases dutyshallnotbelevied onlyonthearticles
ofspecific producers which supply theareainquestion.
(4) Ifthefinalfinding ofthedesignated authority isnegative thatiscontrary totheevidence
onwhose basistheinvestigation wasinitiated, theCentral Government shall, within fortyfive
daysofthepublication offinalfindings bythedesignated authority under rule17,withdraw
theprovisional dutyimposed, ifany.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page19
19. Imposition ofdutyonnon-discriminatory basis.- Anyprovisional dutyimposed under rule13
onananti-dumping dutyimposed under rule18shallbeonanon-discriminatory basisandapplicable
toallimports ofsucharticles, from whatever sources found dumped and,where applicable, causing
injury todomestic industry except inthecaseofimports fromthose sources fromwhich undertaking
interms ofrule15hasbeenaccepted.
20. Commencement ofduty.-
(1) Theanti-dumping dutylevied under rule13andrule19shalltakeeffect fromthedate
ofitspublication intheOfficial Gazette.
(2) Notwithstanding anything contained insub-rule (1)-
(a) where aprovisional dutyhasbeenlevied andwhere thedesignated authority
hasrecorded afinalfinding ofinjury orwhere thedesignated authority hasrecorded
afinalfinding ofthreat ofinjury andafurther finding thattheeffect ofdumped imports
intheabsence ofprovisional dutywould haveledtoinjury, theanti-dumping duty
maybelevied from thedateofimposition ofprovisional duty;
(b) inthecircumstances referred toinsub-section (3)ofsection 9AoftheAct,
theanti-dumping dutymaybelevied retrospectively fromthedatecommencing ninety
daysprior totheimposition ofsuchprovisional duty:
Provided thatnodutyshall belevied retrospectively onimports entered forhome
consumption before initiation oftheinvestigation:
Provided further thatinthecasesofviolation ofpriceundertaking referred toinsub-rule
(6)ofrule15,nodutyshallbelevied retrospectively ontheimports which haveentered for
home consumption before theviolation oftheterms ofsuchundertaking.
21. Refund ofduty.-
(1) Iftheanti-dumping dutyimposed bytheCentral Government onthebasisofthefinal
findings oftheinvestigation conducted bythedesignated authority ishigher thantheprovisional
dutyalready imposed andcollected thedifferential shallnotbecollected from theimporter.
(2) If,theanti-dumping dutyfixed aftertheconclusion oftheinvestigation islower than
theprovisional dutyalready imposed andcollected, thedifferential shallberefunded tothe
importer.
(3) Iftheprovisional dutyimposed bytheCentral Government iswithdrawn inaccordance
withtheprovisionsofsub-rule(4)ofrule18,theprovisionaldutyalreadyimposedandcollected,
ifany,shallberefunded totheimporter.
22. Margin ofdumping, forexporters notoriginally investigated. -
(1) Ifaproduct issubject toanti-dumping duties, thedesignated authority shallcarry out
aperiodical review forthepurpose ofdetermining individual margins ofdumping forany
exporters orproducers intheexporting country inquestion whohavenotexported theproduct
toIndia during theperiod ofinvestigation, provided thatthese exporters orproducers show
thattheyarenotrelated toanyoftheexporters orproducers intheexporting country who
aresubject totheanti-dumping duties ontheproduct.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page20
(2) TheCentral Government shallnotlevyanti-dumping duties under sub-section (i)of
section 9AoftheActonimports fromsuchexporters orproducers during theperiod ofreview
asreferred toinsub-rule (1)ofthisrule:
Provided thattheCentral Government mayresort toprovisional assessment andmay
askaguarantee from theimporter ifthedesignated authority sorecommends andifsucha
review results inadetermination ordumping inrespect ofsuchproducts orexporters, itmay
levydutyinsuchcases retrospectively from thedateoftheinitiation ofthereview.
23. Review. -
(1) Thedesignated authority shall, fromtimetotime, review theneedforthecontinued
imposition oftheanti-dumping dutyandshallifitissatisfied onthebasisofinformation received
byitthatthere isnojustification forthecontinued imposition ofsuchdutyrecommend tothe
Central Government foritswithdrawal.
(2) Anyreview initiated under sub-rule (1)shallbeconcluded within aperiod notexceeding
twelve months from thedateofinitiation ofsuchreview.
(3) Theprovisions ofrules 6,7,8,9,10,11,16,17, 18,19,and20shallbemutatis
mutandis applicable inthecaseofreview.
24. Dumping causing injury toathirdcountry. -
(1) Thedesignatedauthoritymayinitiateinvestigationintoanydumpingallegedtobetaking
place intoIndia andcausing injury tothedomestic industry ofanythirdcountry which isa
Member oftheWorld Trade Organization.
(2) ThedesignatedauthorityinsuchcasesshallfollowtheprocedureslaiddowninArticle14
oftheAgreement onImplementation ofArticle VIoftheGeneral Agreement onTariffs and
Trade, 1994, ascontained intheFinal ActoftheUruguay Round Multilateral Trade
Negotiations.
_______________G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page21
ANNEXURE I
(Seerule8)
Principles Governing theDetermination ofNormal Value, Export Price
andMargin ofDumping
Thedesignatedauthoritywhiledeterminingthenormalvalue,exportpriceandmarginofdumping
shalltakeintoaccount, interalia,thefollowing principles. -
1. Theelements ofcostsreferred tointhecontext ofdetermination ofnormal value shall
normally bedetermined onthebasis ofrecords keptbytheexporter orproducer under
investigation, provided suchrecords areinaccordance withthegenerally accepted accounting
principles oftheexporting country, andsuchrecords reasonably reflect thecostassociated
withproduction andsaleofthearticle under consideration.
2. Sales ofthelikeproduct inthedomestic market oftheexporting country orsalesto
athird country atprices below perunit(fixed andvariable) costs ofproduction plus
administrative, selling andgeneral costs maybetreated asnotbeing intheordinary course
oftradebyreason ofprice. Thedesignated authority maydisregard thesesales, indetermining
normal value, provided ithasdetermined that-
(i) suchsalesaremade within areasonable period oftime(notlessthansixmonths)
insubstantial quantities, i.e.when theweighted average selling price ofthe
article isbelow theweighted average perunitcosts orwhen thevolume of
thesalesbelow perunitcosts represents notlessthantwenty percentofthe
volume soldintransactions under consideration, and
(ii) suchsalesareatprices which donotprovide fortherecovery ofallcostswithin
areasonable period oftime. Thesaidprices willbeconsidered toprovide
forrecovery ofcosts within areasonable period oftimeiftheyareabove
weighted average perunitcosts fortheperiod ofinvestigation, eventhough
theymight havebeenbelow perunitcosts atthetimeofsale.
3. (i) thesaidauthority inthecourse ofinvestigation shallconsider allavailable
evidence ontheproper allocation ofcosts, including thatwhich ismade
available bytheexporter orproducer provided thatsuchallocation hasbeen
historically utilized bytheexporter orproducer, inrelation toestablishing
appropriate amortization anddepreciation periods andallowances forcapital
expenditure andother development costs.
