World Trade	G/ADP/N/1/IND/2
	G/SCM/N/1/IND/2
Organization	15 August 1995

	(95-2397)

	Original:  English
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing Measures

	NOTIFICATION OF LAWS AND REGULATIONS
	UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS

	INDIA

	The following communication, dated 22 June 1995, has been received from the Permanent Mission of India.

	_______________

	This is to inform that as regards Articles 25.12 and 32.6, I am enclosing a gazette copy of the Customs Tariff (Amendment) Act 1995, which was published on 25 March 1995.  This repeals the Customs Tariff (Amendment) Ordinance, 1994.

	Registered No. DL-33004/95

	The Gazette of India

	EXTRAORDINARY

	PART II - Section 1

	PUBLISHED BY AUTHORITY
_________________________________________________________________________________

No. 11	New Delhi, Saturday, 25 March 1995, Chaitra 4, 1917
_________________________________________________________________________________

	Separate paging is given to this Part in order that it may be filed as a separate compilation
_________________________________________________________________________________

	MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

	(Legislative Department)
	New Delhi, the 25th March 1995/Chaitra 4, 1917 (Saka)

	The following Act of Parliament received the assent of the President on the 25th March 1995, and is hereby published for general information:-

	THE CUSTOMS TARIFF (AMENDMENT) ACT 1995

	No. 6 of 1995

	[25th March 1995]

	An Act further to amend the Customs Tariff Act 1975

		BE it enacted by Parliament in the Forty-Sixth Year of the Republic of India as follows:-

1.	(1)	This Act may be called the Customs Tariff (Amendment) Act 1995.

	(2)	It shall be deemed to have come into force on the 1st day of January 1995.

2.	For sections 9, 9A and 9B of the Customs Tariff Act 1975, (hereinafter referred to as the principal Act) the following sections shall be substituted, namely: -

	"9.	(1)	Where any country or territory pays or bestows, directly or indirectly, any subsidy upon the manufacture or production therein or the exportation therefrom of any article including any subsidy on transportation of such article, then, upon the importation of any such article into India, whether the same is imported directly from the country of manufacture, production or otherwise, and whether it is imported in the same condition as when exported from the country of manufacture or production or has been changed in condition by manufacture, production or otherwise, the Central Government may, by notification in the Official Gazette, impose a countervailing duty not exceeding the amount of such subsidy."
Explanation	-	For the purposes of this section, a "subsidy" shall be deemed to exist if -

	(a)	there is financial contribution by a government, or any public body within the territory of the exporting or producing country, that is, where -

		(i)	a government practice involves a direct transfer of funds (including grants, loans and equity infusion), or potential direct transfer of funds or liabilities, or both;

		(ii)	government revenue that is otherwise due is foregone or not collected (including fiscal incentives);

		(iii)	a government provides goods or services other than general infrastructure or purchases goods;

		(iv)	A government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions specified in sub-clauses (i) to (iii) above which would normally be vested in the government and the practice in, no real sense, differs from practices normally followed by governments;  or

	(b)	a government grants or maintains any form of income or price support, which operates directly or indirectly to increase export of any article from, or to reduce import of any article into its territory,

and a benefit is thereby conferred.

(2)	The Central Government may, pending the determination in accordance with the provisions of this section and the rules made thereunder of the amount of subsidy, impose a countervailing duty under this sub-section not exceeding the amount of such subsidy as provisionally estimated by it and if such countervailing duty exceeds the subsidy as so determined, -

	(a)	the Central Government shall, having regard to such determination and as soon as may be after such determination, reduce such countervailing duty;  and

	(b)	refund shall be made of so much of such countervailing duty which has been collected as is in excess of the countervailing duty as so reduced.

(3)	Subject to any rules made by the Central Government, by notification in the Official Gazette, the countervailing duty under sub-section (1) or sub-section (2) shall not be levied unless it is determined that -

	(a)	the subsidy relates to export performance;

	(b)	the subsidy relates to the use of domestic goods over imported goods in the export article;  or

	(c)	the subsidy has been conferred on a limited number of persons engaged in manufacturing, producing or exporting the article unless such a subsidy is for -

		(i)	research activities conducted by or on behalf of persons engaged in the manufacture, production or export;

		(ii)	assistance to disadvantaged regions within the territory of the exporting country;  or

		(iii)	assistance to promote adaptation of existing facilities to new environmental requirements.

(4)	If the Central Government is of the opinion that the injury to the domestic industry which is difficult to repair, is caused by massive imports in a relatively short period, of the article benefiting from subsidies paid or bestowed and where in order to preclude the recurrence of such injury, it is necessary to levy countervailing duty retrospectively, the Central Government may, by notification in the Official Gazette, levy countervailing duty from a date prior to the date of imposition of countervailing duty under sub-section (2) but not beyond 90 days from the date of notification under that sub-section and notwithstanding anything contained in any other law for the time being in force, such duty shall be payable from the date as specified in the notification issued under this sub-section.

(5)	The countervailing duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

(6)	The countervailing duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of five years from the date of such imposition:

	Provided that if the Central Government, in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of subsidization and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension:

	Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the countervailing duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.

(7)	The amount of any such subsidy as referred to in sub-section (1) or sub-section (2) shall, from time to time, be ascertained and determined by the Central Government, after such enquiry as it may consider necessary and the Central Government may, by notification in the Official Gazette, make rules for the identification of such articles and for the assessment and collection of any countervailing duty imposed upon the importation thereof under this section.

(8)	Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.

9A	(1)	Where any article is exported from any country or territory (hereafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.

Explanation - For the purposes of this section, -

	(a)	"margin of dumping", in relation to an article, means the difference between its export price and its normal value;

	(b)	"export price", in relation to an article, means the price of the article exported from the exporting country or territory and in cases where there is no export price or where the export price is unreliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported articles are first resold to an independent buyer or if the article is not resold to an independent buyer, or not resold in the condition as imported, on such reasonable basis as may be determined in accordance with the rules made under sub-section (6);

	(c)	"normal value", in relation to an article, means -

		(i)	the comparable price, in the ordinary course of trade, for the like article when meant for consumption in the exporting country or territory as determined in accordance with the rules made under sub-section (6);  or

		(ii)	when there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, or when because of the particular market situation or low volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either -

			(a)	comparable representative price of the like article when exported from the exporting country or territory or an appropriate third country as determined in accordance with the rules made under sub-section (6);  or

			(b)	the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs and for profits, as determined in accordance with the rules made under sub-section (6):

				Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transhipped though the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.

	(2)	The Central Government may, pending the determination in accordance with the provisions of this section and the rules made thereunder of the normal value and the margin of dumping in relation to any article, impose on the importation of such article into India an anti-dumping duty on the basis of a provisional estimate of such value and margin and if such anti-dumping duty exceeds the margin as so determined:-

		(a)	the Central Government shall, having regard to such determination and as soon as may be after such determination, reduce such anti-dumping duty;  and

		(b)	refund shall be made of so much of the anti-dumping duty which has been collected as is in excess of the anti-dumping duty as so reduced.

	(3) 	If the Central Government, in respect of the dumped article under enquiry, is of the opinion that -

		(i)	there is a history of dumping which caused injury or that the importer was, or should have been, aware that the exporter practices dumping and that such dumping would cause injury;  and

		(ii)	the injury is caused by massive dumping of an article imported in a relatively short time which in the light of the timing and the volume of imported article dumped and other circumstances is likely to seriously undermine the remedial effect of the anti-dumping duty liable to be levied,

the Central Government may, by notification in the Official Gazette, levy anti-dumping duty retrospectively from a date prior to the date of imposition of anti-dumping duty under sub-section (2) but not beyond ninety days from the date of notification under that sub-section, and notwithstanding anything contained in any other law for the time being in force, such duty shall be payable at such rate and from such date as may be specified in the notification.

	(4)	The anti-dumping duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.

	(5)	The anti-dumping duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of five years from the date of such imposition:

	Provided that if the Central Government, in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury, it may, from time to time, extend the period of such imposition for a further period of five years and such further period shall commence from the date of order of such extension:

	Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to a conclusion before such expiry, the anti-dumping duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year.

	(6)	The margin of dumping as referred to in sub-section (1) or sub-section (2) shall, from time to time, be ascertained and determined by the Central Government, after such enquiry as it may consider necessary and the Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which articles liable for any anti-dumping duty under this section may be identified, and for the manner in which the export price and the normal value of, and the margin of dumping in relation to, such articles may be determined and for the assessment and collection of such anti-dumping duty.

	(7)	Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.

