RESTRICTED
WORLD TRADE G/ADP/W/92/Suppl.1
G/SCM/W/101/Suppl.1
ORGANIZATION 18October 1995
(95-3139)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS
PROVIDED BYTHE GOVERNMENT OFINDIA1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Supplement
Thefollowing communication, dated 9October 1995, hasbeenreceived from theEuropean
Communities.
_______________
Anti-Dumping Legislation ofIndia
DOCUMENTS AND OVERVIEW
TheNotification G/ADP/N/1/IND/1-G/SCM/N/1/IND/1 consists ofthefollowing documents:
1. TheCustoms Tariff (Amendment) Ordinance 1994, hereinafter 'theOrdinance ',
2. TheCustoms Tariff (Identification, Assessment andCollection ofCountervailing Duty on
Subsidized Articles andforDetermination ofInjury) Rules, 1995 (hereinafter 'A-Drules'),
including twoannexes (ANNEXURE IandANNEXURE II),
3. TheCustoms Tariff (Identification, Assessment andCollection ofAnti-Dumping Duty on
DumpedArticlesandforDeterminationofInjury)Rules,1995(hereinafter'AS-rules'),including
twoannexes (ANNEXURE IandANNEXURE II),
4. Twonotifications, dated 1January 1995, appointing the'designated authority 'forthepurpose
oftheA-Drules andAS-rules.
TheOrdinance, andtheA-Drules andAS-rules came intoforce on1January 1995. The
Ordinance contains general rulesapplicable toallcountries. TheA-DrulesandAS-rules contain special
rules tobeapplied onimports from Members oftheWTO (section 9B(1)(b)(ii) oftheOrdinance).
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QUESTIONS
Calculation ofDumping Margin
Question 1
Principle 2(ii)ofAnnexure IoftheA-Drules defines areasonable period oftimeas"not
lessthan6months", which ismore permissive thanthelanguage usedinArticle 2.2.1 ofthe'94A-D
Code, normally oneyear.
What willnormally betheperiod oftimeexamined bytheIndian Authorities?
Question 2
Principle 6(ii)ofAnnexure IoftheA-Drules transposes therequirement ofArticle 2.4of
the'94A-DCode toestablish normal value onanequivalent level oftrade incases ofconstructed
export price.
HowwillIndiamake sure,thatnecessary information forsuchfaircomparison willbeindicated
totheparties inquestion, andthatnounreasonable burden ofproof isputonthem?
Question 3
Article 2.4.2 ofthe'94A-DCode provides forthree alternative ways ofcomparing export
priceandnormal value: weighted average toweighted average, transaction-to-transaction, andweighted
average normal value toindividual export transactions. Thelatter option issubject toadditional
requirements (certain price patterns andexplanation whysuchpatterns cannot betaken intoaccount).
Principle 6(iv)ofAnnexure IoftheA-Drules, however, establishes theweighted average normal
value toindividual export transactions methodology astheonlyonewhich theIndian authorities will
use. How willIndia make surethattheother methodologies willbeapplied, iftheadditional
requirements fortheweighted average normal value toindividual export transactions methodology
arenotmet?
Question 4
ThelikeproductdefinitionofArticle2.6ofthe'94A-DCodeappliesthroughouttheAgreement.
Rule2(d)oftheA-Drules limits thisdefinition totheinvestigation.
HowwillIndiaensure thatthelikeproduct definition applies onageneral basis, notably before
theinitiation ofaninvestigation, when evaluating complaints?
Injury Determination
Question 5
Itprobably needs onlyclarification, that'natural andpotential decline 'inParagraph (iv)of
Annexure IIshould read'actual andpotential decline '(seeArticle 3.4ofthe'94A-DCode)?G/ADP/W/92/Suppl.1
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Question 6
Concerning threat ofinjury, howwillIndia ensure 'thatthetotality offactors considered must
leadtotheconclusion thatfurther dumped imports areimminent andthat,unless protective action is
taken, material injury would occur'(Article 3.7,lastsentence ofthe'94A-DCode)?
Question 7
HowwillIndia make sure, thatcases ofthreat ofinjury areconsidered anddecided withthe
'special care'required inArticle 3.8ofthe'94A-DCode?