(ii) unless already reflected inallocation ofcostsreferred toinclause (1)andsub-
clause (i)above, thedesignated authority, willalsomake appropriate
adjustments forthose non-recurring items ofcostwhich benefit further and/or
current production, orforcircumstances inwhich costs during theperiod of
investigation areaffected bystartupoperator.
4. Theamounts foradministrative, selling andgeneral costs andforprofits asreferred
toinsub-section (i)ofsection 9AoftheAct,shall bebased onactual datapertaining to
production andsales intheordinary course oftrade, ofthelikearticle bytheexporter or
producer under investigation. When suchamounts cannot bedetermined onthisbasis, the
amounts maybedetermined onthebasis of:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page22
(i) theactual amounts incurred andrealized bytheexporter orproducer in
question, inrespect ofproduction andsales inthedomestic market ofthe
country oforigin ofthesame general category ofarticle;
(ii) theweighted average oftheactual amounts incurred andrealized byother
exporters orproducers subject toinvestigation inrespect ofproduction and
salesofthelikearticle inthedomestic market ofthecountry oforigin; or
(iii) anyotherreasonable method, provided thattheamount forprofit soestablished
shallnotexceed theprofit normally realized bytheexporters orproducers on
salesofproducts ofthesame general category inthedomestic market ofthe
country oforigin.
5. Thedesignated authority, while arriving ataconstructed export price, shallgivedue
allowance forcosts including duties andtaxes, incurred between importation andresale and
forprofits.
6. (i) While arriving atmargin ofdumping, thedesignated authority shallmake a
faircomparisonbetweentheexportpriceandthenormalvalue.Thecomparison
shallbemade atthesame leveloftrade, normally attheex-factory leveland
inrespect ofsalesmade atasnearly aspossible thesametime. Dueallowance
shallbemade ineachcase, onitsmerits, fordifferences which effect price
comparability, including differences inconditions andterms ofsale,taxation,
levels oftrade, quantities, physical characteristics, andanyother differences
which aredemonstrated toaffect price comparability.
(ii) Inthecases where export price isaconstructed price, thecomparison shall
bemade onlyafterestablishing thenormal value atequivalent leveloftrade.
(iii) When thecomparison under thisparagraph requires aconversion ofcurrencies,
suchconversion should bemade byusing therateofexchange onthedateof
sale,provided thatwhen asaleorforeign currency onforward markets is
directly linked totheexport saleinvolved therateofexchange intheforward
saleshallbeused. Fluctuations inexchange ratesshallbeignored andinan
investigation theexporters shallbegiven atleastsixtydaystohaveadjusted
theirexport prices toreflect sustained movements inexchange ratesduring
theperiod ofinvestigation.
(iv) Subject totheprovisions governing comparison inthisparagraph, theexistence
ofmargin ofdumping during theinvestigation phase shall normally be
established onthebasis ofacomparison ofaweighted average normal value
andexport prices onatransaction-to-transaction basis. Anormal value
established onaweighted average basismaybecompared toprices ofindividual
export transactions ifitisfound thatapattern ofexport prices which differ
significantly among different purchases, regions ortimeperiods, andifan
explanation isprovided astowhysuchdifferences cannot betaken intoaccount
appropriately bytheuseofaweighted average-to-weighted average or
transaction-to-transaction comparison.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page23
ANNEXURE II
(Seerule9)
Principles forDetermination ofInjury
Thedesignated authority while determining theinjury orthreat ofmaterial injury todomestic
industryormaterialretardationoftheestablishmentofsuchanindustryhereinafterreferredtoas"injury"
andcausal linkbetween dumped imports andsuchinjury, shall, interalia,takefollowing principles
under consideration -
(i) Adetermination ofinjury shallinvolve anobjective examination ofboth(a)thevolume
ofthedumped imports andtheeffect ofthedumped imports onprices inthedomestic
market forlikearticle and(b)theconsequent impact ofthese imports ondomestic
producers ofsuchproducts.
(ii) While examining thevolume ofdumped imports, thesaidauthority shall consider
whether therehasbeenasignificant increase inthedumped imports, either inabsolute
terms orrelative toproduction orconsumption inIndia. With regard totheeffect of
thedumped imports onprices asreferred toinsub-rule (2)ofrule18thedesignated
authority shallconsider whether there hasbeenasignificant price under cutting by
thedumped imports ascompared withtheprice oflikeproduct inIndia, orwhether
theeffect ofsuchimports isotherwise todepress prices toasignificant degree orprevent
price increase which otherwise would haveoccurred, toasignificant degree.
(iii) Incases where imports ofaproduct from more than onecountry arebeing
simultaneously subjected toananti-dumping investigation, thedesignated authority
willcumulatively assess theeffect ofsuchimports, onlywhen itdetermines that(a)
themargin ofdumping established inrelation totheimports fromeachcountry ismore
thantwopercentexpressed asapercentage ofexport price andthevolume ofthe
imports fromeachcountry isthree percentoftheimport oflikearticle orwhere the
export ofindividual countries lessthanthreepercent,theimports collectively account
formorethansevern percentoftheimport oflikearticle and(b)cumulative assessment
oftheeffect ofimports isappropriate inlightoftheconditions ofcompetition between
theimported article andthelikedomestic articles.
(iv) Theexamination oftheimpact ofthedumped imports onthedomestic industry
concerned, shallinclude andevaluation ofallrelevant economic factors andindices
having abearing onthestateoftheindustry, including natural andpotential decline
insales, profits, output, market share, productivity, return oninvestments orutilization
ofcapacity: factors affecting domestic prices: themagnitude ofthemargin ofdumping:
actual andpotential negative effects oncashflow, inventories, employment, wages,
growth, ability toraisecapital investments.
(v) Itmustbedemonstrated thatthedumped imports are,through theeffects ofdumping,
assetforthinparagraphs (ii)and(iv)above, causing injury tothedomestic industry.
Thedemonstration ofacausal relationship between thedumped imports andtheinjury
tothedomestic injury shallbebased onanexamination ofrelevant evidence before
thedesignated authority. Thedesignated authority shallalsoexamine anyknow factors
other thanthedumped imports which atthesame timeareinsuring thedomestic
industry, andtheinjury caused bythese other factors must notbeattributed tothe
dumped imports. Factors which mayberelevant inthisrespect include, interalia,G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page24
thevolume andprices ofimports notsoldatdumping prices, contraction indemand
orchanges inthepatterns ofconsumption, traderestrictive practices ofandcompetition
between theforeign anddomestic producers, developments intechnology andtheexport
performance andtheproductivity ofthedomestic industry.
(vi) Theeffect ofthedumped imports shallbeassessed inrelation tothedomestic production
ofthelikearticlewhenavailabledatapermittheseparateidentificationofthatproduction
onthebasis ofsuchcriteria astheproduction process, producers 'salesandprofits.