9B	(1)	Notwithstanding anything contained in section 9 or section 9A, -

		(a)	no article shall be subjected to both countervailing duty and anti-dumping duty to compensate for the same situation of dumping or export subsidization;

		(b)	the Central Government shall not levy any countervailing duty or anti-dumping duty -

			(i)	under section 9 or section 9A by reasons of exemption or such articles from duties or taxes borne by the like article when meant for consumption in the country of origin or exportation or by reasons of refund of such duties or taxes;

			(ii)	under sub-section (1) of either of section 9 and section 9A, on the import into India of any article from a Member country of the World Trade Organization or from a country with whom the Government of India has a most-favoured‑nation agreement (hereinafter referred to as a specified country), unless in accordance with the rules made under sub-section (2) of this section, a determination has been made that import of such article into India causes or threatens material injury to any established industry in India or materially retards the establishment of any industry in India;  and

			(iii)	under sub-section (2) of either of section 9 and section 9A, on import into India of any article from the specified countries unless in accordance with the rules made under sub-section (2) of this section, a preliminary finding has been made of subsidy or dumping and consequent injury to domestic industry;  and a further determination has also been made that a duty is necessary to prevent injury being caused during the investigation:

				Provided that nothing contained in sub-clauses (ii) and (iii) of this clause shall apply if a countervailing duty or an anti-dumping duty has been imposed on any article to prevent injury or threat of an injury to the domestic industry of a third country of exporting the like articles to India;

		(c)	the Central Government may not levy - 

			(i)	any countervailing duty under section 9, at any time, upon receipt of satisfactory voluntary undertakings from the government of the exporting country or territory agreeing to eliminate or limit the subsidy or take other measures concerning its effect, or the exporter agreeing to revise the price of the article and if the Central Government is satisfied that the injurious effect of the subsidy is eliminated thereby;

			(ii)	any anti-dumping duty under section 9A, at any time, upon receipt of satisfactory voluntary undertaking from any exporter to revise its prices or to cease exports to the area in question at dumped price and if the Central Government is satisfied that the injurious effect of dumping is eliminated by such action.

	(2)	The Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which any investigation may be made for the purposes of this section, the factors to which regard shall be had in any such investigation and for all matters connected with such investigation.

9C.	(1)	An appeal against the order of determination or review thereof regarding the existence, degree and effect of any subsidy or dumping in relation to import of any article shall lie to the Customs, Excise and Gold (Control) Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (hereafter referred to as the Appellate Tribunal).

	(2)	Every appeal under this section shall be filed within ninety days of the date of order under appeal:

	Provided that the Appellate Tribunal may entertain any appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

	(3)	The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against.

	(4)	The provisions of sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act, 1962 shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Customs Act, 1962.

	(5)	Every appeal under sub-section (1) shall be heard by a Special Bench constituted by the President of the Appellate Tribunal for hearing such appeals and such Bench shall consist of the President and not less than two members and shall include one judicial member and one technical member."

3.	(1)	The Customs Tariff (Amendment) Ordinance, 1994 is hereby repealed.

	(2)	Notwithstanding such repeal, anything done or any action taken under the principal Act, as amendment by the said Ordinance, shall be deemed to have been done or taken under the principal Act, as amended by this Act.

	K.L. MOHANPURIA,
	Secretary to the Government of India

TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA EXTRAORDINARY, DATED THE 1ST JANUARY 1995

	11 PAUSA, 1916 SAKA

	GOVERNMENT OF INDIA
	MINISTRY OF FINANCE
	DEPARTMENT OF REVENUE

	NEW DELHI, THE 1ST JANUARY, 1995
	11 PAUSA, 1916 SAKA

	NOTIFICATION
	NO. 2/95-N.T. CUSTOMS

	G.S.R. No. 1-(E)  In exercise of the powers conferred by sub-section (6) of section 9A and sub-section (2) of section 9B of the Customs Tariff Act, 1975 (51 of 1975) and in supersession of the Customs Tariff (Identification, Assessment and Collection of Duty or Additional Duty on Dumped Articles and for Determination of Injury) Rules, 1985, except as respect things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:-

1.	Short title and commencement.- 

	(1)	These rules may be called the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

	(2)	They shall come into force on the 1st day of January 1995.

2.	Definitions.- In these rules, unless the context otherwise requires,-

	(a)	"Act" means the Customs Tariff Act, 1975 (51 of 1975);

	(b)	"domestic industry" means the domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in which case such producers shall be deemed not to form part of domestic industry:

		Provided that in exceptional circumstances referred to in sub-rule (3) of rule 11, the domestic industry in relation to the article in question shall be deemed to comprise two or more competitive markets and the producers within each of such market a separate industry, if -

		(i)	the producers within such a market sell all or almost all of their production of the article in question in that market;  and

		(ii)	the demand in the market is not in any substantial degree supplied by producers of the said article located elsewhere in the territory;

	(c)	"interested party" includes - 

		(i)	an exporter or a foreign producer or the importer of an article subject to investigation for being dumped in India, or a trade or business association a majority of members of which are producers, exporters or importers of such an article;

		(ii)	the government of the exporting country;  and

		(iii)	a producer of the like article in India or a trade and business association a majority of the members of which produce the like article in India;

	(d)	"like article" means an article which is identical or alike in all respects to the article under investigation for being dumped in India or in the absence of such  an article, another article which although not alike in all respects, has characteristics closely resembling those of the articles under investigation;

	(e)	"provisional duty" means an anti-dumping duty imposed under sub-section (2) of section 9A of the Act;

	(f)	"specified country" means a country or territory which is a member of the World Trade Organization and includes the country or territory with which the Government of India has an agreement for giving it the most-favoured-nation treatment;

	(g)	all words and expressions used and not defined in these rules shall have the meanings respectively assigned to them in the Act.

3.	Appointment of designated authority.-

	(1)	The Central Government may, by notification in the Official Gazette, appoint a person not below the rank of a Joint Secretary to the Government of India or such other person as that Government may think fit as the designated authority for purposes of these rules.

	(2)	The Central Government may provide to the designated authority the services of such other persons and such other facilities as it deems fit.

4.	Duties of the designated authority.-

	(1)	It shall be the duty of the designated authority in accordance with these rules - 

		(a)	to investigate as to the existence, degree and effect of any alleged dumping in relation to import of any article;

		(b)	to identify the article liable for anti-dumping duty;

		(c)	to submit its findings, provisional or otherwise, to Central Government as to ‑

			(i)	normal value, export price and the margin of dumping in relation to the article under investigation and

			(ii)	the injury or threat of injury to an industry established in India or material retardation to the establishment of an industry in India consequent upon the import of such article from the specified countries;

		(d)	to recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry and the date of commencement of such duty;  and

		(e)	to review the need for continuance of anti-dumping duty.

5.	Initiation of investigation.-

	(1)	Except as provided in sub-rule (4), the designated authority shall initiate an investigation to determine the existence, degree and effect of any alleged dumping only upon receipt of a written application by or on behalf of the domestic industry. 
 
	(2)	An application under sub-rule (1) shall be in the form as may be specified by the designated authority and the application shall be supported by evidence of

		(a)	dumping;

		(b)	injury, where applicable;  and

		(c)	where applicable, a causal link between such dumped imports and alleged injury.

	(3)	The designated authority shall not initiate an investigation pursuant to an application made under sub-rule (1) unless - 

		(a)	it determines, on the basis of an examination of the degree of support for, or opposition to the application expressed by domestic procedures of the like product, that the application has been made by or on behalf of the domestic industry:

			Provided that no investigation shall be initiated if domestic producers expressly supporting the application account for less than 25 per cent of the total production of the like article by the domestic industry;  and

		(b)	it examines the accuracy and adequacy of the evidence provided in the application and satisfies itself that there is sufficient evidence regarding -

			(i)	dumping;

			(ii)	injury, where applicable;  and

			(iii)	where applicable, a causal link between such dumped imports and the alleged injury,

		to justify the initiation of an investigation.

	Explanation:-  For the purpose of this rule the application shall be deemed to have been made by or on behalf of the domestic industry, if it is supported by those domestic producers whose collective output constitute more than 50 per cent of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition, as the case may be, to the application.

4.	Notwithstanding anything contained in sub-rule (1) the designated authority may initiate an investigation suo motu if it is satisfied from the information received from the Collector of Customs appointed under the Customs Act, 1962 (52 of 1962) or from any other source that sufficient evidence exists as to the existence of the circumstances referred to in clause (b) of sub-rule (3).

5.	The designated authority shall notify the government of the exporting country before proceeding to initiate an investigation.

6.	Principles governing investigations.-

	(1)	The designated authority shall, after it has decided to initiate investigation to determine the existence, degree and effect of any alleged dumping of any article, issue a public notice notifying its decision and such public notice shall, inter alia, contain adequate information on the following:-

		(i)	the name of the exporting country or countries and the article involved;

		(ii)	the date of initiation of the investigation;

		(iii)	the basis on which dumping is alleged in the application;

		(iv)	a summary of the factors on which the allegation of injury is based;

		(v)	the address to which representations by interested parties should be directed;  and

		(vi)	the time-limits allowed to interested parties for making their views known.

	(2)	A copy of the public notice shall be forwarded by the designated authority to the known exporters of the article alleged to have been dumped, the governments of the exporting countries concerned and other interested parties.

	(3)	The designated authority shall also provide a copy of the application referred to in sub‑rule (1) of rule 5 to - 

		(i)	the known exporters or to the concerned trade association where the number of exporters is large;  and

		(ii)	the governments of the exporting countries:

		Provided that the designated authority shall also make available a copy of the application to any other interested party who makes a request therefor in writing.

	(4)	The designated authority may issue a notice calling for any information, in such form as may be specified by it, from the exporters, foreign producers and other interested parties and such information shall be furnished by such persons in writing within 30 days from the date of receipt of the notice or within such extended period as the designated authority may allow on sufficient cause being shown.

