G/ADP/Q1/IND/2 9 
G/SCM/Q1/IND/2 9 
19 April 2018 
(18-2469) Page: 1/2 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  Original:  English 
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS  
REPLIES TO THE QUESTIONS1 FROM MEXICO REGARDING  
THE NOTIFICATION OF INDIA2 
The following communication, dated 19 April 2018 , is being ci rculated at the request of the 
delegation of the India. 
 
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Question 1 
With respect to subparagraph (2), to rebut the presumption arising from the 
determination made by another  WTO  Member country , is it sufficient for the non -market 
economy country or the concerned firms from such country to demonstrate that the 
exporting sector under investigation operates on market principles, or must they 
demonstrate that the entire economy of th e country operates on market principles?  
Reply  
Subparagraphs (3)(a) to (3)(d) of Paragraph 8 of Annexure I to India’s Anti -Dumping Rules 
stipulates criteria which are firm specific and also contain impact of State interference on market 
signals and certain  other economic/financial parameters. All these are to be comprehensively 
addressed.  
Question  2 
If the determination made by the authority of a WTO Member country, as referred to in 
subparagraph (2), concerns only the  exporting sector  and not the  entire economy of the 
country, how would the presumption be applied ? Would it apply to the exporting sector 
concerned or to the entire country?  
Reply  
As stated in reply to question (1) above, criteria at both the levels i.e., the firm level as well as the  
State level are evaluated.  
Question 3 
If the determination made by the authority of a WTO Member country, as referred to in 
subparagraph (2), concerns an exporting sector that is different from  the exporting 
sector being investigated  by the Indian authori ty, would there still be the presumption 
that the sector  investigated , or the entire country, does not operate on market 
principles?  
                                                
1 G/ADP/Q1/IND/27 -G/SCM/Q1/IND/27  dated 3 October 2017.  
2 G/ADP/N/1/IND/2/Suppl.8 -G/SCM/N/1/IND/2/Suppl.8.  G/ADP/Q1/IND/2 9 • G/SCM/Q1/IND/2 9 
- 2 - 
  Reply  
The criteria considered by the WTO member countries for evaluation are appropriately correlated 
with the criteria as prescribed in subparagraph (3) of paragraph 8 of India’s Anti -Dumping Rules, 
with regard to State level criteria. For firm level criteria, the Authority would investigate on the 
basis of evidence provided by the Domestic Industry (petitioner) and the later  response filed by 
the cooperating producers/exporters, if any.  
Question  4 
Are the criteria established in paragraph 8(3) th e only applicable criteria , or could India 
consider other types of criteria?  
Reply  
Sub-paragraph (3)(a) of Paragraph 8 endeavours to  capture whether the State interference 
impacts market signals. The provisions of sub -paragraph (3)(b) to (3)(d) of paragraph 8 thereafter 
also endeavours to strengthen criteria stipulated in sub -paragraph (3)(a) of paragraph 8. 
Notwithstanding the provisi ons of sub -paragraph  (3)(a) to (3)(d) of paragraph 8 in event of 
applicability of paragraph 1 of Annexure I, the Authority may require additional details to ensure 
that records of the producer/exporter reasonably reflect the cost.  
Question 5 
We note that s ome of these criteria contain both macroeconomic and microeconomic 
elements . For example, the criterion  in subparagraph (a) refer s to the decisions of firms  
based on supply and demand and which are free of  significant State interference . 
Regarding this criterion, would the Indian authority take into account information on 
significant distortions on the part of the State, even  if there is no link to the way in 
which  such  distortions specifically affect decision -making in firms?  
 
Reply  
 
The State interference  would be considered in the context of the case under investigation as the 
criteria revolve around the product being investigated and the sector to which the firms belong to.  
 
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