G/SCM/N/1/IND/2/Suppl.11  
6 January  2021 
(21-0191) Page: 1/6 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
NOTIF ICATION OF LAWS AND REGULATIONS UNDER  
ARTICLE  32.6 OF THE AGREEMENT  
INDIA 
Supplement  
The following communication, dated 4 January  2021, is being circulated at the request of the 
delegation of India.  
 
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India hereby notifies the amendments to its Countervailing Duty Rules, "Customs Tariff 
(Identification, Assessment and Collection of Countervailing Duty on Subsidised Articles an d for 
Determination of Injury) Amendment Rules, 2020" . The amendment Rules were noti fied by 
Government of India vide Notification No. 10/2020 -Customs (N.T.) dated 2 February  2020. Copy of 
same is attached.  
The amendment is available in the public domain and can be seen at http://www.cbic.gov.in  at 
following weblink : 
https://www.cbic.gov.in/resources//htdocs -cbec/customs/cs -act/notifications/notfns -2020/cs -
nt2020/csnt_10.p df 
 
 
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  G/SCM/N/1/IND/2/Suppl.11  
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  [TO BE PUBLISHED  IN THE GAZETTE  OF INDIA,  EXTRAORDINARY,  PART II, SECTION 3, 
SUB-SECTION  (i)] 
GOVERNMENT OF INDIA  
MINISTRY OF FINANCE  
(DEPARTMENT OF REVENUE)  
Notification No.10/2020 -Customs (N.T.)  
New Delhi, the 2nd February,  2020 
G.S. R         (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), the Central Government  
hereby  makes  the following  rules further  to amend  the Customs  Tariff (Identification, Assessment and 
Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995, 
namely: - 
1. Short title and commencement. — (1) These rules may be called the Customs Tariff 
(Ident ification, Assessment and Collection of Countervailing Duty on Subsidised Articles and for 
Determination of Injury) Amendment Rules,  2020.  
(2) They shall come into force on the date of their publication in the Official Gazette.  
2. In the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on 
Subsidised Articles and for Determination of Injury) Rules,  1995, - 
(a) in rule  2,- 
(i) in clause  (b),- 
(A) for the portion beginning with the words "means the domestic producers " and ending 
with the words "not to form part of domestic industry ", the following shall be 
substituted,  namely: - 
"means  the domestic  producers  as a whole  engaged  in the manufacture  of the like 
article 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 subsidised article, 
or like article from other countries or are themselves importer s thereof: "; 
(B) after the proviso, the following Explanation shall be inserted, namely:  - 
"Explanation. - For the purposes of this clause, producers shall be deemed to be related 
to exporters or importers only if, - 
(a) one of them directly or indirectly controls the other;  or 
(b) both of them are directly or indirectly controlled by a third person;  or 
(c) together  they directly  or indirectly  control  a third person  subject  to the condition 
that there are grounds for believing or suspecting that the effect of the 
relationship is such as to cause the producers to behave differently from non -
related  producers.  
Note: For the purpose of this Explanation , a producer shall be deemed to control another 
producer when the former is legally or operationally in a position to exercise restraint or 
direction over the latter.”  
(ii) after clause (c), the following clauses shall be inserted, namely:  - 
 '(ca) "like article " means an article which is identical or alike in all respects to the article 
under investigation or in the absence o f such an article, another article which although G/SCM/N/1/IND/2/Suppl.11  
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  not alike in all respects, has characteristics closely resembling those of the article under 
investigation;  
 (cb) "period of investigation " means the period during which the existence of subsidisation 
is examined. "; 
(iii) in clause (d), for the word, figure and letter "section 9A ", the word and figure  "section 9 " 
shall be  substituted "; 
(b) in rule 6, after sub-rule (5), the following  sub-rule and Explanation  shall be inserted,  namely: - 
"(6) The designated  authority  shall avoid  any publicising  of the application  for the initiation of an 
investigation, unless a decision has been made to initiate an  investigation.  
Explanation .- For the purposes of these rules, the period of investigation shall, - 
(i) not be more than six months old as on the date of initiation of  investigation;  
(ii) be for a period  of twelve  months  and for the reasons  to be recorded  in writing  the 
designated authority may consider a minimum of six months or maximum of eighteen  
months. "; 
(c) after rule 6, the following rule shall be inserted,  namely: - 
"6A. Consultation. - (1) As soon as an application  under  rule 6 is accepted,  and in any event 
before the initiation of any investigation, the Government of the exporting country, the 
products of which may be subject to investigation, shall be invited for consultations to clarify 
the situation for the matters referred to in rule 6 so as to arrive at a mutually  agreed sol ution.  
(2) The Government of the exporting country, shall be afforded a reasonable opportunity to  
continue  consultations,  to clarify  the factual  situation  so as to arrive  at a mutually  agreed 
solution, throughout the period of  investigation. "; 
