RESTRICTED
WORLD TRADE G/ADP/W/289
G/SCM/W/297
ORGANIZATION 26February 1996
(96-0702)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOTHE QUESTIONS POSED BYCANADA1CONCERNING THE
NOTIFICATIONS PROVIDED BYTHE GOVERNMENT OFINDIA2OF
LAWS AND REGULATIONS UNDER ARTICLES 18.5
AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 12February 1996, hasbeenreceived fromthePermanent
Mission ofIndia.
_______________
PartIISection 1
Q.1. WhohastheGovernment ofIndia authorized tocarry outtheinvestigation? Arethereseparate
authorities required tocalculate thelevelofdutyandtoassess injury? More precisely, whatisthe
roleoftheDepartments ofJustice, Finance andRevenue?
A.1. Thedesignated authority isrequired tocarry outfunctions mentioned inRule4ofIndia's
Anti-Dumping Rules andRule4ofIndia'sCountervailing DutyRules which interaliainclude making
recommendations ontheamount ofdutyanddetermination ofinjury. TheCentral Government inthe
Ministry ofFinance levies thedutybyissuing anotification inthisregard.
Article 2(9A)(3) -Retroactivity
Q.1. Before levying ananti-dumping dutyretrospectively, willtheIndian Government provide an
opportunity toimporters tocomment asrequired under Article 10.6(ii)oftheAnti-dumping Agreement?
A.1. Rule16oftheA-DRules require thedesignated authority before giving itsfinalfindings, inform
allinterested parties theessential factsunder consideration which form thebasis foritsdecision. It
implies thattheinterested parties willhaveanopportunity tocomment.
Article 2(b)-Definition -Domestic industry
Q.1. Howare"related parties" defined?
A.1. Related parties arenotexplicitly defined. However, anillustration ofrelated parties canbe
found inSection 9A(1)(b) oftheCustoms Tariff Act,1975. Theextant lawofthelandinIndia will
apply forascertaining whotherelated parties are.
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PartIISections 2&3
Articles 5(AD) and6(SCV) -Initiation ofinvestigation
Q.1. Could theGovernment ofIndia please clarify ifaninvestigation canbeself-initiated? Does
theIndian Government intend toself-initiate onlyunder special circumstances? Ifso,under whatspecial
circumstances pursuant toArticles 11.6oftheSCMAgreement andArticle 5.6oftheADAgreement?
A.1. Thedesignated authority caninitiate aninvestigation suomoto also. Thecircumstances under
which investigation canbeinitiated suomoto areprovided forinSub-Rule 3(b)ofRule 5ofthe
A-DRules andSub-Rule 4readwithSub-Rule 3(b)ofRule6oftheCVD Rules.
Q.2. While countervailing duties maynotbeassessed against subsidies notified under Article 8of
theSCMAgreement, arethere anyprovisions thatexpressly prohibit theinitiation ofaninvestigation
intosuchsubsidies?
A.2. Initiation ofinvestigation intosubsidies covered inArticle 8isnotprohibited. However, levy
ofCountervailing Dutyonsuchsubsidies isnotpermitted videprovisions ofRule11oftheCVD Rules.
Article 11-Nature ofsubsidy
Q.1. Article11excludesproductscoveredintheAgricultureAgreementfromthedefinitionofsubsidy.
Does theGovernment ofIndia intend thatexport subsidies subject toreduction under theAgriculture
Agreement notbecountervailable?
A.1.Rule11oftheCVD Rules provide thatsubsidies ofakindmentioned intheAgreement on
Agriculture contained intheFinal ActoftheUruguay Round ofMultilateral Trade Negotiations shall
notbetaken intoconsideration forthepurposes ofSub-Clause (a)and(b)ofRule11.However, this
islimited tosubsidies fullyconforming totheprovisions ofAnnex IIreferred toinArticle 13(a) of
theAgreement onAgriculture.
Questions 2and3
Does theGovernment intend thatsubsidies conferred onalimited number ofpersons, but
generally available within thejurisdiction ofthegranting authority, tobecountervailable?
Arethere conditions other thanthose specified inArticle 11.(1)(c) inwhich asubsidy maybe
found tobespecific, andtherefore countervailable, suchasthose setoutinArticles 2.1(b)and(c)
oftheSCM Agreement?
Answers 2and3
Yes,Indiaintendsthatsubsidiesconferredonalimitednumberofpersonsbutgenerallyavailable
within jurisdiction ofthegranting authority becountervailable. Theconditions todetermine whether
asubsidy hasbeenconferred onalimited number ofpersons arespecified indetail inAnnexure II
totheCVD Rules. These conditions specified inAnnexure IIareinconformity withArticle 2ofthe
Agreement onSubsidies andCountervailing Measures.G/ADP/W/289
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Q.4. Isfundamental research conducted byhigher education orresearch establishments exempt from
countervail?
A.4. Yes, thecondition forsuch exemption isspecified inExplanation (1)toRule 11ofthe
CVD Rules.
Article 12-Conferment ofbenefit
Q.1. WilltheGovernment ofIndia beissuing regulations onthecalculation ofasubsidy, additional
tothose provided forinArticle 12?
A.1. No,atpresent Indiadoesnotpropose toissueregulations oncalculation ofasubsidy, inaddition
tothose provided forinRule12.Thedesignated authority hasthepower todeploy necessary means
forcalculation ofasubsidy.
Article 15-Levy ofprovisional duty
Q.1. HowdoestheGovernment ofIndia intend toimplement itsobligations under Article 17.1(c)
oftheSCM Agreement, requiring thatprovisional measures onlybeapplied toprevent injury being
caused during theinvestigation?
A.1. Theprovision ofArticle 17.1(c) oftheAgreement onSubsidies andCountervailing Measures
havebeenimplemented under Section 9B(1)(b)(iii) oftheCustoms Tariff Act,1995.
Article 21-Imposition ofdutyonnon-discriminatory basis
Q.1. HowdoestheGovernment ofIndia intend totreatexporters whose exports aresubject toa
definitive countervailing dutybutwhowerenotactually investigated forreasons other thanarefusal
tocooperate?
A.1. Rule21ofIndian Countervailing Duty Rules provide thatlevyofCountervailing Duty shall
beonanon-discriminatory basisandapplicable toallimports ofsucharticles iffound tobesubsidized
andwhere applicable, causing injury except inthecaseofimports from those sources from which
undertakings interms ofRule7havebeenaccepted.