	Explanation:  For the purpose of this sub-rule, the notice calling for information and other documents shall be deemed to have been received one week from the date on which it was sent by the designated authority or transmitted to the appropriate diplomatic representative of the exporting country.

	(5)	The designated authority shall also provide opportunity to the industrial users of the article under investigation, and to representative consumer organizations in cases where the article is commonly sold at the retail level, to furnish information which is relevant to the investigation regarding dumping, injury where applicable, and causality.

	(6)	The designated authority may allow an interested party or its representative to present the information relevant to the investigation orally but such oral information shall be taken into consideration by the designated authority only when it is subsequently reproduced in writing.

	(7)	The designated authority shall make available the evidence presented to it by one interested party to the other interested parties, participating in the investigation.

	(8)	In a case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the designated authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as it deems fit under such circumstances.

7.	Confidential information.-

	(1)	Notwithstanding anything contained in sub-rules (2), (3), and (7) of rule 6, sub-rule (2) of rule 12, sub-rule (4) of rule 15 and sub-rule (4) of rule (17), the copies of applications received under sub-rule (1) of rule 5, or any other information provided to the designated authority on a confidential basis by any party in the course of investigation, shall, upon the designated authority being satisfied as to its confidentiality, be treated as such by it and no such information shall be disclosed to any other party without specific authorization of the party providing such information.

	(2)	The designated authority may require the parties providing information on confidential basis to furnish non-confidential summary thereof and if, in the opinion of a party providing such information, such information is not susceptible of summary, such party may submit to the designated authority a statement of reasons why summarization is not possible.

	(3)	Notwithstanding anything contained in sub-rule (2), if the designated authority is satisfied that the request for confidentiality is not warranted or the supplier of the information is either unwilling to make the information public or to authorize its disclosure in a generalized or summary form, it may disregard such information.

8.	Accuracy of the information.-  Except in cases referred to in sub-rule (8) of rule 6, the designated authority shall during the course of investigation satisfy itself as to the accuracy of the information supplied by the interested parties upon which its findings are based.

9.	Investigation in the territory of other specified countries.-  The designated authority may carry out investigation in the territories of other countries, if the circumstances of a case so warrant:

	Provided that the designated authority obtains the consent of the person concerned and notifies the representatives of the concerned government and the concerned government does not object to such investigation.

10.	Determination of normal value, export price and margin of dumping.-  An article shall be considered as being dumped if it is exported from a country or territory to India at a price less than its normal value and in such circumstances the designated authority shall determine the normal value, export price and the margin of dumping taking into account, inter alia, the principles laid down in Annexure I to these rules.

11.	Determination of injury.-

	(1)	In the case of imports from specified countries, the designated authority shall record a further finding that import of such article into India causes or threatens material injury to any established industry in India or material retards the establishment of any industry in India.

	(2)	The designated authority shall determine the injury to domestic industry, threat of injury to domestic industry, material retardation to establishment of domestic industry and a causal link between dumped imports and injury, taking into account all relevant facts, including the volume of dumped imports, their effect on price in the domestic market for like articles and the consequent effect of such imports on domestic producers of such articles and in accordance with the principles set out in Annexure II to these rules.

	(3)	The designated authority may, in exceptional cases, give a finding as to the existence of injury even where a substantial portion of the domestic industry is not injured, if -

		(i)	there is a concentration of dumped imports into an isolated market;  and

		(ii)	the dumped articles are causing injury to the producers of all or almost all of the production within such market.

12.	Preliminary findings,-

	(1)	The designated authority shall proceed expeditiously with the conduct of the investigation and shall, in appropriate cases, record a preliminary finding regarding export price, normal value and margin of dumping, and in respect of imports from specified countries, it shall also record a further finding regarding injury to the domestic industry and such finding shall contain sufficiently detailed information for the preliminary determinations on dumping and injury and shall refer to the matters of fact and law which have led to arguments being accepted or rejected.  It will also contain -

		(i)	the names of the suppliers, or when this is impracticable, the supplying countries involved;

		(ii)	a description of the article which is sufficient for customs purposes;

		(iii)	the margins of dumping established and a full explanation of the reasons for the methodology used in the establishment and comparison of the export price and the normal value;

		(iv)	considerations relevant to the injury determination;  and

		(v)	the main reasons leading to the determination.

	(2)	The designated authority shall issue a public notice recording its preliminary findings.

13.	Levy of provisional duty.-  The Central Government may, on the basis of the preliminary findings recorded by the designated authority, impose a provisional duty not exceeding the margin of dumping:

	Provided that no such duty shall be imposed before the expiry of 60 days from the date of the public notice issued by the designated authority regarding its decision to initiate investigations:

	Provided further that such duty shall remain in force only for a period not exceeding six months which may upon request of the exporters representing a significant percentage of the trade involved be extended by the Central Government to nine months.

14.	Termination of investigation.-  The designated authority shall, by issue of a public notice, terminate an investigation immediately if -

	(a)	it receives a request in writing for doing so from or on behalf of the domestic industry affected, at whose instance the investigation was initiated:

	(b)	it is satisfied in the course of an investigation, that there is not sufficient evidence of dumping or, where applicable, injury to justify the continuation of the investigation;

	(c)	it determines that the margin of dumping is less than 2 per cent of the export price;

	(d)	it determines that the volume of the dumped imports, actual or potential, from a particular country accounts for less than 3 per cent of the imports of the like produce, unless, the countries which individually account for less than 3 per cent of the imports of the like product, collectively account for more than 7 per cent of the import of the like product;  or

	(e)	it determines that the injury where applicable is negligible.

15.	Suspension or termination of investigation on price undertaking.-

	(1)	The designated authority may suspend or terminate an investigation if the exporter of the article in question,-

		(i)	furnishes an undertaking in writing to the designated authority to revise the prices so that no exports of the said article are made to India at dumped prices;  or

		(ii)	in the case of imports from specified countries undertake to revise the prices so that injurious effect of dumping is eliminated and the designated authority is satisfied that the injurious effect of the dumping is eliminated:

		Provided further that the designated authority shall complete the investigation and record its finding, if the exporter so desires, or it so decides.

	(2)	No undertaking as regards price increase under clause (ii) of the sub-rule (1) shall be accepted from any exporter unless the designated authority had made preliminary determination of dumping and the injury.

	(3)	The designated authority may also not accept undertakings offered by any exporter, if it considers that acceptance of such undertaking is impractical or is unacceptable for any other reason.

	(4)	The designated authority shall intimate the acceptance of an undertaking and suspension or termination of investigation to the Central Government and also issue a public notice in this regard.  The public notice shall contain, inter alia, the non-confidential part of the undertaking.

	(5)	In cases where an undertaking has been accepted by the designated authority the Central Government may not impose a duty under sub-section (2) of section 9A of the Act for such period the undertaking acceptable to the designated authority remains valid.

	(6)	Where the designated authority has accepted any undertaking under sub-rule (1), it may require the exporter from whom such undertaking has been accepted to provide, from time to time, information relevant to the fulfilment of the undertaking and to permit verification of relevant data:

		Provided that in case of any violation of an undertaking, the designated authority shall intimate to the Central Government regarding such violation and complete the investigation expeditiously.

	(7)	The designated authority shall, suo motu or on the basis of any request received from exporters or importers of the article in question or any other interested party, review, from time to time, the need for the continuance of any undertaking given earlier.

16.	Disclosure of information.-  The designated authority shall, before giving its final findings, inform all interested parties of the essential facts under consideration which form the basis for its decision.

17.	Final findings.-

	(1)	The designated authority shall, within one year from the date of initiation of an investigation, determine as to whether or not the article under investigation is being dumped in India and submit to the Central Government its final finding-

		(a)	as to,-

			(i)	the export price, normal value and the margin of dumping of the said article;

			(ii)	whether import of the said article into India, in the case of imports from specified countries, causes or threatens material injury to any industry established in India or materially retards the establishment of any industry in India;

			(iii)	a causal link, where applicable, between the dumped imports and injury;

			(iv)	whether a retrospective levy is called for and if so, the reasons therefor and date of commencement of such retrospective levy;

			Provided that the Central Government may, in circumstances of exceptional nature, extend further the aforesaid period of one year by six months:

			Provided further that in those cases where the designated authority has suspended the investigation on the acceptance of a price undertaking as provided in rule 15 and subsequently resumes the same on violation of the terms of the said undertaking, the period for which investigation was kept under suspension shall not be taken into account while calculating the period of said one year.

		(b)	recommending the amount of duty which, if levied, would be adequate to remove the injury where applicable, to domestic industry.

	(2)	The final finding, if affirmative, shall contain all information on the matter of facts and law and reasons which have led to the conclusion and shall also contain information regarding-

		(i)	the names of the suppliers, or when this is impracticable, the supplying countries involved;

		(ii)	a description of the product which is sufficient for customs purposes;

		(iii)	the margins of dumping established and a full explanation of the reasons for the methodology used in the establishment and comparison of the export price and the normal value;

		(iv)	considerations relevant to the injury determination;  and

		(v)	the main reasons leading to the determination.