Ifsuchseparate identification ofthatproduction isnotpossible, theeffects ofthe
dumped imports shallbeassessed bytheexamination oftheproduction ofthenarrowest
group orrange ofproducts, which includes thelikeproduct, forwhich thenecessary
information canbeprovided.
(vii) Adetermination ofathreat ofmaterial injury shallbebased onfactsandnotmerely
onallegation, conjecture orremote possibility. Thechange incircumstances which
would create asituation inwhich thedumping would cause injury must beclearly
foreseen andimminent. Inmaking adetermination regarding theexistence ofathreat
ofmaterial injury, thedesignated authority shallconsider, interalia,suchfactors as:
(a) asignificant rateofincrease ofdumped imports intoIndia indicating the
likelihood ofsubstantially increased importation;
(b) sufficient freely disposable, oranimminent, substantial increase in,capacity
oftheexporter indicating thelikelihood ofsubstantially increased dumped exports to
Indian market, taking intoaccount theavailability ofother export markets toabsorb
anyadditional exports;
(c) whether imports areentering atprices thatwillhaveasignificant depressing
orsuppressing effect ondomestic prices, andwould likely increase demand forfurther
imports; and
(d) inventories ofthearticle being investigated.
(S.M.BHATNAGAR)
UNDERSECRETARYTOTHEGOVERNMENTOFINDIA
F.No.525/2/94 -CUS.(TU)G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page25
TOBEPUBLISHED INPART II,SECTION 3,SUB-SECTION (i)OFTHE GAZETTE OF
INDIA EXTRAORDINARY, DATED 1STJANUARY 1995
11PAUSA 1916 (SAKA)
GOVERNMENT OFINDIA
MINISTRY OFFINANCE
DEPARTMENT OFREVENUE
NEW DELHI, 1stJanuary 1995
11Pausa 1916 (Saka)
NOTIFICATION
No.1/95-N.T. CUSTOMS
G.S.R. No.2-(E)Inexercise ofthepowers conferred bysub-section (7)ofsection 9and
sub-section (2)ofsection 9BoftheCustoms Tariff Act,1975(51of1975) andinsupersession ofthe
Customs Tariff (Identification Assessment andCollection ofDuty orAdditional Duty onBounty-fed
Articles andforDetermination ofInjury) Rules, 1985, except asrespect things doneoromitted tobe
donebefore suchsupersession, theCentral Government hereby makes thefollowing rules, namely:-
1. Short titleandcommencement. -
(1) These rulesmaybecalled theCustoms Tariff (Identification, Assessment andCollection
ofCountervailing Duty onSubsidized Articles andforDetermination ofInjury) Rules, 1995.
(2) They shallcome intoforce onthe1stdayofJanuary, 1995.
2. Definitions. -Inthese rules, unless thecontext otherwise requires, -
(a) "Act" means theCustoms Tariff Act,1975 (51of1975);
(b) "domestic industry" means thedomestic producers asawhole ofthelikearticle, or
domestic producers whose collective output ofthesaidarticle constitutes amajor proportion
ofthetotaldomestic production ofthatarticle, except when suchproducers arerelated tothe
exporters orimporters ofthealleged subsidized article, orarethemselves importers thereof,
inwhich casesuchproducers shallbedeemed nottoform partofdomestic industry:
Provided thatinexceptional circumstances referred toinsub-rule (3)ofrule13,the
domestic industry inrelation tothearticle inquestion shallbedeemed tocomprise twoormore
competitive markets andtheproducers within eachofsuchmarket bedeemed asaseparate
industry if,-
(i) theproducers within suchmarket sellalloralmost alloftheirproduction of
thearticle inquestion inthatmarket, and
(ii) thedemand inthemarket isnotinanysubstantial degree supplied byproducers
ofthesaidarticle located elsewhere intheterritory;G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page26
(c) "interested party" includes -
(i) anexporter orforeign producer ortheimporter ofanarticle subject to
investigation forbeing subsidized oratradeorbusiness association amajority
ofthemembers ofwhich areproducers, exporters orimporters ofsuchan
article; and
(ii) aproducer ofthelikearticle inIndia oratrade andbusiness association a
majority ofthemembers ofwhich produce thelikearticle inIndia;
(d) "provisional duty" means acountervailing dutyimposed under sub-section (2)of
section 9AoftheAct;
(e) "specified country" means acountry orterritory which includes thecountry orterritory
withwhich theGovernment ofIndia hasanagreement forgiving itthemost-favoured-nation
treatment;
(f) allwords andexpressions usedinthese rules, butnotdefined, shallhavethemeaning
respectively assigned tothem intheAct.
3. Appointment ofdesignated authority. -
(1) TheCentral Government may,bynotification intheOfficial Gazette, appoint aperson
notbelow therankofaJoint Secretary totheGovernment ofIndia orsuchother person as
thatGovernment maythink fitasthedesignated authority forpurposes ofthese rules.
(2) TheCentral Government mayprovide tothedesignated authority theservices ofsuch
other persons andsuchother facilities asitdeems fit.
4. Duties ofthedesignated authority. -Itshallbethedutyofthedesignated authority inaccordance
withthese rules -
(a) toinvestigate theexistence, degree andeffect ofanysubsidy inrelation totheimport
ofanarticle;
(b) toidentify thearticle liable forcountervailing duty;
(c) tosubmit itsfindings, provisional orotherwise totheCentral Government asto-
(i) thenature andamount ofsubsidy inrelation toanarticle under investigation.
(ii) theinjury orthreat ofinjury toanindustry established inIndia ormaterial
retardation totheestablishment ofanindustry inIndia consequent upon the
import ofsucharticles from thespecified countries.
(d) torecommend theamount ofcountervailing duty, which iflevied would beadequate
toremove theinjury tothedomestic industry andthedateofcommencement ofsuchduty:
and
(e) toreview theneedforcontinuance ofcountervailing duty.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page27
5. Decision astocountry oforigin. -incases where articles arenotimported directly from the
country oforigin butareimported from anintermediate country, theprovisions ofthese rules shall
befullyapplicable andanysuchtransaction shall, forthepurpose ofthese rulesberegarded ashaving
taken place between thecountry oforigin andthecountry ofimportation.
6. Initiation ofinvestigation.
(1) Except asprovided insub-rule (4)thedesignated authority shallinitiate aninvestigation
todetermine theexistence, degree andeffect ofalleged subsidy onlyuponreceipt ofawritten
application byoronbehalf ofthedomestic industry.
(2) Anapplication under sub-rule (1)shall beintheform asmaybespecified bythe
designated authority inthisbehalf andtheapplication shallbesupported byevidence of
(a) subsidy and,ifpossible, itsamount
(b) injury where applicable, and
(c) where applicable, acausal linkbetween suchsubsidized imports andalleged
injury.
