WT/TPR/M/313/Add.1  
31 July 2015  
(15-3978)  Page: 1/275  
Trade Policy Review Body 
2 and 4 June 2015 Original: English/anglais/inglés  
 
 
  TRADE POLICY REVIEW 
INDIA 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Paparizov (Bulgaria) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by India. 
 
 
Organe d'examen des politiques commerciales 
2 et 4 juin 2015 
EXAMEN DES POLITIQUES COMMERCIALES 
INDE 
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Paparizov (Bulgarie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Inde. 
 
 
Órgano de Examen de las Políticas Comerciales 
2 y 4 de junio de 2015 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
INDIA 
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Paparizov (Bulgaria) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por India. 
 WT/TPR/M/313/Add.1 
 
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  CONTENTS 
ARGENTINA ...................................................................................................................... 4  
AUSTRALIA ..................................................................................................................... . 6 
BRAZIL ........................................................................................................................... 19  
Additional Questions ......................................................................................................... 23 
CANADA ........................................................................................................................ . 24 
Additional questions ......................................................................................................... 47 
CHILE ......................................................................................................................... .... 49 
CHINA ......................................................................................................................... ... 51 
Follow-up Qu estions ......................................................................................................... 62 
COLOMBIA ..................................................................................................................... 67 
COSTA RICA ................................................................................................................... 75 
DOMINICAN RE PUBLIC .................................................................................................. 77  
ECUADOR .......................................................................................................................  79 
Additional Questions ......................................................................................................... 82 
EUROPEAN UNION ......................................................................................................... 86  
Follow-up Qu estions ....................................................................................................... 115  
GUATEMALA ................................................................................................................. 124  
HONG KONG, CHINA ..................................................................................................... 125  
INDONESI A .................................................................................................................. 12 8 
JAPAN ......................................................................................................................... . 141 
KENYA .......................................................................................................................... 150  
REPUBLIC OF KOREA .................................................................................................... 151  
MALAYSIA .................................................................................................................... 1 54 
Additional Questions ....................................................................................................... 155  
MEXICO ........................................................................................................................ 167  
NEW ZEAL AND ............................................................................................................. 172  
NORWAY ...................................................................................................................... 1 75 
OMAN .......................................................................................................................... . 179 
PERU .......................................................................................................................... .. 180 
Additional Questions ....................................................................................................... 186  
PHILIPPI NES ............................................................................................................... 187  
RUSSIAN FEDERATION ................................................................................................. 188  
KINGDOM OF SAUD I ARABIA ....................................................................................... 190  
SINGAPORE .................................................................................................................. 192  
SWITZERL AND ............................................................................................................. 195  
Follow-up Qu estions ....................................................................................................... 204  
CHINESE TA IPEI .......................................................................................................... 205  
THAILAND .................................................................................................................... 2 13 WT/TPR/M/313/Add.1 
 
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  TRINIDAD AND TOBAGO .............................................................................................. 216  
TURKEY ........................................................................................................................  218 
UNITED STATES OF AMERICA ....................................................................................... 224  
Follow-up Qu estions ....................................................................................................... 267  
 WT/TPR/M/313/Add.1 
 
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  ARGENTINA 
I. Questions on the report of  the Secretariat (WT/TPR/S/313) 
Paragraph 3.1  
Paragraph mentions that since its last Trade Policy Review in 2011, the main changes in customs 
procedures include the adoption in 2011 of a self -assessment system aimed at facilitating trade. 
 
Question 1 : Could you elaborate on this new system of self-assessment and describe how would 
it facilitate trade?  Reply:   Under the self-assessment regime, the importers/exporters are mandated to assess 
Customs duty on their own. This self-assessment is subject to verification in terms of its 
correctness. A Customs. Risk Management System  (RMS) enables interdiction of consignments 
based on risk associated with it and balance consignments are facilitated by the Customs without 
examination and reassessment.   Post Clearance Audit/ Post Clearance Compliance Verification 
(PCCV) is undertaken after release of goods.  
The objective of introducing self-assessment is to repose faith in trade with resultant reduction in 
dwell time and transaction costs. After introduction of self-assessment the level of facilitation i.e. the number of consignments that are cleared by Customs without examination and 
reassessment has increased.    
 
Paragraph 3.18  
The report explains that customs duties are app lied and collected under Article 12 of the Customs 
Act 1962 and Customs Tariff Act of 1975. The basic type  is the legal right prescribed in the First 
Schedule annexed to the Customs Tariff Act. Legal right changes are announced with the annual 
b u d g e t  a t  t h e  e n d  o f  F e b r u a r y  e a c h  y e a r  ( i n  I n d i a ,  t h e  f i s c a l  y e a r  r u n s  f r o m  A p r i l  t o  M a r c h ) .  
However, the "effective" tariff rate applied in a given year can be very different from the legal right 
due to exemptions set forth in general terms or in terms of "end user" (reducing the base rate for some users) as well as tariff adjustments made by  notices published in the Gazette of India, which 
can decrease or increase the basic rate. Therefore,  the effective rate can vary throughout the year 
as a result of these changes, which increase the complexity of the tariff and cause uncertainty for traders. 
 
Questions 2: a)  Could you explain in more detail why the "effective" rate of duty applied at a 
certain time of year can be very different from the statutory duty? 
 
Reply : The statutory rate of duty is the rate prescribed under the Customs Tariff Act, 1975. 
However, under Section 25 of the Customs Act, 1962, the Central Government is empowered to 
grant exemption from the tariff rate of duty [effect ive rate of duty]. Accordingly, keeping in view 
the interests of the domestic industry and consumers and emergent conditions, the government 
specifies ‘effective’ rates of duty.  
Paragraph 3.20 
 In this paragraph, the report mentions that in th e case of lines that alternate duties apply, the 
Secretariat has used only the ad valorem part of  the types to determine fees. Could not have AVEs 
and, moreover, the specific types include all product-specific exemptions announced during 2013-2014, until 1 September 2014; However, since India grants exemption to a number of products based on the end user, it is not possible to include all exemptions to perform the analysis 
of the tariff. 
 Question 3: Could India explain what is the reason why the Secretariat could not have AVEs? 
 
Reply : Ad valorem  equivalents of specific rates of duty are not possible since the equivalents 
would depend on the prevailing customs value of the particular item. However, the rates of duty 
on these items are within the WTO Bound rates. 
 WT/TPR/M/313/Add.1 
 
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  Paragraph 3.31 
 In this paragraph the report states that under Article 25 of the Customs Act 1962, the Central Government may partially or totally exempt fr om payment of customs duties on imports by 
notification in the Official Gazette, in the general or under certain conditions. 
 Question 4: Could you explain in what cases the Cent ral Government may partially or totally 
exempt imports from payment of customs duties? 
 Reply : The statutory rate of duty is the rate prescribed under the Customs Tariff Act, 1975. 
However, under Section 25 of the Customs Act, 1962, the Central Government is empowered to 
grant exemption from the tariff rate of duty [effect ive rate of duty]. Accordingly, keeping in view 
the interests of the domestic industry and consumers and emergent conditions, the government specifies ‘effective’ rates of duty. 
 
Paragraph 3.45  
In this paragraph the report states that the licenses are valid for 18 months and the competent 
authority can extend them for a period of six mo nths, depending on the circumstances; imported 
material must be used by the importer and cannot sell.  
Question 5:  What are the specific circumstances under which licenses may be extended for 
another six months?  
Reply:  Regional offices of DGFT extend validity of  authorization for another six months at the 
request of the applicant in cases where imports could not be completed in time.  
Paragraph 3.51 
 In this paragraph the report states that India imposes import quotas and the like marble stones (SA 25.1511 million and 25.15121 million) and sandalwood (SA 44,039,922). The quotas are 
administered each year and MFN. There is no maximum allowable limit per applicant. Applications 
are examined when received and evaluated accordin g to the criteria specified in the notifications 
and circulars issued each year by the DGFT. 
 
Question 6: Could India provide details of the procedure for applications for import quotas? 
 
Reply:  The procedures are as per notification No 99 dated 20.11.2014, available on the DGFT 
website ( www.dgft.gov.in ) 
 WT/TPR/M/313/Add.1 
 
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  AUSTRALIA 
Report by the Secretariat - WT/TPR/S/313 
 1 ECONOMIC ENVIRONMENT 
1.5.1 Composition of trade in goods 
Page 19, Paragraph 1.15  
Question 1:  Can India please provide the value, volume and main destinations of buffalo meat 
exports since the last Trade Policy Review of India?   What proportion of total agricultural exports 
have been buffalo meat exports, for each year, since the last Trade Policy Review of India?  
Reply:  Since the last Trade Policy Review of India in  2011, the details of the buffalo meat exports 
are as under:  
Buffalo Meat Exports of India 
Buffalo Meat Exports 2011-2012 2012-2013 2013-2014 2014-2015 
(P) 
Value (US$ Million) 2842.83 3201.14 4350.23 4781.18 
Volume (Qty in '000 
Ton) 984.96 1076.1 1365.64 1475.54 
Main Export 
Destinations - Top 5 export destinations of 
Buffalo Meat Vietnam; 
Malaysia; Egypt; Saudi 
Arab  & Jordan Vietnam; 
Malaysia; Thailand; Egypt 
& Saudi Arab Vietnam; 
Malaysia; Egypt; Thailand 
 
& Saudi Arab  Vietnam; 
Malaysia; Egypt; Thailand 
 
& Saudi Arab  
Proportion of Buffalo 
Exports of Total 
Agricultural exports 
(in terms of Value in 
US$ Million) 7.57 7.67 10.06 12.24 
Note: Total Agricultural exports include Plantation, Agriculture & Allied Products, Marine Products, Raw 
Hides And Skins, Other Wood And Wood Products, Silk Raw, Wool Raw, Jute Raw, and Cotton Raw 
Including Waste.  
 Source: DGCI&S, Kolkata 
 
2 TRADE AND INVESTMENT REGIME 
2.3.1 WTO Page 27, Table 2.1 
 
Question 2:   Can India explain why its notifications to the WTO Committee on Agriculture in 2014 
were expressed in terms of US Dollars (USD) rath er than Indian Rupees (INR), especially as 
India’s AGST requires that INR be used, as INR was used in India’s previous notifications, and as 
domestic support measures is actually provided in INR rather than USD?  Reply :   Notification of domestic support in US dollars since 1995-1996 has been done in order to 
provide comparable estimates of the support. India has followed a consistent approach with 
respect to currency used when notifying its domestic support notifications.  
Question 3 : Can India explain why it doesn’t use total production as eligible production when 
calculating market price support?  
Reply:  India does not procure all the commodities for which MSP is announced. Besides, 
government does not procure food stocks at administered prices in all the States.  Farmers bring their produce for procurement by government agenci es only in the event of the market price falls 
below the Minimum Support Price announced by the government. Thus, only those farmers are 
benefited whose produce is procured by government agencies. It is for this reason that the WT/TPR/M/313/Add.1 
 
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  quantity procured by government agencies at Minimum Support Prices is taken as the eligible 
production.  3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1.4.1 Applied tariffs 
Page 39, Table 3.3  
The Secretariat’s report indicates that the average MFN applied tariff rate for agricultural products 
in 2014-15 was 36.4 per cent.  Question 4:  Can India provide the simple average MFN applied tariff for agricultural products for 
each of the last 10 years that data is available? 
 Reply:  This data is available is various issues of the publication ‘Tariff profiles’ brought out by the 
WTO Secretariat every year. 
 3.1.7 Tariff rate quota 
Page 44, Paragraph 3.33 
 Australia understands that India is the largest producer of milk in the world and its milk production continues to increase.  Demand continues to outstrip domestic supply and domestic prices are high 
by world standards. 
 Question 5:  Can India advise the basis for maintaining tariff rate quotas for milk powders? 
 
Reply:  The TRQs are part of India’s scheduled commitments. Apart from having to fulfil certain 
conditions, importers are free to decide whether or not to avail of these quotas, based on demand, 
commercial viability and other relevant factors. 
 3.1.9.4 Import quotas Page 51, Paragraph 3.51 
 
The Secretariat’s report notes that India maintains import quotas for sandalwood. Australia understands that demand for sa ndalwood outstrips demand.  
 
Question 6:  Can India advise the basis for maintaining import quotas for sandalwood? 
 
Reply:  Sandalwood trade is regulated in many countries including India as it is considered a highly 
restricted tree species. India has put import of Sandalwood under restricted category keeping in 
view the objectives of conservation of this rare tree and ensuring fair and legal trade. India allows 
imports of specified quantity every year subject to  production of a certificate from the Government 
authorities of country of export stating that expo rt of sandalwood is legally permitted from the 
concerned country. In addition, India also requires, the ‘Certificate of Origin’ from the country of export and phytosanitary certificate 
 
3.1.10 State trading Page 52, Paragraph 3.55 
 
The Secretariat’s report indicates that exclusive rights to import 11 agricultural products were removed from the Food Corporation of India on 29 September 2014.  
Question 7: Can India advise whether this means that any company can now apply to import these 
products? 
 Reply:  Yes, any company can apply. 
 
Page 52, Paragraph 3.56  
Question 8:  Can India describe what activities ar e undertaken by the Indian Sugar Exim 
Corporation Limited state trading enterprise to promote both exports and imports of sugar into India?  WT/TPR/M/313/Add.1 
 
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  Reply:  Indian Sugar Exim Corporation Limited (ISEC) is a joint body of the two Apex Associations 
of the Indian Sugar Industry viz. Indian Sugar Mi lls Association (ISMA) and National Federation of 
Cooperative Sugar Factories (NFCSF) which repr esents over 550 sugar mills in the country. 
Till sugar season 2013-14, ISEC has been a State trading agency for execution of preferential 
quota for sugar exports to European Union and USA.  ISEC has also helped small sugar 
companies/cooperative societies to find buyers for their sugar export or help them by importing raw sugar whenever need arises. It has also helped them with the logistics and financial support. 
 
3.1.11 Anti-dumping, countervailin g, and safeguard measures 
Page 53, paragraph 3.59  
Question 9:  Australia understands that changes were made to legislation including introducing 
new rules defining situations that are considered to represent the circumvention of anti-dumping duties, and providing for anti-circumvention investigations to address such circumvention. 
What types of circumvention activity were added to  the legislation and what parties are eligible to 
apply for an investigation?  
Reply:  No. 6/2012-Customs (N.T) dated 19
th January, 2012 by introducing Rule 25 to 28 in the 
Anti-dumping Rules. These are available in the public domain ( http://www.cbec.gov.in ) and have 
also been notified to WTO (WTO document G/ADP/N/1/IND/4, 1 March 2012). Under the said 
Rules, the following types of activities amount to  circumvention of anti-dumping duty when goods 
are imported in to India: 
 Import of goods, subject to anti-dumping duty, in an unassembled, unfinished or incomplete form 
and assembled, finished or completed in India or in such country to avoid payment of 
anti-dumping duty.  
Imports of goods, subject to anti-dumping duty, by  altering its description, name or composition. 
Imports of goods subject to anti-dumping duty through exporters or producers or countries not 
subject to anti-dumping duty.   
The domestic industry is the eligible party to apply for circumvention investigation under the 
Rules.  
Pages 53-54, paragraph 3.60, section 3.1.11: 
 Question 10:  Australia understands that the Director ate General of Anti-Dumping and Allied 
Duties (DGAD) is able to self-initiate mid-term and sunset reviews. What percentage of mid-term 
and sunset reviews were self-initiated by the DGAD during the review period?  What factors led the DGAD to self-initiate these reviews?  Do these fa ctors differ from a request by an interested party 
who submits positive information substantiating the need for such review? 
 
Reply:  During the period of review, DGAD has not self-initiated any midterm or sunset review.  
 
Page 55, paragraph 3.63, section 3.1.11: 
 Question 11:  It is unclear from the description of the application of provisional measures from 
which stage of an investigation India can impose provisional measures. The paragraph states that 
the following the preliminary finding at day 150 the authority may decide to impose provisional measures.  The next sentence says provisional measures may be imposed from day 60. Could the time period from which provisional measures are imposed be clarified? 
 
Reply:  Under the Anti-dumping Rules, there is no prescribed time period for issuing preliminary 
findings. However, the Anti-dumping Rules provide that no provisional duty shall be imposed 
before the expiry of sixty days from the date of initiation of an investigation. WT/TPR/M/313/Add.1 
 
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  Page 56, paragraph 3.67, section 3.1.11 
 Question 12:  In regards to the DGAD self-initiating a mid-term or particularly a sunset review, is 
an investigation always conducted, or are questionnaires from local industry and comments from 
other interested parties sometimes solely used to determine if there is sufficient grounds for 
continuation of the measure in force?   
Reply:  During the period of review DGAD has not self-initiated any midterm or sunset review. 
Normally, the Designated Authority initiates the pr oceedings for anti-dumping action on the basis 
of a petition received from the domestic industry  alleging dumping of certain goods and the injury 
caused to it by such dumping. Rule 5(4) of the anti-Dumping Rules provides for suomoto initiation 
of anti-dumping proceedings by the Designated Auth ority on the basis of information received from 
the Commissioner of Customs or from any other source.  
 
3.1.12.5 Labelling 
Page 62, Paragraph 3.103  
The Secretariat’s report advises there is no mandatory labelling requirement for genetically 
modified products. Australia understands that the Legal Metrology Act 2009 mandates labelling of genetically modified foods and that this act applie s in addition to regulations covered by the Food 
Safety and Standards Act 2006.   
 
Question 13:  Can India clarify requirements for labelling of genetically modified food? 
 
Reply:  Import of Genetically Modified Food is being governed by DGFT Notification No.2 dated 7
th 
April, 2006, details of which are available at www.dgft.gov.in . However, the provisions relating to 
the Genetically Modified articles of Foods, as mentioned under Section 22 of the FSS Act, 2006, 
are in the process. 
 3.1.13 Sanitary and phytosanitary requirements Page 62, Paragraph 3.104 
 
The Secretariat’s report notes that the FSSA is inte nded to increase transparency of the scientific 
basis upon which India’s SPS measures are adopted through, inter alia, harmonization with 
international standards. Australia understands that in early 2013, India advised that the process of 
harmonising its food standards with Codex Alimenta rius standards would be finalised by the end of 
2014. 
 
Question 14:  Can India provide an update on the process for harmonising its food standards with 
international standards?  
Reply:  Draft Notifications have been issued in respect of naturally occurring toxic substances (5th 
December 2014) and aflatoxins (9th April, 2015) for inviting stakeholder comments. These have also been notified to WTO-SPS committee.  
 
As regards the harmonisation of standards for additives, pesticide residues and heavy metals with those of Codex, they are in the process of harmonisation, would be notified to WTO Secretariat on 
completion of the process. 
 3.2.6.2 Export-oriented units Page 71, Table 3.17 
 
Question 15:  Can India provide a further breakdown by product, or product category, for the 
exports from Export-oriented units in the food/agriculture/forestry sector for the years referred to 
in table 3.17? 
 Reply:  Breakdown of Export data by product or product category wise from Export-oriented Units 
in the food/agriculture/forestry sector for the years referred to in table 3.17 is not readily 
available. WT/TPR/M/313/Add.1 
 
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  3.2.7 Export finance, insurance and guarantees 
Page 72, Paragraph 3.152  Question 16:   Can India advise whether the operations of the Export-Import Bank (Exim Bank) of 
India extend to provide support for trade in agricu ltural goods?  If so, can India please provide a 
list of the agricultural goods supported by Exim Bank and the value of all export financial support 
to agriculture?  
 
Reply: Exim Bank of India extends term loans and wo rking capital loans to the units processing 
agricultural products. Pre-shipment / post-shipment financing is also provided to such units for their export activities. In the year 2014-15, Exim  Bank supported export of agricultural products, 
and the value of such support amounted to ` 13.53 bn, a share of 1.9% in total loan portfolio as 
on March 1, 2015.  
 
Question 17:  Can India also advise whether the 360 day credit duration limit noted in the report, 
also applies to agricultural goods?  
 
Reply: Yes. 
 3.3.5.2 Patents Page 85-86, Paragraph 3.213 
 
While the number of patent applications has been steadily increasing, the number of patents granted has decreased by one-third (Table 3.22). This may indicate that the backlog of patent 
applications is growing. 
 Question 18:  We note that India has recently joined the WIPO case. Many IP offices including IP 
Australia have had success using work-sharing tools with other IP offices to increase timeliness 
and reduce backlogs without compromising patent quality. Has India considered greater use of work-sharing to address this backlog?  
Reply: WIPO CASE as well as DAS has not yet been deployed in Indian Patent Office since the up 
gradation of Data Centre of Indian Patent Office, which is a key requirement for deploying the new modules, is still under process. 
 
 India is not part of any work sharing arrangement because examination of a patent application needs to be carried out by the Indian Intellectual Property Office to enable complete compliance 
with the Patent Act and Rules. However, Section 8 of the Patent Act requires the applicants to 
provide information on the status of the applications and its prosecution in other jurisdictions. This also assists the Indian patent examiners by providing the material information required to evaluate the application.  
 
The backlog is being addressed through the implem entation of the Plan Scheme "Modernization 
and Strengthening the Intellectual Property O ffice" under which 252 posts of examiners and 76 
supervisory offices have been created recently. Besides this as a special measure 263 contract 
examiners are also to be recruited for a fixe d period with a view to reduce pendency. 
 
Page 87, Paragraph 3.219 
 We note that India has implemented a special compulsory license regime for exports.  
Question 19:   Could India provide more information on its anti-diversionary measures and 
safeguards to protect the interests of patent holders and ensure that the goods produced under the system reach the intended market and are not re-exported? 
 
Reply: Section 92 A of the Indian Patent Act prescribes clearly that the Compulsory licence for 
export of patented pharmaceutical products shall be available for manufacture and export of such 
products  to any country having insufficient or no manufacturing capacity in the pharmaceutical 
sector for the concerned production to address public health problems, only when  the country under reference has already  granted a compulsory licence or has, by notification or otherwise 
allowed importation of the patented pharmaceutical products from India.   
 WT/TPR/M/313/Add.1 
 
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  The controller shall on receipt of an application in the prescribed manner, grant a compulsory 
license solely for manufacture and export of the concerned pharmaceutical product to such country 
under such terms and conditions as specified and published by him.   
Application for compulsory license can be made under Form 17 of the Patents Act and Rules 
However, no such compulsory licence has been granted in India so far.  
Page 88, Paragraph 3.222 
 The Guidelines for Examination of Biotechnology Applications for Patents provide that biological materials isolated from nature are not patentable subject matter. 
 
Question 20:   Could India provide more information on the patentability of biological materials 
that are related to those produced by nature, but are produced by artificial means? For example 
can CDNA, human proteins expressed in microbial hosts, genetically engineered microorganisms 
be patentable subject matter in India?  
Reply:  According to Section 3 (c) of the Patents Act, the mere discovery of a scientific principle or 
the formulation of an abstract theory or discovery of any living thing or non-living substance occurring in nature is not a patentable invention. Accordingly, products such as microorganisms, nucleic acid sequences, proteins, enzymes, compounds, etc., which are directly isolated from 
nature, are not patentable subject-matter. However, processes of isolation of these products can 
be considered for grant of patents subject to fulf illing the requirements of Section 2 (1) (j) of the 
Act.   
 
According to Section 3(j) of the Patents Act, plants and animals in whole or any part thereof, other than micro-organisms , but including seeds, varieties and species and essentially biological 
processes for production or propagation of plants and animals are not patentable inventions. 
 3.3.5.9 Enforcement Page 97, Paragraphs 3.265-3.266 
 
Question 21:  
 Are seizures of suspected IP infringing goods seized under the Customs Act or the 
Intellectual Property Rights (Imported Goods) Enforcement Rules 2007?   
 How does the Indian Customs Department determine if there has been an infringement of 
Patents, Designs or GI’s? 
 It is acknowledged that identifying infringements for this type of IP can be difficult, 
particularly in relation to Patents where there can be a large number of patents in place on one product /commodity? 
 If IP infringing goods are stored for up to six months – Are storage costs incurred and if so 
who is responsible for those costs?   
 Is there a cost for a rights holder to record  their registered IP with India Customs?  
Reply :  
  
Legislation Governing the Protection of Intellectual Rights by Indian Customs are:  
 
 Notification 51/2010 Customs (N.T.) dated 30th June, 2010 issued under Section 11 of the 
Customs Act, 1962 
 Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 
While most cases of seizures relate to Trademar ks and Copyrights, enforcement for patent, design 
and GI infringement is also provided for under the Rules. These are carried out on the basis of WT/TPR/M/313/Add.1 
 
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  recordals made by the right holder. Under the enforc ement rules, the storage cost of the infringing 
material is borne by the right holder. 
 
Yes there is a cost for a rights holder to register their notice with Indian Customs 
 
Section 3.2.2 Export taxe s, charges and levies 
Page 65 & Page 42 Other charges affecting imports 
 
Question 22:   Is there a website importers/exporters can visit to see all charges, taxes, levies 
and fees they may have to pay?  
Reply: Information regarding charges, taxes, levies and fees to be paid by importers/exporters 
are be accessed at http://cbec.gov.in  and at https://www.icegate.gov.in. A Tax Calculator is also 
available on both the websites. 
 
Section 3.2.6.1 Special economic zones Page 68 
 
Question 23:  Australia would be grateful if India could expa nd and provide more detail on the functions and 
roles of SEZs.  
  What are the benefits of SEZs (we acknowledge the list of incentives in table 3.14 of the 
Secretariat's report)?  
 What can/can't be imported into/exported from SEZs?  
 What can/can't be done in SEZs? As much detail as possible would be welcome. 
Reply:  Fiscal benefits available to SEZs are enclosed herewith at Annexure-I 
  Under Rule 26 of the SEZ rules, 2006, A Unit may export goods and services, including agro-
products, partly processed goods, sub-assemblie s, components, by-products, rejects, waste 
or scrap except prohibited items of expo rts indicated in the Import Trade Control 
(Harmonized System) Classifications of Export an d Import Items, with addition to following 
conditions:- 
i. Export of Special Chemicals, Organisms, Ma terials, Equipment and Technologies shall 
be subject to fulfilment of the conditions indicated in the Import Trade Control (Harmonized System) Classifications of Export and Import Items: 
ii. If any permission is required for import under any other law, the same shall be 
allowed with the approval of the Board of Approval 
iii. Foreign Trade Policy restrictions on State Trading Enterprises shall not apply to SEZ 
manufacturing units. 
iv. Export of iron-ore shall be subject to the conditions as imposed by the Central 
Government.  
 The activities which can be undertaken within a Special Economic Zone are governed by the 
provisions laid under SEZ Act, 2005 and SEZ Rules, 2006. The same may be referred to for 
details in the matter.  WT/TPR/M/313/Add.1 
 
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  4 TRADE POLICIES BY SECTOR  
4.1.1 General Policy Framework Page 99, paragraph 4.1  
Question 24:  Can India please explain the large increases in export volumes of wheat and rice 
since 2012 given the primary focus of market suppor t prices and public food procurement for these 
crops is on supporting domestic food security?  
 
Reply : The increase of export of rice is mainly on account of increased export of Basmati Rice 
from India for which there is no price support prov ided to the growers by the Government. In case 
of wheat very small quantities were allowed to be exported from public stocks in the recent years 
and this was an exception. 
 Question 25:  Are India's Market Support Prices contributing to over-production of these 
commodities? 
 Reply:  Market support prices are for providing mi nimum remunerative price to the farmers to 
prevent them from resorting to distress sale. For most of the commodities under MSP, generally 
market prices rule above MSP and, therefore, Government is not required to make any procurement. Only when prices are below MSP in  the market, Government intervenes. Therefore, 
for most of the crops, MSP is not necessary for gi ving a production trigger. In the case of most 
widely covered commodities under MSP such as wheat and paddy also the procured food grains go 
into building public stocks for meeting the re quirement of distribution under food security 
programmes.   
 
Question 26:  How much wheat has the Food Corporation of India exported since 2010? 
 
Reply:  Food Corporation of India has exported 5.80 million tonnes of wheat since 2010.  
 4.1.1.1 Measures affecting imports Page 100, paragraph 4.6 
 
Question 27:  Can India explain how it defines "self-sufficiency" for the purpose of determining 
import restrictions on agricultural products? 
 