	(3)	The designated authority shall determine an individual margin of dumping for each known exporter or producer concerned of the article under investigation.  Provided that in cases where the number of exporters, producers, importers or types of articles involved are so large as to make such determination impracticable, it may limit its findings either to a reasonable number of interested parties or articles by using statistically valid samples based on information available at the time of selection, or to the largest percentage of the volume of the exports from the country in question which can reasonably be investigated, and any selection, of exporters, producers or types of articles made under this proviso shall preferably be made in consultation with and with the consent of the exporters, producers of importers concerned:

		Provided further that the designated authority shall determine an individual margin of dumping for any exporter or producer, though not selected initially, who submit necessary information in time, except where the number of exporters or producers are so large that individual examination would be unduly burdensome and prevent the timely completion of the investigation.

	(4)	The designated authority shall issue a public notice recording its final findings.

18.	Levy of duty.-

	(1)	The Central Government may, within three months of the date of publication of final findings by the designated authority under rule 17, impose by notification in the Official Gazette, upon importation into India of the article covered by the final finding, anti-dumping duty not exceeding the margin of dumping as determined under rule (17).  Provided that in case of imports from the specified countries the amount of duty shall not exceed the amount which has been found adequate to remove the injury to domestic industry.

	(2)	In cases where the designated authority has selected percentage of the volume of the exports from a particular country, as referred to sub-rule (3) of rule 17, any anti-dumping duty applied to imports from exporters or producers not included in the examination shall not exceed-

		(i)	the weighted average margin of dumping established with respect to the selected exporters or producers;  or

		(ii)	where the liability for payment of anti-dumping duties is calculated on the basis of a prospective normal value, the difference between the weighted average normal value of the selected exporters or producers and the export prices of exporters or producers not individually examined:

		Provided that the Central Government shall disregard for the purpose of this sub-rule any zero margin, margins which are less than 2 per cent expressed as the percentage of export price and margins established in the circumstances detailed in sub-rule (8) of rule 6.  The Central Government shall apply individual duties to imports from any exporter or producer not included in the examination who has provided the necessary information during the course of the investigation as referred to in the second proviso to sub-rule (3) of rule 17.

	(3)	Notwithstanding anything contained in sub-rule (1), where a domestic industry has been interpreted according to the proviso to sub-clause (b) of rule 2, a duty shall be levied only after the exporters have been given opportunity to cease exporting at dumped prices to the area concerned or otherwise give an undertaking pursuant to rule 15 and such undertaking has not been promptly given and in such cases duty shall not be levied only on the articles of specific producers which supply the area in question.

	(4)	If the final finding of the designated authority is negative that is contrary to the evidence on whose basis the investigation was initiated, the Central Government shall, within forty five days of the publication of final findings by the designated authority under rule 17, withdraw the provisional duty imposed, if any.

19.	Imposition of duty on non-discriminatory basis.-  Any provisional duty imposed under rule 13 on an anti-dumping duty imposed under rule 18 shall be on a non-discriminatory basis and applicable to all imports of such articles, from whatever sources found dumped and, where applicable, causing injury to domestic industry except in the case of imports from those sources from which undertaking in terms of rule 15 has been accepted.

20.	Commencement of duty.-

	(1)	The anti-dumping duty levied under rule 13 and rule 19 shall take effect from the date of its publication in the Official Gazette.

	(2)	Notwithstanding anything contained in sub-rule (1)-

		(a)	where a provisional duty has been levied and where the designated authority has recorded a final finding of injury or where the designated authority has recorded a final finding of threat of injury and a further finding that the effect of dumped imports in the absence of provisional duty would have led to injury, the anti-dumping duty may be levied from the date of imposition of provisional duty;

		(b)	in the circumstances referred to in sub-section (3) of section 9A of the Act, the anti-dumping duty may be levied retrospectively from the date commencing ninety days prior to the imposition of such provisional duty:

		Provided that no duty shall be levied retrospectively on imports entered for home consumption before initiation of the investigation:

		Provided further that in the cases of violation of price undertaking referred to in sub-rule (6) of rule 15, no duty shall be levied retrospectively on the imports which have entered for home consumption before the violation of the terms of such undertaking.

21. 	Refund of duty.-

	(1)	If the anti-dumping duty imposed by the Central Government on the basis of the final findings of the investigation conducted by the designated authority is higher than the provisional duty already imposed and collected the differential shall not be collected from the importer.

	(2)	If, the anti-dumping duty fixed after the conclusion of the investigation is lower than the provisional duty already imposed and collected, the differential shall be refunded to the importer.

	(3)	If the provisional duty imposed by the Central Government is withdrawn in accordance with the provisions of sub-rule (4) of rule 18, the provisional duty already imposed and collected, if any, shall be refunded to the importer.

22.	Margin of dumping, for exporters not originally investigated. -

	(1)	If a product is subject to anti-dumping duties, the designated authority shall carry out a periodical review for the purpose of determining individual margins of dumping for any exporters or producers in the exporting country in question who have not exported the product to India during the period of investigation, provided that these exporters or producers show that they are not related to any of the exporters or producers in the exporting country who are subject to the anti-dumping duties on the product.

	(2)	The Central Government shall not levy anti-dumping duties under sub-section (i) of section 9A of the Act on imports from such exporters or producers during the period of review as referred to in sub-rule (1) of this rule:

		Provided that the Central Government may resort to provisional assessment and may ask a guarantee from the importer if the designated authority so recommends and if such a review results in a determination or dumping in respect of such products or exporters, it may levy duty in such cases retrospectively from the date of the initiation of the review.

23.	Review. -

	(1)	The designated authority shall, from time to time, review the need for the continued imposition of the anti-dumping duty and shall if it is satisfied on the basis of information received by it that there is no justification for the continued imposition of such duty recommend to the Central Government for its withdrawal.

	(2)	Any review initiated under sub-rule (1) shall be concluded within a period not exceeding twelve months from the date of initiation of such review.

	(3)	The provisions of rules 6, 7, 8, 9, 10, 11, 16,17, 18, 19, and 20 shall be mutatis mutandis applicable in the case of review.

24.	Dumping causing injury to a third country. -

	(1)	The designated authority may initiate investigation into any dumping alleged to be taking place into India and causing injury to the domestic industry of any third country which is a Member of the World Trade Organization.

	(2)	The designated authority in such cases shall follow the procedures laid down in Article 14 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade, 1994, as contained in the Final Act of the Uruguay Round Multilateral Trade Negotiations.

	_______________

	ANNEXURE I
	(See rule 8)

	Principles Governing the Determination of Normal Value, Export Price
	and Margin of Dumping

	The designated authority while determining the normal value, export price and margin of dumping shall take into account, inter alia, the following principles. -

	1.	The elements of costs referred to in the context of determination of normal value shall normally be determined on the basis of records kept by the exporter or producer under investigation, provided such records are in accordance with the generally accepted accounting principles of the exporting country, and such records reasonably reflect the cost associated with production and sale of the article under consideration.

	2.	Sales of the like product in the domestic market of the exporting country or sales to a third country at prices below per unit (fixed and variable) costs of production plus administrative, selling and general costs may be treated as not being in the ordinary course of trade by reason of price.  The designated authority may disregard these sales, in determining normal value, provided it has determined that -

		(i)	such sales are made within a reasonable period of time (not less than six months) in substantial quantities, i.e. when the weighted average selling price of the article is below the weighted average per unit costs or when the volume of the sales below per unit costs represents not less than twenty per cent of the volume sold in transactions under consideration, and

		(ii)	such sales are at prices which do not provide for the recovery of all costs within a reasonable period of time.  The said prices will be considered to provide for recovery of costs within a reasonable period of time if they are above weighted average per unit costs for the period of investigation, even though they might have been below per unit costs at the time of sale.

	3.	(i)	the said authority in the course of investigation shall consider all available evidence on the proper allocation of costs, including that which is made available by the exporter or producer provided that such allocation has been historically utilized by the exporter or producer, in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditure and other development costs.

		(ii)	unless already reflected in allocation of costs referred to in clause (1) and sub-clause (i) above, the designated authority, will also make appropriate adjustments for those non-recurring items of cost which benefit further and/or current production, or for circumstances in which costs during the period of investigation are affected by start up operator.

	4.	The amounts for administrative, selling and general costs and for profits as referred to in sub-section (i) of section 9A of the Act, shall be based on actual data pertaining to production and sales in the ordinary course of trade, of the like article by the exporter or producer under investigation.  When such amounts cannot be determined on this basis, the amounts may be determined on the basis of:

		(i)	the actual amounts incurred and realized by the exporter or producer in question, in respect of production and sales in the domestic market of the country of origin of the same general category of article;

		(ii)	the weighted average of the actual amounts incurred and realized by other exporters or producers subject to investigation in respect of production and sales of the like article in the domestic market of the country of origin; or

		(iii)	any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realized by the exporters or producers on sales of products of the same general category in the domestic market of the country of origin.

	5.	The designated authority, while arriving at a constructed export price, shall give due allowance for costs including duties and taxes, incurred between importation and resale and for profits.