(3) Thedesignated authority shallnotinitiate aninvestigation pursuant toanapplication
made under sub-rule (1)unless-
(a) itdetermines, onthebasisofanexamination ofthedegree ofsupport for,or
opposition totheapplication expressed bydomestic producers ofthelikearticle, that
theapplication hasbeenmade byoronbehalf ofthedomestic industry:
Provided thatnoinvestigation shallbeinitiated ifdomestic producers expressly
supporting theapplication account forlessthantwenty fivepercentofthetotal
production ofthelikeproduct bythedomestic industry, and
(b) itexamines, theaccuracy andadequacy oftheevidence provided inthe
application andsatisfies itself thatthere issufficient evidence regarding-
(i) subsidy,
(ii) injury, where applicable; and
(iii) where applicable, acausal linkbetween suchsubsidized imports and
thealleged injury, tojustify theinitiation ofaninvestigation.
Explanation.- Forthepurpose ofthisrule,theapplication shallbeconsidered tohave
beenmade "byoronbehalf ofdomestic industry" ifitissupported bythose domestic producers
whose collective output constitutes more thanfiftypercentofthetotalproduction ofthelike
article produced bythatportion ofthedomestic industry expressing either support foror
opposition asthecasemaybe,totheapplication.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page28
(4) Notwithstandinganythingcontainedinsub-rule(1),thedesignatedauthoritymayinitiate
aninvestigation, suomotu,ifitissatisfied fromtheinformation received fromtheCollector
ofCustoms appointed under theCustoms Act,1962 (51of1962) oranyother source that
sufficient evidence exists astotheexistence ofthecircumstances referred toinsubclause (b)
ofsub-rule (3).
(5) Thedesignated authority shallnotify thegovernment oftheexporting country before
proceeding toinitiate aninvestigation.
7. Principles governing investigations.-
(1) Thedesignated authority shall, afterithasdecided toinitiate investigation todetermine
theexistence, degree andeffect ofanyalleged subsidization ofanyarticle, issueapublic notice
notifying itsdecision. Public notice regarding initiation ofinvestigation shall, interalia,contain
adequate information onthefollowing:
(i) thename oftheexporting countries andthearticle involved;
(ii) thedateofinitiation oftheinvestigation;
(iii) adescription ofthesubsidy practice orpractices tobeinvestigated;
(iv) asummary ofthefactors onwhich theallegation ofinjury isbased;
(v) theaddresstowhichrepresentationsbyinterestedcountriesandinterestedparties
should bedirected; and
(vi) thetime-limits allowed tointerested countries andinterested parties formaking
theirviews known.
(2) Acopyofthepublic notice shallbeforwarded bythedesignated authority totheknown
exporters ofthearticle alleged tohavebeensubsidized, thegovernment oftheexporting country
concerned andother interested parties.
(3) Thedesignated authority shallalsoprovide acopyoftheapplication referred toinsub-
rule(1)rule6to-
(i) theknown exporters ortheconcerned traceassociation where thenumber of
exporters islarge, and
(ii) thegovernment oftheexporting country:
Providedthatthedesignatedauthorityshallalsomakeavailableacopyoftheapplication,
upon request inwriting, toanyother interested party.
(4) Thedesignated authority mayissue anotice calling foranyinformation insuchform
asmaybespecified byitfromtheexporters, foreign producers andgovernments ofinterested
countries andsuchinformation shallbefurnished bysuchpersons inwriting within thirty days
fromthedateofreceipt ofthenotice orwithin suchextended period asthedesignated authority
mayallow onsufficient cause being shown.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page29
Explanation. -Forthepurpose ofthissub-rule thepublic notice andother documents
shallbedeemed tohavebeenreceived oneweek fromthedateonwhich these documents were
sentbythedesignated authority ortransmitted totheappropriate diplomatic representative
oftheexporting country.
(5) Thedesignated authority shallalsoprovide opportunity totheindustrial users ofthe
article under investigation, andtorepresentative consumer organizations incases where the
article iscommonly soldatretail level, tofurnish information which isrelevant tothe
investigation regarding subsidization andwhere applicable injury andcausality.
(6) Thedesignated authority mayallow aninterested country oraninterest party orits
representative topresent information relevant toheinvestigation orally also, butsuchoral
information shallbetaken intoconsideration onlywhen itissubsequently reproduced inwriting.
(7) Thedesignated authority shallmake available theevidence presented byoneparty to
other interested parties participating intheinvestigation.
(8) Inacasewhere aninterested party refuses access to,orotherwise doesnotprovide
necessary information within areasonable period, orsignificantly impedes theinvestigation,
thedesignated authority mayrecord itsfindings onthebasisoffactsavailable toitandmake
suchrecommendations totheCentral Government asitdeems fitunder suchcircumstances.
8. Confidential information.-
(1) Notwithstandinganythingcontainedinsub-rule(1),(2),(3)and(7)ofrule7,sub-rule(2)
ofrule14,sub-rule (4)ofrule17andsub-rule (3)ofrule19copies ofapplications received
under sub-rule (1)ofrule6oranyother information provided tothedesignated authority on
aconfidential basis byanyparty inthecourse ofinvestigation, shall, upon thedesignated
authority being satisfied astoitsconfidentiality, betreated assuchbyitandnosuchinformation
shallbedisclosed to,anyother party without specific authorization oftheparty providing such
information.
(2) Thedesignated authority mayrequire theparties providing information onconfidential
basis tofurnish non-confidential summary thereof insufficient details topermit areasonable
understanding ofthesubstance oftheconfidential information andif,intheopinion ofaparty
providing suchinformation, suchinformation isnotsusceptible ofsummary, suchparty may
submit tothedesignated authority astatement ofreasons whysummarization isnotpossible.
(3) Notwithstanding anything contained insub-rule (2),ifthedesignated authority, is
satisfied thattherequest forconfidentiality isnotwarranted orthesupplier oftheinformation
iseither unwilling tomake theinformation public ortoauthorize itsdisclosure ingeneralized
orsummary form, itmaydisregard suchinformation.
9. Accuracy oftheinformation. -Except incasesreferred toinsub-rule (8)ofrule7thedesignated
authority shallduring thecourse ofinvestigation satisfy itself astotheaccuracy oftheinformation
supplied bytheinterested parties upon which itsfindings arebased.
10. Investigation intheterritory ofother specified countries. -
(1) Thedesignatedauthoritymaycarryoutinvestigationsintheterritoriesofothercountries,
inorder toverify theinformation provided ortoobtain further details:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page30
Provided thatthedesignated authority notifies tosuchcountry inadvance andsuch
country doesnotobject tosuchinvestigation.
(2) Thedesignated authority mayalsocarry outinvestigations atthepremises ofany
commercial organization andmayexamine itsrecords ifsuchorganization agrees andifthe
country inwhose territory thesaidcommercial organization issituated, isnotified andhas
notraised anyobjection fortheconduct ofsuchinvestigation.