Reply:  The cost of cultivation for the farmers is high in India due to the small size of farm 
holdings.  The small farmers generally produce for themselves and sell the limited surplus in the 
market.  Adopting appropriate import and export policies, therefore assumes great significance for 
sustainability of farming in India.     4.1.1.2 Measures affecting exports 
Page 100, paragraph 4.11 
 Australia understands that India has 12 agricultural state trading enterprises with export monopoly 
powers (G/AG/W/125/Add.4) in relation to onions.  
 Question 28:   Can India state how much product, in terms of value and volume, is exported by 
these STEs (HS codes 07031010, 07108090, 07119090, 07122000) for the last year that statistics 
are available?  Reply: Data for 2012-13 and 2013-14 is as follows: 
  
Description of 
product(s) along with 
HS Code(s) Year Total quantity 
exported by STEs  Average export 
price 
Onion (All varieties) 
(07031010, 07122000) 2012-13 266.87 TMT 
 USD 196.63 PMT  
Onion (All varieties) 
(07031010,07122000) 2013-14 234.5 TMT  USD 356.33  PMT 
 WT/TPR/M/313/Add.1 
 
- 14 - 
 
  India is also in the process of notifying its STE notification for 2012-13 and 2013-15 very shortly.  
 Page 100, paragraph 4.12  
a) It is widely acknowledged that export subsidies are highly trade-distorting and that the negative 
spill overs from such measures in the global ma rketplace do not discriminate between developing 
and developed nations.  With reference to the raw sugar export subsidy program established under 
the Sugar Development Fund (Amendment) Rules 2014: 
 Question 29:    
 
 Can India explain the WTO legal basis for its export subsidy program, given that India does 
not have a scheduled entitlement to use export subsidies in the WTO Agreement on Agriculture (AoA), nor can it rely on the entitlements established under Article 9.4 or the 
AoA, since those entitlements lapsed in 2005?  
Reply :  As one of numerous steps contemplated / undertaken by the Central Government as well 
as various State Governments in the country to tackle arrears as  payments by sugar mills to 
Indian sugarcane farmers, it was decided to prom ote product diversification in the Indian sugar 
industry by incentivizing raw sugar production, since the industry traditionally produces only  white sugar.  
The model of the Indian sugar industry is quite di fferent from the models in many other parts of 
the globe. The sugar mills in the country neither own the sugarcane fields nor undertake contractual cultivation. The raw material for the sugar industry viz sugarcane, is cultivated by an 
estimated 5 million farmer families who are low income and resource poor on individual land 
holdings which are extremely small and scattered and in general range from 0.5 to 2 hectares.   
The interventions by the government aim to infuse additional liquidity in the severely stretched 
sector and are linked to cane payments to farmers by the sugar mills.   Can India explain how the export subsidy program is consistent with the declaration made 
by Ministers at the 9th WTO Ministerial Conference in 2013 (MC9) to "exercise utmost 
restraint with regard to any recourse to all forms of export subsidies and all export measures with equivalent effect"? 
Reply:  The intervention is not an export subsidy but is intended to enable sugar mills to make 
payments to the farmers.  
 Can India provide the Union budgetary alloca tion for the program for the 2014/15 sugar 
marketing year?  
Reply: No budgetary provision has so far been made during current marketing year 2014-15.  
 How many tonnes of exported raw sugar can be potentially subsidised over the 2014/15 
sugar marketing year? 
Reply:  The raw sugar production and marketing incentives is expected to divert the cane 
equivalent of 0.4 million tons of sugar into raw sugar production. 
 
 How many tonnes of raw sugar, in total, does India expect to export over the 2014/15 sugar 
marketing year? 
Reply:  About 0.6 million tons of raw sugar, in tota l, is expected to be exported during 2014-15 
marketing year.  b)  Australia understands that the export subsidy program has been introduced amidst weak 
domestic prices for sugar, substantial local stocks and liquidity issues within Indian sugar supply 
chains.   
 Can India advise what other measures are currently in place, or are being planned, to 
compliment or even replace the sugar export subsidy as a policy response?  WT/TPR/M/313/Add.1 
 
- 15 - 
 
   Is India of the view that export subsidisation stands as a viable policy option, to potentially 
address issues of over-production in other commodities in the future?  
Reply:  The Government of India has also put in place a modified Ethanol Blending Program (EBP) 
policy.  Under the EBP policy, 5% blending of etha nol with petrol has been made mandatory.  The 
entire process of procurement of ethanol has been  simplified to smoothen the ethanol    supply 
chain.  Remunerative prices of ethanol have been fixed.  EBP is expected to generated revenue for 
sugar mills enabling them to make cane price payment to farmers in time. 
 
Page 102, paragraph 4.17  According to India's recent notifications to the Committee on Agriculture, the percentage of poor 
farmers remains very high.  Market price support for Indian farmers has been in operation for 
many years.  
Question 30:   Can India explain why such continued Government investment in these domestic 
support practices has not contributed to any significant reduction in the percentage of poor farmers over the same period? 
 
Reply:   Agriculture in India is not remunerative. The share of agriculture and allied sector in gross 
domestic product (GDP) in 2013-14 was 13.9 % while it contributed 54.6% to the total employment of the country. About 99% of farm ho lding have less than 10 hectares of land which 
d o e s  n o t  t o  g e n e r a t e  e n o u g h  i n c o m e  t o  m a i n t a i n  a  m i n i m u m  s t a n d a r d  o f  l i v i n g .    I n d i a ' s  
agriculture is subjected to structural disadvan tages arising out of small and fragmented land 
holdings, depletion in soil fertility, lack of access to markets and technology, low level of 
productivity and incomes.  
 
Page 102, paragraph 4.19 
 
Question 31:    
  Farmers are guaranteed the Market Support Pr ice (MSP) through the price support scheme – 
are these prices set and paid for in Indian rupees? 
Reply:  MSP is set and paid in Indian rupees. 
 
 India makes domestic sales of grains at pr e-determined prices.  Has this grain been 
procured under the MSP mechanism and how is the pre-determined domestic market sale price actually worked out?  
Reply:  Government of India is not selling grains domestically at pre-determined prices. The 
surplus food grains are sold through open tenders in auction mode by fixing a reserve price and no 
sale is approved below the reserve price.  
 Can India explain who the buyers of the grain at these pre-determined prices are and 
whether these buyers can sell onto export markets? 
Reply:   The buyers are decided on the basis of open tender. 
 
 What has been the percentage increase (year on year) under MSP for rice prices since 2008 
to 2015? 
Reply: The MSP is fixed for paddy. The percentage ch ange over immediate previous year in MSP 
of Paddy during 2008 to 2015 is as under.  
 
Paddy 
Variety 2008-
09 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 2014-
15 
Common 31.8 11.8 5.3  8.00 15.7 4.8 3.8 
Grade "A" 30.4 11.4 5.1 7.8 15.3 5.1 4.1 WT/TPR/M/313/Add.1 
 
- 16 - 
 
   Is India worried that setting such high price increases for MSP contributes to food inflation? 
Reply:   The rise in MSPs of crops is based on the rise in the inputs cost.  Thus, the rises in the 
level of MSP is to off-set the general price rise in agriculture inputs and protect the farmers from general inflation.  Due to reduced weight given to primary agriculture commodities in the Whole 
Sale Price Index (WPI) basket of goods, increase in MSPs over the years have negligible impacts 
on food inflation. Further, food inflation larg ely depends on demand –supply gap of a commodity, 
purchasing power of the consumers, production and availability, weather and other external 
factors determining supply of commodity. 
 Page 103, paragraph 4.22  
Procurement under the National Food Security Act aims at providing food grains to around two-
thirds of the population (around 800 million people).   
Question 32:    
  How does India ensure that food staples procured by the state for this purpose is stored 
safely in order to minimise spoilage and waste?  
Reply:  Food grains are scientifically stored and its quality is maintained in storage till its disposal.  
Quality Control Wing of FCI imparts curative/ preventive treatments to stocks. During storage, fortnightly/ monthly/ quarterly surprise inspections are done by the Quality Control 
officials/officers to check the health of grains and overall hygienic conditions of go down and its 
premises.  
 
 What percentage of state procured grains is lost through spoilage and waste?  
Reply:  Storage losses as well as transit losses with respect to food grains stored with FCI are very 
minimal and altogether both kind of losses amount to below 1%. 
 
 Can India advise whether it plans to implement recommendations of the High Level 
Committee to amend the National Food Security Act 2013 and reform the Food Corporation of India? 
Reply:  Government has decided to implement some of the recommendations of the HLC to reform 
functioning of FCI, however, Government has not decided to make any amendments in the NFSA 2013. 
 
Page 104, paragraph 4.24  
The High-Level Committee on restructuring the Food Corporation of India that reporting in January 
2015 made several findings about inefficiencies in the Public Distribution System and implementation of the National Food Security Act.  
Question 33:   When does India anticipate a response to its recommendations?  
 Reply:  The Central Government has required States/ UTs to comply with certain pre-requisites like 
completion of the ongoing scheme for computerization of TPDS operations, which include putting 
up digitized list of beneficiaries on transparency portal, putting in place a grievance redressal mechanism etc. as per requirement of NFSA in or der to start implementation of the Act.   
 
Page 105, paragraph 4.26  The bulk of India's subsidies are aimed at pr omoting food security and reducing poverty. 
 
Question 34:   Do these subsidies, in particular th e market support prices and Government 
procurement; contribute to encouraging producti on for export markets, particularly given the 
export growth in rice and wheat? 
 Reply : The minimum support price is announced by the government to prevent distress sale by 
the farmers and to mobilise stocks for food securi ty programmes.  It is the minimum remunerative WT/TPR/M/313/Add.1 
 
- 17 - 
 
  amount fixed based on the cost of production, which farmers should get from the Government in a 
situation of distress sale. The growth in export of rice has been primarily due to increase in production of Basmati Rice which is not covered under MSP scheme.  
Page 105, paragraph 4.27 
 Soil degradation and water quality issues are often consequences of excessive fertiliser usage and 
require expensive environmental mitigation efforts. 
 Question 35:   How is India ensuring that subsidised fertiliser input into agricultural production is 
not negatively affecting the environment?  
 
Reply:  Government is advocating soil test based balanced use of fertilizers in conjunction with 
organic sources of plant nutrients like Farm Yard Manure (FYM), compost, bio-fertilizers and green 
manuring.  
 Soil Health Management (SHM) programme under National Mission for Sustainable Agriculture -
(NMSA) assists in promoting soil test based balanced and judicious use of fertilizers. 
 Soil Health Card scheme is introduced to issue soil health cards to all farmers in the country. Soil H e a l t h  C a r d  w i l l  p r o v i d e  i n f o r m a t i o n  t o  f a r m e r s  o n  n u t r i e n t s  s t a t u s  o f  t h e i r  s o i l  a l o n g  w i t h  
recommendation on appropriate dosage on nutrients to be applied for improving soil health and its 
fertility.  
Report by India – WT/TPR/G/313 
3.  THE NEW REFORM AGENDA 3.8 Rationalizing subsidies 
Page 13, paragraphs 3.12, 3.13, 3.14 
 Question 36:  Does India consider rationalisation of market support prices a priority so that 
farmers receive more efficient and transparent market price signals from which to base production 
decisions?  What consideration is being given to  possible rationalisation of market price support 
measures?  
 
Reply:   Market support prices are used for provid ing minimum remunerative price to the farmers 
to prevent them from resorting to distress sale. For most of the commodities under MSP, generally market prices rule above MSP and, therefore, Government is not required to make any 
procurement.   India is constantly working to ensure that delivery of domestic support is improved 
to ensure that it reaches the intended beneficiaries.  4.  TRADE POLICY 
4.1 Foreign trade policy 
Page 14, paragraph 4.6  
India states that "apart from the occasional adjustment in the tariffs on some agricultural 
commodities in the face of high volatility in food prices, in most cases tariffs have been reduced rather than raised and have generally been continued at the lower levels."   
 
Question 37:    
  Can India explain whether price volatility alon e was the reason for increasing the tariff on 
raw sugar from 15% to 25% in 2014, and to 40% in April 2015, and if not, what other 
reasons explain the rapid and steep increase in the tariff rate?   
Reply: Adjustments in tariffs, within the bound rates, is based on a number of considerations 
including international price movements, domestic demand and supply conditions etc. 
  Can India identify what domestic and/or global price levels are required to allow the tariff to 
return to 15% or lower?  WT/TPR/M/313/Add.1 
 
- 18 - 
 
  Reply: It is not possible to identify the price levels required to allow a lowering of tariffs as 
dynamic interplay of several factors have to be taken into consideration before making tariff adjustment  
The 2005 WTO World Tariff Profiles indicated that in 2005, 93% of India's MFN applied tariffs for 
agricultural goods were greater than 25%, with a tariff peak at 182%.  By 2013, 80% of India's MFN applied tariffs were greater than 25%, with a peak at 150%.   
 
 Noting India's stated "unwavering commitment to  liberalization", can India outline whether 
there are currently plans to further reduce agricultural MFN tariffs on a unilateral basis, noting that in contrast, around 91% of India's non-agricultural average applied MFN tariffs 
were below 10% by 2013? 
Reply: May refer to the response to a) above. A number of factors underpin tariff policy 
adjustments and this is not a onetime process. 
 
Public Stockholding for Food Security  
Question 38:   Which elements of the interim decision on public stockholding for food security, 
agreed by Ministers in Bali, does India consider to be the most important?  Reply:  The decision is an important step towards updating the agricultural rules. The commitment 
to find a permanent solution to the problem is most important factor which will ensure that the 
genuine concerns of the developing countries are addressed and inherent anomalies and inequities in the WTO Agreement on Agriculture are addressed. 
 
Annex-I: Fiscal benefits and duty conce ssion offered to SEZ Developers and units :   
 
(i) The incentives and facilities offered to the units in SEZs for attracting investments into the 
SEZs, including foreign investment include:-  
 Duty free import/domestic procurement of goods for development, operation and 
maintenance of SEZ units 
 100% Income Tax exemption on export income for SEZ units under Section 10AA of the 
Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the 
ploughed back export profit for next 5 years. 
 External commercial borrowing by SEZ units up to US $ 500 million in a year without any 
maturity restriction through recognized banking channels. 
 Exemption from Central Sales Tax.  
 Exemption from Service Tax. 
 Single window clearance for Central and State level approvals.  
 Exemption from State sales tax and other levies as extended by the respective State 
Governments.    
(ii) The major incentives and facilities available to SEZ developers include: 
 
 Exemption from customs/excise duties fo r development of SEZs for authorized 
operations approved by the BOA. 
 Income Tax exemption on income derived fr om the business of development of the SEZ 
in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. 
 Exemption from Central Sales Tax (CST).  
 
 Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act). WT/TPR/M/313/Add.1 
 
- 19 - 
 
  BRAZIL 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
2. TRADE AND INVESTMENT REGIME Page 27 (Para 2.17) India has not yet submitted its Category A notification. 
Question 1:  When does India intend to notify to the WTO secretariat its Category "A" 
commitments under the Trade Facilitation Agreement? 
Reply: India intends to notify its category A commitmen ts and ratify the TFA shortly. The date for 
notification will be decided by the competent authority. 
 
Question 2:  Has India started the implementation of any of the commitments of the Trade 
Facilitation Agreement? 
Reply: Trade Facilitation is an ongoing process and many of the provisions of TFA are already 
implemented by India. 
 
Question 3:  Although India has not notified the Category "A" commitments under the Trade 
Facilitation Agreement to date, would it be possible to indicate which commitments are considered 
to be more challenging to implement? 
 Reply: Commitments which require legal changes, huge human resources, administrative 
structure and ICT would be more challenging to implement.  
 
Page 32 (Para 2.4.1.2) 
According to the Secretariat report, approved non-medium and small-scale companies may also 
produce items reserved for the MSMs on condition they obtain an industrial license and undertake 
to export at least 50% of their annual production. 
Question 4:  Could you please elaborate on the procedures for obtaining such industrial license 
and on how the 50% export requirement is enforced? 
Reply : On the recommendation of the Advisory Committee, Govt. of India through Department of 
Industrial Policy and Promotion, Ministry of Co mmerce & Industry's notification no. S.O. 998 (E) 
dated 10.04.2015, has de-reserved the remaining 20 items from the list of items reserved for 
exclusive manufacture in SSI (now-MSE) sector.  Ther efore, as on date, there is no item reserved 
for exclusive manufacture in SSI (now-MSE) sector. 
Page 35 (Para 3.1) 
Since its last Trade Policy Review in 2011, the main changes in India´s customs procedures have 
included the adoption in 2011 of self-assessmen t with a view to facilitating trade (..) 
Non-compliant importers/exporters may face penal action on account of wrong self-assessment 
made with intent to evade duty or avoid compliance of conditions of relevant legal administrative 
proceeding. 
Question 5:  Could India elaborate on how such changes have facilitated trade? Have they 
reduced the time of release of goods? What is the average time for the clearance of goods after 
the implementation of self-assessment? Are non- compliant importers/exporters subject only to 
penal action or would additional penalties (such as administrative fines) occur as a result of 
non-compliance? 
Reply : Self-assessment in Customs had been introduced   with an objective to curtail time of 
clearance and the associated costs by relying on  the declarations filed by importers and exporters. 
Subjecting only those consignments that are perceived to be risky to reassessment results in 
faster clearance of balance consignments.  WT/TPR/M/313/Add.1 
 
- 20 - 
 
  Time Release Study  ( TRS) conducted  for the period July 2013  –December 2013   at JNCH  
reveals the following key finding  in respect of RMS (Risk Management System)   facilitated  Bills of 
Entry (B/E) [requiring no examination and assessment by Customs): 
(i) To decide an RMS facilitation: 3.86 minutes  
(ii) To give out of Charge after registration is: 4 hours 59 minutes  
Hence, the average total time taken by Customs is: 5 hours 2.86 minutes  
The non-compliant importers/exporters are subject to additional penalties such as administrative 
fines. 
Page 35 (Para 3.2) 
With a few exceptions, importers - Indian and foreign nationals - must obtain an importer-exporter 
code (IEC) number by registering with the Directorat e General of Foreign Trade in order to be able 
to import commercially. 
Question 6:  Which are the criteria for these except ions? Who is exempt from registering? 
Reply:  IEC is compulsory for import and /or exports. IEC is granted to those entities engaged in 
trade on commercial basis.  Entities not engaged in commercial trade like sovereign Government or its designated agency/ one time trade for personal consumption etc. are exempted from obtaining IEC.   
Page 35 (Para 3.6) 
In order to import specific goods, in certain instances, certificates of registration and import 
permits issued by different agencies are required. These certificates must be submitted at the time 
of filing the bill of entry. 
Question 7:  Could India list the agencies to which the above paragraph refers? 
Reply : Major agencies include Plant Quarantine, Animal Quarantine, Drug Controller and Food 
Safety and Standards Authority of India ( FSSAI) . This list is not exhaustive and only illustrative. 
Question 8:  Is it feasible for all certificates required for registration, as well as import permits, to 
be requested online? 
Reply : Application of Import authorisations can be made online 
Question 9:  Is it necessary to pay any fee to obtain these certificates of registration or import 
permits? 
Reply:  yes, for import authorisations 
Page 35 (Para. 3.4) 
Importers with a good track record and complying with qualifying criteria are entitled to be 
accredited for special clearance procedures under Accredited Client´s Programme (ACP). 
Question 10:  Could India please provide further information on this programme? Which are its 
eligibility criteria? Does it comply with the provisions established in Article 7.7 of the Trade Facilitation Agreement? 
Reply: The eligibility criteria for an importer to qualify under the "Accredited Clients Program" is 
as follows: 
i. They should have imported goods valued at Rs. Ten Crores [assessable value] in the 
previous financial year;  or  paid more than Rs. One Crore of Customs duty in the previous financial year; or, in the case of importers who are also Central Excise 
assesses, paid Central Excise Duties over Rs. One Crore from the Personal Ledger WT/TPR/M/313/Add.1 
 
- 21 - 
 
  Account in the previous financial year, or they should be recognized as "status holders" 
under the Foreign Trade Policy.  
ii. They should have filed at least 25 Bills of Entry in the previous financial year in one or 
more Indian Customs stations. 
iii. They should have no cases of Customs, Central Excise or Service Tax, as detailed 
below, booked against them in the previous three financial years.  
a. Cases of duty evasion involving mis-declaration/mis-statement/collusion /wilful 
suppression / fraudulent intent whether or not extended period for issue of SCN 
has been invoked. 
b. Cases of mis-declaration and/or clandestine/unauthorized removal of 
excisable/import/export goods warranting confiscation of said goods. 
c. Cases of mis-declaration/mis-statement collusion/wilful suppression/ fraudulent 
intent aimed at availing CENVAT credit, rebate, refund, drawba ck, benefits under 
export promotion/reward schemes. 
d. Cases wherein Customs/Excise duties and Service Tax has been collected but not 
deposited with the exchequer. 
e. Cases of non-registration with the Department with intent to evade payment of 
duty/tax". 
 
iv. They should also not have any cases booked under any of the Allied Acts being 
implemented by Customs.   
v. The quality of the submissions made by the applicants to Customs should be good as 
measured by the number of amendments made in the bills of entry submitted by them 
in relation to classification of goods, valuation and claim for exemption benefits. The 
number of such amendments should not have exceeded 20% of the bills of entry during 
the previous financial year. 
vi. They should have no duty demands pending on account of non-fulfilment of Export 
obligation. 
vii. They should have reliable systems of record keeping and internal controls and their 
accounting systems should conform to recogn ized standards of accounting. They are 
required to provide the necessary certificat e from their Chartered Accountants in this 
regard as per format given in the Application form.  
Procedure specified for ACP complies with provis ions of Article 7.7 of the Trade Facilitation 
Agreement (TFA) Article 7.7. of the TFA  covers AEOs (Authorised Economic Operators). In India 
both ACP and AEO scheme are operational.  
 
Page 49 (Para 3.47) 
License application fees vary according to the c.i. f. value of imports. Fees are not refundable (…) 
Question 11:  Could India please clarify if such fees are being charged as a proportion of c.i.f. 
value? 
Reply: The application fee for licenses is charged as a proportion of CIF value subject to minimum 
Rs.200/ and an upper ceiling of Rs. 1,00,000/-. 
Question 12:  Does India consider this practice (i.e. fees varying in accordance with c.i.f. value 
imports) consistent with Article VIII:1 of the GATT? WT/TPR/M/313/Add.1 
 
- 22 - 
 
  Reply: The fees are concomitant to the services be ing provided. Moreover, there is an upper 
ceiling on the fee so prescribed.  
Page 71 (3.2.6.3 Drawback schemes) 
Under the drawback system in In dia, exporters are entitled to a refund of: the customs duties 
(including additional duties) on imported go ods that are exported without transformation 
(Section 74); or customs duties, central excise duties, and the service tax 
levied on materials imported or produced locally to manufacture export products (Section 75). In 
addition, Re-export of Imported Goods (Dra wback of Customs Duties) Rules 1995 regulate 
drawback on imported goods re-exported from India. 
Question 13:  Does India maintain a drawback system th at extends the benefits of the schemes to 
enterprises that purchase local or imported good s to produce intermediate goods to be used by 
another enterprise in the production of final prod ucts for export (intermediate drawback)? If so, 
please describe the operation of such system. 
Reply:  Duty drawback is extended in relation to the final product exported. However, it may factor 
duty drawback on separately manufactured consti tuents of the export product. To illustrate, 
various components of an export product may get manufactured separately at different locations. 
In such cases, drawback application under brand rate would be applied for in   the office having jurisdiction over the manufacturing unit wherein the final export product was manufactured or 
assembled and the relevant components manufactured elsewhere would be specified for which 
data shall be submitted for verification in the office having jurisdiction over the component manufacturing facility. The brand rate would be fixe d by taking results of both verifications into 
account.  
Question 14: Does India maintain programmes similar to drawback schemes, designed to 
increase the competitiveness of export-oriented co mpanies, in particular small-scale enterprises, 
and to boost exports? If so, please describe their operation. If so, please describe the operation of 
such schemes. 
Reply:  A scheme similar to Duty Drawback Scheme is the rebate of service tax paid on the taxable 
services received by an exporter of goods and us ed for export of goods. The rebate is permitted 
either on the basis of average rates or on actual basis, subject to certain conditions. The operation 
of this scheme is governed by Notificati on No.41/2012-Service Tax dated 29.6.2012.  
Question 15:  Are natural persons eligible under the drawback schemes in India? 
Reply:  Subject to the provisions of the Re-export of Imported Goods (Drawback of Customs 
Duties) Rules, 1995 and the Customs, Central Exci se Duties and Service Tax Drawback Rules, 
1995, the drawback is paid to the export er. This would include natural persons. 
Question 16: Does the drawback system in India include commercial enterprises engaged in 
foreign trade? 
Reply: Subject to the provisions of the Re-export of Imported Goods (Drawback of Customs 
Duties) Rules, 1995 and the Customs, Central Exci se Duties and Service Tax Drawback Rules, 
1995, the commercial enterprises exporting goods would be covered under the drawback scheme. 
Question 17:  According to Indian regulations, what is the tax treatment for imported and/or local 
inputs that are used to produce capital goods with a long production cycle? 
Reply: Inputs used to produce capital goods are liable to be taxed as per the prevailing effective 
rates of import/domestic taxes for that specific tariff line. Lower rates are specified for certain 
capital goods such as those required for oil exploration or power generation. Importers can also 
opt for concessional duty under Project Imports for import of capital goods with long gestation 
period.  WT/TPR/M/313/Add.1 
 
- 23 - 
 
  BRAZIL 
ADDITIONAL QUESTIONS 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
4 TRADE POLICIES BY SECTOR 4.1.1.1 MEASURES AFFECTING IMPORTS Page 100 (Para 4.12) 
4.12. India's last notification of export subsidies, made to the WTO in 2012, covered 2004 to 2010. 
Based on the Sugar Development Fund (Amendment) Rules 2014, on 12 February 2014 the 
Government approved a subsidy at the rate of Rs 3,300 per tonne towards marketing and promotion services of raw sugar production for February-March 2014. The scheme is now to be reviewed for the current sugar season 2014-15. 
Questions 1: Regarding the subsidy for raw sugar production, what was the motivation to 
implement this measure? 
Reply:  The model of the Indian sugar industry is qu ite different from the models in many other 
parts of the globe. The sugar mills in the country neither own the sugarcane fields nor undertake contractual cultivation. The raw material for the sugar industry viz sugarcane, is cultivated by an 
estimated 5 million farmer families who are low income and resource poor on individual land 
holdings which are extremely small and scattered and in general range from 0.5 to 2 hectares.  
The interventions by the aim to facilitate payment of arrears of cane payments to farmers by the 
sugar mills. 
Question 2:  In February 2014, the Indian Government instituted a raw sugar export subsidy, 
which would be available for a quantity of 4 m illion MT of sugar exported during the 2013/2014 
and 2014/2015 sugar marketing years. The actual amount of the subsidy was to be determined 
every two months, and the incentive was to be reviewed before the commencement of the 2014-15 sugar year. In this case, subsequent to the February 2014 notification, India revised the 
amount of the subsidy several times, to INR 2,277 (approximately USD 37.95) for April-May 2014, 
INR 3,300 (approximately USD 55) for June-July 2014 and INR 3,371 (approximately USD 56.18) for August-September 2014. In January 2015, the Food Ministry of the Government of India, 
therefore, proposed that the subsidy be enhanced to INR 4,000 (approximately USD 66.66) 
per MT, and that the quantity of exports eligible for the subsidy be reduced from 4 million MT to 
1.4 million MT. On 19 February 2015, India`s Cabi net approved the proposal, and announced that 
1.4 million MT of raw sugar exported during the current sugar year would receive the subsidy at 
the enhanced rate of INR 4000 per MT. At the May 2014 meeting of the WTO Committee on 
Agriculture, India answered questions regardin g its sugar export subsidies posed by Brazil, 
Australia, Colombia and the European Union. In its answers, India stated that no payments had 
been made under the export subsidy program as of the time of the May 2014 meeting. Has the 
status for this measure changed? Has the Indian Government started paying the subsidies for raw 
sugar exports stated under the measure? 
Reply:  No, the status has not changed. 
No payments have been made till date. WT/TPR/M/313/Add.1 
 
- 24 - 
 
  CANADA 
REPORT BY THE SECRETARIAT (WT/TPR/S/313) 
 
SUMMARY, PARAGRAPH 21, PAGE 10: 
 It is noted that in 2012, new price controls on drugs were introduced with a view to ensuring 
availability of "essential medicines".  
 Question 1: Could India explain whether the national competent authority in charge of the pricing 
of essential medicines conduct international price comparisons (IPCs)? 
 
Reply:  No, it does not carry out any IPCs.   
 
Question 2:  Could India explain the IPC methodology, if any. (i.e., number of reference countries, 
exchange rate conversion methodology, etc.)? 
 
Reply:  Since IPCs are not conducted, there is no methodology prescribed.  
 
Question 3: Could India explain whether the prices of  "essential medicines" are reviewed in 
subsequent years? 
 
Reply:  As per the existing Drugs Price Control Order, prices of medicines are/can be revised as 
per Wholesale Price Index (WPI) annually (an indicator of inflation compiled by Government). 
 
Question 4:    Could India explain whether the prices of "essential medicine" are subject to 
confidential price-volume agreements between  the manufacturers and the national pricing 
competent authority? 
 
Reply:  No 
 
PART I. ECONOMIC ENVIRONMENT: (2) FISCAL POLICY, PARAGRAPH 6, PAGE 15:  According to the Secretariat Report, "the authoritie s consider that certain subsidies, e.g. the food 
subsidies, have huge overhead costs, and not all the budget allocated to the subsidy reaches the 
poor; in other cases, e.g. subsidies on fertilizers, the expenditures generate a distorted resource allocation to the detriment of productivity. Expend itures on subsidies can be streamlined in various 
ways, such as approving a new direct tax code that would entail streamlined and smaller tax 
deductions, reforming untargeted subsidies on fuel and fertilizer, and strengthening governance and transparency in the allocation of subsidized  food and making use of direct cash transfers 
instead. 
 Question 5 : Could India please elaborate on prospective reforms to subsidies related to 
fertilizers? 
 
Reply: The Department of Fertilizers in consultation with DBT is examining a pilot project in the 
states of Odisha and Gujarat for direct tr ansfer of fertilizer subsidy to farmers. 
 
PART II. TRADE AND INVESTMENT REGIME: (2) TRADE POLICY FORMULATION AND OBJECTIVES; (II) TRADE POLICY GOALS: PARAGRAPHS 14 & 15, PAGES 26-27: 
 
Paragraphs 2.14 and 2.15 of the Secretariat Repo rt provide several examples of temporary, 
unpredictable and disruptive export and import trade policies that are meant to address short-term and disparate domestic objectives.  
 
Question 6:  How is India proposing to align its long term goals of trade liberalization and deeper 
global economic integration with its often shor t-term domestically-oriented import and export 
policies? 
 