Question 8
Concerning cumulation, Article 3.3ofthe'94A-DCode provides forconditions ofcompetition
- between theimported products, and
- between theimported products andthelikedomestic product
tobetaken intoconsideration forthedecision ofcumulating imports from several countries.
Principle (iii)ofAnnexure IItotheA-Drules onlyrefers tocompetition between imports andlike
domestic articles.
HowwillIndia ensure thattheconditions ofcompetition between theimports from different
countries willalsobetaken intoaccount?
Procedural Questions
Application -proceeding before initiation
Questions 9and10
Itisacompulsory requirement inthefirstsentence ofArticle 5(2)ofthe'94A-DCode that
anapplication includes evidence of(a)dumping, (b)injury, and(c)acausal link. Rule5(2)ofthe
A-Drules, however, requires evidence of(a)dumping, (b)injury, where applicable ,and(c)where
applicable ,acausal link. Thesame unsatisfactory wording isrepeated inRule5(3)(b) oftheA-D
rules.
HowcanIndiaensure thatitsactual legislation willbeapplied inamanner which willnotdeviate
from theclearlinegiven inArticle 5(2)ofthe'94A-DCode, thatevidence isrequired forallthree
elements?
How canIndia make surethattheevidence concerning allthree elements willbeexamined
according toArticle 5.3ofthe'94A-DCode?
Questions 11and12
Since Rule5(2)oftheA-Drules issilent concerning thecontent ofanapplication:
HowwillIndia make surethatapplications brought before theIndian Authorities contain the
elements listed inArticle 5(2)(i), (ii),(iii),and(iv)ofthe'94A-DCode?G/ADP/W/92/Suppl.1
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HowwillIndia ensure thatthesimple assertion, unsubstantiated byrelevant evidence, (second
sentence ofArticle 5(2)ofthe'94A-DCode) willnotbeconsidered sufficient foranapplication brought
bytheIndian Authorities?
Question 13
TheIndian legislation doesnotprovide forarulecorresponding toArticle 5(5)ofthe'94A-D
Code which specifies thatpremature publicity shallbeavoided.
How willIndia ensure compliance tothisrule?
Question 14
According toRule4"2,theinitiation ofproceedings bytheIndian Authorities isnotlimited
to'special circumstance 'asrequired inArticle 5.6ofthe'94A-DCode.
How willIndia ensure compliance toArticle 5.6ofthe'94A-DCode?
Question 15
Rule14oftheA-Drulesprovides fortheprompt termination ofaninvestigation. Thishowever
covers onlyhalfofArticle 5.8ofthe'94A-DCode which, inaddition, saysthatsimilarly an'application
shallberejected ...assoonastheauthorities concerned aresatisfied thatthereisnotsufficient evidence
ofeither dumping orinjury '.Together withthelooser wording concerning evidence (seeabove (a)),
thiswouldallowinitiationevenifthereisnotsufficientevidencecoveringdumping,injuryandcausation.
HowwillIndia ensure thatapplications arerejected andnoinvestigation isinitiated ifthere
isnotsufficient evidence onallthree elements?
Question 16
TheIndian legislation doesnotcontain arulecorresponding toArticle 5.9ofthe'94A-DCode.
HowwillIndiaensurethatananti-dumpingproceedingwillnothindertheproceduresofcustoms
clearance?
Evidence
Question 17
Article 6.1ofthe'94A-DCode provides 'thatallinterested parties shall begiven notice of
theinformation theauthorities require '.Rule6(4)oftheA-Drulessaysthatanotice calling forany
information maybeissued.
HowwillIndia ensure thatallinterested parties know which information theyhavetoprovide
inorder toprotect theirrights?
2There isanerror inthenumbering; afterthelastRuleonpage11oftheNotification document
isRule5,onpage12ofthisdocument Rules arenumbered again starting withRule4.Rules 4and
5onpage12areherereferred toasRule4"andRule5".G/ADP/W/92/Suppl.1
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Question 18
Concerning rights ofinterested parties, theIndian legislation doesnotprovide forconfrontation
meetings asrequired byArticle 6.2ofthe'94A-DCode (seeRule6(6)oftheA-Drules).