11. Nature ofsubsidy. -
(1) Thedesignated authority while determining thesubsidy shallascertain astowhether
thesubsidy under investigation -
(a) relates toexport performance, or
(b) relates totheuseofdomestic goods overimported goods intheexport article,
or
(c) ithasbeenconferredonalimitednumberofpersons,engagedinmanufacturing,
producing orexporting thearticle unless suchasubsidy isfor-
(i) research activities conducted byoronbehalf ofpersons engaged in
themanufacture, production orexport; or
(ii) assistance todisadvantaged regions within theterritory oftheexporting
country; or
(iii) assistance topromote adaptation ofexisting facilities tonew
environmental requirements:
Provided thatforthepurposes ofsub-clauses (a)and(b),subsidies ofakindmentioned
intheAgreement onAgriculture, contained theFinal ActoftheUruguay Round ofMultilateral
Trade Negotiations, shallnotbetaken intoconsideration.
Explanation. -
(1) Forthepurposes ofsub-clause (i)ofclause (c)theterm"subsidy forresearch activity"
means assistance forresearch activities conducted bycommercial organizations orbyhigher
education orresearch establishments onacontract basis withthecommercial organizations
iftheassistance covers notmore thanseventy fivepercentofthecosts ofindustrial research
orfiftypercentofthecosts ofpre-competitive development activity andprovided thatsuch
assistance islimited exclusively to-
(i) costsofpersonnel (researchers, technicians andothersupporting staffemployed
exclusively intheresearch activity);
(ii) costs ofinstruments, equipment, landandbuildings usedexclusively and
permanently (except when disposed ofonacommercial basis) fortheresearch
activity;
(iii) costsofconsultancy andequivalent services usedexclusively fortheresearch
activity, including bought inresearch, technical knowledge, patents, etc.;G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page31
(iv) additional overhead costsincurred directly asaresult oftheresearch activity;
and
(v) other running costs(such asthose ofmaterials, supplies andthelike), incurred
directly asaresult oftheresearch activity.
(2) Forthepurposes ofsub-clause (ii)ofclause (c),theterm"subsidy forassistance to
disadvantaged regions" means assistance todisadvantaged regions within theterritory ofthe
exporting country given pursuant toageneral framework ofregional development andsuch
subsidy hasnotbeenconferred onlimited number ofenterprises within theeligible region:
Provided that-
(a) eachdisadvantagedregionmustbeaclearlydesignatedcontiguousgeographical
areawithadefinable economic andadministrative identity;
(b) theregion isconsidered asdisadvantaged onthebasisofneutral andobjective
criteria, indicating thattheregion 'sdifficulties arise outofmore thantemporary
circumstances; suchcriteria mustbeclearly spelled outinlaw,regulation, orother
official document, soastobecapable ofverification:
(c) thecriteria shallinclude ameasurement ofeconomic development which shall
bebased onatleastoneofthefollowing factors. -
(i) oneofeither income parcapita orhousehold income percapita, or
Gross Domestic Product percapita, which mustnotbeabove eighty
fivepercentoftheaverage fortheterritory concerned;
(ii) unemployment rate,which mustbeatleastonehundred andtenper
centoftheaverage fortheterritory concerned, asmeasured overa
three-year period; suchmeasurement, however, maybeacomposite
oneandmayinclude other factors.
(3) Forthepurpose ofsub-clause (iii)ofclause (c),"subsidy forassistance topromote
adaptation ofexisting facilities tonewenvironmental requirements" means assistance topromote
adaptation ofexisting facilities tonewenvironmental requirements imposed bylawand/or
regulationswhichresultingreaterconstraintsandfinancialburdenoncommercialorganizations:
Provided thattheassistance -
(i) isaone-time non-recurring measure; and
(ii) islimited totwenty percentofthecostofadaptation; and
(iii) doesnotcoverthecostofreplacingandoperatingtheassistedinvestment,which
must befullyborne bycommercial organizations; and
(iv) isdirectly linked toandproportionate toacommercial organization 'splanned
reduction ofnuisances andpollution, anddoesnotcover anymanufacturing
costsavings which maybeachieved; and
(v) isavailable toallfirms which canadopt thenewequipment and/or production
processes.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page32
(3) Thedesignated authority while determining thesubsidy ofakindasreferred toinsub-
clause (c)tosub-rule (1)shall takeintoaccount, inter alia,theprinciples laiddown in
Annexure IItothese rules.
12. Conferment ofbenefit. -Thedesignated authority while determining theconferment ofbenefit
totherecipient, pursuant toasubsidy, shalltakeintoaccount thefollowing guidelines -
(a) government provision ofequity capital shallnotbeconsidered asconferring abenefit,
unless theinvestment decision canberegarded asinconsistent withtheusualinvestment practice
(including fortheprovision ofriskcapital) ofprivate investors intheterritory ofthegranting
country.
(b) aloanbyagovernment shallnotbeconsidered asconferring abenefit, unless there
isadifference between theamount thatthecommercial organization receiving theloanpays
onthegovernment loanandtheamount itwould payonacomparable commercial loanwhich
itcould actually obtain onthemarket. Inthiscasethebenefit shallbethedifference between
these twoamounts:
(c) aloanguarantee byagovernment shallnotbeconsidered asconferring abenefit, unless
thereisadifferencebetweentheamountthatthecommercialorganizationreceivingtheguarantee
paysonaloanguaranteed bythegovernment andtheamount thatitwould payonacomparable
commercial loanintheabsence ofthegovernment guarantee. Inthiscasethebenefit shall
bethedifference between these twoamounts adjusted foranydifferences infees;
(d) theprovision ofgoods orservices orpurchase ofgoods byagovernment shallnot
beconsidered asconferring abenefit unless theprovision ismade forlessthanadequate
remuneration, orthepurchase ismade formore thanadequate remuneration. Theadequacy
ofremuneration shallbedetermined inrelation toprevailing market conditions forthegoods
orservice inquestion inthecountry ofprovision orpurchase (including price, quality,
availability, marketability, transportation andother conditions ofpurchase orsale).
13. Determination ofinjury. -
(1) Inthecaseofimports from specified countries, thedesignated authority shallgivea
further finding thattheimport ofsucharticle intoIndia causes orthreatens material injury
toanyindustry established inIndia, ormaterially retards theestablishment ofanindustry in
India.
(2) Except when afinding ofinjury ismade under sub-rule (3),thedesignated authority
shall determine theinjury, threat ofinjury, material retardation totheestablishment ofan
industry andthecausal linkbetween thesubsidized import andtheinjury, taking intoaccount,
interalia,theprinciple laiddown inAnnexure Itotherule.
(3) Thedesignated authority may, inexceptional cases, giveafinding astotheexistence
ofinjury evenwhere asubstantial portion ofthedomestic industry isnotinjured if-
(i) there isaconcentration ofsubsidized imports intoanisolated market and,
(ii) thesubsidized imports arecausing injury totheproducers ofalmost allofthe
production within suchmarket.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page33
14. Preliminary findings. -
(1) Thedesignatedauthorityshallproceedexpeditiouslywiththeconductoftheinvestigation
andshall, inappropriate cases, record apreliminary finding regarding existence ofasubsidy
anditsnature andinrespect ofimports from specified countries. Itshall alsorecord its
preliminary finding regarding injury tothedomestic industry andsuchfinding shallcontain
sufficiently detailed explanation forthepreliminary determination ontheexistence ofasubsidy
andinjury andshallrefer tothematter offactandlawwhich haveledtoarguments being
accepted orrejected. Such finding shallcontain -
(i) thenamesofthesuppliersor,whenthisisimpracticable,thesupplyingcountries
involved;
(ii) adescription oftheproduct which issufficient forcustoms purposes;
(iii) theamount ofsubsidy established andthebasis onwhich theexistence ofa
subsidy hasbeendetermined:
(iv) considerations relevant totheinjury determination; and
(v) themain reasons leading tothedetermination.