Reply:  India's trade policy balances the need for trade liberalization, global economic integration 
and domestic growth objectives. WT/TPR/M/313/Add.1 
 
- 25 - 
 
  The Indian economy is liberalized and deeply integrated with global economy. 
 
This is evident from India's increasing trade vs. GDP ratio. India's total merchandise trade as a proportion of gross domestic product (GDP) increased from 29.0 per cent in 2004-05 to 41.8 per 
cent in 2013-14. India's merchandise exports as a proportion of GDP increased from 12.1 per cent 
to 17.0 per cent during the same period  
 
PART II. TRADE AND INVESTMENT REGIME : (4) INVESTMENT REGIME; (1) LEGAL 
FRAMEWORK FOR BUSINESSES: PARAGRAPH 2.30, PAGE 31: 
 
It is noted that India's Ministry of Commerce and Industry (DIPP) indicates that some 16 steps 
must be completed before an investor can establish a company . To streamline the process, the 
Government through the DIPP is establishing "eBiz", a web-based portal which is a one-stop shop for delivery of services to investors by the Gove rnment which is expected to address the needs of 
business from inception through its lifecycle. 
 Question 7 : Can India explain what steps were taken to reduce the amount of time and money 
spent by investors in obtaining licences to start a business? Have license requirements been 
reduced?  Reply:  DIPP has taken several initiatives for ease of doing business for issuing Industrial Licence, 
some of which include: 
 
a. Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum 
(IEM) has been made completely online and this service is now available to 
entrepreneurs on 24X7 basis at eBiz website, without human interface. 
b. Guidelines have been issued to streamline the processing of applications for grant of 
extension of validity of Industrial License. 
c. The advanced version of NIC Code (NIC 2008) has been adopted, which is a highly 
contemporary industrial classification.   
d. Restriction of annual capacity in the Industrial License for Defence Sector has been 
removed. 
e. Application Forms for Industrial License & Industrial Entrepreneur Memorandum have 
been simplified.   
f. Mapping of Sector specific FDI policy with NIC 2008 code bas been completed and 
released. 
g. The list of items covered under compulsory licensing under the I(D&R) Act,1951 is 
reviewed on an on-going basis. At present only five industries are under compulsory 
licensing regime: 
i. Electronic Aerospace and Defense equipment: all types  
ii. Industrial explosives including detonating fuses, safety fuses, gun powder 
nitrocellulose and matches  
iii. Distillation and brewing of alcoholic drinks.  
iv. Cigars and cigarettes of tobacco and manufactured tobacco substitutes  
v. Specified Hazardous chemicals i.e. (a) Hydrocyanic acid and its derivatives, 
(b) Phosgene and its derivatives and(c) Isocyanates & diisocyanates of hydrocarbon, not elsewhere specified (example Methyl isocyanate).  WT/TPR/M/313/Add.1 
 
- 26 - 
 
  Question 8:  Has consideration been given to coverage for large municipal corporations? 
 
Reply:  The measures taken by the Government for promoting ease of doing business cover the 
entire country including Municipal Corporations. Ho wever, Municipal Corporations also have rules, 
regulations regarding land use, zoning policy and licencing requirements for starting a business/ 
industry etc. within the Municipal limits.  
PART II. TRADE AND INVESTMENT REGIME : (4) INVESTMENT REGIME; (2) FOREIGN 
INVESTMENT; (1) POLICY: PARAGRAPH 2.38, PAGE 33: 
 
It is noted that for FDI in India, the non-automa tic route requires approval from the Government 
through an application to the FIPB. 
 Question 9:  In sectors subject to Government approval, through an application to the FIPB, can 
India explain what criteria are used to consider approval? 
 
Reply:  Criteria for approving proposals in FIPB are ba sed on the conditionalities as provided under 
the relevant activity in the Consolidated FDI Policy subject to applicable laws/regulations; security 
and other conditionalities. The applicant is required to submit a detailed application as provided in the official website i.e., www.fipb.gov.in  on the basis of which FIPB considers a proposal in 
consultation with relevant Administrative Ministries/Departments. 
 
PART II. TRADE AND INVESTMENT REGIME: (4) INVESTMENT REGI ME; (II) FOREIGN 
INVESTMENT; (1) POLICY: PARAGRAPH 2.41, PAGES 33-34. 
 
Paragraph 2.41 of the Secretariat Report concerning India's foreign investment policies states that "up to 100% FDI will be permitted in defence industries for 'modern state-of-the-art technology' 
on a case-by-case basis".  
 Question 10:  Could I please explain the criteria for evaluating the FDI limit permitted on "modern 
state-of-the-art technology" in defence industries? How will I ensure consistency and fairness in 
this process?  
 
Reply:  As per Para 6.2.6.2, Clause (xvii) of the Consolidated FDI Policy "Based on the 
recommendation of the Ministry of Defence and FIPB, approval of the Cabinet Committee on 
Security (CCS) will be sought by the Ministry of Defence in respect of cases seeking permission of 
the Government for FDI beyond 49% which are likely to result in access to modern and 
"state-of-art" technology in the country. 
 
Question 11:  Moreover, could I provide a definition of a defence technology? Does it include any 
technology with defence application?  
 
Reply:  Press Note 3 of 2014 of this Department el aborates the list of defence items requiring 
industrial I/prior government approval.  The same  is available on the official website of this 
Department i.e., http://www.dipp.nic.in . 
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (2) CUSTOMS VALUATION: PARAGRAPH 3.12, PAGE 36: 
 It is noted that I uses reference prices for customs valuation of a number of products, including soyabean oil, gold and silver.  
 
Question 12:  Could I explain whether and how its practices to use reference prices for such 
products are consistent with the WTO Agreement on Customs Valuation? 
 
Reply:   Tariff Values are computed for certain edible oils, brass scrap, gold, silver, areca nut and 
poppy seeds taking into account frequent fluctuations in their prices and trends noticed in   import 
price data with a view to check misrepresentation of import data as well as to safeguard 
government revenue. 
 
The "Tariff Values" are calculated on the basis of prevailing international prices of these 
commodities as published in reputed international journals and publications. WT/TPR/M/313/Add.1 
 
- 27 - 
 
  The tariff values are computed for only a very limited number of commodities on the basis of 
trends of prevailing prices of such or like goods in the international market. These values are also 
not minimum values as these values are accepted as the assessable values for these commodities irrespective of whether the declared value for th ese commodities is higher or lower than these 
tariff values. These tariff values are not fixed but floating values and are reviewed and revised 
every fortnight based on international prices so as to keep them close to the transaction values.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE; (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (4) TARIFFS; (1) APPLIED TARIFFS; PARAGRAPH 3.19, PAGE 38  The Secretariat's report states that in addition to the standard rate, other duties, such as 
"countervailing" duty (AD) and special addition al duty (SAD) are charged at the border to 
counterbalance state and local taxes.    
Question 13: Could I provide more details and information on its process of managing and setting 
the additional and special additional duties?  Are specific products or items targeted?  
Reply: Countervailing duty is charged under Section 3( 1) of the Customs Tariff Act, 1975 (51 of 
1975) at a rate equal to the excise duty on like articles produced or manufactured in I. Similarly, Special Additional Duty is charged under Section 3(5) of the Customs Tariff Act, 1975 (51 Of 1975) so as to counter-balance the sales tax, value added tax, local tax or any other charges leviable on 
a like article on its sale, purchase or transportation in I.  
 Both "countervailing duty" (AD) and "Special Additi onal Duty" (SAD) are in the nature of equalizing 
duties so as to ensure that imports goods suffer the same level of domestic duties that indigenous 
goods suffer. Moreover, input tax credit of both "c ountervailing duty" (AD) and "Special Additional 
Duty" (SAD) are available for manufacturers using imported goods as inputs. Therefore, there is 
no cascading effect. 
 PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (4) TARIFFS; (1) APPLIED TARIFFS: PARAGRAPH 3.22, PAGE 40: 
 
Paragraph 3.22 concerning I's applied tariff states that the "increase in the average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% 
in 2010-11 to 40.9% in 2014-15), oilseeds and fats (from 18.5% to 33.2%), and sugars and 
confectionary (from 33.4% to 41%)".  
Question 14:  Considering that I's total cereal exports amounted to 21 MMT in 2013-14 (p.99 
Secretariat Report), can I clarify how increasing the cost of imported staples such as cereals helps to improve and ensure food security of I's poorest consumers?   
Reply:  The tariff rate of cereals was increased as a response to the price volatility in the domestic 
market and as a measure of balancing the interests of consumers and domestic famers. Agriculture sector continues to the sector employing the largest percentage of I's working 
population (56%), health of the agricultural sect or is a crucial determinant of the health of the 
economy.  
Question 15 : Do I's tariff measures provide an unfair advantage to I's farmers (i.e. p. 99 – 
agriculture accounts for 56% of employment) by protecting them from external competition? 
 Reply:  About 99% of farm holdings have less than 10 hectares of land which is not considered to 
b e  a d e q u a t e  t o  g e n e r a t e  e n o u g h  i n c o m e  t o  m a i n t a i n  m i n i m u m  s t a n d a r d  o f  l i v i n g .  T h e  I n d i a n  
farmers do not have adequate productive assets. Hence, some tariff protection as allowed under 
the WTO rules is necessary for agriculture commodities for protection from unforeseen fluctuating 
market prices.    
 PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (4) TARIFFS; (2) BOUND TARIFFS: PARAGRAPH 3.25, PAGE 42: 
 It is noted that the considerable gap between applied and bound rates of tariff provides scope for the Government to raise applied tariffs within that margin, and that the Government reacts to 
international price changes and domestic pressure s to adjust the applied tariff accordingly. WT/TPR/M/313/Add.1 
 
- 28 - 
 
  Canada notes that while international price changes could justify changes to non- ad valorem 
tariffs, ad valorem tariffs are by nature proportional to the customs value of a good.   
 Question 16:  Could India explain what types of "d omestic pressures" typically lead to 
adjustments to applied tariffs? 
 
Reply:  While prescribing import tariffs on a good, the Government seeks to maintain a balance 
between the interests of consumers and domestic  industry manufacturing/producing that good. 
 
Question 17:  More specifically, could India explain what types of "domestic pressures" led to 
increases in applied tariffs in both agricultural products and non-agricultural products (particularly 
transport equipment in the case of non-agricultur al products) as described in Table 3.4 (Summary 
analysis of Indian tariff, 2010-11 and 2014-15)? 
 
Reply:  While prescribing import tariffs on a good, the Government seeks to maintain a balance 
between the interests of consumers and domestic  industry manufacturing/producing that good. 
However, it would not be possible to comment on individual policy decisions. 
 
Question 18:  Could India please outline details of recent increasing relating to binding of tariff 
rates, particularly those increases related to the agriculture sector?  
 
Reply:  The tariff rate of certain agricultural products was increased as a response to the price 
volatility in the domestic market and as a measure of balancing the interests of consumers and domestic famers. 
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (5) OTHER CHARGES AFFECTING IMPORTS: PARAGRAPH 3.30, 
PAGE 44: 
 It is noted that some taxes, such as the AD and SAD, are expected to be subsumed into a single levy once the Goods and Services Tax (GST), which the Government expects to begin 
implementing in 2016, is adopted by all States. Canada understands that India’s current excise 
duties are levied at the point of production in Indi a. This explains the need to apply an equivalent 
tax (the AD) on imports. However, Canada understands that the GST will be applied on the sale of 
goods, and as such would apply both to products made in India as well as to imports. 
 Question 19: Could India confirm that, upon implementati on of the GST, the AD and SAD applied 
on imports will be eliminated, and that no other "single levy" (beyond the GST itself) will be 
applied specifically on imports once the GST is adopted by all States? 
 
Reply: Normally, since the local taxes such as VAT, CST, etc. and the central excise duty are 
proposed to be subsumed in the GST, AD and SAD will also be subsumed into GST and a unified 
IGST rate will be a pplicable on imports. 
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (7) TARIFF RATE QUOTAS: PARAGRAPH 3.33, PAGE 44:  
It is noted that in India, imports of goods subject to Tariff Rate Quotas must be cleared by 
customs before 31 March of each financial year.  Question 20:  Could India clarify whether the March 31 de adline would result in less than full-year 
availability for TRQ allocations? 
 
Reply:  This only means that in India the financial year (1 April to 31 March) is considered for 
yearly allocations. 
 
The annual quota is available for a 12 month window. The Indian financial year starts on April 1 
and ends on 31 March, so a full one year window is available for quota utilization. WT/TPR/M/313/Add.1 
 
- 29 - 
 
  PART III.  TRADE POLICIES AND PRACTICE S BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (9) IM PORT PROHIBITIONS, RESTRICTIONS, AND LICENSING: 
PARAGRAPH 3.39, PAGE 47:  
Paragraph 3.39 of the Secretariat Report states that import restrictions may be imposed for 
self-sufficiency reasons.  
Question 21 : How does India ensure that import restrictions imposed for self-sufficiency reasons 
do not conflict with trade liberalization efforts? 
 
Reply: The export and import of most items is free refl ective of India's trade liberalization efforts. 
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (9) IM PORT PROHIBITIONS, RESTRICTIONS, AND LICENSING: 
PARAGRAPH 3.40, PAGE 47: 
 It is noted that import prohibitions are mainly for health and safety reasons and include a range of 
products, which are listed in Table 3.8 (Import Prohibitions, 2014). Table 3.8 includes telephone 
sets (HS 8517).  Question 22:  Could India explain why it maintains an import prohibition on telephone sets 
(HS 8517)? 
 
Reply: Import of telephone sets under HS Code: 8517 is "free". However, import of "GSM mobile 
handsets" (classified under ITC (HS) code "8517") without International Mobile Equipment Identity 
(IMEI) No., with all zeroes IMEI, duplicate IMEI or  fake IMEI is "Prohibited". Further, import of 
"CDMA mobile handsets" (classified under ITC (HS) code "8517") without Elec tronic Serial Number 
(ESN)/Mobile Equipment Identifier (MEID), with all Zeroes as ESN/MEID, duplicate ESN/MEID or 
fake ESN/MEID is "Prohibited".  
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (11) ANTI-DUMPING, COUNTERVAILING, AND SAFEGUARD 
MEASURES: PARAGRAPH 3.61, PAGE 54:   
It is noted that new rules concerning the circumvention of anti-dumping duties were introduced 
during the period under review.  
 
Question 23: Could India please indicate how many anti-circumvention investigations were 
initiated during the period under review and what were their outcomes? 
 
Reply:  India has not initiated any anti-circumvention investigation so far. 
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (11) ANTI-DUMPING, COUNTERVAILING, AND SAFEGUARD 
MEASURES: PARAGRAPH 3.67-68, PAGE 56: 
  It is noted that sunset reviews and mid-term reviews may be self-initiated by DGAD or be initiated 
based on request from an interested party who submits positive information substantiating the 
need for such reviews.  Question 24:  Could India please indicate whether DGAD have self-initiated a sunset review or 
mid-term review in the past? If so, what factors did DGAD consider in deciding whether to 
self-initiate? 
 
Reply:  DGAD has not self-initiated any midterm or sunset review in the period of review. 
 WT/TPR/M/313/Add.1 
 
- 30 - 
 
  PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) MEASURES DIRECTLY 
AFFECTING IMPORTS; (13) SANITARY AND PHYTOSANITARY REQUIREMENTS, PARAGRAPH 3.106; PAGE 62:  
It is noted that India's Food Safety and Standards Act (2006) is intended to increase transparency 
of the scientific basis upon which India's SPS measures are adopted through, inter alia, harmonization with international standards.  
 
Question 25:  Could India respond to its recent efforts to amend its Food Safety and Standards 
Act (2006) to harmonize with international standards?  
 
Reply: Harmonization of Indian food Standards with the International food Standards is an 
ongoing exercise through amendment of the rela ted Regulations and it does not require any 
amendments in the Act.  
 
Question 26:  Could India explain why it is not adhering to the Codex Standard for Named 
Vegetable Oils (CODEX STAN 210-1999) for the labell ing of canola oil by requiring that canola oil 
be labelled as low erucic rapeseed oil?  
 
Reply:  India is insisting on the labelling of "Canola Oil" strictly as per Section 2.1.16 of Codex 
STAN 210-1999, wherein it is clearly mentioned as "Rapeseed oil – low erucic acid (low erucic acid 
turnip rape oil; low erucic acid colza oil; canola oil) is produced from low erucic acid oil – bearing 
seeds of varieties derived from the Brassica napus  L., Brassica rapa  L. and Brassica juncea L., 
species.  
 
India would have no objection if the Label mentions the "Canola Oil" as "Rapeseed Oil- Low Erucic Acid (Canola)". India's objection is when it is labeled as "Canola Oil" without a mention of the 
source i.e. "Rapeseed Oil". The FSSAI has been main taining that it has no objection if "Canola Oil" 
is mentioned in parenthesis under "Rapeseed Oil – Low Erucic Acid" just as  mentioned in Codex.  
 
Question 27:  Can India provide the basis by which its level of protection for import conditions of 
live animals and meat products exceeds those established by the World Organization for Animal 
Health (OIE)? For example, India's import requirem ents for pork and pork products as notified in 
G/SPS/N/IND/98 (dated March 16, 2015) continue to go beyond the relevant OIE standards for 
most notifiable diseases.   
 Reply:  The level of protection for import conditions of livestock and livestock products is based on 
OIE standards and the diseases included in health certificate are OIE listed diseases. The notified 
document G/SPS/N/IND/98 dated 16
th March, 2015 is also based on OIE standards.  
 
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) MEASURES DIRECTLY 
AFFECTING EXPORTS; EXPORT TAXES, CHARGES, AND LEVIES, PARAGRAPH 3.122 PAGE 
65:  
Table 3.11 in Section 3.2.2 indicates items subject to  export taxes.  "Ferrous waste and scrap, and 
remelting scrap, ingots of iron or steel" are subjec t to an export tax rate of 15 percent. It is a 
well-known fact that exports restrictions of scrap allow uncompetitive steel plants to operate, and 
that export restrictions in general have not proven effective as part of a country's industrialization 
strategy.    Question 28:  Can India comment on the role of these rest rictions and indicate whether it foresees 
their removal in the near future? 
 
Reply: Section8 of the Customs Tariff Act, 1975lays do wn that where, in respect of any article, 
whether included in the Second Schedule or not, the Central Government is satisfied that the 
export duty leviable thereon should be levied, and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official 
Gazette, direct an amendment of the Second Schedule  to be made so as to provide for an increase 
in the export duty leviable or, as the case may be, for the levy of an export duty, on that article. 
 
Accordingly, export duty is imposed as a means of  restricting the exports of the specified article. 
The same is amended/removed from  time to time after review. WT/TPR/M/313/Add.1 
 
- 31 - 
 
  PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (1) INCENTIVES, (2) EXPLICIT SUBSIDIES: PARAGRAPH 3.160, PAGE 74:  
It is noted that India's latest notification to the WTO Committee on Subsidies and Countervailing 
Measures concerned fisheries' subsidies.   
Question 29:  Given the lack of coverage in other economic sectors provided in India's notification 
to the Committee on Subsidies and Countervailing Measures, when does India expect to provide a 
complete subsidy notification to the WTO? 
 
Reply:  As a part of this process and the obligation enshrined under Article 25.2 of ASCM, India 
has already submitted to the WTO, its latest notifications on fisheries subsidies, pertaining to Central Government, a number of State Governme nts and the Union Territories, fulfilling India's 
commitments to that extent. India has also fulfilled its commitment of Notification on Preferential 
Tax programmes. This is an indication of our commitment and serious efforts towards meeting our obligations under ASCM. For the remaining other programmes, India is collecting the information 
from all the stakeholders concerned and is examin ing them both from the angle of facts to be 
provided and the need for notifying them to WTO at all under the requirements of Article 25.2 of 
ASCM.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (2) COMPETITION POLICY AND PRICE CONTROLS, (2) PRICE CONTROLS: PARAGRAPH 3.184, PAGE 79: 
 
It is noted that the ceiling price of scheduled formulations will be revised as per the annual wholesale price index (WPI).  
 
Question 30:  Could India explain whether a price review is conducted following the issuance of a 
new indication for "essential medicines".   
Reply: As per the provisions of DPCO, 2013, where an existing manufacturer of a drug with 
dosages and strengths as specified in National List of Essential Medicines launches a new drug, such existing manufacturers shall apply for prio r price approval of such new drug from the 
Government. 
 PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (3) STATE-OWNED ENTERPRISES, AND PRIVATIZATION: 
PARAGRAPH 3.186, PAGE 79:  It is noted that central public sector enterprises (CPSEs) continue to play an active role in the 
economy, holding significant market-share in se veral sectors and sub-sectors. According to the 
Secretariat's Report, India's divestment policy is aimed at encouraging people-ownership of CPSEs while ensuring that the Government's equity does not fall below 51%, hence maintaining control of 
the enterprise.  
 Question 31:  Could India please explain its reasons for maintaining government control of these 
enterprises, and indicate whether there are long-term plans to further divest the government's 
involvement in the economy? 
 
Reply:  Public Sector Undertakings (PSUs) have been playing a prominent role in India's 
industrialization and economic development. They  have been set up to address various socio-
economic problems in the country that needed to be dealt with in a planned and systematic manner. 
 
The long-term disinvestment plans are already indi cated in para 3.186 of the Secretariat Report. WT/TPR/M/313/Add.1 
 
- 32 - 
 
  PART III. TRADE POLICIES AND PRACTICES BY MEASURE; (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (4) GOVERNMENT PROCUREMENT: PARAGRAPH 3.190, PAGE 81:  
The Report notes that since 2012, "the use of e- procurement has become the norm in government 
procurement in India". Canada welcomes this development.   
Question 32:  Can India confirm whether e-procurement is used by other levels of government 
(i.e. state or municipal)? If not, are there plans to extend the use of e-procurement to lower levels of government?  
Reply : E-procurement is used by State Governments.  The Government of India is encouraging 
use of e-procurement by the State and other levels of the Government.   
PART III. TRADE POLICIES AND PRACTICES BY MEASURE; (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (4) GOVERNME NT PROCUREMENT: PARAGRAPH 3.191, 
PAGE 81: 
 
The Report notes that India is an observer to  the WTO Agreement on Government Procurement 
(GPA). The Report further quotes Indian authorities on the formulation of "comprehensive government procurement legislation" that will be , among other things, "intended to accommodate 
requirements of the WTO-Agreement on Governme nt Procurement". Canada holds the firm belief 
that GPA membership brings great benefits to developing and developed countries alike.   
Question 33 : Does India plan to initiate negotiations towards its accession to the WTO GPA? 
 
Reply:  India is in the process of formulating a comprehensive government procurement 
legislation. It is yet to be considered and passed by the Indian parliament. Once it is passed and 
implemented, issue of India acceding to GPA of the WTO would be examined. 
 PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECT UAL PROPERTY RIGHTS; (2) PATENTS: 
PARAGRAPH 3.207, PAGE 84:  
India's National Manufacturing Policy, while defining the functions of the Technology Acquisition 
and Development Fund, has stated that the Fund will have the option to approach the Government for issue of a Compulsory Licence for the technology which is not being provided by the patent-
holder at reasonable rates or is not working in India to meet the domestic demand in a satisfactory 
manner. It is stated that such compulsory licences will be issued only within the provisions of the 
TRIPS.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECT UAL PROPERTY RIGHTS; (2) PATENTS: 
PARAGRAPH 3.218, PAGE 87: 
 
Another important development in the area of patents since the last Review is the issuance in March 2012 of India's first and only compulsory licence so far…. India has not issued any other 
compulsory licence since even though two more ap plications for such licences have been received 
by the Controller General of Patents, Design s and Trademarks in the fiscal years 2011/12 and 
2012/13.   
Question 34:  Could India indicate whether the Fund mentioned in paragraph 3.207 has ever 
approached the Government to issue a compulsory license for technology, including the applications mentioned in paragraph 3.218, and if so, what were the circumstances of the case(s) 
and the outcome(s)? 
 Reply:  The Technology Acquisition and Development Fund has not approached the Government 
for issues of compulsory license.  
 
 WT/TPR/M/313/Add.1 
 
- 33 - 
 
  PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECT UAL PROPERTY RIGHTS; (2) PATENTS: 
PARAGRAPH 3.219, PAGE 87:  
It is not entirely clear how India intends to address the issue of safeguards against diversion that 
are part of both the August 2003 decision an d the subsequent Protocol Amending the TRIPS 
agreement that proposes to transpose the decisi on into the text of TRIPS Agreement in a new 
provision, Article 31bis"  
 Question 35:  Can India clarify whether there are any pl ans to address the issue of safeguarding 
against diversion that are part of both the August 2003 decision and the subsequent Protocol 
Amending the TRIPS agreement, if so could th ey provide some insight into these plans?  
 Reply:  Section 92 A of the Indian Patent Act prescribes clearly that the Compulsory licence for 
export of patented pharmaceutical products shall be available for manufacture and export of such 
products  to any country having insufficient or no manufacturing capacity in the pharmaceutical sector for the concerned production to address public health problems, only when  the country 
under reference has already  granted a compulsory licence or has, by notification or otherwise 
allowed importation of the patented pharmaceutical products from India.    The controller shall on receipt of an application in the prescribed manner, grant a compulsory 
license solely for manufacture and export of the concerned pharmaceutical product to such country 
under such terms and conditions as specified and published by him.   
Application for compulsory license can be made under Form 17 of the Patents Act and Rules.  
However, no such compulsory licence has been granted in India so far.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECT UAL PROPERTY RIGHTS; (2) PATENTS: 
PARAGRAPH 3.221, PAGE 87-88:  
Section 3(p) of the Patents Act states that "an invention which, in effect, is traditional knowledge 
or which is an aggregation or duplication of known properties of traditionally known component or components" is not an invention and hence, not patentable. Further with respect to biological 
materials, Section 6(1) of the Biological Diversity Act 2002 provides that "no person shall apply for 
any intellectual property right, by whatever name called, in or outside India for any invention based on any research or information on a biological resource obtained from India without 
obtaining the previous approval of National Biodiversity Authority before making such application; 
provided that, if a person applies for a patent, permission of the National Biodiversity Authority may be obtained after the acceptance of the pate nt but before the sealing of the patent…" The 
Biological Diversity Act 2002 provides that "whoever contravenes or attempts to contravene or 
abets the contravention of the provisions of the Section 3 or Section 4 or Section 6 shall be 
punishable. Nondisclosure or false submission of the source or geographical origin of biological material used for an invention in the complete specification forms a ground for pre- and post-grant 
opposition under Clause (j) of Sections 25(1) and 25(2), respectively, of the Patents Act that could 
lead to revocation of the patent.  
Question 36: Can India elaborate on how their traditional knowledge database is used and how it 
is managed?   Reply:  The Traditional Knowledge Digital Library is a database of codified literature on Indian 
Systems of Medicine- Ayurveda, Unani, Siddha and Yoga. At present it contains database on 
approximately 290,000 formulations. The database is being updated on a continuous basis.  
The database is in the international patent classi fication format and can therefore be searched by 
the patent examiners. The database allows examiners to establish prior art in respect of applications based on Indian traditional medicinal knowledge and enables them to evaluate the 
non-obviousness of the claims made in the application.   
 The access to TKDL is presently available to the European Patent Office, United State Patent & Trademark Office, Japan Patent Office, United Kingdom Intellectual Property Office, Canadian WT/TPR/M/313/Add.1 
 
- 34 - 
 
  Intellectual Property Office, German Patent Office, Intellectual Property Australia, Indian Patent 
Office and Chile Patent Offi ce), under TKDL Access (Non-disclosure) Agreement.  
 In addition to providing access to TKDL, the Council for Scientific and Industrial Research that 
manages the database, files "third party observations " to assist the International Patent Offices to 
examine a Traditional Knowledge based application for novelty and non-obviousness.  
More information on TKDL may be obtained from the CSIR website http://www.csir.res.in . 
 
Question 37:  Can India elaborate on how they define "traditional knowledge" and "known 
properties of traditionally known components", including how it is determined or established that 
something is considered "traditional knowledge"? 
 Reply: Indian Patent Act does not define either "tra ditional knowledge" or "known properties of 
traditionally known components".  
 However, any knowledge existing traditionally either with any local or indigenous community or 
elsewhere is taken into account. The meaning of these terms is construed as per standard 
concepts of "traditional knowledge" and general pe rspectives and practices in this regard, which 
are essentially country-specific.   
The database on Traditional knowledge as also  the mandatory requirement that the applicant 
disclose the specifications of the invention facilitates establishing whether knowledge is traditional knowledge. Besides this, pre grant opposition proced ure also enables interested parties to inform 
the Patent examiner of existing prior art and on the obviousness of the claims made out in the 
patent applications. If the applicant fails to meet the objections, the application is refused under section 15 of the Patents Act. 
 
Question 38: Can India indicate whether there have been any challenges to patents based on the 
grounds of traditional knowledge nondisclosure or false submission of source or geographical origin, and if so, what were the circumstances, and outcomes for these patents? 
 
Reply:  209 patent applications have either been se t aside/ withdrawn/ amended, based on the 
prior art evidence in the TKDL database, on the basis of pre-grant opposition/Third Party 
Observations filed by Council for Scientific and Industrial Research. (ref: www.csir.res.in ).  
 