	6.	(i)	While arriving at margin of dumping, the designated authority shall make a fair comparison between the export price and the normal value.  The comparison shall be made at the same level of trade, normally at the ex-factory level and in respect of sales made at as nearly as possible the same time.  Due allowance shall be made in each case, on its merits, for differences which effect price comparability, including differences in conditions and terms of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are demonstrated to affect price comparability.

		(ii)	In the cases where export price is a constructed price, the comparison shall be made only after establishing the normal value at equivalent level of trade.

		(iii)	When the comparison under this paragraph  requires a conversion of currencies, such conversion should be made by using the rate of exchange on the date of sale, provided that when a sale or foreign currency on forward markets is directly linked to the export sale involved the rate of exchange in the forward sale shall be used.  Fluctuations in exchange rates shall be ignored and in an investigation the exporters shall be given at least sixty days to have adjusted their export prices to reflect sustained movements in exchange rates during the period of investigation.

		(iv)	Subject to the provisions governing comparison in this paragraph, the existence of margin of dumping during the investigation phase shall normally be established on the basis of a comparison of a weighted average normal value and export prices on a transaction-to-transaction basis.  A normal value established on a weighted average basis may be compared to prices of individual export transactions if it is found that a pattern of export prices which differ significantly among different purchases, regions or time periods, and if an explanation is provided as to why such differences cannot be taken into account appropriately by the use of a weighted average-to-weighted average or transaction-to-transaction comparison.

	ANNEXURE II
	(See rule 9)

	Principles for Determination of Injury

	The designated authority while determining the injury or threat of material injury to domestic industry or material retardation of the establishment of such an industry hereinafter referred to as "injury" and causal link between dumped imports and such injury, shall, inter alia, take following principles under consideration -

	(i)	A determination of injury shall involve an objective examination of both (a) the volume of the dumped imports and the effect of the dumped imports on prices in the domestic market for like article and (b) the consequent impact of these imports on domestic producers of such products.

	(ii)	While examining the volume of dumped imports, the said authority shall consider whether there has been a significant increase in the dumped imports, either in absolute terms or relative to production or consumption in India.  With regard to the effect of the dumped imports on prices as referred to in sub-rule (2) of rule 18 the designated authority shall consider whether there has been a significant price under cutting by the dumped imports as compared with the price of like product in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increase which otherwise would have occurred, to a significant degree.

	(iii)	In cases where imports of a product from more than one country are being simultaneously subjected to an anti-dumping investigation, the designated authority will cumulatively assess the effect of such imports, only when it determines that (a) the margin of dumping established in relation to the imports from each country is more than two per cent expressed as a percentage of export price and the volume of the imports from each country is three per cent of the import of like article or where the export of individual countries less than three per cent, the imports collectively account for more than severn per cent of the import of like article and (b) cumulative assessment of the effect of imports is appropriate in light of the conditions of competition between the imported article and the like domestic articles.

	(iv)	The examination of the impact of the dumped imports on the domestic industry concerned, shall include and evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including natural and potential decline in sales, profits, output, market share, productivity, return on investments or utilization of capacity:  factors affecting domestic prices:  the magnitude of the margin of dumping:  actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital investments.

	(v)	It must be demonstrated that the dumped imports are, through the effects of dumping, as set forth in paragraphs (ii) and (iv) above, causing injury to the domestic industry.  The demonstration  of a causal relationship between the dumped imports and the injury to the domestic injury shall be based on an examination of relevant evidence before the designated authority.  The designated authority shall also examine any know factors other than the dumped imports which at the same time are insuring the domestic industry, and the injury caused by these other factors must not be attributed to the dumped imports.  Factors which may be relevant in this respect include, inter alia, the volume and prices of imports not sold at dumping prices, contraction in demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and the productivity of the domestic industry.

	(vi)	The effect of the dumped imports shall be assessed in relation to the domestic production of the like article when available data permit the separate identification of that production on the basis of such criteria as the production process, producers' sales and profits.  If such separate identification of that production is not possible, the effects of the dumped imports shall be assessed by the examination of the production of the narrowest group or range of products, which includes the like product, for which the necessary information can be provided.

	(vii)	A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility.  The change in circumstances which would create a situation in which the dumping would cause injury must be clearly foreseen and imminent.  In making a determination regarding the existence of a threat of material injury, the designated authority shall consider, inter alia, such factors as:

		(a)	a significant rate of increase of dumped imports into India indicating the likelihood of substantially increased importation;

		(b)	sufficient freely disposable, or an imminent, substantial increase in, capacity of the exporter indicating the likelihood of substantially increased dumped exports to Indian market, taking into account the availability of other export markets to absorb any additional exports;

		(c)	whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and 

		(d)	inventories of the article being investigated.

								(S. M. BHATNAGAR)
					UNDER SECRETARY TO THE GOVERNMENT OF INDIA

F. No. 525/2/94 - CUS.(TU)

	TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF 
	INDIA EXTRAORDINARY, DATED 1ST JANUARY 1995
						   11 PAUSA 1916 (SAKA)

	GOVERNMENT OF INDIA
	MINISTRY OF FINANCE
	DEPARTMENT OF REVENUE

							NEW DELHI, 1st January 1995
								          11 Pausa 1916 (Saka)

	NOTIFICATION

	No. 1/95-N.T. CUSTOMS

	G.S.R. No. 2 - (E) In exercise of the powers conferred by sub-section (7) of section 9 and sub-section (2) of section 9B of the Customs Tariff Act, 1975 (51 of 1975) and in supersession of the Customs Tariff (Identification Assessment and Collection of Duty or Additional Duty on Bounty-fed Articles and for Determination of Injury) Rules, 1985, except as respect things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:-

1.	Short title and commencement. -

	(1)	These rules may be called the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995.

	(2)	They shall come into force on the 1st day of January, 1995.

2.	Definitions. -  In these rules, unless the context otherwise requires, -

	(a)	"Act" means the Customs Tariff Act, 1975 (51 of 1975);

	(b)	"domestic industry" means the domestic producers as a whole of the like article, or domestic producers whose collective output of the said article constitutes a major proportion of the total domestic production of that article, except when such producers are related to the exporters or importers of the alleged subsidized article, or are themselves importers thereof, in which case such producers shall be deemed not to form part of domestic industry:

		Provided that in exceptional circumstances referred to in sub-rule (3) of rule 13, the domestic industry in relation to the article in question shall be deemed to comprise two or more competitive markets and the producers within each of such market be deemed as a separate industry if, -

		(i)	the producers within such market sell all or almost all of their production of the article in question in that market, and

		(ii)	the demand in the market is not in any substantial degree supplied by producers of  the said article located elsewhere in the territory;

	(c)	"interested party" includes -

		(i)	an exporter or foreign producer or the importer of an article subject to investigation for being subsidized or a trade or business association a majority of the members of which are producers, exporters or importers of such an article; and

		(ii)	a producer of the like article in India or a trade and business association a majority of the members of which produce the like article in India;

	(d)	"provisional duty" means a countervailing duty imposed under sub-section (2) of section 9A of the Act;

	(e)	"specified country" means a country or territory which includes the country or territory with which the Government of India has an agreement for giving it the most-favoured-nation treatment;

	(f)	all words and expressions used in these rules, but not defined, shall have the meaning respectively assigned to them in the Act.

3.	Appointment of designated authority. -

	(1)	The Central Government may, by notification in the Official Gazette, appoint a person not below the rank of a Joint Secretary to the Government of India or such other person as that Government may think fit as the designated authority for purposes of these rules.

	(2)	The Central Government may provide to the designated authority the services of such other persons and such other facilities as it deems fit.

4.	Duties of the designated authority. -  It shall be the duty of the designated authority in accordance with these rules - 

	(a)	to investigate the existence, degree and effect of any subsidy in relation to the import of an article;

	(b)	to identify the article liable for countervailing duty;

	(c)	to submit its findings, provisional or otherwise to the Central Government as to -

		(i)	the nature and amount of subsidy in relation to an article under investigation.

		(ii)	the injury or threat of injury to an industry established in India or material retardation to the establishment of an industry in India consequent upon the import of such articles from the specified countries.

	(d)	to recommend the amount of countervailing duty, which if levied would be adequate to remove the injury to the domestic industry and the date of commencement of such duty:  and

	(e)	to review the need for continuance of countervailing duty.

5.	Decision as to country of origin. - in cases where articles are not imported directly from the country of origin but are imported from an intermediate country, the provisions of these rules shall be fully applicable and any such transaction shall, for the purpose of these rules be regarded as having taken place between the country of origin and the country of importation.

6.	Initiation of investigation.  

	(1)	Except as provided in sub-rule (4) the designated authority shall initiate an investigation to determine the existence, degree and effect of alleged subsidy only upon receipt of a written application by or on behalf of the domestic industry.

	(2)	An application under sub-rule (1) shall be in the form as may be specified by the designated authority in this behalf and the application shall be supported by evidence of

		(a)	subsidy and, if possible, its amount

		(b)	injury where applicable, and
	
		(c)	where applicable, a causal link between such subsidized imports and alleged injury.