(d) in rule 11, in sub -rule (1), for clause (c), the following clause shall be substituted, namely:  - 
"(c) has been conferred on a limited number of persons or enterprises or industries or 
designated geographical regions, engaged in manufacturing, producing and exporting the 
article. "; 
(e) in rule 17, in sub-rule (6) for the proviso,  the following  provisos  shall be substituted,  namely: - 
"Provided that the designated authority may obtain from the producer or importer 
information periodically to monitor the undertaking and take steps for onsite verification of 
the same, if required:  
Provided further that in case of any violation of an undertaking, the designated authority 
shall, as soon as possible, inform the Central Government of the violation of the undert aking 
and recommend immediate application of provisional measure using the best information 
available and in cases of violation, definitive duties may be levied in accordance  with these  
rules on product  entered  for consumption  not more than ninety  days bef ore the application of 
such provisional measures but no such retroactive assessment shall apply to imports entered 
before the violation of the  undertaking. "; 
(f) in rule 22, in sub -rule (2), after the proviso the following proviso shall be inserted,  namely: - 
"Provided  further  that notwithstanding  anything  contained  in the foregoing  proviso,  in case of 
violation of such undertaking, the provisional duty shall be deemed to have been  levied from 
the date of violation of the undertaking or such date as the Central Government may specify 
in each  case."; 
(g) for rule 24, the following rules shall be substituted, namely:  - G/SCM/N/1/IND/2/Suppl.11  
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  "24. Review.  - (1) Any countervailing  duty imposed  under  section  9 of the Act shall remain in  
force so long as and to the extent  necessary,  to counteract  subsidisation,  which  is causing 
injury.  
(2) The designated authority shall review the need for the continued imposition of 
countervailing duty, where warranted, on its own initiative or upon request by any interested 
party who subm its necessary information substantiating the need for such review, and a 
reasonable period of time has elapsed since the imposition of the definitive countervailing  duty 
and upon such review,  the designated  authority  shall recommend  to the Central  Government  
for its withdrawal,  when  it comes  to a conclusion  that the injury  to the domestic industry is not 
likely to continue or recur, if the said countervailing duty is removed or varied and is therefore 
no longer  warranted.  
(3) Any definitive counterv ailing duty levied under the Act shall be effective for a period not  
exceeding  five years  from the date of its imposition.  The designated  authority  may upon 
coming to a conclusion, on a review initiated before that period either on its own initiative  or 
upon a duly substantiated  request  made  by or on behalf  of the domestic  industry within a 
reasonable period of time prior to the expiry of that period, that the expiry of the said  
countervailing  duty is likely to lead to continuation  or recurrence  of subsidisation  and injury to 
the domestic industry, make recommendation for extending the period of such imposition in 
accordance with provisions of section  9 of the  Act. 
(4) 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.  
(5) The provisions of rules 6,7,8,9,10,11,12,13,16,17,18,19,20,22 and 23 shall apply  
mutatis mutandis in case of review.  
25. Circumvention of countervailing duties. – (1) Circum vention shall be considered as a 
change in the pattern of trade between any country and India or between individual companies 
in any other country, subject to measures and India, as a result of a practice, process or work 
for which there is insufficient ca use or economic justification other than the  imposition  of the 
duty, and where  there  is evidence  of injury  or that the remedial  effects of the duty are being 
undermined in terms of the prices or quantities or both of the like product, and that the 
imported like product or parts thereof or both still benefit from the subsidy as determined in 
original or previous  determination.  
(2) The practice, process or work referred to in the sub -rule (1) includes, inter alia ,- 
(a) where an article subject to coun tervailing duty is imported into India from any country 
including the country of origin or country of export notified for the purposes of levy of 
countervailing duty, in an unassembled, unfinished or incomplete form and is assembled, 
finished or completed in India or in any other country, such assembly, finishing or completion 
shall be considered to circumvent the countervailing in force  if,- 
(i) the operation  started  or increased  after,  or just prior to, the countervailing  investigations 
and the parts and components  are imported  from the country  of origin  or country  of export 
notified for purposes of levy of countervailing duty;  and 
(ii) the value  consequent  to assembly,  finishing  or completion  operation  is less than thirty -five 
percent of the cost of assembled, finished or complete  article.  
Explanation I. – 'Value ' means the cost of assembled, complete or finished article less value 
of imported parts or components.  
Explanation II. - For the purposes of calculating the 'value ', expenses on account of pa yments 