The information on Patent Office Wise refusals /amendments/revocation of TK- related 
applications: 
 
 Controller General of Patents Designs and Trademarks (CGPDTM)/Indian Patent 
Office-18 
 European Patent Office (EPO)- 125 
 United States Patent and Trademark Office (USPTO)- 23 
 Canadian Intellectual Property Office (CIPO)- 36 
 IP Australia (AIPO)-4 
 United Kingdom Patent & Trademark Office (UKPTO) -3  
Year-wise refusals /amendments/revoca tion of TK- related applications 
Year 2009  2010 2011  2012  2013  2014  2015  
No. of Patent 
applications  8 22 45  55 48 27 4 
 
(Detailed information is available on CSIR website http://www.csir.res.in ) 
 WT/TPR/M/313/Add.1 
 
- 35 - 
 
  PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECT UAL PROPERTY RIGHTS; (2) PATENTS: 
PARAGRAPH 3.225, PAGE 89:  
The TADF [Technology Acquisition and Development Fund] would reserve the right to license more 
than one company for a particular patent (Section 4.4.2); and to address the second issue, the Fund will have the option to approach the Government for issue of a compulsory licence for the 
technology which is not being provided by the patent holder at reasonable rates or is not being 
worked in India to meet the domestic demand in a satisfactory manner.  Question 39:  Could India clarify the idea behind the re quirement that technology must be worked 
in India? What if the domestic demand market can be met by working the invention outside India? 
 Reply:  Article 7 and 8 of TRIPS set out the objectiv es and principles on which protection is 
provided to right holders, Article 31 postulate th e various conditions on the basis of which an 
authorization could be provided without permission of the right holder and the Doha declaration on 
TRIPS and Public health address the issue of access to medicines. These provisions of TRIPS and 
the Doha Declaration on TRIPS and Public Health are enshrined in Section 83 of the Indian Patent 
Act that lays down the guiding principles applicable for working of patented inventions. It states that patents are granted to encourage inventions an d to secure that the inventions are worked in 
India on a commercial scale and to the fullest extent that is reasonably practicable without undue 
delay; that they are not granted merely to enable patentees to enjoy a monopoly for the 
importation of the patented article; that the protection and enforcement of patent rights contribute to the promotion of technological innovation and to the transfer and dissemination of technology, 
to the mutual advantage of producers and users of technological knowledge and in a manner 
conducive to social and economic welfare, and to a balance of rights and obligations; that patents 
granted do not impede protection of public health  and nutrition and should act as instrument to 
promote public interest specially in sectors of vital importance for socio-economic and 
technological development of India; that patents granted do not in any way prohibit Central Government in taking measures to protect public health; that the patent right is not abused by the patentee or person deriving title or interest on patent from the patentee, and the patentee or a 
person deriving title or interest on patent from the patentee does not resort to practices which 
unreasonably restrain trade or adversely affect the international transfer of technology; and that patents are granted to make the benefit of the patented invention available at reasonably 
affordable prices to the public. 
 The interpretation of the term "working of a patent" has been dealt with in the Bayer Vs Natco 
Compulsory License case by the Intellectual Pr operty Appellate Board (IPAB) which was later 
upheld by the High Court of Bombay. The hon'ble court stated that "…when a patent holder is faced with an application for compulsory license, it is for the patent holder to show that the patented invention/ drug is worked in the terri tory of India by manufacture or otherwise.  
Manufacture in all cases may not be necessary to establish working in India as held by the 
Tribunal. However, the patent holder would nevertheless have to satisfy the authorities under the Act as to why the patented invention was not being manufactured in India keeping in view Section 
83 of the Act. This could be for diverse reasons but it would be for the patent holder to establish 
those reasons which makes it impossible/ prohibitive for it to manufacture the patented drug in India.  However, where a patent holder satisfie s the authorities, the reason why the patented 
invention could not be manufactured in India then the patented invention can be considered as 
having been worked in the territory in India even by import.  This satisfaction of the authorities is necessary particularly when the petitioner admittedly has manufacturing facilities in India."  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECTUAL PROPERTY RIGHTS; (5) COPYRIGHT: PARAGRAPH 3.240, PAGE 93: 
 
Similarly, the Indian music industry is reported  to have had revenues of around US$150 million in 
2013, of which over 50% was obtained through digi tal sales. Over 80% of music relates to film 
music in India; in some cases, over 10% of a pr oducer's revenues could come from music. Digital 
sales and licensing revenues are expected to rise in the near future.  WT/TPR/M/313/Add.1 
 
- 36 - 
 
  Question 40: Could India clarify the source of music revenue other than the 50% that was 
obtained through digital sales? Could India also clarify the percentage of sales that occur via online music streaming services and whether this is included in the digital sales figures?  
Reply:  Government of India is not in a position to comment on this issue as the data on source of 
music revenue including digital sale is not collected.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECTUAL PROPERTY RIGHTS; (5) COPYRIGHT: PARAGRAPH 3.245, PAGE 93:  
A compulsory licence can be issued by the Copyright Board on any work withheld from the public. 
Special provisions have been inserted for works relevant to the disabled. In addition, access to copyright content has been improved to broadcasting organizations through non-voluntary licences 
where the terms are to be fixed by the Copyright Board. 
 Question 41:  Could India please provide more information on the role, powers, duties and 
operation of the Copyright Board? For example, ho w are the terms of broadcasting licenses set by 
the Board? What standards are applied to establish rates? What is the nature of the rate setting 
process (e.g. arbitration, quasi-judicial, etc.)?  
Reply:  The Copyright Board which is a statutory authority constituted under section 11 of the Act 
primarily to provide for specialized adjudication on the matters of compulsory licenses, statutory licenses, rectification of registration of copyri ght done by the Copyright Office, to decide the 
royalty disputes between authors and publishers and appeals on decisions of Registrar of 
Copyrights.  
 
The Copyright Board sets royalties for statutory licenses for broadcasting and also sets royalties 
for Compulsory license for broadcasting.  Copyright Board while determining royalties shall take 
into consideration the following factors namely, i) the retail price of earlier sound recording; ii) the prevailing standards of royalties with regard to literary, dramatic or musical work for making such 
recordings; iii). The nature and the class of the work, language, format and medium in which it is 
to be sold; and i) such other matters may be considered relevant by the Board.  
PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECTUAL PROPERTY RIGHTS; (5) COPYRIGHT: PARAGRAPH 3.246, PAGE 93: 
 
Registration of copyright societies has been ma de mandatory and several provisions have been 
introduced to protect authors and improve transp arency in the functioning of such societies. 
 
Question 42: Could India outline the provisions introduced to protect authors and improve 
transparency? Also, could India address whether they assessed the effects of regulating copyright societies prior to enacting the provisions? If so, what were the key findings of the assessment? 
 
Reply:  The provisions relating to copyright societie s to protect authors and improve transparency 
has been given in Chapter VII (Section 33 -36 A) of the Copyright Act 1957 as amended in 2012 
read with Rule 66 of Copyright Rules 2013 (Cod e of Conduct for Copyright Societies), which 
suggest the tariff scheme administration of rights of owners and payment of remuneration including control over the copyright society by au thor and other owners of right, and code of 
conduct for copyright societies. 
 
Before amending the provisions relating to copyright societies, the effect of regulating copyright societies was assessed by the Government as well as by the Parliamentary Committee. There was 
a non-transparency in distribution of royalties by the copyright societies. 
 PART III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) MEASURES AFFECTING 
PRODUCTION AND TRADE; (5) INTELLECTUAL PROPERTY RIGHTS; (5) COPYRIGHT: 
PARAGRAPH 3.247, PAGE 93:  Fair-use clauses have been extended to cinematographic works and sound-recordings. Importation 
of copies of any literary and artistic works such as labels, company logos or promotional or WT/TPR/M/313/Add.1 
 
- 37 - 
 
  explanatory material that is purely incidental to other goods or products being imported lawfully 
has been clarified not to be an infringement . Parallel imports of copyrighted works are not 
permitted. Fair-use has been extended to the digital environment also where temporary storage 
(caching) is not an infringing act. Notice and ta ke-down procedures have been introduced to make 
internet service providers otherwise liable (Section  52(c)). The WIPO Marrakesh Treaty for Visually 
Impaired Persons has been implemented through fair-use provision to access, for example, 
copyrighted works in a special format. 
 
Question 43:  As part of its copyright regime, does India have a distribution right (i.e. Article 12 
of WIPO WPPT, Article 6 of WCT)? If so, does Indi a apply any conditions on the exhaustion of the 
distribution right? 
 
Reply:  Section 14 of the copyright Act 1957 as amended in 2012 incorporate various rights 
including distribute rights to issue copies of th e work to the pubic not being copies already in 
circulation. 
 Question 44:  Can India elaborate further on how the WIPO Marrakesh Treaty has been 
implemented, including through fair-use provisions? 
 Reply:  Copyright Act 1957 as amended in 2012 has included a Section 52 (1) (zb) which deals 
with "activities that do not require permission from the owner of copyright for enjoyment of". 
It allows, the adaptation, reproduction, issue of copies or communication to the public of any work 
in any accessible format, by, inter alia, any person or organization to facilitate visually impaired persons the access to copyrighted works. 
 
PART IV. TRADE POLICIES BY SECTOR; (1) AGRICULTURE; (1) GENERAL POLICY FRAMEWORK; (2) MEASURES AFFECTING EXPORTS, PARAGRAPH 4.10, PAGE 100: 
 
The report from the Secretariat mentions that India imposes export restrictions mainly for environmental, food security, marketing, pricing, and domestic supply reasons, and to comply with 
international treaties.   
 
Question 45:  Can India please elaborate on what would constitute an environmental reason for 
imposing an export restriction?  What good s would be affected by such a restriction? 
 
Reply : The environmental reasons on which export restrictions are imposed are mainly related to 
controlling destruction/excessive exploitation of natural resources   viz. the forest resources like 
wood and wood products, wildlife, ores, slags, and certain chemicals under Montreal Protocol etc.  
Under the Foreign Trade Policy, export of wood and wood products, wild animals, their parts, 
products and derivatives etc is prohibited or restricted [this also includes all the items included in Wildlife Protection Act, 1972 and Schedules of CITES].  Chemicals under Montreal Protocol are 
restricted and allowed for export against a license only to the state parties. The item wise list of 
such prohibitions/restrictions is available on the website of DGFT ( http://www.dgft.gov.in ) 
 
PART IV. TRADE POLICIES BY SECTOR; (1) AGRICULTURE; (1) GENERAL POLICY 
FRAMEWORK; (2) MEASURES AFFECTING EXPORTS, PARAGRAPH 4.14, PAGE 101: 
 
According to the Secretariat's report, export prohibitions and export quotas are notified annually; 
they are usually in place for a specific period, during which they may be subject to change.  Question 46: Can India please provide details on how long these export prohibitions are usually 
in place?  What indicators are used to determine a change in length regarding the implementation 
of such a measure?  
Reply : Export Policy is reviewed from time to time in consultation with the concerned 
administration ministries/departments keeping in vi ew the availability of the item, its domestic and 
international prices among other factors and wherever required, export prohibitions/ 
restrictions/export quotas are notified by DGFT by way of a notification in the official Gazette. 
Details of all such notifications are available at www.dgft.gov.in . Except for prohibition on export of 
pulses and edible oils, which are in place since 2006 and 2008 respectively, export of all 
agricultural products viz. rice, wheat, milk powders including casein, cotton etc. which were 
prohibited during the past years; have been made free as a result of such review. In the last few WT/TPR/M/313/Add.1 
 
- 38 - 
 
  years, export quota was notified only for export of cotton, cotton yarn and edible oil in branded 
consumer packs.  As on date there is  no export quota for any product.  
 PART IV. TRADE POLICIES BY SECTOR; (1) AGRICULTURE; (1) GENERAL POLICY 
FRAMEWORK; (3) INTERNAL MEASURES, PARAGRAPH 4.19, PAGE 102: 
 The Secretariat report notes that the FCI is authorized to sell from its stock through open market 
sales including for exports. 
 The Secretariat report indicates that the Governme nt authorized the export of 4.5 million metric 
tonnes of wheat in 2012-13, and 2 million metric tonnes in 2014-15. 
 
Question 47:  Could India please indicate if all or what portion of the 4.5 million metric tonnes 
authorized in 2012-13 was in fact exported, and what was the average export price per tonne? 
 
Reply:  The Food Corporation of India has exported a total quantity of 4.24 million MT of wheat 
against the 4.5 million MT authorized in 2012-13 at an average export price of  310.99 USD per 
MT. 
 Question 48:  Could India please indicate if all or what portion of the 2 million metric tonnes 
authorized in 2014-15 was in fact exported, and what was the average export price per tonne?  
 
Reply:  The Food Corporation of India has exported a total quantity of 1.56 million MT of wheat 
against the 2.0 million MT authorised in 2013-14( not in 2014-15) at an average export price of 
282.39 USD per MT. 
 The Secretariat also notes in its report that it was not clear how prices are set for domestic open 
market sales, and who the grains are sold to. 
 Question 49:  Could India please provide details on how prices are set when a) selling stocks for 
domestic open market sales and b) stocks are destined for export?  What are the main 
destinations when these stocks are sold for exports?   
 Reply: For sale in domestic market, the Government sets reserve price which serves as a bench 
mark price and the sale is conducted through open tenders in auction mode to the highest bidder. 
For export, the prices are discovered through open tenders in a competitive manner.    
PART IV. TRADE POLICIES BY SECTOR; (1) AGRICULTURE; (1) GENERAL POLICY 
FRAMEWORK; (3) INTERNAL MEASURES, PARAGRAPH 4.28, PAGE 105  The Secretariat Report indicates that India sets targets for priority-sector lending to ensure that 
banks provide credit to specific priority sectors. 
 Question 50:  Could India please elaborate on how these targets are set and provide examples of 
specific priority sectors?  
 
Reply: The targets for priority sector are being revi ewed from time to time. The present targets 
revised on April 23, 2015 are based on the recomme ndations of an Internal Working Group set up 
by RBI to revisit the priority sector guidelines. Th e report of the Group is available to the public. 
The broad categories of Priority Sector are as follows:  
i. Agriculture 
ii. Micro, Small and Medium Enterprises 
iii. Export Credit 
iv. Education 
v. Housing 
vi. Social Infrastructure WT/TPR/M/313/Add.1 
 
- 39 - 
 
  vii. Renewable Energy and 
viii. Others 
The details of the eligible priority sector are available in our circular on Priority Sector 
Lending-Targets and Classification FIDD.CO.Plan.BC.54/04.09.01/2014-15 dated April 23, 2015, 
available at: https://rbi.org.in/Scripts/NotificationUser.aspx?Id=9688&Mode=0 . 
 
The Report of the Internal Working Group (IWG) to  Revisit the Existing Priority Sector Lending 
Guidelines, released on March 2, 2015, provides a background of the Priority Sector Lending in 
India. The Report can be accessed at: https://www.rbi.org.in/scripts/Publicat ionReportDetails.a spx?UrlPage=&ID=810  
 
PART IV. TRADE POLICIES BY SECTOR: (3) MANUFACTURING, TEXTILES AND CLOTHING: 
PARAGRAPH 4.48, PAGE 109:  
It is noted that India provides interest rate subsidies as part of its Technology Upgradation 
Scheme, which seeks to upgrade technology in machinery.  
Question 51:  Could India explain how these subsidies are consistent with WTO rules? 
 Reply:  Interest rate subsidies under the Technology Upgradation Fund Scheme are available to 
the textile sector irrespective of whether the finished products are exported or are for domestic 
consumption. Since, the benefit under such prog ram is not covered under Article 3.1 of ASCM, 
these are not prohibited subsidies under ASCM.   
PART IV. TRADE POLICIES BY SECTOR: (4) SERVICES, (3) TRANSPORT, (1) MARITINE 
TRANSPORT, (1) SHIPPING, PARAGRAPH 4.114, PAGE 109:  
It is noted that Sections 406 and 407 of the Merchant Shipping Act 1958, as amended, enables 
applications to be considered for relaxation from cabotage restrictions on a case-by-case basis, subject to the guidelines.  
Question 52:  Can India provide additional information on the guidelines prescribed for relaxing 
cabotage restrictions on a case-by-case basis, including specific criteria that might be used in approving or rejecting applications? 
 
Reply : The Directorate General of Shipping, Government of India have issued guidelines for grant 
of licenses to foreign flag vessel under clause (3) of section  406 and clause (2) of section 407 of 
the Merchant Shipping Act, 1958, initially vide Shipping Development Circular No. 2 of 2002 dated 
08.11.2002 which has further been revised by DGS Circulars No. 07 of 2003 dated 11.06.03, 08 of 2003 dated 14.08.03 [read with memorandum dated 21.11.03 and 31.12.03], Shipping Development Circular No. 01 of 2008 dated 25.04.08 [read with memorandum dated 13.05.08, 
amendment dated 22.07.08], & other later circulars. All circulars are available on the official 
website of the Directorate General of Shipping, Govt. of India [ www.dgshipping.gov.in ]. It may be 
noted that no permission to any foreign flag vessel can be granted, unless a No Objections 
Certificate [NoC] is issued from the Indian National Ship-owners Association [INSA] which is a 
representative body of Indian ship-owners. Once the NoC from INSA is granted, the permission to 
relax cabotage [i.e. license to operate for Indian coastal trade] is granted. 
 
Question 53:  Can India provide the following statistics, over a 5-10 year period, related to the 
relaxation of cabotage restrictions under the Merchant Shipping Act 1958? 
i. The total number of applications approved and rejected; 
ii. The percentage of overall applications that were approved; 
iii. A further breakdown of the approved and rejected applications by sector – i.e. How 
many applications were for bulk or container transport, ferry services, and other passenger services?  What percentage of overall applications did each sector 
constitute? WT/TPR/M/313/Add.1 
 
- 40 - 
 
  Reply:  As explained above, based on the NOC issued by INSA, the Directorate General of Shipping 
issues the license as per the applicable guidelines . As the charterer verifies the requirement as per 
the guidelines for a license before submission, usually no rejections are made. The data for 5-10 years readily is not available. However, the details of licenses/permissions, granted to foreign 
flag vessels, in last tw o years, is as below: 
 
  
  
      
  
   
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
  
 
Report by the Government of India (WT/TPR/G/313): 
 PART II. ECONOMIC ENVIRONMENT; 2.3 INFLATION: PARAGRAPH 2.5, PAGE 5: 
 
It is noted that inflation has been a significant economic challenge confronting the economy since 2010-11 
 
Question 54: Could India explain if pharmaceuticals (prescription and non-prescription medicines) 
have been the subject of low, moderate or high inflation since 2010? 
Reply: The data in this regard is not available. However, the increase in prices of scheduled 
formulations (medicine) is limited to increase in WPI and in respect of medicines not under price control, manufacturers are allowed to increase maximum retail price (MRP) up to 10% annually. 
Question 55:  Could India explain the methodology used, if any, to control the impact of the 
inflation on the ex-factory prices and/or retail prices of pharmaceuticals? 
Reply:  Annual increase in the ceiling price is in accordance with WPI in case of scheduled 
formulations and up to 10% in case of medicines not under price control.  
 Type  
2013-14 Nos 
Bulk Carrier 258 
Acid Carrier 01 
Cargo Ship 03 
Chemical Tanker 182 
Crude Oil Carrier 83 
LPG Carrier 71 
Product Tanker 42 
Oil Tanker 442 
Type  
2014-15 Nos 
Bulk Carrier 407 
Cargo Ship 01 
Container Ship 16 
Chemical Tanker 189 
Crude Oil Carrier 118 
LPG Carrier 108 
Product Tanker 15 
Oil Tanker 793 
Passenger Ship 01 
Ro-Ro Vessel 02 WT/TPR/M/313/Add.1 
 
- 41 - 
 
  Question 56 : Could India explain the policy tools used by the national regulatory authority to 
control the prices of pharmaceutical products? 
Reply:  The Essential Commodities Act provides for controlling the production, supply, distribution, 
trade and commerce of certain commodities and "drugs" is listed as one such commodity. The prices of medicines are fixed/controlled by National Pharmaceutical Pricing Authority (NPPA) under 
the powers of this Act and Drugs (Prices Cont rol) Order (DPCO), 2013. Prices of only those 
medicines included in the National List of Essential Medicines (NLEM)-2011 are controlled.   
 
PART II. ECONOMIC ENVIRONMENT; 2.6 MA JOR CHALLENGES; 2.6.3 INFRASTRUCTURE 
DEVELOPMENT: PARAGRAPHS 2.34-2.35, PAGE 10:  The Government report states that "one of the major challenges to India's growth is the 
infrastructure deficit. Massive investment is needed to build the infrastructure required to sustain a 
high growth rate, including roads, railways, ports, airports, electricity, telecommunications, oil gas pipelines and irrigation." It further adds that  for the period 2012-2017, "an investment of 
US$1 trillion is required in the infrastructure in India". 
 Question 57:  Are foreign companies welcome to bid on the award of India’s large infrastructure 
projects?  
Reply:  Infrastructure projects under different sectors are executed as per sectoral policies and it 
may include implementation through PPP model.  Question 58:  If so, do they face obstacles on the basis of their foreign status, e.g. such as price 
preference for Indian companies? 
Reply: As given in reply to 57. 
 PART II - ECONOMIC ENVIRONMENT: 2.6 MA JOR CHALLENGES; 2.6.3 INFRASTRUCTURE 
DEVELOPMENT, PARAGRAPH 2.35, PAGE 10: 
 It is noted that one of the major infrastructure initiatives announced for funding include a revitalization of the PPP mode of infrastructure development. 
 
Question 59:  Could India provide additional details as to how it plans to revitalize the PPP mode 
of infrastructure development? 
Reply:  In the Union Budget 2015-16, Finance Minister has announced that the PPP mode of 
infrastructure development has to be revisited, an d revitalized, in which the major issue involved 
is rebalancing of risk. In pursuance of this announcement, a committee has been constituted which 
aims at: 
 Review of the experience of PPP Policy, includ ing the variations in contents of contracts 
and difficulties experienced with particular variations/conditions, if any, 
 Analysis of risks involved in PPP projects in different sectors and existing framework of 
sharing of such risks between the projec t developer and the Government, thereby 
suggesting optimal risk sharing mechanism, 
 Propose design modifications to the contra ctual arrangements of the PPP based on the 
above, and international best practices and our institutional context, and 
 Measure to improve capacity building in Gove rnment for effective implementation of the 
PPP projects. 
 The Committee may consult various stake holders in the private sector, government 
sector, legal experts, banking/financial institutions and academia while firming up its 
recommendations. WT/TPR/M/313/Add.1 
 
- 42 - 
 
  PART II - ECONOMIC ENVIRONMENT: 2.6 MA JOR CHALLENGES; 2.6.3 INFRASTRUCTURE 
DEVELOPMENT, PARAGRAPH 2.36, PAGE 10:  It is noted that the five new Ultra Mega Power Projects proposed by the Government will utilize the 
"plug-and-play" mode and that other infrastructure projects in the future may also utilize this 
approach.  
Question 60: Could India provide additional informatio n on the "plug-and-play" mode that may 
be used for future infrastructure projects, including the clearances and linkages that would be in 
place before the project is awarded?  
Reply:  Ultra Mega Power Projects (UMPPs) are being promoted with a view of providing power to 
all at a reasonable rate and ensuring fast capacity  addition by Ministry of Power, Government of 
India as an initiative facilitating the developmen t of Ultra Mega Power Projects (UMPP) of  4000 
MW capacity each under tariff based international competitive bidding route. Project specific Shell Companies (Special Purpose Vehicles) as 100% subsidiaries of Power Finance Corporation Limited 
have been created for carrying out developmental works consisting of tie up of inputs /clearances 
and the bidding process for selection of developers for the UMPPs.  Various inputs for the UMPPs are tied up by the SPV with assistance of MOP & CEA for the sites which are identified by CEA in 
consultation with the State Government.  After all the inputs are tied-up, bids are invited through 
ICB route based on Standard Bidding Documents (SBDs) prepared by Ministry of Power and 
project developer is selected based on lowest tariff quoted.  Following five UMPPs are under active 
consideration for bidding: 
i. Odisha UMPP, Sundargarh Distt. In Odisha 
ii. Cheyyur UMPP, Kancheepuram distt. In TN 
iii. Bihar UMPP, Banka distt. In Bihar 
iv. Chattisgarh UMPP, Surguja Distt. In Chhattisgarh 
v. Second UMPP (Jharkhand), Deoghar distt. in Jharkhand 
PART II. ECONOMIC ENVIRONMENT: 2.6 MA JOR CHALLENGES; 2.6.3 INFRASTRUCTURE 
DEVELOPMENT, INDIA’S SPECIAL ECONOMIC ZONES SCHEME: PARAGRAPH 2.41, 
PAGE 11: 
 It is noted that India utilizes a Special Economic Zones Scheme to further the development of infrastructure facilities as part of its Make in India plan. 
 
Question 61:  Could India affirm that this Scheme  is consistent with WTO rules?  
Reply:   India considers that the Special Economic Zones which neutralizes the indirect taxes are 
consistent with the ASCM Agreement. India has no tified the "Preferential Tax Programmes" to the 
WTO. 
Question 62:  Could India explain what incentives ther e are for attracting private international 
investment in these zones? 
Reply : Fiscal benefits and duty concessions offered to SEZ Developers and units are attached 
herewith at Annexure-I.   
Annexure-I 
Fiscal benefits and duty concession offered to SEZ Developers and units :   
  
i. The incentives and facilities offered to the units in SEZs for attracting investments 
into the SEZs, including foreign investment include:-  
 Duty free import/domestic procurement of goods for development, operation and 
maintenance of SEZ units WT/TPR/M/313/Add.1 
 
- 43 - 
 
   100% Income Tax exemption on export income for SEZ units under Section 
10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years. 
 External commercial borrowing by SEZ units upto US $ 500 million in a year 
without any maturity restriction through recognized banking channels. 
 Exemption from Central Sales Tax.  
 Exemption from Service Tax. 
 Single window clearance for Central and State level approvals.  
 Exemption from State sales tax and other levies as extended by the respective 
State Governments.    
ii. The major incentives and facilities available to SEZ developers include:- 
 Exemption from customs/excise duties for development of SEZs for authorized 
operations approved by the BOA. 
 Income Tax exemption on income derived from the business of development of 
the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income 
Tax Act. 
 Exemption from Central Sales Tax (CST).  
 Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ 
Act). 
Question 63: Could India explain to what degree SOEs  will be involved in this scheme? 
Reply:  There is no special dispensation for SOEs under the SEZ policy.   
PART III. THE NEW REFORM AGENDA: (2) MAKE  IN INDIA: PARAGRAPH 3.3, PAGE 12: 
 
India’s report notes that the Make in India programme aims to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class 
manufacturing infrastructure, and that information on 25 sectors has been provided on a web 
portal along with certain details.  
Question 64: Could India explain whether and how the Make in India programme considers the 
role of imports of goods in the context of its objectives? 
Question 65: Does India view affordable and quality imports of goods as a mean to strengthen 
India’s competitiveness as result of, for instance, cheaper manufacturing inputs and increased competition to stimulate productivity of domestic industry; or alternatively, are imports perceived 
as an impediment to domestic manufacturing, whic h should ultimately be substituted by domestic 
production? 
Reply to 64 & 65 : "Make in India" initiative is not an attempt at import substitution and aims at 
improving competitiveness of Indian industry, maki ng India a global hub for manufacturing, design 
and innovation. Design and innovation are two important factors that promote manufacturing in 
a country in a big way. However, other inputs are also required for carrying out these manufacturing activities. These inputs are to be obtained at a competitive price whether from India or outside India.  
 
PART IV. TRADE POLICY: (1 ) FOREIGN TRADE POLICY: PA RAGRAPH 4.6, PAGE 14: 
 
India's report claims that import duties have b een autonomously lowered over the years, and that 
in most cases tariffs have been reduced rather than raised and have generally been continued at WT/TPR/M/313/Add.1 
 
- 44 - 
 
  the lower levels. However, paragraph 3.22 of the Secretariat report notes that India's simple 
average applied MFN tariff rose from 12% (in 2010-11) to 13% - with significant increases in tariffs for a number of agricultural products as well as transport equipment and a number of other non-agricultural products.    
 
Question 66: Could India explain this discrepancy between India's claims that tariffs have been 
reduced over years and the Secretariat's report whic h illustrates that India's average applied tariffs 
have in fact been raised?   
Reply:  While India's average tariffs have slightly increased in the period between 2010-11 and 
2014-15, however average tariff rates do not take into account the volume/v alue of trade under a 
specific tariff line. Accordingly, trade weighted  average could be a better indicator of the same. 
India's trade weighted average duties were 7. 0 [2012]. This compares favorably with trade 
weighted average duties of other comparable ec onomies. Further the collection rate of customs 
duty [computed as a ratio of total customs revenue collection to the value of the imports in a fiscal 
year] has reduced from 7.7% in 2010-11 to 6.1% in 2013-14. 
Question 67: Could India explain why tariffs on the aforementioned products have been 
increased? 
Reply:  While prescribing import tariffs on a good, the Government seeks to maintain a balance 
between the interests of consumers and domestic  industry manufacturing/producing that good. 
However, it would not be possible to specify reasons for individual policy decisions. 
PART IV. TRADE POLICY: (1 ) FOREIGN TRADE POLICY: PA RAGRAPH 4.7, PAGE 14: 
 
India's report notes that tariff policy will be fu rther optimised in order to take advantage of the 
manufacturing opportunities offered by regional  and global value chains, while retaining the 
necessary policy space to strengthen and develop domestic industry. 
 