(2) Thedesignated authority shallissueapublic notice recording itspreliminary findings.
15. Levy ofprovisional duty. -TheCentral Government may, inaccordance withtheprovisions
ofsub-section (2)ofsection 9oftheAct,impose aprovisional dutyonthebasis ofthepreliminary
findings recorded bythedesignated authority.
Provided thatnosuchdutyshallbeimposed before theexpiry ofsixtydaysfrom thedateof
issue ofthepublic notice bythedesignated authority regarding itsdecision toinitiate investigations.
Provided further thatsuchdutyshallremain inforce foraperiod notexceeding fourmonths.
16. Termination ofinvestigation. -
(1) Thedesignated authority shall, byissue ofapublic notice terminate aninvestigation
immediately if-
(a) itreceives arequest inwriting fordoing sofromoronbehalf ofthedomestic
industry affected, atwhose instance theinvestigation wasinitiated;
(b) itissatisfied inthecourse ofaninvestigation, thatthereisnosufficient evidence
either forsubsidization or,where applicable, injury tojustify continuation ofthe
investigation;
(c) itdetermines thattheamount ofsubsidy islessthanonepercentadvalorem
orinthecaseofaproduct originating fromadeveloping country theamount ofsubsidy
islessthantwopercent.
(d) itdetermines thatthevolume ofthesubsidized imports, actual orpotential or
injury where applicable, isnegligible orinthecaseofaproduct originating ina
developing country thevolume ofthesubsidized imports represents lessthanfourper
centofthetotalimports ofthelikeproduct intoIndia, unless imports fromdevelopingG/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page34
countries whose individual share oftotalimports represent lessthanfourpercent
collectively account formore thanninepercentofthetotalimports ofthelikeproduct
intoIndia.
17. Suspension ortermination ofinvestigation onacceptance ofprice undertaking. -
(1) Thedesignated authority maysuspend orterminate aninvestigation, if-
(a) thegovernment oftheexporting country -
(i) furnishes anundertaking thatitwould withdraw thesubsidy.
(ii) incaseofspecified countries, undertakes tolimit thequantum of
subsidy within reasonable limit, ortotakeother suitable measures to
neutralize theeffect ofsuchsubsidy, provided thatthedesignated
authority issatisfied thattheinjurious effect ofthesubsidy is
eliminated, or
(b) incaseofspecified countries theexporters concerned agree torevise theirprices
sothatinjurious effect ofsubsidy iseliminated andthedesignated authority issatisfied
thattheinjurious effect ofthesubsidy iseliminated:
Provided thatincrease inprice asaresult ofthisclause isnothigher thanwhat is
necessary toeliminate theamount ofsubsidy:
Providedfurtherthatthedesignatedauthorityshallcompletetheinvestigationandrecord
itsfinding, iftheCentral Government sodesires orthegovernment oftheexporting country
sodecides.
(2) (i) Noundertaking asregards price increase under sub-rule (1)shallbeaccepted
unless thedesignated authority hadmade preliminary determination of
subsidization andtheinjury:
Providedthatanundertakingfromanexportershallbeacceptedonlywhenthedesignated
authority hasalsoobtained theconsent oftheexporting country.
(3) Thedesignated authority, mayalsonotaccept undertakings offered byanycountry
oranyexporter, ifitconsiders theacceptance ofsuchundertaking asimpracticable oras
unacceptable foranyother reason.
(4) Thedesignated authority shallintimate theacceptance ofanundertaking andsuspension
ortermination ofinvestigation totheCentral Government andalsoissue apublic notice in
thisregard. Thepublic notice shall, contain, inter alia,thenon-confidential partofthe
undertaking.
(5) Incaseswhere anundertaking hasbeenaccepted bythedesignated authority theCentral
Government maynotimpose adutyunder sub-section (2)ofsection 9oftheActforsucha
period theundertaking acceptable tothedesignated authority remains valid.
(6) Where thedesignated authority hasaccepted anyundertaking under sub-rule (1),it
mayrequire thegovernment oftheexporting country, ortheexporter from whom such
undertakinghasbeenacceptedtoprovidefromtimetotimeinformationrelevanttothefulfilment
oftheundertaking andtopermit verification ofrelevant data:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page35
Provided thatincaseofanyviolation ofanyundertaking, thedesignated authority will
intimate theCentral Government andcomplete theinvestigation expeditiously.
(7) Thedesignated authority shallsuomotu oronthebasis ofanyrequest received from
exporters orimporters ofthearticle inquestion oranyother interested person review from
timetotimetheneedforthecontinuance ofanyundertaking given earlier.
18. Disclosure ofinformation. -Thedesignated authority, shall, before giving itsfinalfindings,
inform allinterested parties andinterested countries oftheessential factsunder consideration which
form thebasis ofitsdecision andpermit theinterested parties todefend theirinterest.
19. Final findings. -
(1) Thedesignated authority shall, within oneyearfrom thedateofinitiation ofan
investigation determine astowhether ornotthearticle under investigation isbeing subsidized
andsubmit totheCentral Government itsfinalfinding, asto-
(a) (i) thenature ofsubsidy being granted inrespect ofthearticle under
investigation andthequantum ofsuchsubsidy;
(ii) whether imports ofsucharticles intoIndiainthecaseofimports from
specified countries, cause orthreaten material injury toanindustry
established inIndia ormaterially retards theestablishment ofany
industry inIndia andcausal linkbetween thesubsidized imports and
suchinjury: and
(iii) whether aretrospective levyiscalled forandifso,thereasons therefore
andthedateofcommencement ofsuchlevy.
(b) itsrecommendation astotheamount ofdutywhich iflevied, would beadequate
toremove theinjury tothedomestic industry.
ProvidedthattheCentralGovernmentmayincircumstancesofexceptionalnatureextend
further theaforesaid period ofoneyearbysixmonths.
Provided further thatinthose cases where thedesignated authority hassuspended the
investigation ontheacceptance ofapriceundertaking asprovided inrule17andsubsequently
resumes thesame onviolation oftheterms ofthesaidundertaking, theperiod forwhich
investigation waskeptunder suspension shallnotbetaken intoaccount while calculating the
saidperiod ofoneyear.
(2) Thefinalfinding ifaffirmative, shallcontain allinformation onthematter offacts
andlawandreasons which have ledtotheconclusion andshall alsocontain information
regarding -
(i) thenames ofthesuppliers or,when thisisimpractical, thesupplying countries
involved;
(ii) adescription oftheproduct withissufficient forcustoms purposes;
(iii) theamount ofsubsidy established andthebasis onwhich theexistence ofa
subsidy hasbeendetermined;G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page36
(iv) considerations relevant totheinjury determination; and
(v) themain reasons leading tothedetermination.