HowwillIndiaensure thatinterested parties willhavefullopportunity todefend theirinterests
throughout theinvestigation including theopportunity torequest confrontation meetings?
Question 19
Concerning access toinformation, theIndian legislation doesnottranspose Article 6.4ofthe
'94A-DCode which provides fortimely opportunities forallinterested parties toseeallinformation
thatisrelevant tothepresentation oftheircase.
How willIndia ensure thatArticle 6.4ofthe'94A-DCode willberespected, inparticular
bygiving interested parties access toinformation, inparticular information contained inthefilesof
theIndian Authorities?
Question 20
According toArticle 6.5.1 ofthe'94A-DCode interested parties shallberequired toprovide
non-confidential summaries. Inexceptional circumstances, astatement ofreasons whysummarization
isnotpossible must beprovided. Rule7(2)oftheA-Drulesreduces thisobligation toanoption ('may
require ','maysubmit ').
HowwillIndiaensure thatnon-confidential summaries which areamajor source ofinformation
forother interested parties willbeprovided totheextent required inthe'94A-DCode?
Question 21
Article 6.7ofthe'94A-DCode provides thattheprocedures described inAnnex 1shallapply
toinvestigations carried outintheterritory ofother Members. These procedures areonlypartially
transposed intotheIndian legislation (Rule 9oftheA-Drules).
How willIndia ensure paragraphs 2,4,5,7and8ofAnnex 1ofthe'94A-DCode willbe
respected?
Question 22
Concerning theuseoffactsavailable, Rule6(8)oftheA-Drulesdoesnotspecify thatfindings
onthatbasis maybeaffirmative ornegative (seeArticle 6.8ofthe'94A-DCode).
India should confirm thattheuseoffactsavailable doesnotpreclude negative findings.
Question 23
Contrary toArticle 6.9ofthe'94A-DCode, Rule16oftheA-Drules doesnotmake clear
that'disclosure should takeplace insufficient timefortheparties todefend theirinterests '.
How willIndia ensure compliance withArticle 6.9ofthe'94A-DCode?G/ADP/W/92/Suppl.1
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Provisional Measures
Question 24
Contrary toArticle 7.1(ii)ofthe'94A-DCode which requires apreliminary affirmative finding
ofdumping andconsequence injury, Rule12(1) oftheA-Drulesdoesnotsimilarly allude tocausation.
How willIndia ensure thatpreliminary findings include anexamination ofcausation?
Questions 25and26
Rule13permits extension ofthe6month duration ofprovisional duties maybeextended to
9months upon request oftheexporters representing asignificant percentage oftrade. Article 7.4of
the'94A-DCode provides forthese prolonged periods only, ifinjury thresholds were tobetested.
Rule17(1)(b) oftheA-Drules contains awording which alludes toaninjury threshold: 'adequate
toremove injury where applicable '.
How, atwhich stageintheproceeding, andtowhich extent willIndia testaninjury threshold?
Ifquestion 25isanswered inthenegative, howwillIndia ensure compliance withArticle 7.4
ofthe'94A-DCode, which setsshorter timelimits of4and6months respectively?
Undertakings
Question 27
Rule15oftheA-Drules doesnotlimit price increases under undertakings tothelevel of
dumping asrequired inArticle 8.1,lastsentence, ofthe'94A-DCode.
HowwillIndiaensurethatpriceincreasesunderundertakingswillnotbehigherthanthedumping
margin?
Questions 28and29
Contrary toArticle 8.2ofthe'94A-DCode, Rule15(2) oftheA-Drulesdoesnotmake clear
thatthenecessary preliminary determinations havetobeaffirmative andhavetoinclude causation .
How willIndia ensure compliance withArticle 8.2ofthe'94A-DCode inbothregards?
Question 30
Contrary toArticle 8.3ofthe'94A-DCode, Rule15doesnotrequire theIndian authorities
togivethereasons which haveledthemtoconsider theacceptance ofanundertaking asinappropriate.
Correspondingly, noopportunities fortheparties concerned areprovided tocomment thereon.