Question 68: Could India explain specifically how it plans to optimize its tariff policy to take 
advantage of these manufacturing opportunities? 
Reply:  India does this through preferential/FTA and the policy is attuned to the domestic 
exigencies by incorporating necessary changes in Foreign trade Policy from time to time.  
Question 69:  Does India plan to reduce tariffs on certain products? If so, please provide 
examples. 
Reply:  While prescribing import tariffs on a good, the Government seeks to maintain a balance 
between the interests of consumers and domestic  industry manufacturing/producing that good. 
However, it would not be possible to give specific examples. 
Question 70: Does India consider raising tariffs on any products? If so, please provide examples. 
Reply:  While prescribing import tariffs on a good, the Government seeks to maintain a balance 
between the interests of consumers and domestic  industry manufacturing/producing that good. 
However, it would not be possible to give specific examples. 
PART IV. TRADE POLICY; (2) TRADE FACI LITATION MEASURES; PARAGRAPH 4.11; 
PAGE 15:  
It is noted that India recognizes the synergetic relationship between standards and trade and has 
initiated legislative and institutional reforms identified to harmonize domestic standards with international ones, wherever possible.  
 
Question 71: Could India provide details on the process undertaken, the reforms identified so far 
to harmonize domestic standards with international ones and the timelines for implementation? 
Reply:  The para 4.11 of the stated report does not mention about any reforms relating to 
harmonization of domestic standards with international standards. The harmonization of domestic 
standards with international standards is an evolving  activity and would continue to keep pace with 
the dynamic changes. WT/TPR/M/313/Add.1 
 
- 45 - 
 
  PART IV. TRADE POLICY; (3) TRADE POLICY CHALLENGES; PARAGRAPH 4.14; PAGE 15: 
 It is noted that India is concerned with the rising incidence of non-tariff barriers, such as sanitary and phytosanitary measures, technical barriers to trade and conformity assessment procedures 
required by trading partners, which they state add costs to India's exports and erodes price 
competitiveness.  
Question 72:  How is India reflecting its recognition of the potentially negative impact of non-tariff 
barriers on trade in the development and implementation of its own non-tariff measures? 
Reply:  It is being done through promoting awareness among stakeholders about non-tariff 
barriers and focus on trade facilitation. 
PART V. INDIA AND THE WTO: (1) WTO NEGOTATIONS: PARAGRAPH 5.3, PAGE 16: 
 
It is noted that India has undertaken a host of autonomous reforms with the objectives of 
simplifying laws and procedures, and ensuring greater transparency.   Question 73:  Could India explain if those reforms pertain to the pharmaceutical sector?   
Reply:  All autonomous reforms undertaken with the objective of simplifying law and procedures 
are applicable to all sectors including pharmaceuticals.  
 
Question 74:  Could India explain if the timelines related to the determination of the 
reimbursement price of subsidized medicinal products are aligned with the EU Transparency 
Directive?   
Reply:  The Government does not subsidize the prices of those medicinal products whose prices 
are controlled by NPPA under the DPCO, 2013 issued under powers of the Essential 
Commodities Act. 
 PART V. INDIA AND THE WTO: (1) WTO NE GOTIATIONS: PARAGRAPH 5.6, PAGE 16: 
 
India's report notes that India is in the process of finalizing its categorization of commitments under the TFA and would be filing the notification in keeping with its provisions.  
Question 75:  Could India provide a tentative date for notifying its Category A commitments to 
the WTO? 
Reply:  India is in the process of finalizing its categorization of commitments and the date for 
notification will be decided by the competent authority. 
 
PART VI. REGIONAL AND BILATERAL ARRA NGEMENTS:  PARAGRAPH 6.2, PAGE 17:  
 
Paragraph 6.2 of the Report (page 17) notes that "India has concluded 11 free trade agreements 
(FTAs) and 5 limited scope preferential trade agreements and is in the process of negotiating/expanding 17 more agreements." It then goes on to list a number of these agreements and negotiations, including with the Canada, the European Union, the EFTA countries (paragraph, 
Australia, and New Zealand, as well as the Regional Comprehensive Economic Partnership (RCEP). 
 Question 76:  With regards to these new and ongoing negotiations, including with trading partners 
such as the European Union, could India inform as  to whether there have been any changes in its 
approach to environment and sustainable developm ent provisions in trade agreements since the 
2011 TPR?  
Reply:  Under India-EU BTIA, a Chapter on SD is being included wherein it is committed to pursue 
the objective of sustainable development, whose pillars – economic development, social 
development and environmental protection – are interdependent and overarching objectives and 
essential requirements of sustainable development. The aim is to strengthen trade relations and cooperation in ways that promote sustainable development. 
 
Question 77: Has India expanded its approach to such agreements to encompass environment 
and sustainable development provisions, for example commitments similar to those found in the WT/TPR/M/313/Add.1 
 
- 46 - 
 
  India-Japan Comprehensive Economic Partnership Agreement? If so, can India provide more detail 
on what type of environment and sustainable develo pment provisions it would be seeking? If not, 
can India explain what makes the agreement with Japan unique?  
Reply:  Sustainable development in India-EU BTIA is being negotiated wherein it is committed to 
pursue the objective of sustainable development,  whose pillars- economic development, social 
development and environmental protection- are interdependent. The aim is to strengthen trade 
relations and cooperation in ways that promote sustainable development. WT/TPR/M/313/Add.1 
 
- 47 - 
 
  CANADA 
ADDITIONAL QUESTIONS 
Follow up question to India's reply to question 8 on page 24 of RD/TPR/432: 
 
Question 1 : If municipal licensing requirements for starting a business are not covered by the 
services of the eBiz portal, what is the typi cal timeline for being granted these licenses? 
 
Reply:  Different municipal licensing bodies will have their own separate timelines for granting 
licenses required for starting a business.  Follow-up question to India's reply to question 27 on page 29 of RD/TPR/432: 
 
Question 2: India states that import conditions of livestock and livestock products are based on 
OIE standards. For imports of live swine, India requires country-freedom or compartmentalization 
for Porcine Reproductive and Respiratory Syndrome (PRRS), which according to OIE reports, 
has occurred in India in 2014. Can India explain how its requirements are based on the OIE Terrestrial Animal Health Code? 
 
Reply:  India has revised the condition for PRRS wherein the present revised health certificate 
requires that the swine can be sourced from  country/zone or compartment free from PRRS. 
 
Follow-up question to India's reply to question 39 on pages 33 and 34 of RD/TPR/432: 
 Question 3 : Could India please provide more informat ion and clarify Section 83 of the Indian 
Patent Act and their position in light of TRIPS Article 27, which states: "…patents shall be available 
and patent rights enjoyable without discriminatio n as to the place of invention, the field of 
technology and whether products are imported or locally produced "? [Emphasis Added] 
 
Reply:   The interpretation of the term "working of a patent" has been dealt with in the Bayer vs 
Natco Compulsory License case by the Intellectual Property Appellate Board (IPAB) which was later upheld by the High Court of Bombay. The hon'ble court stated that "…when a patent holder is 
faced with an application for compulsory license, it is for the patent holder to show that the 
patented invention/drug is worked in the territory of India by manufacture or otherwise. Manufacture in all cases may not be necessary to establish working in India as held by the 
Tribunal. However, the patent holder would nevertheless have to satisfy the authorities under the 
Act as to why the patented invention was not being manufactured in India keeping in view 
Section 83 of the Act. This could be for diverse reasons but it would be for the patent holder to 
establish those reasons which makes it impossible/prohibitive for it to manufacture the patented 
drug in India. However, where a patent holder satisfies the authorities, the reason why the patented invention could not be manufactured in India then the patented invention can be considered as having been worked in the territory in India even by import. This satisfaction of the 
authorities is necessary particularly when the petitioner admittedly has manufacturing facilities in 
India."  
Follow-up questions to India's replies to questions 76 and 77 on page 44 of 
RD/TPR/432:  
Question 4:  Can India provide more detail on the provisions that will be included under the 
"environmental protection" pillar in the India-EU BTIA Sustainable Development chapter? Is India 
considering or negotiating similar provisions with other trading partners?  
Question 5:  The EU defines Sustainable Development as growth in trade that is in tandem with 
the environment, social and labour rights. Can India elaborate on how labour rights will be 
included in the Sustainable Development chapter that is being negotiated with the EU? 
 
Replies to 4 & 5:  India is of the view that there are alternative fora to discuss social issues 
including matters related to labour and environmental standards and that all the free trade WT/TPR/M/313/Add.1 
 
- 48 - 
 
  agreement should focus on trade related issues  only. Further, the chapter on Sustainable 
Development is still under negotiations and text will be finalised once the India-EU BTIA is 
negotiated.  
Negotiating provisions with different trading partne rs would vary , based on mutual trade interests 
as well as the negotiating mandate.  WT/TPR/M/313/Add.1 
 
- 49 - 
 
  CHILE 
Standards and other technical requirements 
Technical regulations  
Question 1:  What is the minimum period of entry into force of technical regulations?  Are the 
defined at the central level?  
Reply:  N o  s u c h  m i n i m u m  p e r i o d  o f  e n t r y  i n t o  f o r c e  o f  t e c h n i c a l  r e g u l a t i o n s  i s  d e f i n e d  a t  t h e  
Central level. Reasonable time is ho wever provided for entry into force. 
 Question 2: Is there a standard process for the developm ent of technical regulations to be met by 
competent agencies? If so, what is the legal instrument in which it is defined? 
 Reply:  The process of development of technical regulation is met by competent agencies as per 
the provisions of concerned legal instrument, under which technical regulation are notified.  
Although BIS Act is used as legal instrument in many cases but there are different legal instruments also. 
 
Question 3:  Is there a mechanism for internal coordination between the BIS and regulatory 
bodies to fulfil their obligations under the WTO TBT Agreement?  
Reply:  BIS regularly interacts with Regulatory Bodies and Ministry of Commerce, the nodal 
ministry for WTO matters in India, in different forums. 
 
Certification and conformity assessment 
 Question 4:  India recognizes foreign certifications?, if so, in what sectors? 
 
Reply:  I t  d e p e n d s  o n  e a c h  r e g u l a t o r .   I t  i s  n o t  a u t o m a t i c .  F o r  e x a m p l e ,  f o r  c o m p o n e n t s  o f  
Electronic and IT equipment, the test reports of IECEE CB and certification of foreign certification bodies are accepted by BIS and BIS recognised laboratories. 
 
Accreditation  
Question 5 : Is it a requirement that laboratories must be accredited by the NABL or is it 
voluntary?  
Reply: NABL accreditation program is voluntary in nature. 
 Question 6: Do all regulatory agencies recognize NABL accreditation? 
 
Reply: Most of the regulatory agencies recognise NABL accreditation. 
 Labelling 
 
Question 7 : How is India's participation in international metrology? 
 
Reply:  India is signatory member of metric convention and International Organization of Legal 
Metrology.   Intellectual Property Rights 
 
Paragraph 3.250:   
Question 8: A re there any Special Provisions Regarding homonymous Geographical Indications? 
 Reply:  Yes. Section 10 of the Geographical Indications of Goods (Registration & Protection) Act, 
1999  allows registration of homonymous GIs if the registrar is satisfied after considering the 
practical conditions under which the homonymous indications in question shall be differentiated WT/TPR/M/313/Add.1 
 
- 50 - 
 
  from the other homonymous indications and need to ensure equitable treatment of the producers 
of the goods concerned that the consumers of su ch goods shall not be confused or misled in 
consequence of such registration.  
Paragraph 3.265:  
 Question 9: What are the Provisions/Measures Regarding goods in -transit? 
 
Reply:  Border measures in respect of IPR enforcement as stated under notification dated 8
th May 
2007 and its subsequent modification vide notification dated 30th June 2010 does not apply to 
goods in transit and is restricted to import  of good meant for sale or use in India. 
 WT/TPR/M/313/Add.1 
 
- 51 - 
 
  CHINA 
WTO TRADE POLICY REVIEW OF INDIA 
2-4 JUNE 2015, Geneva  
Part I.  Questions based on Report  by the Secretariat (WT/TPR/S/313) 
1. ECONOMIC ENVIRONMENT 2 . TRADE AND INVESTMENT REGIME 
2.4  INVESTMENT REGIME 
 Page 31, Para 2.30.  
"Ministry of Commerce and Industry (DIPP) indi cates that some 16 steps must be completed 
before an investor can establish a company. ...T o streamline the process, the Government through 
the DIPP is establishing "eBiz", a web-based port al which is a one-stop shop for delivery of 
services to investors by the Government which is expected to address the needs of business from 
inception through its lifecycle. This is expected to significantly reduce the amount of time and money spent by investors in obtaining licences to start a business. According to the September 
2014 "Make in India" initiative of the new Government, all Central and State Government 
departments and ministries were expected to be integrated in eBiz by end-2014. ..."  Question1: To what extent will the initiatives of "Make in India" and "eBiz" reduce the amount of 
time and streamline the procedures for examinatio n and approval? What are the expected results 
of implementation?  
 
Reply:  The eBiz portal with a facility to obtain information on the number of permission/approvals 
required to be obtained for starting a business from Central, State and para-statal Governments is operational. Also, the eBiz platform with a provision to apply online for a Central Government 
service, pay online, re-submission in case of defi ciency(ies), status tracking and SMS functionality 
is also operational with 14 Central Government services. The integration of 12 additional services are in advanced stages. In addition, the integration of 5 additional central Government services and roll-out of 24 state Government services in the pilot states of Delhi, Odisha, Rajasthan, 
Maharashtra, Tamil Nadu, Punjab, Haryana, Uttar Pradesh and West Bengal has commenced and 
the same is at various stages of implementation. Thus, the portal is currently operational with 14 Central Government services and is expected to be fully operational along with State Government 
services during the year. It will lead to reduction in time and cost. 
 Page 31, Table 2.3 Industries for which in dustrial licences are compulsory, 2014. 
 
Cigars and cigarettes of tobacco and manufactured tobacco substances (new licences for which have been discontinued since 1999 on health grounds)  
Question 2: Please enumerate the government regulatory authorities whose special licensing is 
required before one can engage in the processi ng of tobacco products. Are there any special 
restrictions imposed on non-residents of India as to the obtaining of such licensing?  
 
Reply:  Under I (D&R) Act, 1951 the manufacturing activity pertaining to Cigars and cigarettes of 
tobacco and manufactured tobacco substitutes is one of the compulsory licensable items. However, 
since 1999 no Industrial Licence has been issu ed by this Department for manufacture of 
Cigarettes, Cigars, cheroots, Cigarillos on health ground. Presently, Foreign Direct Investment is 
prohibited in manufacture of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. 
 
Page 32, Para 2.36.  
India's foreign investment policy has been consolidated in the Circular on Consolidated FDI Policy 
which is updated every year by the DIPP; the la test version available has been updated up to 
17 April 2014. 
 WT/TPR/M/313/Add.1 
 
- 52 - 
 
  Question 3: Please further elaborate on the main revisions made to the Circular on Consolidated 
FDI Policy? Have the restrictions for foreign investment in the railway and architecture sector been relaxed?  
 
Reply:  India's foreign investment policy has been consolidated in the Circular on Consolidated FDI 
Policy read with relevant sectoral guidelines.  The FDI Policy is updated every year by the DIPP; the latest version available has been updated up to 12 May, 2015 and details can be seen at the 
department's website.   
 Policy on rail infrastructure through Domestic and Foreign Direct Investment has also been liberalized, permitting 100% FDI under the automatic route in construction, operation and 
maintenance of specified rail infrastructure projects. 
 In architecture services, FDI is allowed, subject to sectoral guidelines and relevant regulations of 
Council of Architecture. 
 Page 34, Para 2.43. 
 
"A number of investment incentives are provided both by the central and State Governments to encourage investment in certain regions or activities (Section 3.3.1). In September 2014, the Government launched the "Make in India" programme which encourages investment in industry 
and services" 
 Question 4: Please introduce the investment incentiv es under the "Make in India" programme, 
the expected schedule of implementing thes e incentives, and the differences in their 
implementation among various states and autonomous regions?  
 
Reply:  The "Make in India" initiative does not have any financial incentives build in it. A number of 
administrative ministries, as well as, Ministry of MSME are providing financial incentives to new and existing units. These incentives for 25 thrust sectors are provided on web site http://makeinindia.com . Government of India is already working on all pillars of "Make in India" 
initiative by simplifying regulation, creating infrastructure and opening up economy for FDI. A 
number of initiatives have been taken to improve Ease of Doing Business. FDI has been liberalized in Defence, Construction, Medical Devices, Railway Infrastructure and Insurance Sectors. 
 
3.TRADE POLICIES AND PRACTICES BY MEASURE  
Page 73, Para 3.153. 
 
"With a view to promoting trade and investment, the Exim Bank provides Indian exporters with export credits on a cost-plus basis at market-relat ed interest rates. The Exim Bank also provides 
finance and export support to EOUs (in the form  of loans, working capital marketing support, 
export product development, export facilitation , and import finance) and value-added services 
(e.g. advice and marketing services aimed at evaluating international risks and export opportunities). .." 
 
Question 5: In providing export credits, does the Ex port-Import Bank of India apply the same 
term and interest rate as other financial institutions engaged in the business? Does the 
government grant policy subsidies or support to the Export-Import Bank of India when the latter 
provides credits?  
 Reply:  Exim Bank, in terms of its legislative charter,  is required to be run on business principles 
with due regard to the public interest. The Bank is profitable, having recorded a post-tax profit in 
every year of its existence, and also pays every year a return on capital to the Government of India @ 10% of its average paid up capital. Export credit is provided to Indian exporters by Exim 
Bank and other commercial banks, at market related interest rates. While there are no 
administered interest rate mechanisms in India for export credit, interest rates are derived by 
Exim Bank, as well as the commercial banks, based on resource cost, risk perceptions and internal 
risk-pricing models.  
 The Government of India does not grant policy subsidies or support to the Export-Import Bank of India when it provides credits to Indian exporters.  
 WT/TPR/M/313/Add.1 
 
- 53 - 
 
  Question 6: Are fees charges for the "value-added services (e.g. advice and marketing services 
aimed at evaluating risks and export opportunities)" mentioned here?  
 Reply: The advisory and marketing services are provided on fee basis. 
 
Question 7: Export-Import Bank of India 是否有专门机构来评估风险及出口机会？  
 
Is there any department in the Export-Import Bank  of India dedicated to the evaluation of risks 
and export opportunities?  
Reply: There is no single department but rather a combinatorial approach. The Bank has a 
dedicated Research and Analysis Group which evaluates potential opportunities at macro level, and a Marketing Advisory Services Group, which ar e primarily engaged in providing value-added 
services at firm level. However, the fee-based advisory services are provided drawing expertise 
from other departments as well, on need basis. The Bank's Risk Management Group evaluates the risk profile of opportunities from a strategic and organizational point of view. 
 
Page 73, Para 3.154.  "The Exim Bank also provides various export  guarantee schemes and fee-based services to 
support international trade and investment, and conducts related research." 
 Question 8: What specific support measures does the Export-Import Bank of India provide? What 
is the share of the Bank's support to relevant business in its total business volume?   
 Reply:  In addition to the funding support, Exim Ba nk of India provides non-funded support, such 
as issuance of performance guarantees, financial guarantees, advance payment guarantees, 
retention money guarantees, letters of credit et c. The non-funded support accounts for about 11% 
of total customer business volume (loans + non-funded support) as on March 31, 2015.  
 
Page 73, Para 3.157. 
 " I n s u r a n c e  a g a i n s t  e x p o r t  c r e d i t  r i s k  i s  p r o v i d e d  b y  t h e  E C G C  L i m i t e d  ( f o r m e r l y  k n o w n  a s  t h e  
Export Credit Guarantee Corporation of India Ltd.)... ...The National Export Insurance Account 
(NEIA), operated by ECGC, covers export credit risk for large, medium- and long-term overseas 
projects that are deemed commercially viable an d strategically important from an economic and 
political point of view, but fall beyond ECGC's underwriting capacity and are not backed by 
reinsurance. Under the NEIA scheme, 22 projects with a value of around Rs 170.7 billion were 
covered."  
Question 9: Regarding ECGC, the government institution providing insurance against export 
credit risk, and the NEIA operated by ECGC, please elaborate on the conditions for an project to be 
incorporated into the NEIA (e.g.: commercial viability, strategic importance from an economic and 
political point of view, exceeding ECGC's underwriting capacity or what?).  
 Reply:  The criteria needed to be fulfilled to  receive NEIA support are as follows: 
 
i. The project by itself should be commercially viable. In NEIA those projects are 
supported where the exporter should be expected to earn profits and done on 
commercial terms. 
ii. The project should be strategically important for India, with regard to the economic 
and political relationship of India with the project country. 
iii. (iii)The exporter should be capable of execut ing the contract, as shall be evident from 
his previous track record. The capability of th e exporter is assessed to ensure that he 
has the necessary expertise for executing the project. 
iv. ECGC is not able to cover the project on its own, due to its underwriting capacity 
constraints. It is difficult to cover risks taking into account the long repayment period, 
the large value of the contracts, the difficul t economic and political conditions of the WT/TPR/M/313/Add.1 
 
- 54 - 
 
  country and the fact that the commercial reinsurance cover is generally not available 
in such cases. 
Question 10: Do the same terms apply to the projects wi thin the NEIA and ordinary ones in an 
insurance (particularly in terms of the crit eria for insurance approval and the rates)?  
 
Reply: The assessment and appraisal of the project viz. project risk, country risk, buyer risk is the 
same whether the project is covered under NEIA or under ECGC. The method and parameters of 
assessment will be similar; however, the rates may be different. For ECGC cover, we fix the 
premium rate according to the country grouping and the length of credit. Under NEIA, for covers where NEIA offers guarantees to ECGC, the rates are as per ECGC premium schedule.  
Question 11: Does ECGC provide credit insurance pr oducts for spot exchange engineering 
projects within 1 to 3 years? Can this kind of insurance policy be used by exporters for fundraising?  
 
Reply: ECGC does not have any policy for such transactions.  
 
Question 12: When an exporter plays both roles of an investor and a building contractor, what's 
the optimal mix of ECGC policy products for full-risk coverage for an exporter?  
 Reply: When an exporter invests in a joint ventur e abroad, ECGC offers overseas investment 
insurance covering political risks only. In case the exporter also executes supply contracts or 
construction contracts, ECGC will cover such re ceivables separately under its policy for covering 
receivables under such a contract against comprehensive risks. 
 
Page 73, Para 3.159.  
"Direct or explicit subsidies as reported in the Central Government's Annual Budget amounted to 
Rs 2,667.0 billion (2.1% of GDP) (Table 3.18). The bu lk of India's explicit subsidies continue to be 
aimed at supporting agriculture, promoting food se curity and reducing poverty. Most of the outlays 
are allocated to food, fertilizers and petroleum. Food subsidies are provided by the Department of 
Food and Public Distribution to meet the differe nce between actual prices and the central-issue 
prices fixed under the Targeted Public Distributi on System (TPDS) and other welfare schemes. The 
central Government also provides a subsidy to the Food Corporation of India to keep buffer stocks 
of wheat and rice as a food-security measure." 
 Question 13: Are there any incentives for the pharmaceutical industry in India, particularly are 
their corresponding support policies for the bi omedicine industry? Please elaborate if any.  
 Reply:  No subsidies are being provided to the pharmaceutical industry in India.  
 
Question 14: Please clarify whether the foreign investor can directly invest in the essential 
medical corporations? Please provide a list of the essential medical corporations?  
Reply:  As per the existing Foreign Direct Investment Policy, all investments in Brownfield 
pharmaceutical companies are through Government approval route and government while approving the investment may consider imposing certain conditions on a case to case basis.   
There is no essential medical corporation in India.  The pharmaceutical companies are mainly in 
the private sector which produces different sets of essential medicines which are sold in the domestic market at prices equal to or lower th an those fixed by the National Pharmaceutical 
Pricing Authority (NPPA).  
 
3.1.1 Customs procedures and requirements  
Question 15: The Indian Customs adopts the systems of  self-assessment by enterprises and risk 
management. Does this policy apply to the exporting enterprises that need to obtain an license?  How is the Customs' regulation conducted?  
 
Reply :  Yes, self-assessment is mandatory for all exporters. Every exporter is required to self-
assess the duty and the same may be verified by proper officer of Customs. In case of any discrepancy, the assessment made by exporter may be re-assessed by the officer of Customs. WT/TPR/M/313/Add.1 
 
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  3.3.2Competition policy and price controls 
 Page 76, ,Para3.170.   
The Competition Commission of India (CCI), established under the CCI Act 2002, is responsible for 
preventing practices having an adverse effect  on competition, promoting and sustaining 
competition in markets, protecting the interests of consumers and ensuring freedom of trade 
carried out by other participants in the markets in India. It has powers of inquiry and enforcement, 
and may impose penalties for non-compliance with its procedures. The CCI may also take remedial actions to deal with anti-competitive agreements and abuse of dominant position, and impose penalties of up to 10% of the average turnover of  an enterprise for the three preceding financial 
years.  
 Question 16: Please introduce the main functions and the internal organization of CCI. How is 
"average turnover of an enterprise for the three preceding financial years" determined?  
 Reply: The main functions of CCI are to eliminate practices having adverse effect on competition, 
promote and sustain competition, protect the intere sts of consumers, and ensure freedom of trade 
carried on by other participants, in markets in India.  As per the Competition Act, the Competition Commission of India (CCI) shall consist of a 
Chairperson and not more than six other Member s to be appointed by the Central Government. 
There are various Divisions headed by the Advisors to help the Commission in carrying out its activities. These Divisions are Anti-Trust Division, Economic Division, Legal Division, Combination 
Division, Investigation Division , Advocacy Division and Capacity Building & International 
Cooperation Division. The CCI also has a Secretariat headed by the Secretary which acts as a link between the Commission and the outside world. To undertake investigation of various alleged 
cartel and abuse of dominance cases, there is a separate investigating arm in the form of office of 
Director General.  As per the Act, average of the turnover for the last three preceding financial years is to be 
considered. Turnover includes value of sale of goods or services. 
 Page 77, Para 3.170.  
 
The authorities state that the CCI is an independ ent body; it has full functional autonomy as a 
competition regulator in India, furnishes its annual report which provides a full account of its 
activities to the Government, and is subsequently placed before the Parliament. 
 Question 17: Does CCI coordinate with other competent government authorities when reviewing 
M&A cases and how? What impact will the views of other authorities have on the decisions of the 
competition regulator?  
 Reply: While reviewing M&A cases CCI may take opinion of other Statutory/government 
authorities/sectoral regulators, if need arise. However, opinion given by Statutory/government 
authorities is not binding on the CCI.  
Page 77, ,Para 3.171. 
 Legislation dealing with competition issues in India includes the Competition Act 2002, the Competition (Amendment) Act 2007, the Competition (Amendment) Act 2009, and various 
regulations issued by the CCI. 
 Question 18: Please introduce the procedure for amending the Competition Act.  
 
Reply: Competition Act is a central government (feder al) Act. Like any othe r central government 
Act, the Competition Act can also be amended in a manner as prescribed in the Constitution of 
India. To amend the Competition Act, an amendmen t bill may be introduced in any house of the 
parliament. Once, both houses of parliament passes the bill, it goes to the President of India for 
his assent. After the assent of the President of In dia, the amendment bill becomes an Act. The Act 
is notified by the Central government. Provisions of the Act become operational from the date of 
notification, unless otherwise mentioned. WT/TPR/M/313/Add.1 
 
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  Page 77, para. 3.172.  
 The purpose of the CCI (Procedure in Regard to the Transaction of Business Relating to Combinations) Regulations 2011 is to provide deta iled procedures to be followed in case of 
combination matters (e .g. merger review). 
 Question 19: Does simple procedure apply to M&A review in India? What are the criteria for its 
application? What is the proportion of the cases subject to simple procedure in the total?  
 Reply: As per the Act, any Combination (M&A), which is not specifically excluded within the 
provisions of the Act or Regulations and which is above the threshold limit as prescribed under the 
Act, must be notified to the CCI. To facilitate timely approval of Combination cases, the Act 
provides for a maximum period of two hundred and ten days within which a proposed Combination 
gets approval. However, CCI has a self –imposed limit to clear cases within 180 days on best 
endeavour basis. As per provisions in CCI (Procedure in Regard to the Transaction of Business 
Relating to Combination) Regulation, 2011 (" Combination Regulations "), the Commission has to 
form a prima facie opinion on appreciable adverse effect on competition (AAEC) within 30 days and 
only those cases in which the Commission has prima facie AAEC concern(s), a detailed 
investigation is carried out. However, so far detailed investigation has been carried out only in respect of two cases out of 258 combination notices finalised by the Commission till date (18
 May 2015).  
 
All combinations (M&A) cases which are notified to the CCI are subject to the same procedure as mentioned in the Combination Regulations. The Regulations detail the procedure relating to filing, 
filing fees, forms to be used, time limits etc. and also as to how a proposed Combination case is 
dealt within the CCI.  
Page 77, para. 3.175.  
 Between May 2009 and December 2014, the CCI received 557 cases (excluding combination filings as described in the next paragraph). As at 31 December 2014, 283 cases (out of 557 cases) were 
closed at the prima facie stage…. in the same period, there were 58 cases (including combination 
cases) where penalties were imposed, the total amount of the penalty amounting to Rs 124.7 billion. 
 
Question 20: Please introduce some cases typical in nature or with big social impact, particularly 
those involving international cartels.  
 
Reply: CCI has not dealt with any international cartel so far. Few of the cases dealt by CCI which 
have social impact or are typical in nature belong to pharmaceuticals, energy, automobiles and real estate sector. All the Orders passed by the CCI are available at www.cci.gov.in . 
 
Page 384, para. 3.207.  
India's National Manufacturing Policy, while defining the functions of the Technology Acquisition 
and Development Fund, has stated that the Fund will have the option to approach the Government for issue of a Compulsory Licence for the technology which is not being provided by the patent 
holder at reasonable rates or is not working in India to meet the domestic demand in a satisfactory 
manner.  Question 21: Is the Technology Acquisition and Development Fund a government institution or a 
private one? Can the Fund directly approach the Government for issuing a Compulsory License as 
a petitioner? What other functions does the Technology Acquisition and Development Fund have?  
 