(3) Thedesignated authority shallissue apublic notice regarding itsfinalfindings.
20. Levy ofduty. -
(1) TheCentral Government may, within three months ofthedateofpublication ofthe
finalfindings bythedesignated authority under rule19,impose, bynotification intheOfficial
Gazette, upon importation intoIndia ofthearticle covered under thefinal finding, a
countervailing dutynotexceeding theamount ofsubsidy asdetermined bythedesignated
authority under rule19.
Provided thatincaseofimports fromspecified countries theamount ofdutyshallnot
exceed theamount which hasbeenfound adequate toremove theinjury tothedomestic industry.
(2) Notwithstanding anything contained insub-rule (1)where adomestic industry hasbeen
interpreted according totheproviso toclause (b)ofrule2,acountervailing dutyshallbelevied
onlyaftertheexporters havebeengiven opportunity tocease exporting atsubsidized prices
totheareaconcerned orotherwise giveanundertaking pursuant torule17andsuchundertaking
hasnotbeenpromptly given andinsuchcases dutycannot belevied onlyontheproduct of
specified producers which supply theareainquestion.
(3) Ifthefinalfinding ofthedesignated authority isnegative, thatiscontrary totheprima
facieevidence onwhose basis theinvestigation wasinitiated, theCentral Government shall
within forty fivedaysofthepublication offinalfindings bythedesignated authority under
rule19,withdraw theprovisional duty, imposed ifany.
21. Impositionofdutyonnon-discriminatorybasis.-Anycountervailingdutyimposedunderrule15
or20shallbeonanon-discriminatory basis andapplicable toallimports ofsucharticle, iffound to
besubsidized andwhere applicable, causing injury except inthecaseofimports from those sources
from which undertakings interms ofrule17havebeenaccepted.
22. Dateofcommencement ofduty. -
(1) Thecountervailing dutylevied under rule15and20shalltakeeffect from thedate
ofpublication ofthenotification intheOfficial Gazette.
(2) Notwithstanding anything contained insub-rule (1)-
(a) where aprovisional dutyhasbeenlevied andwhere thedesignated authority
hasrecorded afinding ofinjury orwhere thedesignated authority recorded afinding
ofthreat ofinjury andafurther finding thatthesubsidized imports, intheabsence
ofprovisional dutywould haveledtoinjury, thecountervailing dutymaybeimposed
from thedateofimposition ofprovisional duty:
(b) inthecircumstances referred toinsub-section (4)ofsection 9oftheAct,the
countervailing dutymaybelevied retrospectively from thedatecommencing ninety
daysprior totheimposition ofprovisional duty:G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page37
Provided thatincaseofviolation ofanundertaking referred toinsub-rule (6)orrule17,
nodutyshallbelevied retrospectively onimports which haveentered forhome consumption
before violation ofsuchterms oftheundertaking.
23. Refund ofduty. -
(1) Ifthecountervailing dutyimposed bytheCentral Government onthebasisofthefinal
findings oftheinvestigation conducted bythedesignated authority ishigher thantheprovisional
dutyalready imposed andcollected thedifferential shallnotbecollected from theimporter.
(2) Ifthecountervailing dutyfixed aftertheconclusions oftheinvestigation islower than
theprovisional dutyalready imposed andcollected, thedifferential shallberefunded tothe
importer.
(3) Iftheprovisional dutyimposed bytheCentral Government iswithdrawn inaccordance
withtheprovisionsofsub-rule(3)ofrule20,theprovisionaldutyalreadyimposedandcollected,
ifany,shallberefunded totheimporter.
24. Review. -
(1) Thedesignated authority shall, from timetotime, review theneed forcontinued
imposition ofthecountervailing dutyandshall, ifitissatisfied onthebasis ofinformation
received byitthatthereisnojustification forthecontinued imposition ofsuchdutyoradditional
duty, recommend totheCentral Government foritswithdrawal.
(2) Anyreview initiated under sub-rule (1)shallbeconcluded within aperiod notexceeding
12months from thedateofinitiation ofsuchreview.
(3) Theprovisions ofrules6,7,8,9,10,11,12,13,16,17,18,19,20,22and23shall
mutatis mutandis apply inthecaseofreview.
_______________G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page38
ANNEXURE I
PRINCIPLES GOVERNING THE DETERMINATION OFINJURY
Thedesignated authority shall takeintoaccount, interalia,thefollowing principles while
determining injury:-
1. (1) Adetermination ofinjury forpurposes ofrule13shallbebased onpositive evidence
andinvolve anobjective examination ofboth (a)thevolume ofthesubsidized imports and
theeffect ofthesubsidized imports onprices inthedomestic market forlikeproducts and(b)
theconsequent impact ofthese imports onthedomestic producers ofsuchproducts.
(2) With regard tothevolume ofthesubsidized imports, thedesignated authority shall,
interalia,consider whether therehasbeenasignificant increase insubsidized importers, either
inabsolute terms orrelative toproduction orconsumption inIndia.
(3) With regard totheeffect ofthesubsidized import onprices, thedesignated authority
shall, consider whether therehasbeenasignificant priceundercutting bythesubsidized imports
ascompared withtheprice ofalikearticle inIndia, orwhether theeffect ofsuchimports is
otherwise todepress prices toasignificant degree ortoprevent priceincreases, which otherwise
would haveoccurred, toasignificant degree.
(4) Where imports ofaproduct from more thanonecountry aresimultaneously subject
tocountervailing dutyinvestigations, thedesignated authority maycumulatively assess theeffect
ofsuchimports onlyifitdetermines that(a)theamount ofsubsidization established inrelation
totheimports from eachcountry ismore thanonepercentadvalorem andthevolume of
imports fromeachcountry isnotnegligible and(b)acumulative assessment oftheeffects of
theimportsisappropriateinlightoftheconditionsofcompetitionbetweentheimportedproducts
andthelikedomestic product.
(5) Thedesignated authority while examining theimpact ofthesubsidized imports onthe
domesticindustryshallincludeandevaluationofallrelevanteconomicfactorsandindiceshaving
abearing onthestateoftheindustry, including actual andpotential decline inoutput, sales,
market share, profits, productivity, return oninvestments, orutilization orcapacity; factors
affecting domestic prices; actual andpotential negative effects oncashflow, inventories,
employment, wages, growth, ability toraisecapital investments and,inthecaseofagriculture,
whether there hasbeenanincreased burden ongovernment support programmes.
2. (1) Itmustbedemonstrated thatthesubsidized imports are,through theeffects ofsubsidies,
causing injury. Thedemonstration ofacausal relationship between thesubsidized imports
andtheinjury tothedomestic industry shallbebased onanexamination ofallrelevant evidence
before thedesignated authority. Thedesignated authority shallalsoexamine anyknown factors
other thanthesubsidized imports which atthesame time areinjuring thedomestic industry,
andtheinjuries caused bythese other factors mustnotbeattributed tothesubsidized imports.
