RESTRICTED
WORLD TRADE G/ADP/W/144
G/SCM/W/151
ORGANIZATION 25October 1995
(95-3280)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYINDIA1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENT
Thefollowing communication, dated 20October 1995, hasbeenreceived fromtheHong Kong
Economic andTrade Office.
_______________
Questions ontheIndian Anti-dumping Legislation
Customs Tariff (Amendment) Act1995
1. Section 9A(1)(c) -Normal value
Onthedetermination ofdumping, Article 2.2oftheWTO A-DAgreement provides thatwhen
domestic salesinthehome country donotprovide aproper basis forcomparison, thenormal value
shallbeeither acomparable price ofthelikeproduct when exported toanappropriate thirdcountry
orthecostofproduction inthecountry oforigin plusareasonable amount ofSGAcosts andprofits.
Section 9A(1)(c)(ii) oftheCustoms Tariff (Amendment) Act1995provides thatwhen domestic
salesdonotpermit aproper comparison, thenormal value shallbeeither -
(a) thecomparable representative priceofthelikearticle when exported fromtheexporting
country orterritory oranappropriate thirdcountry; or
(b) thecostofproduction ofthesaidarticle inthecountry oforigin along withreasonable
addition forSGA costs andforprofits.
Question: Would India clarify thedrafting ofSection 9A(1)(c)(ii)(a) oftheActwithreference
toArticle 2.2oftheWTO A-DAgreement?
2. Section 9A(6) -Margin ofdumping
Article 9.3oftheWTO ADAgreement provides thattheanti-dumping dutyshallnotexceed
themargin ofdumping. Articles 9.3.1-9.3.3 setouttheprocedures andrequirements forrefunds,
withseparate considerations given toassessment ofanti-dumping duties onretrospective andprospective
bases.
1G/ADP/N/1//IND/1-G/SCM/N/1/IND/1G/ADP/W/144
G/SCM/W/151
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Section 9A(6) provides thatthemargin ofdumping shall, from timetotime, beascertained and
determined bytheCentral Government, aftersuchenquiry asitmayconsider necessary. Section 9A(1)
provides forimposition ofanti-dumping duties notexceeding themargin ofdumping. Itisnotapparent
thatthenotified legislation hasprovided forprocedures andrequirements forfinaldetermination of
liability andrefund when themargin ofdumping haschanged.
Question: IstheIndian assessment ofanti-dumping duties carried outonaretrospective or
prospective basis? What aretheprocedures andrequirements forfinaldetermination
ofliability andrefund when themargin ofdumping haschanged? Howwould India
ensure compliance ofitsobligations under Article 9.3oftheWTO A-DAgreement?
Customs Tariff (Identification, Assessment andCollection ofAnti-Dumping Duty onDumped
Articles andforDetermination ofInjury) Rules, 1995
3. Rule (2)(b) -Domestic industry
According toArticle 4.1oftheWTO A-DAgreement, ‘domestic industry 'refers tothedomestic
producers asawhole ofthelikeproducts ortothose ofthem whose collective output oftheproducts
constitutes amajor proportion ofthetotaldomestic production ofthose products.
Under sub-rule 2(b)oftheCustoms Tariff Rules, ‘domestic industry 'means thedomestic
producersasawholeengagedinthemanufactureofthelikearticleandanyactivityconnectedtherewith
orthose whose collective output ofthesaidarticle constitutes amajor proportion ofthetotaldomestic
production ofthatarticle.
Question: WhyhasIndia introduced thecondition ‘andanyactivity connected therewith 'which
isnotprovided forintheWTO A-DAgreement? CanIndia givesome examples on
thepossible activities involved?
4. Rule 5-Initiation ofinvestigation
Article 5.2oftheWTO A-D Agreement states thatanapplication forananti-dumping
investigation shallinclude evidence ofdumping, injury andacausal linkbetween thedumped imports
andthealleged injury. Simple assertion, unsubstantiated byrelevant evidence, cannot beconsidered
sufficient tomeettherequirements. Paragraphs (i)to(iv)setsoutthespecific information which must
beincluded inanapplication forananti-dumping investigation.
Sub-rule 5(2)oftheCustoms Tariff Rules states thatanapplication shallbeintheform as
maybespecified bythedesignated authority.