Reply : TADF is being managed by Global Innovation and Technology Alliance (GITA) which has 
been promoted jointly by CII and Department of  Science and Technology. The functions of the 
TADF have been explained in Chapter 4 of  the National Manufacturing Policy.    
 
Page 85, para. 3.214  This was subsequently followed by the implemen tation of a Plan Scheme for "Modernization 
&Strengthening" of IP Offices (2007-11). Under the scheme, new posts of patent WT/TPR/M/313/Add.1 
 
- 57 - 
 
  examiners/controllers have been created. Procedures were also streamlined and at present the 
functioning of the IP Office is completely e-enabled. However, due to high attrition rates and the time-lag involved in recruitment, the situation of applications pending did not really improve. The scheme has been continued in the Twelfth Plan (2012-17). 
 
Question 22: How long does the examination of a patent application with the IP Offices take on 
average? In addition to recruitment and e-enablin g the IP Office, what other measures has the IP 
Office adopted to improve the examination efficiency and reduce the backlog of applications in its 
Twelfth Plan (2012-17)? Have measures been take n to tackle the leaving of examiners and their 
recruitment?  
 
Reply:  At present, the examination of applications  is done in 35-75 months from the time of 
receipt of the Requests for Examination depending upon the Group of Examination and Patent Office locations. 
 
With a view to speed up the disposal of patent  applications, additional 252 posts of Examiners 
and 76 posts of supervisory officers (Controllers) have been approved by the Government in the 
12
th Plan. The Government is making all out efforts to complete the recruitment of all the vacant 
posts of Examiners and Controllers in the current year itself.    Besides, as a short-time measure, 263 Contract Ex aminers of Patents (equally qualified as regular 
Examiners) are also being recruited and their process of selection is ongoing. Further streamlining 
the functioning of Patent Office by simplifying the patent procedures and regulations along with 
inculcating more automation and IT enablement in the patent work-flow has been accorded top 
priority. 
 With this enhanced manpower and the measures initiated by the office for better functioning 
including further automation ,it is expected that the pendency of applications (pendency of 
requests of examinations) will reduce to the leve l of  about 24 months from the date of filing 
request  of examination.   
Question 23: Is there an accelerated examination system for patent application in the IP Office? 
If not, does the IP Office consid er establishing such a system?   
 
Reply:  There is no accelerated examination system for patent application in the IP Office at 
present. However, all pros and cons of the issu e including possible fallouts of introducing the 
accelerated examination system in view of the country's patent system is under study.  
 
4 TRADE POLICIES BY SECTOR  4.1 Agriculture  
Page 102, Table 4.2 Agriculture sector schemes/programmes, 2014 
 Question 24: Regarding the RKVY program, please explain how the government is promoting 
public investment in agriculture. Does the governme nt provide preferential loan to private entities? 
Does the government have differe nt incentives for investing in different agricultural products?  
 
Reply:  Rashtriya Krishi Vikas Yojana (RKVY) which was launched in 2007-08, aims at enhancing 
public investment in agriculture with active participation of federal States and their district administrative units. To enhance public investment and sustain agricultural growth , the States are required to prepare district and state specific ag riculture plans each year for creation of agri- 
infrastructure depending on the priorities and agro-climatic requirements.  
 The Government does not provide any performance loans to private entities under RKVY.  There is 
no provision for providing different incentives for investing on different agri-products as RKVY is a 
project based scheme. The selection, prioritization  and implementation of activities within the 
projects of RKVY are decided by the schemes implementing States.     
 
Question 25 ：Please explain the operational details on input subsidies for fertilizers, power, water 
and seed. Does the government provide fund to farmers to pay for fertilizers, power and water, 
provide reimbursement or give fertilizers to farmers for free? 
 WT/TPR/M/313/Add.1 
 
- 58 - 
 
  Reply:  The government does not provide funds to the farmers.  Generally these inputs are 
provided to farmers at concessional rates , with the producer getting the price differential from the 
government.    
Question 26: Apart from input subsidies, are there any other internal support programs 
accounted for the "Development Box" in Agricultural Agreement? If so, please explain how these programs work.  
 
Reply:  A few small programmes such as improvement/breeding of livestock and poultry, loan 
under tea development, programme for replanting  of senile and uneconomic cardamom gardens, 
small farmers development assistance by Spices Board are also included in the "development box".   
These programmes are   intended to address the specific development needs of farmers in various 
sectors.  
4.4.1 Financial services 
Page 118, Table 4.6 Secu rities market, 2012-15 
 
Question 27: The table shows that on October 31, 2014,  the turnover of the Indian currency 
derivatives decreased from 1.1615 trillion dollars of the previous period to 446.7 billion dollars. 
What are the main reasons for such a drastic decrease?  
 
Reply:  The turnover of 1.1615 trillion dollars is fo r the full year (financial year 2013-2014); 
whereas the turnover of 446.7 billion dollars is for seven months period (April 01, 2014 – October 31, 2014). This is the main reason for the drastic decrease in figures. 
  
4.4.2 Telecommunications Page 121, Para 4.102 
 
Question 28: In April 2011, the Telecommunications Regula tory Agency of India (TRAI) issued 
proposals to promote domestic telecom equipment manufacturing. The proposals called for, inter 
alia, a certain percentage of telecom equipment be procured from India. Are these proposals 
implemented? What steps are needed for the policies recommended to become law and be 
enforced? How will India ensure their consistency with India's trade obligations and regulations?  
Reply:  Government has notified policy for preferential market access for domestically 
manufactured electronics products in Government procurement or projects funded by Government 
consistent with WTO obligations. 
 
Part II.  Questions based on Polic y Statement by India (WT/TPR/G/313) 
 2 ECONOMIC ENVIRONMENT 
Page 9, para. 2.25 
 A new initiative to boost the export of services is the annual Services Conclave held twice so far. 
This is intended to bring all stakeholders on a single platform, identify issues and prepare a road 
map for the promotion of services exports.  
Question 29: Please provide more information about the Services Conclave.  
 Reply:  With a view to providing an interactive platform, the Services Conclave was organized for 
the first time in 2013. The primary aim of the Conclave is to address issues and bottlenecks 
affecting international trade, including the need for necessary domestic regulatory reforms in 
various service sectors and to develop a roadmap for augmenting international trade in consultation with concerned stakeholders. The conclave seeks to bring together all stakeholders, 
such as domain experts, academicians, industry practitioners as well as government 
representatives, under one umbrella for maximizing  benefit to industry, business and economy.   
Two editions of services conclaves have been held so far. These were organized during November 
2013 and November 2014 respectively.  The next edition of the Conclave is likely to be held on the 
sidelines of the Global Exhibition on Services scheduled during February 24-26, 2016.   WT/TPR/M/313/Add.1 
 
- 59 - 
 
  There is no specific website for the Conclave but the information about the conclave can be 
accessed on the website of the Department of Commerce, Ministry of Commerce and Industry, 
Government of India at www.commerce.nic.in . 
 
3 THE NEW REFORM AGENDA  
 Question 30: The Indian government is relaxing restrictions on and fields for FDI. Has the Indian 
government adopted relevant security review measures for foreign the investment in national 
defence and other sensitive industries?  Reply: Yes 
 
Page 13, Para 36  
Question 31: Please explain the policy considerations behind the "Labour-sector reforms" and its 
implementation effect, particularly regarding hi ring and sacking employees by foreign-invested 
enterprises.  
 
Reply:  In present economic scenario, in the referenc e of global competitiveness, liberalization of 
trade and industry, changes in the technology and methodology of the production their impact on 
the employment and the need of continuous upgrad ing of the skills for enhancing the employability 
& mobility, there is an utmost requirement of  revisiting and restructuring of the labour 
jurisprudence of the country.  
In the light of this background, following Policy considerations are identified for the labour reform: 
The emerging economic environment involving rapid technological changes, requiring response in terms of change in methods, timings and condit ions of work in industry, trade and services, 
globalisation of economy, liberalisation of trade and  industry and emphasis on international 
competitiveness and the need for bringing the existi ng laws in tune with the future labour market 
needs and demands;  
The minimum level of labour protection and welfare measures and basis institutional framework for 
insuring the same, in the manner which is conducive to a flexible labour market and adjustments necessary for furthering technological change and economic growth; and  
 
Improving the effectiveness of measure relating to social security, occupational health and safety minimum wages and linkages of wages with productivity.   
 
The Labour Laws in India do not make any distin ction between Indian Enterprises and of Foreign-
Invested Enterprises.  The provisions of Industrial Disputes Act, 1947 are to be complied before sacking the employees.  
 
4 TRADE POLICY 4.1 Foreign Trade Policy 
 
Question 32: Please describe the main differences between the latest Foreign Trade Policy and 
the current one?  
 
Reply:  Current Foreign Trade Policy (FTP) 2015-20 has been released and made effective from 
1.4.2015. Main differences between the current FTP 2015-20 and the last FTP 2009-14. is that the FTP 2015-20 has discontinued six export facilitation schemes and introduced the scheme 
"Merchandise Export from India Scheme (MEIS)". The discontinued schemes are: 
 
Focus Product Scheme (FPS) 
Focus Market Scheme (FMS) 
Market Linked Focus Product Scrip (MLFPS) Vishesh Krishi and Gram Udyog Yojna (VKGUY) 
Agriculture Incentive Scrip 
Incremental Export incentive Scheme.  
Details of the scheme and highlights of new initiatives are available at http://www.dgft.gov.in . 
 WT/TPR/M/313/Add.1 
 
- 60 - 
 
  Question 33: What are India's short-term and long-term foreign trade objectives? Has India 
conducted any assessment on how well the two object ives set in the latest FTP were achieved? Are 
there any useful experiences to draw from the implementation and amendments of the 2009-2014 
FTP in order to attain the 2015-2020 FTP objectives?  
 
Reply:  The Foreign Trade Policy for 2015-20 seeks to achieve the following objectives: 
 
 To provide a stable and sustainable policy environment for foreign trade 
 To link rules, procedures and incentives for exports and imports with other initiatives 
such as "Make in India", "Digital India" and "Skills India" 
 To promote the diversification of India's export basket 
 To create an architecture for India's global trade engagement with a view to expanding 
its markets and better integrating with major regions 
 To provide a mechanism for regular appraisal in order to rationalize imports and reduce 
the trade imbalance. 
Formulation of Foreign Trade Policy is the result of continuous interaction and consultation with 
stakeholders and internal assessment of economic situation.    
 
It would be evident from the facts that over last few years, India's merchandise trade increased manifold from US$ 488.99 billion in 2008-09 to US$ 764.6 billion in 2013-14.. Its ranking in terms of leading exporters and importers improved significantly. While India's total merchandise trade as 
a proportion of gross domestic product (GDP) increased to 41.8 per cent in 2013-14, India's 
merchandise exports as a proportion of GDP increased to 17.0 per cent during the same two time periods. The export performance was achieved despite the global uncertainty and volatility in 
global commodity prices since last few years.  
 Question 34: Is there any export subsidy recently implemented under the new Foreign Trade 
Policy which affected the textile industry? If yes, please provide detailed information.  
 Reply: In the new Foreign Trade Policy announced on 1 April, 2015, a number of schemes 
appearing in Chapter 3 has been removed, replacing it with a single scheme "MEIS" for the 
manufacturing sector including the textile industry . The details of the scheme are available in the 
public domain and can be seen at http://www.dgft.gov.in . 
 
Part III. Other Questions  
 Question 35: Are there any new facilitation policies in the Employment Visa and Project Visa for 
foreign workers?  
 Reply:  The details of the polices with respect to all types of visa for foreigners are available at the 
following link: http://mha1.nic.in/foreigDiv/OverviewVisa.html 
 
Question 36: Why are the investors from 7 countries required to get the pre-approval from the 
Indian Reserve Bank when purchasing land in India? Is this requirement consistent with MFN 
treatment in WTO? Are there any policy changes in this regard?  
 Reply: In terms of Regulation 7 of Notification  No. FEMA 21/2000-RB dated May 3, 2000 as 
amended from time to time, citizens from certain countries, without prior permission of the Central 
Bank of India, are not permitted to acquire or tr ansfer immovable property in India, other than 
lease, not exceeding five years, for reasons contained therein.   
Question 37: Does India have any plans to raise the import duties of power equipment? 
 Reply: Import duties on various products are a sovereign policy matter and the same is 
determined keeping in view various domestic factors, multilateral commitments etc.  
 WT/TPR/M/313/Add.1 
 
- 61 - 
 
  Question 38: What's the definition of infrastructure service provider and how is it different from 
internet service provider? Why does India maintain foreign ownership restrictions on the internet service providers without gateways? Does India plan to reflect in its services schedule the in existing elements in its domestic law? 
 
Reply:  The Infrastructure Provider is given registration by the Department of Telecommunications, 
Government of India to establish and maintain the assets such as Dark Fibres, Right of Way, Duct 
Space and Tower for the purpose to grant on lease/rent/sale basis to the licensees of Telecom 
Services licensed under Section 4 of Indian Telegraph Act, 1885 on mutually agreed terms and conditions.  In no case the Infrastructure Provider company shall work and operate or provide telegraph service including end to end bandwidth as defined in Indian Telegraph Act, 1885 either 
to any service provider or any other customer.   
 For providing Internet services, ISP Authorization under Unified Licence is required and the 
licensee is permitted to provide the services, as defined in Chapter IX on "Internet Services" of 
Unified license http://www.dot.gov.in/sites/default/f iles/Amended%20UL%20Agreement_0.pdf )  
It is clarified that 100% Foreign Direct Invest ment (automatic up to 49% and government route 
beyond 49%) is permitted for all the Telecom services including Internet Service Providers subject 
to observance of license conditions by investors and licensees.  With regard to scheduling of services, decision will be taken in consultation with all stakeholders as 
per Policy. 
 Question 39: On September 2013, an amendment to the Special Economic Zones was 
implemented, which was aimed at reducing the minimum land area requirement for setting up 
SEZ's in various sectors. Please provide information about the development of IT SEZs in different States concerned after the waivering of 10 Ha minimum land requirement. 
 
Reply: There is no minimum land area requirement for IT/ITES SEZs. The earlier minimum land 
requirement of 10 Hectares for IT/ITES SEZs has been waived vide notification dated 12
th August, 2013. There is however a built up area requirement of 1 Million sq. ft. for setting up 
of such SEZs.   
 Question 40: In the new amendment of the Special Economic Zones which was implemented on 
January 2015, Article 3 states that "The Department of Commerce has provided the following 
norms with respect to areas to be earmarked for residential, commercial and other social facilities…? Has the Department of Commerce or Board of Approval established any specific 
conditions for areas to be earmarked for residentia l, commercial...? If so, please provide relevant 
information.  Reply: No specific conditions have been laid by Department of Commerce/Board of Approval for 
areas to be earmarked for residential, commercial or other social facilities other than the 
conditions as specified under Notification GSR 5(E) dated 2
nd January, 2015. 
 
Comment 41: According to India's 1995 Act of Foreign Institutional Investors, a foreign institution 
belonging to "a common owner" or "a common beneficiary" is regarded as a single institution, on which a combined regulation is exercised, to prevent any single-source institution from 
substantially controlling a listed Indian company. We are very concerned with the judicial 
interpretation of "a common owner" and "a common beneficiary". For example, according to the present explanations by India, a foreign institution which is a state-owned or –sponsored investor but operates as a company and practices independent accounting is regarded as a "common 
owner" or "common beneficiary". We suggest that India amend the relevant clauses.  WT/TPR/M/313/Add.1 
 
- 62 - 
 
  CHINA 
FOLLOW-UP QUESTIONS 
Part I. Questions based on Report by the Secretariat (WT/TPR/S/313) 
 
Page 32, Para. 1.20 
 FDI inflows have been strong in services incl uding financial, banking, insurance, business, 
outsourcing, R&D, courier, and technical services, and the automobile industry and 
telecommunications   Question 1: Has India opened up all types of its courier business to foreign investors? Are foreign 
investors required to obtain governmental licensing when investing in courier services in India? If 
yes, please introduce the types of licensing and their corresponding procedures. What is the market share of foreign investors in courier service in India? Which are the relatively large 
domestic courier companies in India? 
 Reply:  FDI Policy pertaining to Courier Services is included in the Consolidated FDI Policy, 2015, 
available on the website of the Department  of Industrial Policy and Promotion ( www.dipp.nic.in ). 
The Government of India does not have data on the market share of foreign investors in courier 
service in India and regarding the large domestic courier companies in India.  
Page 32, Para 2.33 
 "…incentives for the NIMZ will include assistance with water and environment audits, easing access 
to finance, rationalization and simplification of business regulations…" 
 Question 2: Please elaborate on the incentive policies for water and environment audits in the 
NIMZ. 
 Reply:  Technology Acquisition and Development Fund  has been created under NIMZ for creation 
of a patent pool; incentivization of production of environment friendly machines/ equipment and of 
SMEs for adoption of environmental audit, water audit and waste water treatment practices. 
The detailed policy in this regard including incentives can be accessed at http://dipp.nic.in/English/Policies/Nation al_Manufacturing_Policy_25October2011.pdf . 
 
Page 32, Para. 2.34  
"In addition to compulsory industrial licensing and reservations for the public sector, 
environmental clearance under the Environment Protec tion Act, 1986, is required from the Ministry 
of Environment and Forests, for 29 industries prior to establishing industrial units."  
Question 3: Please introduce the content, issuing proc edures and regulations of environmental 
clearance.  
Reply:  These details are available at the following link: http://envfor.nic.in/legis/eia/so1533.pdf . 
 
Page 56, Para. 3.71 
 
Anti-dumping duty is not payable on products imported by units in special economic zones (SEZs) or export-oriented units (EOUs), or on products imported under the Advance Authorization Scheme. 
 
Question 4: Please briefly introduce the special economic zones, the export-oriented units and the 
Advance Authorization Scheme. Are there any exceptions to the above scenarios where anti-
dumping duty is not to be paid? 
 WT/TPR/M/313/Add.1 
 
- 63 - 
 
  Reply:  Details of the Special Economic Zones (SEZs), can be seen at www.commerce.gov.in  and 
that for Export Oriented Units (EOUs), and the Advanced Authorization Scheme can be seen at 
www.dgft.gov.in . As of now, the exception of payment of  anti-dumping duty is limited to these 
Schemes only. 
 
Page 57, Para. 3.72.  
There has been no change in India's legislation regarding countervailing measures since its 
previous Review. Countervailing measures may be imposed under the Customs Tariff Act 1975 Part 9) and the Customs Tariff (Identification, A ssessment and Collection of Countervailing Duty on 
Subsidized Articles and for Determination of Injury) Rules 1995. Investigations can be initiated 
only after an application is submitted before th e authority, and in the event the authority finds 
prima facie evidence of subsidy, injury and a causal link between the subsidized imports and alleged injury to the domestic industry. 
 
Question 5: We noticed that India initiated a countervailing investigation against Chinese wind 
generator set castings in 2014. The alleged multiple subsidy programs in the investigation 
application were simply assertion without any evidence of the existence of the subsidies, the 
amounts and nature of the subsidies, the injury and casual link between the subsidized imports 
and the alleged injury as required by the WTO Agreement on Subsidies and Countervailing Measures. Please explain the reasons. 
 
Reply:  The countervailing duty investigation was init iated based on the accuracy and adequacy of 
the evidence provided in the application filed by the domestic industry and where the evidence is 
sufficient. Prior to initiation as well as subsequently, opportunities have been provide to the parties 
for providing their comments along with the evidence. Final findings shall contain all the parameters required under the counter vailing duty (CVD) investigation. 
 
Page 60 , Para. 3.96  "…the BIS also grants licences to environment-friendly products under a special scheme and 
awards the ECO mark to such products." 
 Question 6: Please give details on the BIS's license-granting to environment-friendly products 
and the definition of "environment-friendly products ". Does India give priorities or incentives to 
products with ECO mark in government procurement?  
Reply:  The specific criteria for products cove red under eco-marking scheme are given at 
http://www.bis.org.in/cer t/prod_cert_scheme.asp . 
 
Page 78 Para. 3.175 
 
Between May 2009 and December 2014, the CCI received 557 cases (excluding combination filings as described in the next paragraph). As at 31 December 2014, 283 cases (out of 557 cases) were 
closed at the prima facie stage, 144 cases decided/disposed of after the report of the 
Director General (DG) of Investigation, 55 cases under consideration before the CCI, and75 cases under investigation before the DG. …the total amou nt of the penalty amounting to Rs 124.7 billion.  
 
Question 7: What are the major industries and sectors involved in the 557 cases received by CCI? 
What are the respective proportions of state-owne d enterprises, multinationals and other different 
business entities involved in these cases? 
 
Reply:  Cases received in the Competition Commission of India cover various sectors of the 
economy and are received from both small enterprises and multinationals. The major industries 
and sectors involved in the cases are Real Estate (25.24%), Film-TV Entertainment (7.7%), 
Banking/Insurance/Stock Exchange (5.9%), Health  & Pharmaceutical (5.08%), IT (3.9%) and 
Automobile (3.78%), Coal (2.6%), Petroleum/Gas (2.45%), Electricity (2.45%) and Civil Aviation 
(2.29%). 
 Competitive neutrality is one of the core principles of competition law in India and this principle is followed in letter and spirit. Accordingly, it is seen that a number of cases relating to state owned 
enterprises are filed with the Commission. WT/TPR/M/313/Add.1 
 
- 64 - 
 
  Page 87 Para 3.220.  
 The Indian patent office has issued patent examin ation guidelines to address a number of specific 
issues. However, while these guidelines provide guidance to patent examiners, they do not 
overrule the law, which would prevail in case of  conflict between the guidelines and the Patents 
Act.  
Question 8: What kinds of examination guidelines are issued by the Indian patent office in 
addition to those issued to address specific issues as mentioned in paragraphs 3.221-3.224? Do patent applicants have access to these guidelines?  
 
Reply:  No separate guidelines for examination of patent applications, other than those published 
by the Office in the website, have been publishe d and provided by the office of Controller General 
of Patents, Designs and Trademarks. Patent applicants have free access to all these Guidelines. 
There is also no question of any conflict arisin g between the guidelines and the Patents Act as the 
guidelines are always prepared within the framework and scope of the Patents Act.   
Page 96, Para3.261. 
 There is no specific legislation protecting test data submitted for obtaining regulatory approval of pharmaceuticals. The Drugs and Cosmetics Act of 1940 regulates the manufacture and marketing 
approvals for drugs and traditional medicines, while the Insecticides Act of 1968 addresses the 
manufacture and marketing approvals for agricultural chemicals (such as insecticides, fungicides and weedicides). However, there is no statute in place in India at this time for the protection of 
pharmaceutical, agrochemical and traditional medicine-related data against disclosure and reliance 
by third parties. Such test data is said to be protected under the Official Secrets Act. However, it is not clear how India implements the second obligat ion under Article 39.3 of the TRIPS Agreement, 
which is in addition to the obligation to provide protection against disclosure, namely, protection of 
such data against unfair commercial use.  Question 9: What is the policy of India towards opening its domestic market of traditional 
medicine and accepting traditional medicine prod ucts and services from other countries? Does 
India have a timetable for the opening process in this regard?  
Reply:  Traditional medicine system in India follow s the well-established principles. The Ayurvedic 
Pharmacopia has already set standards and the products that meet those standards are accepted. The regulatory regime around these standards is also being developed to provide for a predictable 
and scientific regulatory regime. 
 Page 102, Table 4.2 Agriculture sector schemes/programmes, 2014 
 
Question 10:  Please illustrate the implementation of the agriculture sector schemes, for 
example, how the schemes are implem ented and what their effects are. 
 
Reply:  Agriculture is a State subject. State Governments have their own State schemes. 
However, schemes are also planned by Government of India to give broad directions to achieve 
overall goals like food security etc.  
 
The Department of Agriculture & Cooperation is implementing various missions/schemes which, inter alia, focus on productive infrastructure such as soil and water conservation, expansion and improvement of irrigation systems, market infrastr ucture, storage, farm credit and insurance. They 
include some of the following activities viz. esta blishment of cold storages; processing units; pack 
houses; pre-cooling units; controlled atmosphere storage; reefer vans; setting up of ripening chambers; strengthening facilities for production  and distribution of quality seeds; supply of 
quality planting material through establishment of nurseries; creation of infrastructure for 
post-harvest management; setting up of soil and fertilizer testing laboratories; setting up of bio and organic fertilizer units, etc. Further, Rashtriya Krishi Vikas Yojana (RKVY), which is a major 
scheme for incentivizing States to increase public investment in agriculture and allied sectors, has 
earmarked 35% of annual outlay under RKVY for infrastructure and assets.   The effect of implementation of schemes is eviden t in increase of productivity of major crops like 
rice, wheat, maize, pulses etc. WT/TPR/M/313/Add.1 
 
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  Page 105, Para4.29. 
 (AICI) implements the Government's National Agriculture Insurance Scheme (NAIS)  
Question 11: Please introduce the Agriculture Insurance Company of India Ltd (AICI) and the 
Government's National Agriculture Insurance Scheme implemented by AICI, such as the varieties of crops covered by the insurance, the percentage of insurance premiums paid by the farmers, etc. 
 
Reply:   
 National Agricultural Insurance Scheme 
 To enlarge the coverage in terms of farmers (loanee and non-loanee both), more crops and more risks, "National Agricultural Insurance Scheme (NAIS) was introduced in 1999-2000 in the country 
replacing the Comprehensive Crop Insurance Scheme (CCIS). The scheme is available to all the 
farmers - loanee and non-loanee both - irrespective of their size of holding. The NAIS has been 
implemented by 26 States and 2 Union Territories so far. 
 
The Scheme covers all the food crops (cereals, millets and pulses), oilseeds and annual commercial/horticultural crops, in respect of which past yield data is available for adequate number of years. The administered premium rates are charged which range from 1.5% to 3.5% of 
sum insured for food and oilseed crops for normal sum insured and indemnity level. In the case of 
commercial/ horticultural crops, higher sum insured & indemnity than the normal, actuarial rates are charged. Under the scheme, 10% subsidy in premium is available to small & marginal farmers. 
 
Agriculture Insurance Company of India Limited 
 
Agriculture Insurance Company of India Limited (A IC) was formed under the Indian Companies Act 
1956   in December, 2002.  It took over the implementation of the "National Agricultural Insurance Scheme" (NAIS) from General Insurance Company of India (GIC) as  AIC has been designated by the Government of India as the "Implementing Ag ency" of NAIS, the country-wide crop insurance 
program and insurance products relating to agriculture and rural and allied activities. AIC is under 
the administrative control of Ministry of Finance,  Government of India, and under the operational 
s u p e r v i s i o n  o f  M i n i s t r y  o f  A g r i c u l t u r e ,  G o v e r n m e n t  o f  I n d i a .  T h e  a c t i v i t i e s  o f  t h e  c o m p a n y  a r e  
governed by the Insurance Act 1938, regulati ons framed by Insurance Regulatory and 
Development Authority (IRDA), India and Company Act 1956 and other relevant laws from time to time in force. More detailed information about AIC of India is available at 
http://www.aicofindia.com/A ICEng/Pages/Default.aspx  
 
Part II.  Questions based on Polic y Statement by India (WT/TPR/G/313) 
 
Page 12, Para 3.2 
 "…The important measures that have been undertaken are:...processing of environment and forest 
clearances online; ..." 
 Question 12:  Please detail the procedures of processing environment and forest clearances 
online. 
 Reply:  Detailed procedure of environment and forest clearances online are available at the 
Ministry of Environment, Fo rests and Climate Change – www.envfor.nic.in . 
 
Part III. Other Questions   
Question 13: What kinds of national treatment are granted to foreign investors establishing 
advertising companies in India? Are there any special stipulations in the regulatory and legal system of advertising industry in India? If yes, please introduce such regulations, especially the 
new ones promulgated since 2012. 
 Reply:  Foreign investors establishing advertising companies in India are granted National 
treatment. The Consumer Protection Act, 1986, inter-alia, includes provisions relating to Unfair 
Trade Practices that includes misleading advertisements. All these regulations are applied on WT/TPR/M/313/Add.1 
 
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  national treatment basis. The Consumer Protection  Act, 1986, is available on the website of the 
Department of Consumer Affairs, Government of India.  Question 14:  How long will it take on average for a patent infringement lawsuit to be completed 
in India? How many hearings will take place for a case? Is there any requirement in Indian laws 
regarding the time limit of hearing a patent infringement case? Are there any channels for the parties to inquire the progress in the hearing of a case? Are there any clear standards regarding 
the issue of a ban by an Indian court in a patent infringement case? 
 Reply:  A patent infringement  case is heard and deci ded by the District Court or by the High Court 
in case of counter claim for revocation of patent, according to the standard provisions of the law 
for hearing and disposal of cases like other cases. There are no specific legal provisions or 
standards in the judiciary which can be invoked for imposing the fixed time-limit for completion of any law suit or fixing number of hearings required or for issuance of ban in a case involving patent 
infringement. The parameters like time for completion, number of hearings etc. may vary 
according to the merits of a case and issues brought before the court.  
The information regarding the progress of hearing in any case is generally available on the website 
of the concerned Court.   WT/TPR/M/313/Add.1 
 
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  COLOMBIA 
Report by the Secretar iat WT / TPR / S / 313 
 SUMMARY 
 
Paragraph 1 of the report of the Secretariat indicates that ... "During the period under review, India has continued its efforts to liberalize and facilitate trade, for example by establishing 
self-assessment in customs procedures and eliminating requirements on trade in some agricultural 
products applicable to State. India also has continued to make structural reforms, such as eliminating controls the price of diesel and the relaxation of restrictions on foreign direct investment (FDI) in some sectors. However, the tariff structure remains complex and the simple 
average MFN tariff rate has increased during the period under review. " 
 Paragraph 12 of the report of the Secretariat said  that ... "India's tariff is announced in the annual 
budget; however, tariff rates can be modified duri ng the fiscal year. In addition to the base rate 
tariff, importers must pay an additional duty and special additional duty in place of local taxes. 
To determine the tariff rate "effectively applied" corresponding to particular product (the basic 
duties and other duties) must consult different lists of customs duties and excise taxes, which 
accentuate the complexity of the tariff. India's tariff comprises mainly ad valorem rates (around 
94% of tariff lines), which are levied on the cif value imports, and some alternative or specific 
(6.1% of total tariff lines) rights." 
 