	(3)	The designated authority shall not initiate an investigation pursuant to an application made under sub-rule (1) unless-

		(a)	it determines, on the basis of an examination of the degree of support for, or opposition to the application expressed by domestic producers of the like article, that the application has been made by or on behalf of the domestic industry:

			Provided that no investigation shall be initiated if domestic producers expressly supporting the application account for less than twenty five per cent of the total production of the like product by the domestic industry, and 

		(b)	it examines, the accuracy and adequacy of the evidence provided in the application and satisfies itself that there is sufficient evidence regarding-

			(i)	subsidy,
	
			(ii)	injury, where applicable; and

			(iii)	where applicable, a causal link between such subsidized imports and the alleged injury, to justify the initiation of an investigation.

		Explanation.-  For the purpose of this rule, the application shall be considered to have been made "by or on behalf of domestic industry" if it is supported by those domestic producers whose collective output constitutes more than fifty per cent of the total production of the like article produced by that portion of the domestic industry expressing either support for or opposition as the case may be, to the application.

	(4)	Notwithstanding anything contained in sub-rule (1), the designated authority may initiate an investigation, suo motu, if it is satisfied from the information received from the Collector of Customs appointed under the Customs Act, 1962 (51 of 1962) or any other source that sufficient evidence exists as to the existence of the circumstances referred to in sub clause (b) of sub-rule (3).

	(5)	The designated authority shall notify the government of the exporting country before proceeding to initiate an investigation.

7.	Principles governing investigations.- 

	(1)	The designated authority shall, after it has decided to initiate investigation to determine the existence, degree and effect of any alleged subsidization of any article, issue a public notice notifying its decision.  Public notice regarding initiation of investigation shall, inter alia, contain adequate information on the following:

		(i)	the name of the exporting countries and the article involved;

		(ii)	the date of initiation of the investigation;

		(iii)	a description of the subsidy practice or practices to be investigated;

		(iv)	a summary of the factors on which the allegation of injury is based;

		(v)	the address to which representations by interested countries and interested parties should be directed; and

		(vi)	the time-limits allowed to interested countries and interested parties for making their views known.

	(2)	A copy of the public notice shall be forwarded by the designated authority to the known exporters of the article alleged to have been subsidized, the government of the exporting country concerned and other interested parties.

	(3)	The designated authority shall also provide a copy of the application referred to in sub-rule (1) rule 6 to -

		(i)	the known exporters or the concerned trace association where the number of exporters is large, and

		(ii)	the government of the exporting country:

		Provided that the designated authority shall also make available a copy of the application, upon request in writing, to any other interested party.

	(4)	The designated authority may issue a notice calling for any information in such form as may be specified by it from the exporters, foreign producers and governments of interested countries and such information shall be furnished by such persons in writing within thirty days from the date of receipt of the notice or within such extended period as the designated authority may allow on sufficient cause being shown.

		Explanation. - For the purpose of this sub-rule the public notice and other documents shall be deemed to have been received one week from the date on which these documents were sent by the designated authority or transmitted to the appropriate diplomatic representative of the exporting country.

	(5)	The designated authority shall also provide opportunity to the industrial users of the article under investigation, and to representative consumer organizations in cases where the article is commonly sold at retail level, to furnish information which is relevant to the investigation regarding subsidization and where applicable injury and causality.

	(6)	The designated authority may allow an interested country or an interest party or its representative to present information relevant to he investigation orally also, but such oral information shall be taken into consideration only when it is subsequently reproduced in writing.

	(7)	The designated authority shall make available the evidence presented by one party to other interested parties participating in the investigation.

	(8)	In a case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the designated authority may record its findings on the basis of facts available to it and make such recommendations to the Central Government as it deems fit under such circumstances.

8.	Confidential information.-

	(1)	Notwithstanding anything contained in sub-rule (1), (2), (3) and (7) of rule 7, sub-rule (2) of rule 14, sub-rule (4) of rule 17 and sub-rule (3) of rule 19 copies of applications received under sub-rule (1) of rule 6 or any other information provided to the designated authority on a confidential basis by any party in the course of investigation, shall, upon the designated authority being satisfied as to its confidentiality, be treated as such by it and no such information shall be disclosed to, any other party without specific authorization of the party providing such information.

	(2)	The designated authority may require the parties providing information on confidential basis to furnish non-confidential summary thereof in sufficient details to permit a reasonable understanding of the substance of the confidential information and if, in the opinion of a party providing such information, such information is not susceptible of summary, such party may submit to the designated authority a statement of reasons why summarization is not possible.

	(3)	Notwithstanding anything contained in sub-rule (2), if the designated authority, is satisfied that the request for confidentiality is not warranted or the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, it may disregard such information.

9.	Accuracy of the information. - Except in cases referred to in sub-rule (8) of rule 7 the designated authority shall during the course of investigation satisfy itself as to the accuracy of the information supplied by the interested parties upon which its findings are based.

10.	Investigation in the territory of other specified countries. - 

	(1)	The designated authority may carry out investigations in the territories of other countries, in order to verify the information provided or to obtain further details:

		Provided that the designated authority notifies to such country in advance and such country does not object to such investigation.

	(2)	The designated authority may also carry out investigations at the premises of any commercial organization and may examine its records if such organization agrees and if the country in whose territory the said commercial organization is situated, is notified and has not raised any objection for the conduct of such investigation.

11.	Nature of subsidy. - 

	(1)	The designated authority while determining the subsidy shall ascertain as to whether the subsidy under investigation -

		(a)	relates to export performance, or

		(b)	relates to the use of domestic goods over imported goods in the export article, or

		(c)	it has been conferred on a limited number of persons, engaged in manufacturing, producing or exporting the article unless such a subsidy is for -

			(i)	research activities conducted by or on behalf of persons engaged in the manufacture, production or export; or

			(ii)	assistance to disadvantaged regions within the territory of the exporting country; or

			(iii)	assistance to promote adaptation of existing facilities to new environmental requirements:

		Provided that for the purposes of sub-clauses (a) and (b), subsidies of a kind mentioned in the Agreement on Agriculture, contained the Final Act of the Uruguay Round of Multilateral Trade Negotiations, shall not be taken into consideration.

Explanation. -

	(1)	For the purposes of sub-clause (i) of clause (c) the term "subsidy for research activity" means assistance for research activities conducted by commercial organizations or by higher education or research establishments on a contract basis with the commercial organizations if the assistance covers not more than seventy five per cent of the costs of industrial research or fifty per cent of the costs of pre-competitive development activity and provided that such assistance is limited exclusively to -

		(i)	costs of personnel (researchers, technicians and other supporting staff employed exclusively in the research activity);

		(ii)	costs of instruments, equipment, land and buildings used exclusively and permanently (except when disposed of on a commercial basis) for the research activity;

		(iii)	costs of consultancy and equivalent services used exclusively for the research activity, including bought in research, technical knowledge, patents, etc.;

		(iv)	additional overhead costs incurred directly as a result of the research activity; and

		(v)	other running costs (such as those of materials, supplies and the like), incurred directly as a result of the research activity.

	(2)	For the purposes of sub-clause (ii) of clause (c), the term "subsidy for assistance to disadvantaged regions" means assistance to disadvantaged regions within the territory of the exporting country given pursuant to a general framework of regional development and such subsidy has not been conferred on limited number of enterprises within the eligible region:

	Provided that -

		(a)	each disadvantaged region must be a clearly designated contiguous geographical area with a definable economic and administrative identity;

		(b)	the region is considered as disadvantaged on the basis of neutral and objective criteria, indicating that the region's difficulties arise out of more than temporary circumstances;  such criteria must be clearly spelled out in law, regulation, or other official document, so as to be capable of verification:

		(c)	the criteria shall include a measurement of economic development which shall be based on at least one of the following factors. -

			(i)	one of either income par capita or household income per capita, or Gross Domestic Product per capita, which must not be above eighty five per cent of the average for the territory concerned;

			(ii)	unemployment rate, which must be at least one hundred and ten per cent of the average for the territory concerned, as measured over a three-year period;  such measurement, however, may be a composite one and may include other factors.

	(3)	For the purpose of sub-clause (iii) of clause (c), "subsidy for assistance to promote adaptation of existing facilities to new environmental requirements" means assistance to promote adaptation of existing facilities to new environmental requirements imposed by law and/or regulations which result in greater constraints and financial burden on commercial organizations:

	Provided that the assistance -

		(i)	is a one-time non-recurring measure;  and

		(ii)	is limited to twenty per cent of the cost of adaptation; and

		(iii)	does not cover the cost of replacing and operating the assisted investment, which must be fully borne by commercial organizations; and

		(iv)	is directly linked to and proportionate to a commercial organization's planned reduction of nuisances and pollution, and does not cover any manufacturing cost savings which may be achieved; and

		(v)	is available to all firms which can adopt the new equipment and/or production processes.

	(3)	The designated authority while determining the subsidy of a kind as referred to in sub-clause (c) to sub-rule (1) shall take into account, inter alia, the principles laid down in Annexure II to these rules.

12.	Conferment of benefit. -  The designated authority while determining the conferment of benefit to the recipient, pursuant to a subsidy, shall take into account the following guidelines - 

	(a)	government provision of equity capital shall not be considered as conferring a benefit, unless the investment decision can be regarded as inconsistent with the usual investment practice (including for the provision of risk capital) of private investors in the territory of the granting country.