Question: Would therequirements under Article 5.2(i)to(iv)oftheWTO A-DAgreement be
observed? What administrative orstatutory means havebeenputinplace toensure
compliance?
5. Rule 6(8)-Principles governing investigations
Sub-rule6(8)statesthatwhereaninterestedpartyrefusesaccessto,orotherwisedoesnotprovide
necessary information within areasonable period, orsignificantly impedes theinvestigation, the
designated authority mayrecord itsfindings onthebasis ofthefactsavailable toitandmake such
recommendations totheCentral Government asitdeems fit.G/ADP/W/144
G/SCM/W/151
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Question: Ontheimplementationofthisrule,wouldtheIndianauthoritiesobservetherequirements
governing theuseofBIAasprovided forinAnnex IIoftheWTO A-DAgreement?
Whatlegislativeoradministrativemeasureshavebeenputinplacetoensurecompliance?
6. Rule 9-Investigation intheterritory ofother specified countries
Rule9provides thatthedesignated authority maycarry outinvestigation intheterritories of
other countries ifthecircumstances ofacasesowarrant.
Question: Ontheimplementationoftherule,wouldtheIndianauthoritiesobservetherequirements
governing on-site verification asprovided forinAnnex IoftheWTO A-DAgreement?
Whatlegislativeoradministrativemeasureshavebeenputinplacetoensurecompliance?
7. Rule 10-Determination ofnormal value, export price anddumping margin
Rule10requires theIndian authorities todetermine thenormal value, export priceanddumping
margin "taking intoaccount", interalia,the"principles" laiddown inAnnexure I.
Annexure Isubstantially reproduces therelevant provisions oftheWTO A-DAgreement.
Question: What istheIndian authorities 'interpretation oftheterms "taking intoaccount" and
"principles"? Does thelegislation oblige Indian authorities toabide byandactin
accordance withtheprovisions inAnnexure Iorleave ittothediscretion ofthe
authorities aslongastheyhavetaken theprovisions intoaccount inthedetermination?
8. Rule 11-Determination ofinjury
Rule11requires theIndian authorities todetermine injury "inaccordance with" the"principles"
laiddown inAnnexure II,among other things. Annexure IIrequires theIndian authorities to"take
the[...]principles under consideration".
Annexure IIsubstantially reproduces therelevant provisions oftheWTO A-DAgreement.
Question: What istheIndian authorities 'interpretation oftheterm"take the[...]principles under
consideration" and"principles"? Doesthelegislation oblige Indian authorities toabide
byandactinaccordance withtheprovisions inAnnexure IIorleave ittothediscretion
oftheauthorities aslong astheyhave taken theprovisions intoaccount inthe
determination?
9. Annexure I,paragraph 6(iv)-Averaging
Article 2.4.2 oftheWTO A-DAgreement provides thatdumping margins shallnormally be
determined byeither: (a)comparison ofaweighted average normal value withaweighted average
ofprices ofallcomparable export transactions; or(b)comparison ofnormal value andexport prices
onatransaction totransaction basis.
Inaccordance withparagraph 6(iv)ofAnnexure I,themargin ofdumping shallnormally be
established "onthebasis ofacomparison ofaweighted average normal value andexport prices on
atransaction-to-transaction basis".G/ADP/W/144
G/SCM/W/151
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Question: Would India clarify howistheprovision consistent withArticle 2.4.2 oftheWTO
A-DAgreement?
10. Determination ofnormal value -domestic sales
Ondetermination ofnormal value, Article 2.2oftheWTO A-DAgreement laysdown the
threshold forsufficient domestic salestopermit aproper comparison (i.e.domestic salesnotlessthan
5percentofsalestotheimporting country concerned; alower ratioshould alsobeacceptable ifthe
volume isofsufficient magnitude toprovide foraproper comparison).
IntheIndian legislation, section 9A(1)(c) oftheCustoms Tariff (Amendment) Act1995 and
rule10&Annexure IoftheCustoms Tariff Rules 1995 setoutthedetails forthedetermination of
thenormal value. Itseems thatthelegislation doesnotprovide forthethreshold forsufficient domestic
salesforthepurpose ofdetermining thenormal value.
Question: Would theIndian authorities observe therequirement onsufficient domestic salesas
provided forinArticle 2.2andfootnote 2oftheWTO A-DAgreement? What
measures, legislative orotherwise, havebeenputinplace toensure compliance?