Question1:  What mechanisms have been adopted by the Government of India to simplify its tariff 
structure in line with the principles of predictability and transparency of the WTO? 
 
Reply:  The general rate of import duty on non-agricultural goods is 10% with a few exceptions. 
All notifications specifying changes in effective rates of duty are made publically available by 
placing on the Central Board of Excise and Customs website [ http://www.cbec.gov.in ]. As noted in 
the draft TPRB report, India's tariff is announced in the annual Budget; however, individual tariff 
rates may be changed during the fiscal year. In all cases, the details are published immediately on the official website. It is also possible to calculate the applicable rate using the "Duty Calculator" 
available on the website.  
 Paragraph 10 of the report of the Secretariat in dicates that ... "India has further streamlined its 
customs procedures and implementing trade fac ilitation measures. To that end, in 2011 the 
reverse was adopted in its customs procedures and about 97.6% of imports from India were 
processed through the system of risk manage ment. Despite the implementation of these 
measures, the import regime India is still complex, especially its system of permitting and 
licensing and tariff structure, which has numerous exemptions, with rates that vary by product, certain users or programs to promote exports. "  
Question 2:  What benefits have been identified with the application of this system since 2011 
to date?  
Reply:  Self-assessment in Customs had been introduced with an objective to curtail time taken for 
clearances and the associated costs by relyin g on the declarations filed by importers and 
exporters. Subjecting only those consignments that are perceived to be risky to re-assessment 
results in faster clearance of balance consignments, and increase overall trade efficiency.  
 1 ECONOMIC ENVIRONMENT 1.6 FOREIGN DIRE CT INVESTMENT 
 
1.5.3 Trade in Services  
Paragraph 1.22 of the report of the Secretariat said that: "Total net FDI outflows from India 
decreased from US $ 17,200 million in 2010-2011 to 9,200 million US dollars 2013-2014."  
Question 3:  Could the Government of India clarify whether the foreign investments by public and 
private companies of the country require prior authorization from the Indian Government? WT/TPR/M/313/Add.1 
 
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  Reply:  Overseas Direct Investment by public and private companies, within the prescribed limit 
and subject to the prescribed terms and conditions , does not require prior approval of RBI/Govt. 
of India.   
Question 4:  I f  s o ,  w h a t  a r e  t h e  a p p r o v e d  a s  w e l l  a s  p r o h i b i t e d  s e c t o r s  t o  m a k e  i n v e s t m e n t s  
abroad, if there are sectors which are prohibited to make investments abroad, How much Minimum and Maximum is allowed? 
 
Reply:  The details are as under:  
 
 Approved Sector: No specific sector has been approved. It has to be a bonafide business 
activity. 
 Prohibited Sectors: (a) Real Estate Business, (b) Banking Business and (c) Offering 
financial products linked to Indian Rupee (e.g., non-deliverable trades involving foreign 
currency, rupee exchange rates, stock in dices linked to Indian market, etc.). 
 Minimum Limit: No minimum limit has been prescribed. 
 Maximum Limit: Up to 400% of the net worth of the Indian party under the automatic 
route (however, any financial commitment exceeding USD 1 (one) billion (or its 
equivalent) in a financial year would require prior approval of the Reserve Bank).  
 Exception: ODI funded by way of EEFC balance and ADR/GDR proceeds has no limit. 
2.2 DEVELOPMENT AND TRADE POLICY OBJECTIVES 
2.2.2 OBJECTIVES OF TRADE POLICY 
 Paragraph 2.13 of the report of the Secretariat said that ... "The objectives of the Government's 
trade policy remain focused primarily on enhancing the participation of India in world exports. The 
main goal of the Foreign Trade Policy for 2009-2014 was that India should become a major player in world trade, doubling its share in this 2020. Th at goal was achieved with fiscal measures such 
as tax incentives, loans for export programs, institutional changes, streamlining procedures, 
diversification of export markets and increased market access, including in the framework of 
regional trade agreements. The Foreign Trade Policy is provided every five years and is reviewed and adjusted annually. The new Foreign Trade Policy for 2015-2020 was published on 
1 April 2015. The aim is for India to become a major participant in international trade and increase 
its share in world exports of 2% to 3, 5% for 2020 is expected to get through sustainable and stable regulatory environment for foreign trade in goods and services, linking rules, procedures 
and market incentives with other recent initiatives, such as "Make in India", "Digital India" and 
"Skills India", promoting the diversification of ex ports from India by assisting key sectors to be 
more competitive, and to create a platform for collaboration in India with key regions. It is 
expected to increase exports by exemption and remission of indirect taxes on inputs for export 
production of final products, preferential import of  capital goods, promotion of exports of services 
and the promotion of initiatives focused on specific products and markets."  
Question 5:  What are the sectors that the Government of India has identified as the key sectors 
to make them more competitive in accordance with this paragraph?  
Reply: Some of the key Sectors/Products identified are: 
 
 Agricultural and Village industry products  
 Value added and packaged products  
 Eco-friendly and green products that create wealth out of waste from agricultural and 
other waste products that generate additional income for the farmers, while improving the environment. 
 Labour intensive Products with large employment potential and Products with large 
number of producers and /or exporters WT/TPR/M/313/Add.1 
 
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   Industrial Products from potential winning sectors 
 Hi-tech products with high export earning potential  
Question 6:  What is the "Platform for collaboration in India with key regions of the world"? 
How does it work? What are the sectors or areas involved? 
 
Reply: The markets and products/sectors covered under the Merchandise Exports from India 
Scheme and the Service Exports from India Scheme , are available in the public domain on the 
DGFT website ( http://www.dgft.gov.in ) under Public Notice No. 2 dated 1 April 2015. 
 
Question 7:  Are the concepts of "platform for collaboration" and "Platform for cooperation" are 
same ?. If that is true, then, if South America be  included in the aforementioned "platform" as a 
key region, Columbia will be au tomatically included or not? 
 Reply: Please refer to the response to Question 6 above. 
 
Paragraph 2.15 of the report of the Secretariat said that ... "The import policy also relies heavily on considerations of domestic supply. In the case of sugar, for example, import duties were lifted 
temporarily in 2012 to allow an increase in imports, but were restored at a rate of 10% in 
July 2012. These frequent changes disrupt trade policy and make trade policy of India is little 
predictable. In a report on the policy on sugar, pr epared by a team headed by the Chairman of the 
Economic Advisory Council to the Prime Minister on October 5, 2012, it stated that the policy of 
export and import the Government did not allow companies join long term in the international 
market and prevented the growth of the sector . The policies were unpredictable and created 
uncertainty for companies. ..." 
 
 Question 8:  Which policies have been implemented to  create predictability and more trade 
stability in India? 
 Reply: A key objective of India's foreign trade policy is to provide a stable and sustainable policy 
environment for trade in merchandise and services. 
 
Accordingly, the export and import of most of the tariff lines is free. Only a few lines are kept under "prohibited" or "restricted" categories or for exclusive trading by State Trading Enterprises. 
Even in these lines (barring a few), the policy has broadly remained stable for the last ten years. 
In case of change in policy, there is a provision for transitional arrangement in the Foreign Trade Policy so the traders' interests are not hurt. 
 
2.3. Trade Agreements and Arrangements 2.3.2 regional and preferential agreements 2.3.2.1 Regional trade agreements 
 
Paragraph 2.19 of the report of the Secretariat said  that ... "India continues to support multilateral 
trade liberalization, but like other WTO members ne gotiated several regional trade agreements. It 
currently has a network of 15 RTAs in force have been notified to the WTO. Mostly it comes to 
agreements with neighbouring countries and othe r Asian countries. It also has some RTAs with 
c o u n t r i e s  i n  L a t i n  A m e r i c a  ( C h i l e ,  M E R C O S U R ) ,  a n d  i s  p a r t  o f  t h e  G l o b a l  S y s t e m  o f  T r a d e  
Preferences among Developing Countries (GSTP), but are of limited scope and cover very few tariff 
lines (Table A2.1 ). "  Question 9:  The trade agenda of India to advance trade negotiations with other Latin American 
countries, with the aim of consolidating Regional Tr ade Agreements in the short term? If yes, what 
are these countries?  
Reply: India and Peru are currently examining the proposal to establish a Joint Study Group 
(JSG). The JSG, if set up would explore the possibility of entering into a bilateral Free Trade Agreement (FTA). 
 
Paragraph 2.24 of the report by the Secretariat in dicates that ... "In recent years, concerns have 
been expressed about the negative effects that could have RTAs, especially for Indian industry. WT/TPR/M/313/Add.1 
 
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  The Commerce Department did little done an internal analysis of various free trade agreements 
(FTAs) and found that in the case of a number of  FTAs, the Indian partners in these agreements 
are not worth a lot from them. Since FTAs have little impact on the Indian industry, it is not clear what the immediate benefits of existing FTAs and what impact, if any, may be the current 
negotiations of ACR for Indian politics. According to  the authorities, in every negotiation you try to 
get an overall balance of interests with the partner or partners in question. "  
Question 10:  With reference to the footnote to this paragraph Could the Government of India to 
indicate the percentage of exports benefiting from  RTAs which have been concluded with countries 
like Chile, Japan, Malaysia, ASEAN, among others?  
Reply:  The footnote refers to the share of preferential  imports to the total imports. On preferential 
exports, the data is still not available and India is in the process of seeking this information from the trading partners. The percentage of exports benefitting from RTAs can only be provided once 
this data is available. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 
3.1.1 Customs procedures and requirements  Paragraph 3.4 of the report of the Secretariat said that ... "India applies a risk management 
system (RMS) as a measure of trade facilitation, to  select only the goods of high and medium risk 
to be subject to customs inspection. At the en d of October 2014, 97.6% of imports from India 
approximately were processed by this method. The au thorities noted that this processing system is 
operating in imports almost all customs offices. " 
 Question 11 : What is the percentage of goods subject to physical inspection? 
 
Reply:  51.26% 
 Question 12:  In the case of perishable goods are they treated differently in physical inspections? 
What is the percentage of perishable goods subjected to physical inspection? 
 Reply:   The examination of perishable goods is carried out expeditiously and on 24x7 basis. 
The data relating to percentage of perishable goods subject to physical inspection is not readily 
available.   
3.1.12 Standards and other technical requirements 
3.1.12.2 Technical Regulations  Paragraph 3.92 of the report of the Secretariat said  that ... "The competent authority in each area 
is responsible for the formulation of technical regulations. In developing a technical regulation 
similar to that used in the case of standards process continues. The draft technical regulations are published for comment prior to adoption by the ministry/department/competent organization and 
its publication in the Official Gazette. Comments must be submitted within 60 days of publication 
of the notice. The draft technical regulations to the WTO Members are also notified so that they can submit comments. The competent ministry considers comments and observations received if 
divergent expert group examines and considers their incorporation into the final version. The 
process of finalizing the draft regulations, incl uding approval by the competent authority, the 
review and translation into Hindi, requires between 6 and 12 months. The final rule is published by notice in the Gazette stating its date of entry into force; as authorities said at the same time is 
notified to the WTO. From time to time the technical regulations are modified by a similar process, 
depending on the needs of the industry, of scien tific advances, modification of the health and 
environmental situation and harmonization with international standards." 
 
Question 13:  Have they published draft technical re gulations developed in the last twelve 
months? If so, which technical regulations have be en published and which sectors they belong to? 
 
Reply:  New technical regulations issued during the last 12 months have also been notified to WTO 
Secretariat for comments and relate to electronics sector. WT/TPR/M/313/Add.1 
 
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3.1.5 Other charges affecting imports  Paragraph 3.29 of the report of the Secretariat sa id that ..."Adding these fees and charges to 
tariffs effective right to pay the importer is considerably higher than the actual rate applied. 
All imports, except they are exempt, are subject to  payment of the effective rate of customs duty, 
additional duty and any applicable tax and the levy for teaching and higher education; then, the 
special additional duty of 4% of the cost of that final value is calculated..." 
 Question 14:  Does India publish or make available information regarding these charges? Are they 
easily available for both foreign as well domestic investors? 
 
Reply:  Changes in Tariff rates of Customs Duty are carried out by amendment in the Customs 
Tariff Act, 1975 which is generally done at the time of passing of the Union Budget. Details about 
the changes carried out as part of the Union Budget as  well as all notifications specifying changes 
in effective rates of duty are made publically av ailable by placing on the Central Board of Excise 
and Customs website [ http://www.cbec.gov.in ]. The current rate of Customs duty for each tariff 
line is available at the ICEGAT E "Customs Duty Calculator" [ https://www.icegate.gov.in/Webappl ] 
 
4. TRADE POLICIES BY SECTOR 4.1 Agriculture 
4.1.1.1 Measures Affecting Imports 
 In footnote # 3 of paragraph 4.5 of the report of the Secretariat it indicated that "...the list of 
designated agencies and the rate of utilization of the quotas will be WTO (2011). India introduced 
its latest notification of tariff quotas in 2011 (G/AG/N/IND/5 and 6 of the WTO, on 
March 7, 2011)." 
 
Question 15:  Could the Government of India to indicate the reasons for non-use or under filling 
of tariff quotas reported in the G/AG/N/IND/5?  
Reply:  The procedure for import under Tariff Rate Quotas may be seen in the Hand book of 
Procedures available on the DGFT website ( www.dgft.gov.in ).  The eligibility and other conditions 
for availing of these quotas are explained in th e Handbook. Apart from having to fulfil these 
conditions, importers are free to decide whether or not to avail of these quotas, based on demand, 
commercial viability and other relevant factors.  
4.1.1.2 Measures affecting exports 
 Paragraph 4.12 of the Secretariat Report states that: "…A tenor of the Fund Regulation Sugar Sector Development (Amendment) 2014, February 12, 2014 the government approved a grant at 
the rate of Rs 3,300 per tonne marketing services  and promotion of the production of raw sugar 
for the period from February to March 2014. The grant scheme will be reviewed for the sugar marketing year (2014-2015)." 
 
Question 16:  Could the Government of India confirm the motivations that have led to maintaining 
and increasing the subsidy for the current year 2015? 
 
Reply:  The intervention is purely aimed facilitating payment of arrears to poor farmers by Sugar 
mills through product diversification. The mechanism provides for passing on the incentive to the Indian sugarcane farmers, through sugar mills which are simply intermediaries in the flow of funds 
to the farmers. Sub-Rule (9) of the gazette notification clearly provides that the incentive shall be 
utilized for making payment to the farmers. Since a large amount of arrears are due to the sugarcane farmers, the incentive scheme has been maintained for the current year. 
 
Question 17:  As India has considered the fulfilment of the commitment of the Ninth Ministerial 
Conference to act with the utmost restraint in the use of export subsidies and all measures having 
equivalent effect? 
 Reply:   India is fully aware of its international obligations and supports elimination of all forms of 
export subsidies as per the Hong Kong Ministerial Declaration and would urge developed countries 
to honour cut in the domestic support/subsidies agriculture to restore equity at least partially. WT/TPR/M/313/Add.1 
 
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4.1.1.3 Internal Measures  Paragraph 4.19 states that: "…In some cases, the Food Corporation of India (FCI) is authorized to 
sell its stock on the open market, including for export. For example, the government authorized 
the export of 4.5 million tons of wheat in 2012-20 13 and 2 million tons in 2014-2015. Sales in the 
domestic market are carried out at predetermined prices; in 2012-2013 and 2013-2014 they were 
sold respectively 7 million and 6 million tons of grain. " 
 Question 18: Could the Government of India state whether  exports of products of the Food 
Corporation of India are consistent with the commitments of Article 9 of the Agreement on 
Agriculture of the WTO? 
 Reply:  FCI maintains public stocks for food security programmes, which are acquired by it only at 
MSP. Government allows FCI to dispose surplu s stocks into the domestic market through 
competitive bidding and it is only rarely that Government has permitted FCI to export certain quantity from the central stock.  Moreover, due to targeted procurement for food security, the 
stocks of food grains are being kept within mana geable limits obviating any need for exports.   
  Article 9.1 (b) of the AoA treats the sale or disposal for export by governments of non-commercial stocks of agricultural products at a price lower than the comparable price in the domestic market 
a s  a  e x p o r t  s u b s i d y .   E x p o r t s  o f  W h e a t  f r o m  F C I  s t o c k s  h a v e  b e e n  m a d e  a t  p r i c e s  w h i c h  a r e  
significantly higher than the minimum support  price announced by the government for the 
respective year.  As a prevailing market price in each year is generally close to the MSP, it would 
be clear that disposal of FCI stocks for export pu rposes were done at prices significantly higher 
than the prevailing price in the domestic market. Thus these exports are consistent with Article 9 of the AoA.   
  
4.3 Manufactures  Paragraph 4.48 of the report by the Secretariat indicates that ... "In the textiles and clothing, the 
government subsidizes interest rates under the Technological Improvement Program in order to 
upgrade technology in machinery. The government has also tried to promote industrial clusters and textiles, for example, through the Programme of  Integrated Textile Technology Parks (in which 
40% of the funding is provided by the remaining 60% State and the private sector), which aims to 
provide infrastructure for the textile industry; grants are awarded through a selection process 
based on budgetary constraints. In addition, the obligations apply with respect to the yarn in 
hanks, a mechanism established in 2013 to protec t the handloom and ensure the supply of hank 
yarn to the handloom sector. Cotton is subject to minimum support prices. Every year before the start of the cotton campaign, the Commission of Agricultural Costs and Prices fixes minimum support prices of medium staple cotton and long ... In the textiles and clothing foreign ownership 
is allowed 100% by automatic means, provided that all applicable laws and regulations are met. " 
 Question 19: How can the government of India to ensure that the grants mentioned in this 
paragraph for the textiles and clothing, are not contrary to the agreement subsidies and 
countervailing measures (SCM) of the WTO?  
Reply:  Subsidies contingent upon exports or domestic content requirement are prohibited under 
ASCM. India being Annex VII country, India is exempted from the prohibitions on subsidies contingent upon exports. Moreover, none of th e programmes stated in paragraph 4.48 above, are 
covered under any of the two categories stated above under ASCM.   
 
Question 20: Could the Government of India to share information on the "Program Integrated 
Textile Technology Park", such as its overall st ructure, number of established parks, objective 
results in terms of technological upgrading of ente rprises established there, perspectives of such 
programs, increased exports of goods produced in these technology parks, and other tax benefits you consider important? 
 
Reply:  The Scheme for Integrated Textile Park helps in setting up green field textile parks  with 
partial capital grant from the Government towards common infrastructure such as  road, compound wall, drainage, water & electricity, effluent treatment plant etc. and common facilities  
such as workers' hostel, crèche, canteen, labour recreation facilities, testing lab, design centre and  WT/TPR/M/313/Add.1 
 
- 73 - 
 
  factory building  etc. Government support is limite d to the 40 % of the cost subject to a ceiling of 
Rs 40 cr. Total 70 such parks have been approved  so far out of which only 18 parks have more 
than 25% units are operational. Since most of th e parks are still at the implementation stage, 
therefore, any statement on   technology upgradat ion, export of goods produced there will be too 
premature.  The Textiles parks do not get any tax benefit from the government. 
 Question 21:  Can Companies with foreign capital be inst alled in the Technology Parks Integrated 
Textiles? If so, do the same condition apply as those for business capital of India? 
 Reply:  Yes 
 
Paragraph 4.51 of the report of the Secretariat said  that ... "The automobile industry in India is 
protected by non-tariff measures high import duties. The average MFN tariff on motor vehicles (HS 8703) in 2006-2007 was 100%; in 2010-2011 it  was reduced to 60%, but in 2014-2015 
increased to 100%. Because of these high tariffs and to the fact that 100% foreign ownership is 
permitted, it is likely that most FDI in this industry serve the purpose of evading tariffs. Although no licensing requirements for importing new vehicles are imposed, a license for the import of cars 
more than three years that meet environmenta l and safety requirements must be obtained. 
Besides being taxed at a tariff of 100%, imports of vehicles can only be done through specific ports (Chennai, Calcutta and Mumbai for new vehicles, and Mumbai for second-hand cars). In December 2006, the Department of Heavy Industry issued a Mission Plan for Automobile 
Industry from 2006 to 2016 as a roadmap for the future development of the sector. The plan 
proposes a number of policy interventions. Car manufacturing is subject to various technical regulations. 
 
Question 22: Could the Government of India further explain What is the "Mission Plan for the 
Automobile Industry 2006-2016"? What type of subsidies or economic or fiscal support the 
Government of India has been included in th is Plan for 2006-2016 the automotive industry? 
 Reply:  The Automotive Mission Plan 2006-16 is uplo aded on the Ministry of Heavy Industry’s 
website. The objective of the Mission Plan is to chalk out a roadmap for the growth and 
development of the automotive industry for a 10-year period. It mainly comprises of a Vision for 
the industry's increasing contribution to the National GDP from a level of about 5% in 2006 to 10% by 2016, making India a Hub for manufacturing small cars, two/three wheelers and commercial 
vehicles, increasing the direct as well as indirect employment in the industry by an additional 
25 million by 2016, skilling of personnel employed  in the industry and stimulating research and 
technological development of the industry. 
 
The Mission Plan does not provide for any fiscal subsidies or tax cuts on any of the segments of the industry. However, the Mission Plan does envi sage incentives for manufacture and use of 
electric/hybrid vehicles by way of demand incentives to the consumers, infrastructure development 
and R&D in this area. After extensive deliberations, a Scheme called Faster Adoption and 
Manufacturing of Electric Vehicles (FAME) has been evolved under the guidance of the Mission Plan and has been launched w.e.f. from 1st April 2015. 
 
Question 23 : Could the Government of India share the results of this plan to date, given its 
proximity to the period that the plan covers? An d what is the outlook for this plan after 2016? 
Reply: The Automotive Mission Plan has resulted in the following major initiatives taken by 
Government to support the Automotive industry development:- 
 a. NATRIP project  
b. Setting up of the Automotive Skills Development Council in partnership with Ministry of 
Heavy Industry for skilling people employed in the entire automotive value chain ranging 
from component manufacture to vehicle assembly, sales and marketing, servicing, 
finance, insurance, etc.  
c. Introducing of the FAME Scheme to enable fast er adoption of electric and hybrid vehicles 
on a pan-India level. WT/TPR/M/313/Add.1 
 
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  4.3 Manufactures 
 Question 24 : Could the Government of India explain the reasons for the Secretariat report which 
is prepared from information provided by national authorities, does not include information 
regarding policies and measures and economic an d trade performance one of the most important 
sectors of India, namely, the producers of "chemical and pharmaceutical" products?  
Reply: Secretariat would be in better position to reply to this question because sectors to be 
covered under this section of the report were selected by the WTO secretariat.  WT/TPR/M/313/Add.1 
 
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  COSTA RICA 
TRADE IN SERVICES  
Report by the Secretariat Page 123 (paragraph 4.109) 
 
4.109. Development and maintenance of rural fixed-line and mobile telecom and broadband services are subsidized to allow affordable prices for customers. All service-providers, except 
providers of value-added services (e.g. internet, vo ice-mail, and e-mail services), are subject to a 
universal service levy of 5% of adjusted gross revenue. Funds from the Universal Service Obligation Fund (USOF) are allocated to "eligible operators" from the public and the private sectors, through a bidding process, for telecom and broadband infrastructure development 
projects in rural areas (e.g. provisions of village public telephones, household telephones, and 
infrastructure for mobile and broadband services ). In 2012, the Government amended the Indian 
Telegraph Rules 1951 to provide funds from the US OF to create a national optical fibre network 
(NOFN) to extend broadband connectivity to all villages. 
 Question 1: Can India please provide further information on the impact of policies adopted by the 
Universal Service Obligation Fund (USOF)? Which public institution manages this fund? 
Which transparency criteria applies in order to define "eligible operators"?  
 Reply:  Universal Service Obligation Fund (USOF) was established w.e.f. 01.04.2002 under the 
Indian Telegraph (Amendment) Act 2003 (further amended in 2006), to provide financial support 
for the provision of telecom services in commercially unviable rural and remote areas of the country.  
 
USOF is headed by the Administrator USO Fund, appointed by the Central Government, for the a d m i n i s t r a t i o n  o f  t h e  F u n d .   I t  i s  a n  a t t a c h e d  o f f i c e  o f  t h e  D e p a r t m e n t  o f  T e l e c o m ,  M i n i s t r y  o f  
Communications and Information Technology. 
 Page 129 (paragraph 4.145)  
4.145. The regulatory framework concerning the prov ision of legal services in India has remained 
largely unchanged over the past decade. The Advocates Act, 1961 and the Bar Council of India Rules, 1975 regulate the legal services sector. The sector is administered by the Ministry of Law 
and Justice. The legal profession is regulated by the Bar Council of India (BCI) (the final regulating 
body), and state bar councils. The bar councils set the standards for legal qualifications, validate 
foreign-obtained degrees, and set standards for professional conduct and etiquette. They also 
admit advocates on their rolls (thus allowing them to appear in court). FDI is not permitted in the 
legal services sector. Foreign law firms are not permitted to open offices in India and are prohibited from giving legal advice. Legal services can be provided only by natural persons who are citizens of India, and who are on the advoca tes roll in the State where the service is being 
provided. The service provider can either be a sole proprietorship or a partnership firm consisting 
of persons similarly qualified to practice law. To be eligible for enrolment as an advocate, a candidate must be a citizen of India or a country that allows Indian nationals to practice on a 
reciprocal basis; hold a degree in law from an in stitution/university recognized by the BCI; and be 
at least 21 years of age.  
Questions 2 : According to paragraph 4.145, providing legal services requires citizenship and the 
enrolment as an advocate requires either being citi zen of India or of a country that allows Indian 
nationals to practice on a reciprocal basis. Can In dia please explain if there is a difference between 
the provision of legal services and the enrolment as an advocate or if both citizens of India and 
citizens of a country that allows Indian nationals to practice on a reciprocal basis have the same 
treatment?  
Reply:  As per the Indian Advocates Act, 1961, in order to be eligible for enrolment as an 
advocate, amongst other things, a candidate has to be a citizen of the country or a country which allows Indian nationals to practice as per the reciprocity treatment. There is no difference so far 
field of practice is concerned between a citizen of India and citizens of a country that allows Indian 
nationals to practice on a reciprocal basis.    WT/TPR/M/313/Add.1 
 
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  Question 3:  Does the restriction that applies to domestic legal services also apply in the case of 
practitioners of international law, advice on foreign law and international arbitration? If so, does India have any plans of reforming its system to allow foreign suppliers to provide such services of an international nature? 
 
Reply:  The matter regarding opening up of legal services in India to foreign lawyers/law firms, 
including practice in litigious as well as non-litigious matters in various fields of law is currently 
under consideration. Any decision in this regard will be taken by the Government of India 
in consultation with the Regulator, the Bar Council of India, and other stakeholders.  INVESTMENT  
 
Report by the Secretariat Page 30 (paragraph 2.3.3) 
 
2.27. India has signed bilateral investment treaties with 83 countries. Double tax avoidance agreements have been signed with 71 countries. 
 
Question 4:  Can India please provide further details on how the new model BIT launched this 
year and the one that is currently being discussed will affect India´s existing BITs? Does India expect to renegotiate these instruments?  
 
Reply:  The Draft Indian Model Bilateral Investment Tr eaty (BIT) is awaiting the approval of the 
Competent Authority. Once the model BIT text is approved, BITs would be negotiated on the basis 
of this model.  
 INTELLECTUAL PROPERTY 
 
Report by the Secretariat Page 88 (paragraph 3.223.)  
3.223. In June 2013, the Office of the Controll er General of Patents Designs and Trademarks 
issued draft Guidelines for the Examination of Computer-Related Inventions.178 The law in Section 3(k) states that computer programs per se cannot be patented. These guidelines indicate 
that computer programs loaded on a general-pu rpose known computer or related devices cannot 
be held patentable. These guidelines go on to state that for considering the patentability of computer programs in combination with hardware features, the hardware portion has to be 
something more than a general-purpose machine.  
 Question 5 : Can India please provide further information on how are the IPR of computer 
programs protected and whether the Guidelines are publicly available?  
 
Reply:  Under Section 3(k) of the Indian Patent Act, a computer programme per se is not 
patentable. The Guidelines for this purpose are under consideration. 
 
Page 93 (paragraph 3.246)  
3.246. Registration of copyright societies has been made mandatory and several provisions have 
been introduced to protect authors and improve tran sparency in the functioning of such societies.  
 Question 6:  Can India please provide further information on the mandatory registration of 
copyright societies and the provisions enacted to improve transparency in the functioning of such 
societies?  
 