	(b)	a loan by a government shall not be considered as conferring a benefit, unless there is a difference between the amount that the commercial organization receiving the loan pays on the government loan and the amount it would pay on a comparable commercial loan which it could actually obtain on the market.  In this case the benefit shall be the difference between these two amounts:

	(c)	a loan guarantee by a government shall not be considered as conferring a benefit, unless there is a difference between the amount that the commercial organization receiving the guarantee pays on a loan guaranteed by the government and the amount that it would pay on a comparable commercial loan in the absence of the government guarantee.  In this case the benefit shall be the difference between these two amounts adjusted for any differences in fees;

	(d)	the provision of goods or services or purchase of goods by a government shall not be considered as conferring a benefit unless the provision is made for less than adequate remuneration, or the purchase is made for more than adequate remuneration.  The adequacy of remuneration shall be determined in relation to prevailing market conditions for the goods or service in question in the country of provision or purchase (including price, quality, availability, marketability, transportation and other conditions of purchase or sale).

13.	Determination of injury. - 

	(1)	In the case of imports from specified countries, the designated authority shall give a further finding that the import of such article into India causes or threatens material injury to any industry established in India, or materially retards the establishment of an industry in India.

	(2)	Except when a finding of injury is made under sub-rule (3), the designated authority shall determine the injury, threat of injury, material retardation to the establishment of an industry and the causal link between the subsidized import and the injury, taking into account, inter alia, the principle laid down in Annexure I to the rule.

	(3)	The designated authority may, in exceptional cases, give a finding as to the existence of injury even where a substantial portion of the domestic industry is not injured if -

		(i)	there is a concentration of subsidized imports into an isolated market and,

		(ii)	the subsidized imports are causing injury to the producers of almost all of the production within such market.

14.	Preliminary findings. - 

	(1)	The designated authority shall proceed expeditiously with the conduct of the investigation and shall, in appropriate cases, record a preliminary finding regarding existence of a subsidy and its nature and in respect of imports from specified countries.  It shall also record its preliminary finding regarding injury to the domestic industry and such finding shall contain sufficiently detailed explanation for the preliminary determination on the existence of a subsidy and injury and shall refer to the matter of fact and law which have led to arguments being accepted or rejected.  Such finding shall contain -

		(i)	the names of the suppliers or, when this is impracticable, the supplying countries involved;

		(ii)	a description of the product which is sufficient for customs purposes;

		(iii)	the amount of subsidy established and the basis on which the existence of a subsidy has been determined:

		(iv)	considerations relevant to the injury determination;  and

		(v)	the main reasons leading to the determination.

	(2)	The designated authority shall issue a public notice recording its preliminary findings.

15.	Levy of provisional duty. - The Central Government may, in accordance with the provisions of sub-section (2) of section 9 of the Act, impose a provisional duty on the basis of the preliminary findings recorded by the designated authority.

	Provided that no such duty shall be imposed before the expiry of sixty days from the date of issue of the public notice by the designated authority regarding its decision to initiate investigations.

	Provided further that such duty shall remain in force for a period not exceeding four months.

16.	Termination of investigation. - 

	(1)	The designated authority shall, by issue of a public notice terminate an investigation immediately if -

		(a)	it receives a request in writing for doing so from or on behalf of the domestic industry affected, at whose instance the investigation was initiated;

		(b)	it is satisfied in the course of an investigation, that there is no sufficient evidence either for subsidization or, where applicable, injury to justify continuation of the investigation;

		(c)	it determines that the amount of subsidy is less than one per cent ad valorem or in the case of a product originating from a developing country the amount of subsidy is less than two per cent.

		(d)	it determines that the volume of the subsidized imports, actual or potential or injury where applicable, is negligible or in the case of a product originating in a developing country the volume of the subsidized imports represents less than four per cent of the total imports of the like product into India, unless imports from developing countries whose individual share of total imports represent less than four per cent collectively account for more than nine per cent of the total imports of the like product into India.

17.	Suspension or termination of investigation on acceptance of price undertaking. - 

	(1)	The designated authority may suspend or terminate an investigation, if -

		(a)	the government of the exporting country -

			(i)	furnishes an undertaking that it would withdraw the subsidy.

			(ii)	in case of specified countries, undertakes to limit the quantum of subsidy within reasonable limit, or to take other suitable measures to neutralize the effect of such subsidy, provided that the designated authority is satisfied that the injurious effect of the subsidy is eliminated, or

		(b)	in case of specified countries the exporters concerned agree to revise their prices so that injurious effect of subsidy is eliminated and the designated authority is satisfied that the injurious effect of the subsidy is eliminated:

		Provided that increase in price as a result of this clause is not higher than what is necessary to eliminate the amount of subsidy:

		Provided further that the designated authority shall complete the investigation and record its finding, if the Central Government so desires or the government of the exporting country so decides.

	(2)	(i)	No undertaking as regards price increase under sub-rule (1) shall be accepted unless the designated authority had made preliminary determination of subsidization and the injury:

		Provided that an undertaking from an exporter shall be accepted only when the designated authority has also obtained the consent of the exporting country.

	(3)	The designated authority, may also not accept undertakings offered by any country or any exporter, if it considers the acceptance of such undertaking as impracticable or as unacceptable for any other reason.

	(4)	The designated authority shall intimate the acceptance of an undertaking and suspension or termination of investigation to the Central Government and also issue a public notice in this regard.  The public notice shall, contain, inter alia, the non-confidential part of the undertaking.

	(5)	In cases where an undertaking has been accepted by the designated authority the Central Government may not impose a duty under sub-section (2) of section 9 of the Act for such a period the undertaking acceptable to the designated authority remains valid.

	(6)	Where the designated authority has accepted any undertaking under sub-rule (1), it may require the government of the exporting country, or the exporter from whom such undertaking has been accepted to provide from time to time information relevant to the fulfilment of the undertaking and to permit verification of relevant data:

		Provided that in case of any violation of any undertaking, the designated authority will intimate the Central Government and complete the investigation expeditiously.

	(7)	The designated authority shall suo motu or on the basis of any request received from exporters or importers of the article in question or any other interested person review from time to time the need for the continuance of any undertaking given earlier.

18.	Disclosure of information. - The designated authority, shall, before giving its final findings, inform all interested parties and interested countries of the essential facts under consideration which form the basis of its decision and permit the interested parties to defend their interest.

19.	Final findings. -

	(1)	The designated authority shall, within one year from the date of initiation of an investigation determine as to whether or not the article under investigation is being subsidized and submit to the Central Government its final finding, as to -

		(a)	(i)	the nature of subsidy being granted in respect of the article under investigation and the quantum of such subsidy;

			(ii)	whether imports of such articles into India in the case of imports from specified countries, cause or threaten material injury to an industry established in India or materially retards the establishment of any industry in India and causal link between the subsidized imports and such injury:  and

			(iii)	whether a retrospective levy is called for and if so, the reasons therefore and the date of commencement of such levy.

		(b)	its recommendation as to the amount of duty which if levied, would be adequate to remove the injury to the domestic industry.

		Provided that the Central Government may in circumstances of exceptional nature extend further the aforesaid period of one year by six months.

		Provided further that in those cases where the designated authority has suspended the investigation on the acceptance of a price undertaking as provided in rule 17 and subsequently resumes the same on violation of the terms of the said undertaking, the period for which investigation was kept under suspension shall not be taken into account while calculating the said period of one year.

	(2)	The final finding if affirmative, shall contain all information on the matter of facts and law and reasons which have led to the conclusion and shall also contain information regarding -

		(i)	the names of the suppliers or, when this is impractical, the supplying countries involved;

		(ii)	a description of the product with is sufficient for customs purposes;

		(iii)	the amount of subsidy established and the basis on which the existence of a subsidy has been determined;

		(iv)	considerations relevant to the injury determination;  and

		(v)	the main reasons leading to the determination.

	(3)	The designated authority shall issue a public notice regarding its final findings.

20.	Levy of duty. - 

	(1)	The Central Government may, within three months of the date of publication of the final findings by the designated authority under rule 19, impose, by notification in the Official Gazette, upon importation into India of the article covered under the final finding, a countervailing duty not exceeding the amount of subsidy as determined by the designated authority under rule 19.

		Provided that in case of imports from specified countries the amount of duty shall not exceed the amount which has been found adequate to remove the injury to the domestic industry.

	(2)	Notwithstanding anything contained in sub-rule (1) where a domestic industry has been interpreted according to the proviso to clause (b) of rule 2, a countervailing duty shall be levied only after the exporters have been given opportunity to cease exporting at subsidized prices to the area concerned or otherwise give an undertaking pursuant to rule 17 and such undertaking has not been promptly given and in such cases duty cannot be levied only on the product of specified producers which supply the area in question.

	(3)	If the final finding of the designated authority is negative, that is contrary to the prima facie evidence on whose basis the investigation was initiated, the Central Government shall within forty five days of the publication of final findings by the designated authority under rule 19, withdraw the provisional duty, imposed if any.

21.	Imposition of duty on non-discriminatory basis. - Any countervailing duty imposed under rule 15 or 20 shall be on a non-discriminatory basis and applicable to all imports of such article, if found to be subsidized and where applicable, causing injury except in the case of imports from those sources from which undertakings in terms of rule 17 have been accepted.