relating to intellectual property rights, royalty, technical know -how fees and consultancy 
charges, shall not be taken into account.  
(b) where an article subject to countervailing duty is imported into India from country of 
origin  or country  of export  notified  for the levy of countervailing  duty after being  subjected to G/SCM/N/1/IND/2/Suppl.11  
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  any process involving alteration of the description, name or composition of an article, such 
alteration shall be considered to circumvent the countervailing duty in force if the a lteration  
of the description  or name  or composition  of the article  subject  to countervailing duty results 
in the article being altered in form or appearance even in minor forms regardless of the 
variation of tariff classification, if  any; 
(c) where an article subject to countervailing duty is imported into India through any exporter 
or producer or country not subject to countervailing duty, such exports shall be considered to 
circumvent the countervailing duty in force if the exporters or producers noti fied for the levy 
of countervailing duty change their trade practice, pattern of trade or channels  of sales of the 
article  in order  to have their products  exported  to India through  any exporter or producer or 
country not subject to countervailing  duty;  
(d) any other manner where the countervailing duty so imposed is rendered  ineffective.  
26. Initiation of investigation to determine circumvention. - (1) Except as provided herein 
below,  the designated  authority  may initiate  an investigation  to determine  the existence  and 
effect  of any alleged  circumvention  of the countervailing  duty levied  under  section  9 of the Act, 
upon receipt of a written application by or on behalf of the domestic  industry.  
(2) The application shall, inter-alia, contain suf ficient evidence as regards the existence of 
the circumstances to justify initiation of an anti -circumvention  investigation.  
(3) Notwithstanding anything contained in sub -rule (1), the designated authority may initiate 
an investigation on its own initiative if it is satisfied from the information  received from the 
Commissioner of Customs appointed under the Customs Act, 1962 (52 of 1962) or any other 
source that sufficient evidence exists as to the existence of the circumstances pointing to 
circumv ention of countervailing duty in  force.  
(4) The designated authority may initiate an investigation to determine the existence and 
effect of any alleged circumvention of the countervailing duty in  force:  
Provided  that the designated  authority  shall notify  the Government  of the exporting 
country before proceeding to initiate such an  investigation.  
(5) The provisions  regarding  evidence  and procedure  provided  under  rule 7 shall apply  
mutatis mutandis  to any investigation carried out under this rule.  
(6) Any such investigation shall be concluded within twelve months and in no case more than  
eighteen  months  of the date of initiation  of investigation  for reasons  to be recorded  in writing 
by the designated  authority.  
27. Determination of circumvention. - (1) The designated authority, upon determination that 
circumvention of countervailing duty exists, may recommend imposition of existing 
countervailing duty to imports of articles found to be circumventing an existing countervailing 
duty or to imports of article originating in or exported from countries other than  those  which  
are already  notified  for the purpose  of levy of the countervailing  duty and such levy may apply 
retrospectively from the date of initiation of the investigation under ru le 26. 
(2) The designated authority shall issue a public notice recording its  findings.  
(3) The Central Government may, pursuant to the recommendations made by the designated  
authority,  extend  the countervailing  duty to imports  of article  including  imports of such article 
from the date of initiation of the investigation under rule 26 or such date as may be 
recommended by the designated  authority.  
28. Review  of circumvention.  - (1) The designated  authority  may, where  warranted,  review the  
need for the continued  imposition  of the countervailing  duty on circumventing  product or 
against the circumventing country as applicable, either on its own initiative or, upon request 
by any interested party which submits necessary information substantiating the need for the G/SCM/N/1/IND/2/Suppl.11  
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  review provided that a reasonable period of time has elaps ed since the imposition of the 
measures, and upon such review make recommendations to the Central Government.  
(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 rev iew.". 
 
 
[F. No.334/2/2020 -TRU] 
 
 
 
(Gaurav Singh)  
Deputy Secretary to the Government of  India 
Note .- The principal rules were notified vide Notification No.1/1995 -Customs (N.T), dated the 
1st January, 1995, published in the Gazette of India, Extraordinary , Part II, Section 3, 
Sub-section  (i), vide number G.S.R 2(E), dated the 1st January,1995 and was last amended by 
Notification No.24/2006 -Customs (N.T), dated the 1st March, 2006 published in the Gazette of India, 
Extraordinary, Part II, Section 3, Sub -section (i), vide number G.S.R 123(E), dated the 
1st March,  2006.  
 
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