G/ADP/Q1/IND/28  
G/SCM/Q1/IND/28  
 
19 April 2018 
(18-2468) Page: 1/2 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  
 Original: English  
 
NOTIFICATION OF LAWS AND REGULATIONS  
UNDER ARTICLE 18.5 OF THE AGREEMENT  
REPLIES TO THE QUESTIONS1 POSED BY UKRAINE REG ARDING   
THE NOTIFICATION OF INDIA2 
The following communication, dated 19 April 2018, is being circulated at the request of the 
delegation of India. 
 
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Question 1  
According to the amendments, sub-paragraph (1) of the Paragraph 8 of the Rules 
stipulates that the term "non -market economy country" means any country  which the 
designated authority determines as not operating on market principles of cost or pricing 
structures and which do not reflect the fair value of the merchandise, in accordance with 
the criteria specified in sub -paragraph  (3) of the above -mentioned Paragraph.  
According to above -mentioned, would India also clarify if the designated authority 
verifies the country's compliance with criteria specified in sub -paragraph (3) in each 
anti-dumping investigation if not, under which conditions the designated authority 
would investigate the issue of market economy?  
Reply  
Anti-Dumping investigations are initiated based on a petition filed by an eligible domestic industry 
as per India’s Anti -Dumping Rules. This is done on the basis of a claim of a country as a non -
market economy as per subparagraph (1) of paragraph 8 read along with subparagraph (3) of 
paragraph 8 of Annexure 1 (attached to the Customs Notification No.1/2002 dated 
4 January  2002, as amended) made by the petitioner or consideration of provisions in 
subparag raph (2) of paragraph 8.  
Subsequent to an initiation, the producers/exporters from subject countries have the opportunity 
to rebut the claim/presumptions based on the criteria stipulated in subparagraph (3) of 
paragraph  8. Responses, if any, filed by a/var ious cooperative producers/exporters, are evaluated 
as per rules, specifically as per the listed criteria in subparagraph (3) of paragraph 8. However, in 
the event of non -cooperation by producers/exporters, the Authority is constrained to resort to the 
best available information as per Rule 6 (8) of India’s Anti -Dumping Rules. Under such 
circumstances, evaluating status of firm/country as ‘non -market economy’ may become trivial.  
Question 2  
Sub-paragraph (2) of the Paragraph 8 of the Rules contains the presu mption, according 
to which, any country that has been determined to be, or has been treated as, a non -
                                                
1 G/ADP/Q1/IND/26 -G/SCM/Q1/IND/26 dated 29 September  2017.  
2 G/ADP/N/1/IND/2/Suppl.8 -G/SCM/N/1/IND/2/Suppl.8 . G/ADP/Q1/IND/28 • G/SCM/Q1/IND/28  
 
- 2 - 
 
  market economy country for purposes of an anti -dumping investigation by the 
designated authority or by the competent authority of any WTO member country d uring 
the three year period preceding the investigation is a non -market economy country.  
Would India please clarify how the designated authority verifies those countries that 
should be treated as non -market according to Indian legislation ? 
Reply  
The deter mination is done in accordance with subparagraph (1) of paragraph 8 read along with 
subparagraph (3) of paragraph 8 of Annexure 1 attached to the Customs Notification No.1/2002 
dated 4 January 2002, as amended.  
Question 3  
Sub-paragraph (4) of the Paragraph  8 of the Rules stipulates that notwithstanding 
anything contained in sub -paragraph (2), the designated authority may treat such 
country as market economy country which, on the basis of the latest detailed evaluation 
of relevant criteria, which includes th e criteria specified in sub paragraph (3), has been, 
by publication of such evaluation in a public document, treated or determined to be 
treated as a market economy country for the purposes of anti -dumping investigations, 
by a country which is a Member of the World Trade Organization."  
Would India please clarify how this part of legislation is implemented in practice? 
What  would be the procedure?  
Reply  
The Authority gives cognisance to grant of market economy status to a particular country by a 
member of WTO if a member of WTO in its recent examination based on criteria (which include 
criteria of subparagraph (3) of paragraph 8 has granted market economy status to a country and 
which is publicly available.  
Question 4  
The provisions of sub -paragraphs (1), ( 2), (3), (4) of the Paragraph 8 of the Customs 
tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped 
Articles and for Determination of Injury) Rules, 1995  contains the presumption of 
non-market economy treatment which can be refer red to any country which would 
result in using of information of surrogate country for normal value determination . 
However, the WTO 's rules have only two very limited exceptions for the substitution of 
the domestic prices with a comparable price from third  country.  The first is when the 
government has a complete or substantially complete monopoly of its trade and the 
second is if where all domestic prices are fixed by the State.  
Would India please clarify how  do the provisions of the above -mentioned 
sub-paragraphs comply with the WTO provisions?  
Reply  
India considers that subparagraphs (1) to (4) of paragraph 8 attached to Annexure 1 to the 
Customs Notification read with paragraph (1) of Annexure 1 of India’s Anti -Dumping Rules are in 
conformity with the provisions of Article 2.2 and 2.2.1.1 of WTO Anti -Dumping Agreement as it 
transparently stipulates criteria which are adopted to establish whether the records of 
producer/exporter reasonably reflect costs of production and whether domestic prices for 
evaluating dumping enable proper comparison. The crite ria adopted therefore endeavour to 
identify role of state in setting prices, which India considers as in conformity with the aforesaid 
provisions of the WTO Anti -Dumping Agreement.  
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