22.	Date of commencement of duty. -

	(1)	The countervailing duty levied under rule 15 and 20 shall take effect from the date of publication of the notification  in the Official Gazette.

	(2)	Notwithstanding anything contained in sub-rule (1) -
	
		(a)	where a provisional duty has been levied and where the designated authority has recorded a finding of injury or where the designated authority recorded a finding of threat of injury and a further finding that the subsidized imports, in the absence of provisional duty would have led to injury, the countervailing duty may be imposed from the date of imposition of provisional duty:

		(b)	in the circumstances referred to in sub-section (4) of section 9 of the Act, the countervailing duty may be levied retrospectively from the date commencing ninety days prior to the imposition of provisional duty:

		Provided that in case of violation of an undertaking referred to in sub-rule (6) or rule 17, no duty shall be levied retrospectively on imports which have entered for home consumption before violation of such terms of the undertaking.

23.	Refund of duty. -

	(1) 	If the countervailing duty imposed by the Central Government on the basis of the final findings of the investigation conducted by the designated authority is higher than the provisional duty already imposed and collected the differential shall not be collected from the importer.

	(2)	If the countervailing duty fixed after the conclusions of the investigation is lower than the provisional duty already imposed and collected, the differential shall be refunded to the importer.

	(3)	If the provisional duty imposed by the Central Government is withdrawn in accordance with the provisions of sub-rule (3) of rule 20, the provisional duty already imposed and collected, if any, shall be refunded to the importer.

24.	Review. -

	(1)	The designated authority shall, from time to time, review the need for continued imposition of the countervailing duty and shall, if it is satisfied on the basis of information received by it that there is no justification for the continued imposition of such duty or additional duty, recommend to the Central Government for its withdrawal.

	(2)	Any review initiated under sub-rule (1) shall be concluded within a period not exceeding 12 months from the date of initiation of such review.

	(3)	The provisions of rules 6, 7, 8, 9, 10, 11, 12, 13, 16, 17, 18, 19, 20, 22 and 23 shall mutatis mutandis apply in the case of review.

	_______________

	ANNEXURE I

	PRINCIPLES GOVERNING THE DETERMINATION OF INJURY

	The designated authority shall take into account, inter alia, the following principles while determining injury:-

1.	(1)	A determination of injury for purposes of rule 13 shall be based on positive evidence and involve an objective examination of both  (a) the volume of the subsidized imports and the effect of the subsidized imports on prices in the domestic market for like products and (b) the consequent impact of these imports on the domestic producers of such products.

	(2)	With regard to the volume of the subsidized imports, the designated authority shall, inter alia, consider whether there has been a significant increase in subsidized importers, either in absolute terms or relative to production or consumption in India.

	(3)	With regard to the effect of the subsidized import on prices, the designated authority shall, consider whether there has been a significant price undercutting by the subsidized imports as compared with the price of a like article in India, or whether the effect of such imports is otherwise to depress prices to a significant degree or to prevent price increases, which otherwise would have occurred, to a significant degree.

	(4)	Where imports of a product from more than one country are simultaneously subject to countervailing duty investigations, the designated authority may cumulatively assess the effect of such imports only if it determines that (a) the amount of subsidization established in relation to the imports from each country is more than one per cent ad valorem and the volume of imports from each country is not negligible and (b) a cumulative assessment of the effects of the imports is appropriate in light of the conditions of competition between the imported products and the like domestic product.

	(5)	The designated authority while examining the impact of the subsidized imports on the domestic industry shall include and evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including actual and potential decline in output, sales, market share, profits, productivity, return on investments, or utilization or capacity; factors affecting domestic prices;  actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital investments and, in the case of agriculture, whether there has been an increased burden on government support programmes.

2.	(1)	It must be demonstrated that the subsidized imports are, through the effects of subsidies, causing injury.  The demonstration of a causal relationship between the subsidized imports and the injury to the domestic industry shall be based on an examination of all relevant evidence before the designated authority.  The designated authority shall also examine any known factors other than the subsidized imports which at the same time  are injuring the domestic industry, and the injuries caused by these other factors must not be attributed to the subsidized imports.  Factors which may be relevant in this respect include, inter alia, the volumes and prices on non-subsidized imports of the products in question, contraction in demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and productivity of the domestic industry.

	(2)	The effect of the subsidized imports shall be assessed in relation to the domestic production of the like product when available data permit the separate identification of the production on the basis of such criteria as the production process, producers sales and profits.  If such separate identification of that production is not possible, the effects of the subsidized imports shall be assessed by the examination of the production of the narrowest group or range of products, which includes the like product for which the necessary information can be provided.

3.	A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility.  The change in circumstances which would create a situation in which the subsidy would cause injury must be clearly foreseen and imminent.  In making a determination regarding the existence of a threat of material injury, the designated authority shall consider, inter alia, such factors as:

	(i)	nature of the subsidy or subsidies in question and the trade effects likely to arise therefrom;

	(ii)	a significant rate of increase of subsidized imports into the domestic market indicating the likelihood of substantially increased importation;

	(iii)	sufficient freely disposable, or an imminent, substantial increase in, capacity of the exporter indicating the likelihood of substantially increased subsidized exports to Indian market, taking into account the availability of other export markets to absorb any additional exports;

	(iv)	whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and

	(v)	inventories of the product being investigated.

	ANNEXURE II

	PRINCIPLES FOR DETERMINATION OF SUBSIDY WHICH HAS BEEN CONFERRED
	ON A LIMITED NUMBER OF PERSONS AS REFERRED TO IN RULE 11

1.	The designated authority in order to determine as to whether a subsidy has been conferred on a limited number of persons engaged in the manufacture of production of an article, shall take the following principles into consideration:-

	(a)	whether the granting authority or the legislation pursuant to which the granting authority operates, explicitly limits access to a subsidy to certain enterprises.  However, where the granting authority, or the legislation pursuant to which the granting authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, such subsidy shall not be considered to have been conferred on a limited number of persons engaged in the manufacture or production of an article, provided that the eligibility is automatic and such criteria or conditions are strictly adhered to and such criteria and conditions have been clearly spelt out in the law, regulation or other official document of the granting country or territory and are capable of verification.

	Explanation:  For the purposes of the above paragraph objective criteria or conditions mean criteria or condition which are neutral, which do not favour certain enterprises over others, and which are economic in nature and horizontal in application, such as number of employees or size of enterprises.

	(b)	Notwithstanding the determination that a subsidy is not being granted to a limited number of enterprises in terms of the provisions contained in paragraph (a) above.  If the designated authority has reason to believe that the subsidy has in fact been conferred to a limited number of enterprises, it may consider other factors like (1) use of a subsidy programme by a limited number of certain enterprises or predominant use by certain enterprises (2) granting of disproportionately large amounts of subsidy to certain enterprises and (3) manner in which discretion has been exercised by the granting authority in decision to grant a subsidy, for determination of a subsidy.  The designated authority, in applying this clause, shall take into account, the extent of diversification of economic activities within the jurisdiction of the granting authority, as well as the length of time during which the subsidy programme has been in operation.

	(c)	A subsidy which is limited to certain persons engaged in the manufacture or production of an article located within a designated geographical region within the jurisdiction of the granting authority shall be considered to have been granted to a limited number of persons engaged in the manufacture or production.

							(S. M. BHATNAGAR)
				UNDER SECRETARY TO THE GOVERNMENT OF INDIA	

F.No.525/2/94-CUS.(TU):

TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii) OF THE GAZETTE OF INDIA EXTRAORDINARY, DATED 1ST JANUARY 1995.
		       11 PAUSA 1916 (SAKA)

	GOVERNMENT OF INDIA
	MINISTRY OF FINANCE
	DEPARTMENT OF REVENUE

							NEW DELHI, 1st January 1995.
								         11 Pausa 1916 (SAKA)

	NOTIFICATION
	NO. 3/95-NT-CUSTOMS

G.S.R. NO. 3 (E) - In exercise of the powers conferred by sub-rule (1) rule 3 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, the Central Government hereby appoints the Additional Secretary to the Government of India in the Ministry of Commerce, as the designated authority for the purposes of said rules.

							(S. M. BHATNAGAR)
			UNDER SECRETARY TO THE GOVERNMENT OF INDIA

F.No.525/2/94-CUS.(TU):

	TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii) OF THE 
	GAZETTE OF INDIA EXTRAORDINARY, DATE 1ST JANUARY 1995.
								11 PAUSA 1916 (SAKA)

	GOVERNMENT OF INDIA
	MINISTRY OF FINANCE
	DEPARTMENT OF REVENUE

							NEW DELHI, 1st January, 1995
								          11 Pausa 1916 (SAKA)

	NOTIFICATION
	NO. 4/95-NT-CUSTOMS

G.S.R. No. 4 (E) - In exercise of the powers conferred by sub-rule (1) of rule 3 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government hereby appoints the Additional Secretary to the Government of India in the Ministry of Commerce, as the designated authority for the purposes of said rules.

							(S. M. BHATNAGAR)
				UNDER SECRETARY TO THE GOVERNMENT OF INDIA

F.NO.525/2/94-CUS.(TU):