Factors which mayberelevant inthisrespect include, interalia,thevolumes andprices on
non-subsidized imports oftheproducts inquestion, contraction indemand orchanges inthe
patterns ofconsumption, trade restrictive practices ofandcompetition between theforeign
anddomesticproducers,developmentsintechnologyandtheexportperformanceandproductivity
ofthedomestic industry.
(2) Theeffect ofthesubsidized imports shall beassessed inrelation tothedomestic
production ofthelikeproduct when available datapermit theseparate identification ofthe
production onthebasisofsuchcriteria astheproduction process, producers salesandprofits.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page39
Ifsuchseparate identification ofthatproduction isnotpossible, theeffects ofthesubsidized
imports shallbeassessed bytheexamination oftheproduction ofthenarrowest group orrange
ofproducts, which includes thelikeproduct forwhich thenecessary information canbe
provided.
3. Adeterminationofathreatofmaterialinjuryshallbebasedonfactsandnotmerelyonallegation,
conjecture orremote possibility. Thechange incircumstances which would create asituation inwhich
thesubsidy would cause injury must beclearly foreseen andimminent. Inmaking adetermination
regarding theexistence ofathreat ofmaterial injury, thedesignated authority shallconsider, interalia,
suchfactors as:
(i) nature ofthesubsidy orsubsidies inquestion andthetrade effects likely toarise
therefrom;
(ii) asignificant rateofincrease ofsubsidized imports intothedomestic market indicating
thelikelihood ofsubstantially increased importation;
(iii) sufficient freely disposable, oranimminent, substantial increase in,capacity ofthe
exporter indicating thelikelihood ofsubstantially increased subsidized exports toIndian
market, taking intoaccount theavailability ofother export markets toabsorb any
additional exports;
(iv) whether imports areentering atprices thatwillhave asignificant depressing or
suppressing effect ondomestic prices, andwould likely increase demand forfurther
imports; and
(v) inventories oftheproduct being investigated.G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page40
ANNEXURE II
PRINCIPLES FOR DETERMINATION OFSUBSIDY WHICH HAS BEEN CONFERRED
ONALIMITED NUMBER OFPERSONS ASREFERRED TOINRULE 11
1. Thedesignated authority inorder todetermine astowhether asubsidy hasbeenconferred
onalimited number ofpersons engaged inthemanufacture ofproduction ofanarticle, shalltakethe
following principles intoconsideration:-
(a) whether thegranting authority orthelegislation pursuant towhich thegranting authority
operates,explicitlylimitsaccesstoasubsidytocertainenterprises.However,wherethegranting
authority, orthelegislation pursuant towhich thegranting authority operates, establishes
objective criteria orconditions governing theeligibility for,andtheamount of,asubsidy, such
subsidy shallnotbeconsidered tohavebeenconferred onalimited number ofpersons engaged
inthemanufacture orproduction ofanarticle, provided thattheeligibility isautomatic and
suchcriteria orconditions arestrictly adhered toandsuchcriteria andconditions havebeen
clearly speltoutinthelaw,regulation orother official document ofthegranting country or
territory andarecapable ofverification.
Explanation: Forthepurposes oftheabove paragraph objective criteria orconditions mean
criteria orcondition which areneutral, which donotfavour certain enterprises overothers, andwhich
areeconomic innature andhorizontal inapplication, suchasnumber ofemployees orsizeofenterprises.
(b) Notwithstandingthedeterminationthatasubsidyisnotbeinggrantedtoalimitednumber
ofenterprises interms oftheprovisions contained inparagraph (a)above. Ifthedesignated
authority hasreason tobelieve thatthesubsidy hasinfactbeenconferred toalimited number
ofenterprises, itmayconsider other factors like(1)useofasubsidy programme byalimited
number ofcertain enterprises orpredominant usebycertain enterprises (2)granting of
disproportionately large amounts ofsubsidy tocertain enterprises and(3)manner inwhich
discretion hasbeenexercised bythegranting authority indecision togrant asubsidy, for
determination ofasubsidy. Thedesignated authority, inapplying thisclause, shalltakeinto
account, theextent ofdiversification ofeconomic activities within thejurisdiction ofthegranting
authority, aswellasthelength oftimeduring which thesubsidy programme hasbeenin
operation.
(c) Asubsidy which islimited tocertain persons engaged inthemanufacture orproduction
ofanarticle located within adesignated geographical region within thejurisdiction ofthe
granting authority shallbeconsidered tohavebeengranted toalimited number ofpersons
engaged inthemanufacture orproduction.
(S.M.BHATNAGAR)
UNDER SECRETARY TOTHE GOVERNMENT OFINDIA
F.No.525/2/94-CUS.(TU):G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page41
TOBEPUBLISHED INPART II,SECTION 3,SUB-SECTION (ii)OFTHEGAZETTE OFINDIA
EXTRAORDINARY, DATED 1STJANUARY 1995.
11PAUSA 1916 (SAKA)
GOVERNMENT OFINDIA
MINISTRY OFFINANCE
DEPARTMENT OFREVENUE
NEW DELHI, 1stJanuary 1995.
11Pausa 1916 (SAKA)
NOTIFICATION
NO.3/95-NT-CUSTOMS
G.S.R. NO.3(E)-Inexercise ofthepowers conferred bysub-rule (1)rule3oftheCustoms Tariff
(Identification, Assessment andCollection ofCountervailing Duty onSubsidized Articles andfor
Determination ofInjury) Rules, 1995, theCentral Government hereby appoints theAdditional Secretary
totheGovernment ofIndia intheMinistry ofCommerce, asthedesignated authority forthepurposes
ofsaidrules.
(S.M.BHATNAGAR)
UNDER SECRETARY TOTHE GOVERNMENT OFINDIA
F.No.525/2/94-CUS.(TU):G/ADP/N/1/IND/1
G/SCM/N/1/IND/1
Page42
TOBEPUBLISHED INPART II,SECTION 3,SUB-SECTION (ii)OFTHE
GAZETTE OFINDIA EXTRAORDINARY, DATE 1STJANUARY 1995.
11PAUSA 1916 (SAKA)
GOVERNMENT OFINDIA
MINISTRY OFFINANCE
DEPARTMENT OFREVENUE
NEW DELHI, 1stJanuary, 1995
11Pausa 1916 (SAKA)
NOTIFICATION
NO.4/95-NT-CUSTOMS
G.S.R. No.4(E)-Inexercise ofthepowers conferred bysub-rule (1)ofrule3oftheCustoms Tariff
(Identification, Assessment andCollection ofAnti-dumping Duty onDumped Articles andfor
Determination ofInjury) Rules, 1995, theCentral Government hereby appoints theAdditional Secretary
totheGovernment ofIndia intheMinistry ofCommerce, asthedesignated authority forthepurposes
ofsaidrules.
(S.M.BHATNAGAR)
UNDER SECRETARY TOTHE GOVERNMENT OFINDIA
F.NO.525/2/94-CUS.(TU):