How willIndia ensure compliance withArticle 8.3ofthe'94A-DCode?G/ADP/W/92/Suppl.1
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Question 31
Inthecaseofacomplete investigation, contrary toArticle 8.4of'94A-DCode, Rule15(1)
oftheA-Drules doesnotprovide that,inprinciple, undertakings lapse automatically, ifanegative
determination ofdumping orinjury ismade.
How willIndia ensure compliance withArticle 8.4ofthe'94A-DCode?
Question 32
Article 8.5stipulates thatthefactthatexporters donotoffersuchundertakings, ordonotaccept
aninvitation todoso,shallinnowayprejudice theconsideration ofthecase. Thisisnotreflected
inRule15oftheA-Drules.
How willIndia ensure compliance withArticle 8.5ofthe'94A-DCode?
Question 33
HowwillIndia ensure that,inthecaseofviolation ofanundertaking, retroactive imposition
ofdefinitive duties islimited tonotmore than90dayspriortotheapplication ofprovisional measures
(compare Article 8.6,thirdsentence, ofthe'94A-DCode andRule20,lastparagraph, oftheA-D
rules)?
Imposition andCollection ofAnti-Dumping Duties
Question 34
HowwillIndiamakesurethatcausationisrequiredfortheimpositionofduties(compareRule19
oftheA-Drules withArticle 9.2,firstsentence, ofthe'94A-DCode)?
Question 35
How willIndia ensure thatrefunds according toArticle 9.3.1 willbemade within 90days
andthatexplanation hasbeengiven incases where arefund isnotmade within 90days(nosuch
provision either inRule17or21oftheA-Drules)?
Questions 36and37
Concerning newcomer reviews, howwillIndia ensure thatsuchproceedings areinitiated and
carried outonanaccelerated basis (Article 9.5ofthe'94A-DCode), since, insofar asRule22of
theA-Drules issilent?
Bycontrast, howarethe'periodical reviews 'provided forinRule22oftheA-Drules tobe
understood inthiscontext?G/ADP/W/92/Suppl.1
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Retroactivity
Question 38
Concerning retroactive application ofduties, theIndian legislation doesnotprovide thatthe
importers concerned begiven anopportunity tocomment asrequired byArticle 10.6(ii) ofthe'94
A-DCode (compare section 9A(3)(ii) oftheOrdinance).
How willIndia ensure compliance withArticle 10.6(ii) ofthe'94A-DCode?
Duration andReview
Question 39
TheIndian legislation doesnotestablish arightforinterested parties torequest areview (see
Rule23oftheA-Drules andSection 9A(5) oftheOrdinance) asisprovided forinArticle 11.2of
the'94A-DCode.
How willIndia ensure compliance withArticle 11.2ofthe'94A-DCode?
Question 40
Rule14oftheA-Druleswhich provides forimmediate termination innormal investigations
isnotreferred toinRule23which governs review proceedings.
HowwillIndiaensure compliance withArticle 11.2, lastsentence, ofthe'94A-DCode, which
provides forimmediate termination iftheanti-dumping dutyisnolonger warranted?
Question 41
Section 9A(5) oftheOrdinance reads 'provided thatiftheCentral Government, inareview,
isoftheopinion thatthecessation ofsuchdutyislikely toleadtocontinuation orrecurrence ofdumping
andinjury, itmay, from timetotime,extend theperiod ofsuchimposition forafurther period of
fiveyears ...'.
Which rulesgovern suchreview proceedings, which arethetimeframes alluded to,andhow
doesthisprovision transpose, inparticular, Article 11.3ofthe'94A-DCode?
Question 42
When establishing theduration ofreview proceedings, Rule23(2) oftheA-Drulesdoesnot
make clear thatsuchproceedings shallbecarried outexpeditiously.
How willIndia ensure compliance withArticle 11.4ofthe'94A-DCode?
Public Notice
Question 43
HowwillIndiaensure thatpublic notice inaccordance withArticle 12.2.2 ofthe'94A-DCode
willalsobemade incases where undertakings areaccepted?G/ADP/W/92/Suppl.1
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Question 44
HowwillIndia ensure compliance withArticle 12.2.3 ofthe'94A-DCode which provides
forinclusion ofthenon-confidential partofundertakings?