Reply:  The process to register the copyright societie s by the Central Government is provided in 
detail vide Rule 44 to 49 under chapter XI of the Copyright Rules, 2013. A few no of applications have been received by the Central Government thro ugh the Registrar of Copyrights for registration 
of Copyright Societies after enactment of the amen ded Act. However, two societies are registered 
– (i) Indian Singers Right Association (ISRA), (ii) Indian Reprographic Rights Organization (IRRO). 
Normally, 60 day time period is required to take a final decision on such applications. WT/TPR/M/313/Add.1 
 
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  DOMINICAN REPUBLIC 
Document WT/TPR/S/313 
A) Page 9, Para 10  
10. India has continued to streamline customs procedures and implement trade-facilitation 
measures. With a view to facilitating trade, India adopted the use of self-assessment in its customs procedures in 2011, and around 97.6% of India's imports were processed via the risk 
management system. Despite the implementation of these measures, India's import regime 
remains complex, especially its licensing and perm it system, and its tariff structure, which has 
multiple exemptions, with rates varying according to product, user or specific export promotion programme. 
 
Question 1:   What other measures are being considered to further simplify the import regime? 
 
Reply:  Indian Customs has extended 24x7 Customs Clearance Facility for specified imports and 
export to 18 sea ports covering all major sea port s. Similarly the facility has been extended to 
17 air cargo complexes for specified imports and al l exports. "Single Window Customs Clearance" 
by integration other regulatory agencies / Departments with Customs is also under 
implementation. Furthermore, to dispense with ph ysical documents and its submission to Customs, 
adoption of digital signature in phases have been  commenced. This will enable paperless trade and 
will reduce compliance cost considerably. Indian Customs has also reduced significantly the 
number of mandatory documents for general import and export to three each.  . Further a 
mechanism has been put in place in form of hi gh-level administrative body i.e. "Customs 
Clearance Facilitation Committee" (CCFC) at each seaport and airport with the responsibility of 
ensuring expeditious Customs clearance of impo rted and export goods. The Committee include 
senior functionaries of other regularity agenci es/departments such as FSSAI, Plant Quarantine, 
Animal Quarantine, Drug Controller of India etc. The CCFC is mandated to meet regularly to 
remedy constraints impacting clearance of imported and export goods. A Central CCFC has also 
been set up to oversee expeditious clearance of import and export goods.  B) Page 59, Para 3.22: 
 
3.22.  The simple average applied MFN tariff in 2014-15 is 13%, up from 12% at the time of the 
last Review (2010-11). The overall increase is mainly due to a rise in tariffs in agriculture 
(WTO definition), whose overall average at 36.4%  remains considerably higher than the average 
for non-agricultural products (9.5%). The increase in the average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% 
in 2014-15), oilseeds and fats (from 18.5% to 33.2%), and sugars and confectionary (from 33.4% 
to 41%). Above average tariff protection is also  found in a number of other products such as 
beverages, spirits and tobacco (77.5%), and coffee and tea (74.8%). The average MFN tariff for non-agricultural products also rose from 8.9% to 9.5%, primarily due to increased tariffs on 
transport equipment from 21.5% to 32.1%. Average tariffs also rose for minerals and metals, 
chemicals, textiles, leather and rubber and electric machinery (Table 3.4).  
Question 2 : Are downward variations in these tariffs expected in the short term for agricultural 
and non-agricultural products?  
Reply:  Changes in import tariffs are done keeping in view interest of consumer and domestic 
industry. It may not be possible to discuss the reasons for specific changes.  Question 3:  Could you provide explanations if these increases could be extended? 
 
Reply:  Changes in import tariffs are done keeping in view interest of consumer and domestic 
industry. It may not be possible to discuss the reasons for specific changes. 
 
Question 4:-  Have these increases been a response to the global crisis? that is,? Or were they 
purely for reasons of trade balance or as a response to protectionist policy? 
 WT/TPR/M/313/Add.1 
 
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  Reply:  The tariff rate of cereals was increased as a response to the price volatility in the domestic 
market and as a measure of balancing the interests of consumers and domestic famers.  WT/TPR/M/313/Add.1 
 
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  ECUADOR 
(Originally in Spanish) 
Question 1:  In accordance with page 37, paragraphs 3.11 and 3.12, "the Central Board of Excise 
and Customs is authorized by notification in the Gazette of India to fix reference prices ("tariff 
values") for any type of imported (exported) go ods, in accordance with Section 14(2) of the 
Customs Act 1962".  
Could India inform us how are reference prices (tariff values) fixed, for products imported or 
exported? Which variables are used for this purpose?  Reply:  Tariff values have been notified for certain goods that are prone to undervaluation. Tariff 
values are fixed on the basis of prevailing international prices of these goods as observed from 
various reputed journals and other publications. These values are floating values and are frequently reviewed and revised 
 
Question 2:  In paragraph 3.11 states that "Under the Ac t, it is stipulated that determination of 
value of imports should be based on the transaction value, which is defined as the price actually 
paid or payable for the goods when sold for export to India, including any amount paid or payable 
for costs and services (e.g. commissions and brokerage, royalties and licence fees, transport and insurance costs, and handling charges)".   
What influences these reference prices at the ti me of the appraisal by customs of the imported 
product (determination of the value)? What price is used for determining of the customs value?  
Reply:  There are no extraneous factors that influe nce the determination of the transaction value 
of a commodity. Factors like commissions and broker age, royalties and licence fees, transport and 
insurance costs, and handling charges that form a part of transaction value alone are included, in 
accordance with the GATT 1994. As far as reference prices are concerned, these are also published 
and available in public domain.  Question 3:  In accordance with page 45, paragraph 3.27. The AD and SAD continue to be applied 
to imports in lieu of excise (CENVAT) and local state taxes respectively. The AD, which was 
introduced in 1975 to offset domestic excise taxes, is currently charged at the general rate of 12.5%, raised from 10% at the time of previous Re view. Like the tariff, the CENVAT rates are also 
changed from time to time through notifications issued by the Government. The SAD is applied at 
a general rate of 4% which applies to almost the whole tariff (around 90%)… These charges vary from State to State and from product to product, but since the SAD is charged on imports at a flat 
rate of 4% it may not always be equivalent to these charges…" 
 Could explain India how application of an additional  duty and a special additional duty on imports, 
are perceived with the objective to offset taxes on domestic consumption, are in accordance with 
the provisions of national treatment in the case of domestic products similar, competing and 
substitutes?  
Question 4 : In accordance with page 46, paragraphs 3. 28 and 3.29: "The addition of these duties 
and charges to the applied tariff raises the actual duty paid by the importer significantly above the 
effective applied tariff rate…. Nevertheless, the authorities note that the final burden of duties 
borne by imported goods is considerably reduced if imported for further manufacture or provision 
of services. This is because the credit of these ad ditional duties and charges is available to be set-
off against domestic taxes such as Central Excise Duty and Service Tax under the CENVAT Credit Rules. 
 
Could India inform whether, when they are simila r products, does the imposition of these duties 
and charges, comply with the provisions of the Article I and II of GATT 1947 (issues of taxes and 
national treatment) because the initial applied tariff increases due to duties described in 
paragraph 3.28?  WT/TPR/M/313/Add.1 
 
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  Reply to Q.3 & 4:  Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of 
excise duty charged on the domestic production of a similar item. Similarly, Special Additional 
Duty (SAD) is charged on imported goods in lieu of sales tax/value added tax charged on the domestic sale of goods.  Thus these taxes are levied on imports in lieu of internal taxes and other 
internal charges applied to like domestic pr oducts as permitted under GATT Article III.2. 
 Both these taxes are in the nature of counter vailing/equalizing taxes and thus would apply to 
imported goods so as to provide a level playing fi eld for domestic industry. Moreover, the credit of 
these additional duties is available to be set-off against domestic taxes such as Central Excise Duty and Service Tax under the CENVAT Credit Rules. Li kewise, a full refund of the SAD can be claimed 
by an importer once the imported goods are sold in the domestic market on payment of State VAT.  
 
Chapter 5:  In accordance with the page 48, paragraph 3.33, in reference to the imports of certain 
products under tariff quotas, "Imports by these importers may only take place on behalf of actual 
users and must be cleared by customs before 31 March of each financial year." Which is the 
mechanism, or under which criteria, the st ate trading enterprises are authorized to 
realize/undertake the imports, assign the quotas to the effective users? 
 
Reply:  Details of the procedure has been stated in paragraph 2.60 (Procedure for import under 
the Tariff Rate Quota Scheme) of the Handbook of Procedure, Vol 1 (2015-20). This is available in 
the public domain and can be seen at http://dgft.gov.in . 
 
Question 6:  .In accordance with page 54, paragraph 3.49: "Imports of certain goods such as 
cashew kernel (HS 08013210 and 08013230)35, areca nuts (HS 0802 80)), and marbles 
(HS 25151100 and 25151210 – from 20 November 2014)36 are subject to import restrictions 
depending on their import price (Table 3.9). These imports are restricted (i.e. subject to a licence) 
when the c.i.f. price is lower than the minimum import price." 
 
Can India explain is it justified under the WTO provisions to have minimum import prices which would allow the import restrictions CBC when the price is lower than the minimum price of important? As is justified with the multilateral regulation does not maintain restrictions on imports? 
 
What requirements, regulatory and administrative , must be met to obtain a license? After the 
granting of the license, enabling the imports what if the CIF is still less than the minimum import 
price? 
 Reply:  Import of most of the items is free. Hardly a few items, as stated above, are subject to 
import restrictions including minimum import price. These are the items considered sensitive 
predominantly on account of chances of variation of the price, public morals, environment grounds or permitting quality materials imports etc. Sometimes it could be for temporary period and subject to revision/ withdrawal. Re quirement of MIP, if any, are we ll documented and available in 
the public domain. 
 Procedure for import of restricted items has been stated in paragraph 2.50 (related to "Import of 
Restricted Items") of the Handbook of Procedure, Vol. 1 (2015-20). This is available in the public 
domain and can be seen at http://dgft.gov.in .  
 
Question 7:  In accordance with page 73, paragraph 3,124, with regard to the minimum export 
prices: "Under the Export Policy Schedule (Foreign Trade Policy 2009-14), India maintains minimum export prices (MEP) for exports of onions and edible oil with a view to ensuring adequate availability at reasonable prices of certain items considered essential for domestic consumption 
(Table 3.13). The MEP and the items to be subjec t to it are decided by the Government after 
consultation with relevant ministries and departments, and the DGFT notifies these decisions."  
Could inform India, what variables are used to calculate the price of export price, if the 
international prices are below this minimum export price? Are there any restrictions to exports similar to the mechanism of minimum price of importation? If it is the case, how are the export 
restrictions justified under WTO rules? 
 Reply:  Minimum Export Price (MEP) has/had been impo sed on export of certain staple food items 
like onion, edible oils in consumer packs and potato.  The MEP is imposed with a view to ensure 
adequate availability of the item for domestic co nsumption and to contain inflation. MEP on export WT/TPR/M/313/Add.1 
 
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  of onion and edible oils is reviewed by the Inter Ministerial Committee from time to time, keeping 
in view the availability of the item in the domestic market, its domestic and international prices among other factors and wherever required, MEP is adjusted and notified by the competent 
authority by way of a notification in the official Gazette. 
 
Question 8:  In accordance with the page 75, paragraph 3,132, in connection to the export 
subsidy commitments : In its schedule of concessions part IV, section II, India does not maintain 
commitments in respect of export subsidies. Howeve r, India will have reserved the right to use the 
exception provided for in paragraph 4 of the arti cle 9 of the agreement on the Agriculture during 
the period of implementation. In agricultural subsidies to exports, the last agricultural notification, India notified values in respect of subsidies to the exportation covered in paragraphs d) and e) of 
paragraph 1 of the Article 9. 
 Could inform India, how these subsidies to the exportation are in accordance with the multilateral 
rules on agriculture; This type of measure of su bvention, it seems, not to be subject to export 
performance?  
Reply:  India has reserved the right to use export subsidies under the Uruguay Round Agreement 
on Agriculture. The Hong Kong Ministerial Declaration makes it clear that developing countries would continue to be exempt from reduction commitments on export subsidies listed in subparagraphs (d) and (e) of paragraph 1 of Articl e 9 of the Agreement on Agriculture. Therefore, 
Members which are benefiting from S&D treatment during the implementation period would 
continue to benefit from such provisio ns till a new agreement is in place. 
 
Question 9: In accordance with page 97, paragraph 3,219. "Section 92A of the Indian law states 
that a compulsory licence shall be available for manufacture and export of patented pharmaceutical products to any country having insufficient or no manufacturing capacity in the 
pharmaceutical sector that need them to address public health problems.."  
 Could inform India, how this provision is adjusted to the multilateral rules, paragraph f TRIPS - Article 31, in regard to the authorization of the use without the authorization of the holder of the 
rights of the patent if, as you can see, the law would allow the national expedition of a compulsory 
license for the manufacture and export of patented pharmaceutical products?  
Reply:  Under section 92A, request would need to be placed before the Controller General by the 
country seeking to get the medicine. CL will issue only for supply to the market of the requesting 
country. This is completely compliant with Art 31 f of TRIPS 
 
Question 10:  In accordance with the pages 115 and 116, paragraph 4.20 .: "Purchasing prices of 
sugarcane are subject to the fair and remunerative price (FRP)12; a minimum price set at the central level, below which no sugar mill may purchase sugarcane from a farmer. State 
governments also set a state advisory price (SAP) for sugarcane. If the SAP is higher than the FRP, 
the State Government bears the loss.".  
Apparently, it would be a measure of price suppor t, has India thought include this measure in its 
notification of domestic support measures, whether this measure is justified under  the provisions of agricultural domestic support measures? 
 
Reply:  India has been submitting its notifications in accordance with the relevant provisions 
relating to agricultural domestic support. WT/TPR/M/313/Add.1 
 
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  ECUADOR 
ADDITIONAL QUESTIONS 
Report by the Secretariat:  
 
Question 1:  In accordance with page 37, paragraph 3.12, India Could you explain how the 
reference prices are set and whether they are in a database?  
Reply:  Tariff values have been notified for certain goods that are prone to undervaluation. Tariff 
values are fixed on the basis of prevailing international prices of these goods as observed from various reputed journals and other publications. These values are floating values and are frequently reviewed and revised. 
 
The tariff values are notified from time to time and the same is available at: http://www.cbec.gov.in  
 
Question 2:  In accordance with page 88, paragraph 3.180, India Could tell where you can get 
information on minimum export prices and sust ainability of the products covered by these 
measures? 
 Reply:  Minimum export prices are available at www.dgft.gov.in  and these are based on the 
prevailing domestic and international prices of the products, for the purpose of price stabilization. 
 
Question 3:  In accordance with page 48, paragraph 3.33, the Secretariat report states: 
 
The DGFT is the body responsible for allocating quotas and importers eligible for 
quotas are state enterprises such as the National Development Board Dairy Industry (NDDB), the National Federation of Agricultural Cooperative Marketing India (NAFED ), 
the State Trading Corporation of India (STC),  the Trading Corporation of Minerals and 
Metals (MMTC), Projects and Equipment Corporation of India (PEC), Spices Trading Corporation Limited (STCL) and state fe derations of cooperatives marketing, 
depending on the product. These importers may only make effective imports on behalf 
of users and the goods must be cleared through customs before March 31 of each 
fiscal year 
In relation to the administration of those quotas, India Could you tell us in more detail, the way 
how the DGFT allocated tariff quotas to state enterprises, there are special considerations on 
production and consumption? And why imports can be conducted before March 31  
Reply:  Detailed procedure by the DGFT for imports under tariff rate quota is given in para 2.60 of 
the foreign trade policy 2015-20, available at http://www.dgft.gov.in . 
 
Question 4:  According to page 56, footnote to paragraph 3.56, the Secretariat report states: 
 
The state import trade has the stated purpos e of ensuring, inter alia, that farmers get 
income" reasonable ", as well as food secu rity, supply of fertilizers to farmers, and 
that the national system of support prices for kerosene and liquefied petroleum gas 
(LPG) is correctly applied, relying on importation into a single agent. The government buys food grains and certain agricultural producers at a minimum support price to 
ensure small farmers and marginal Indian producers a fair return for their investment. 
These cereals and agricultural products are sold, in turn, through the public 
distribution system at varying prices: some at market prices, and other subsidized for 
those living below the poverty line prices. State trading enterprises buy from 
producers in the country or imported in accordance with the situation of market 
supply and demand. It is considered that such operations of these companies allow effective monitoring of the supply situation, which, in turn, ensures that the concerns 
relating to food security are duly take n into account. In the case of petroleum WT/TPR/M/313/Add.1 
 
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  products, the imports / exports are made at prices determined by the market. As for 
fixing the domestic price, domestic support system applies in the case of kerosene and liquefied petroleum gas (used as domestic fuel). 
Regarding fertilizers, state trading objective is to secure and manage their supply to 
farmers. "(Emphasis added). 
In the footnote on page paragraph 3.56, the phra s e  i n  b o l d  c l a i m s  t h a t :  " T h e  S T E s  b u y  f r o m  
producers in the country or imported in accordance with the situation of market supply and 
demand". In this regard, India Could you tell us if there is exclusivity in the import of cereals and 
other agricultural products subject to purchases by state trading enterprises? In terms of supply 
and market demand, the STEs manage import volumes of these products? And private operators are allowed to import such products in parallel with purchases of state trading enterprises? 
 
Reply:  As per the current policy, the products which are under the STE category can be imported 
only by the concerned STEs or by other entities given NOC by these STEs. Policy also provides that 
STEs shall make any such purchases or sales involving imports or exports solely in accordance 
with commercial considerations including price, quality, availability, marketability, and other conditions of purchase or sales in a non-discriminatory manner and shall afford enterprises of 
other countries adequate opportunity, in accordance with customary business practices, to 
compete for participation in such purchases or sales.  Question 5:  According to page 115, paragraph 4.19, the Secretariat report states: 
 
Farmers are guaranteed the minimum support prices through price support program: when the prices of the products covered by the program fall below the minimum 
support prices in the market involved bodies designated by the Government to buy 
the minimum support prices. Agencies designated under the price support program buy specific products. In some cases, it also authorizes the Food Corporation of India 
(FCI) to sell their stock on the open market, including for export. For example, the 
government authorized the export of 4.5 million tons of wheat in 2012-2013 and 2 million tonnes in 2014-2015. Sales in the domestic market are carried out at predetermined prices; in 2012-2013 and 2013-2014 were sold respectively 7 million 
and 6 million tons of cereales.11 The Secretariat is not clear how prices for sales in 
the domestic market are set free, and who sold grain. (Emphasis added). 
As part of the support programs for agricultural products, the FCI has exported products acquired 
from farmers under the price support programs, sometimes at subsidized prices. Could India 
inform us, if authorized for export products, the minimum support prices are set based on the 
behaviour of domestic prices and international markets? 
 
Could India report, in the case of authorized for export, which was the relative product prices in domestic market and international market?  
Reply:  The price support mechanism for specific commodities is intended to protect farmers from 
having to undertake distress sales and not for mobilizing stocks for the purpose of export. The stock of wheat and rice so procured from farmers is utilized for food security programmes. When 
any surplus stock is sold in the domestic market, the sale is finalized on the basis of a reserve 
price fixed by the Govt. and bids below the reserve price are invariably rejected. Price discovery is done based on competitive bidding. During 2012-14, the Govt. had decided to sell a definite 
quantity of wheat in the international market also through competitive bidding and the price for 
export was also discovered through open tenders.  The export prices were above the MSP and the 
global prices. No export has taken place at the subsidized prices.  
Question 6: Pursuant to page 68, paragraph 3.104 the Secretariat report states: 
 
"The main changes relating to sanitary and phytosanitary (SPS), which entered India 
since 2011 are the full application (the Augu st 5, 2011) of the Law of standards and 
food safety (FSSA) 2006 through various me asures, including the adoption of four 
related regulations, namely Regulation s and safety standards and food (food 
standards and food additives)." WT/TPR/M/313/Add.1 
 
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  Could India give us the law of standards and food safety (FSSA) 2006? 
 Reply:  Food Safety and Standards Act 2006 is available at http://www.fssai.gov.in  and 
Food Safety and Standards Rules made thereunder are also available at http://www.fssai.gov.in . 
 
Question 6 : In relation to sanitary and phytosanitary measures: 
 
Could you tell us if the plant products that enter India require an import permit? What are the 
rules for registering companies to fumigate disinf ection plant products at entry points of the 
country?  
Reply:  Plant Quarantine regulatory measures are operative through the "Destructive Insects & 
Pests Act, 1914" (Act 2 of 1914) in the country. Th e purpose and intent of this Act is to prevent 
the introduction of any insect, fungus or other pe st, which is or may be destructive to crops. The 
import of agricultural commodities is presently regulated through the Plant Quarantine (Regulation 
of Import into India) Order, 2003.  
Issue of Import Permit: An Importer intending to import agricultural commodities has to apply in 
advance for the issue of Import Permit in respect of  the commodities listed in Schedule V and VI of 
PQ Order, 2003 in the prescribed form. The proced ure to be followed has been shown in the flow 
chart at http://ppqs.gov.in/image002.gif . 
 
The import clearance involves various steps from receipt of reference from Customs until recommendation for its release or otherwise to the Customs including sampling, detail testing viz., 
bacteriological, mycological, entomological, nematological, etc., besides the post entry quarantine 
(PEQ) testing at the importers premises under the PEQ facility.  The flow chart for import inspection and clearance is available at http://ppqs.gov.in/image003.gif . The post entry quarantine 
inspections which are required in case of cutting s, saplings and bud woods are carried out by the 
Designated Inspection Authorities constituting mainly the head of the Department of Entomology/Plant Pathology of the State Agricultural Universities/ICAR Institutions.  
Report India 
 Question 7:  According to page 17, paragraph 4.14 the country report states: 
 
"The increasing incidence of non-tariff barriers such as sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT), remains a serious commercial 
concern. While tariffs have been declining worldwide (also due to the increasing 
number of FTAs) has increased the use of technical / mandatory rules and regulations that constitute barriers have multiplied procedures conformity assessment. Increased transaction costs arising from compliance with these regulatory requirements 
increases the costs of exports from India and reduces the competitiveness of their 
prices. " 
What it is the internal proceeding is carried out to establish entry requirements in agriculture in 
India? 
 Reply:   General conditions for Import of plants, plant products are as under:  
 
(1) No consignment of plants and plant products  and other regulated articles (hereinafter 
referred to as "consignments") shall be imported into India without a valid permit issued under this Plant Quarantine (Regulation of Import into India) Order, 2003. 
 
(2) No categories of plant materials in respect of the plant species or variety mentioned in 
Schedule IV of the Plant Quarantine (Regulat ion of Import into India) Order, 2003 shall 
be allowed to be imported into India from the countries mentioned against each in 
column (4) of the said Schedule.   
(3) Every applications for a permit under this clause sha ll be made at least one month in 
advance to the Issuing Authority as listed in Schedule-X, in Form PQ 01 for the import of plants and plant products for consumption and processing and in form PQ 02 for import WT/TPR/M/313/Add.1 
 
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  of seeds and plants for propagation covered under Schedule-V, VI and VI Plant 
Quarantine (Regulation of Import into India) Order, 2003 I. 
 
Further details of the Plant Quarantine (Regulatio n of Import into India) Order, 2003 are available 
at: http://dbtbiosafety.nic.in/act/Plant%20Quarantine%20_order_2003.pdf . 
 WT/TPR/M/313/Add.1 
 
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  EUROPEAN UNION  
WT/TPR/S 313- Report by the Secretariat 
Page 10, Para 21 and Table 3.18 page 74 and Government Report para 3.8 
 The EU considers that the report does not cover subsidies in a comprehensive manner. 
As reported, the situation is that subsidies can be granted at several levels, such as the State 
level. Subsidies often consist in tax exemptions that are difficult to identify. In its report, in para 1.2 India commits to rationalize subsidies. The EU  notes that subsidies continue being the third 
most important element in the budget. 
EU Question 1: Could India provide further information on efforts to simplify and streamline 
subsidies schemes, reducing their market distorting impact and ensuring that support is received by the intended beneficiary? Could India give more  information on the fiscal subsidies it grants in 
particular those that are related to export?  
Reply:  Government is taking various steps to enhance the efficiency of procurement and public 
distribution systems.  The objective is to ensure that the right amount of subsidy reaches the right 
people at the right time.  Details of fiscal subsidies are available in India's budget documents (www.indiabudget.nic.in ).  India is also in the process of collecting information for its notifications 
to the WTO. 
 
Page 30 para 2.24 - Bilateral trade policy. The report mentions an internal study on the 
impact of India's FTAs on its industry.  
EU Question 2 : Could India elaborate on its strategy for bilateral trade agreements and its 
intentions in the near future in light of the results of the study mentioned in the WTO Secretariat 
report? Has the government for example attributed priorities for the conclusion of certain ongoing 
negotiations?  
Reply: India's strategy for bilateral trade negotiations is determined inter alia by a number of 
factors such as the reciprocity by trading partner, export interests in the trading partner, domestic 
sensitivity for stakeholders, overall ambition in other areas of negotiations etc. 
 
Page 30 para. 2.28 - business climate 
"Investment and incorporation of companies is regulated by the Companies Act, 2013. The Act 
regulates the establishment of domestic and foreign companies, the power and responsibilities of 
senior management as well as details relating to audits and accounts. Other key legislation includes the Industries (Development and Regulation) Act 1951 which guides Government 
industrial policy objectives. The Indian Contract Act 1872 governs transactions relating to industry 
and trade, while the Industrial Disputes Act 1947 de termines the settlement of industrial disputes. 
Other Acts that are relevant for business are the Competition Act of 2002, and laws and regulations relating to intellectual property rights (see further details in Section 3.3.5)." 
EU Question 3: "Based on the World Bank report, India dropped to 142 place out of 189 countries 
in the "Ease of Doing Business."  What measures is India undertaking to attract international 
companies beyond the relative opening up of some sectors described in the WTO Secretariat 
report?  
Reply:  In addition to opening up of economy through easing the FDI regime, Government has 
taken up reforms in the regulatory environment.   These initiatives, updated as on 20.5.2015 can 
be accessed at http://dipp.nic.in/English/Investor/EoDB_Intiatives_20May2015.pdf . WT/TPR/M/313/Add.1 
 
- 87 - 
 
  Page 30, para 2.30- Legal framework for business 
The last TPR in 2011 highlighted that at least 12 procedures were required to set up a business in 
India. The situation has clearly worsened as it has been stated by the World Bank. But not only the 
extraordinary amount of paperwork and administrative hurdles involved, resulting in long delays, is an obstacle for doing business in India. Once a foreign company is set up, they face several 
specific problems from the legal framework perspective (bidding, land acquisition to mention a 
few). Regarding the set-up of facilities, land acquisition is a very lengthy and costly process. The land acquisition Bill has recently entered into the Parliament but it will take time until it is 
approved.   
 EU Question 4: Does India intend to take steps in the near  future to reduce the current very long 
period of time needed for land acquisition? 
Reply: Efforts to improve the ease of doing busine ss in the country is an on-going process. 
Improving land laws is also a part of the endeavour wherein measures to streamline laws on land 
acquisition, digitisation of land records that would facilitate easy and faster land acquisition, at the 
same time ensure fair compensation  to farmers have been initiated.  
From experience, it is a common understanding that the public procurement model has not met 
expectations.   
 EU Question 5 : Does India have a clear strategy about the model to adopt for financing 
infrastructures? Could India clarify whether, in the framework of its wider policy to foster 
Infrastructure Development, it is ensuring that there is no discrimination between national and 
foreign investors? 
Reply:  The Government has outlined a new vision for putting India on a high and sustained 
growth trajectory of 7-8 percent in the next 3-4 years through enhanced investments in 
infrastructure, focus on creation of an investor-friendly environment, fostering social inclusion and 
fiscal consolidation.  
The Government had projected an investment requir ement of US $ 1 trillion (~ INR 60 lakh crore) 
in the infrastructure over the XII Five Year Plan (2012-17) which is about 10 per cent of GDP, a significant scaling up from the XI Five Year Plan (2007-2012) which was US $ 514 billion (about 9 percent of GDP).  
 
Given the enormity of the investment requirements and the limited availability of public resources 
for investment in physical infrastructure, effort has been made to explore avenues for increasing 
investment in infrastructure through a combination of public investment, Public Private 
Partnerships (PPPs) and occasionally, exclusive pr ivate investment wherever feasible. The private 
sector is expected to contribute at least half of the over $1 trillion dollar (Rs. 60 lakh crore) 
infrastructure investment in the XII plan.  
 As preliminary estimates indicate a potential funding gap of 25-30% in the XII Plan target, innovative measures have been taken to bridge the financing gap in infrastructure through: 
 
 Viability Gap Funding (VGF) 
 Take-out finance to reduce long term cost of debt. 
 Multilateral Agencies are allowed to raise Rupee Bonds and carry out Currency Swaps to 
provide long term debt. 
Dedicated Infrastructure Funds are being encouraged for equity flows: 
 
 Infrastructure Bonds 
 Infrastructure Debt Funds (IDFs) 
 Infrastructure Investment Trust (InvITs) WT/TPR/M/313/Add.1 
 
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   Real Estate Investment Trust (REITs) 
 Use of FE reserves – offshore SPV by IIFCL etc. 
India does not discriminate against foreign investors,  In so far as infrastructure and PPP projects 
are concerned, these are competitively bid out and the qualification criteria are laid down in the 
model RFQ. There is no bar on foreign participation in the bidding for projects in the different 
sectors which are governed by the FDI policy. 
 
EU Question 6: To avoid non necessary delays in setting up facilities and building infrastructures, 
can India elaborate on the next steps it is going to take in  experimenting the "plug and play 
model"?  
Reply: The government has intends to explore the possibility of experimenting with the 'plug and 
play' model across sectors, wherever possible. Howe ver, details in this regard are being worked 
upon.  
Para 2.32 Unilateral trade preferences towards LDCs 
EU Question 7: Can India provide recent statistics on the value and volume/ percentage of its 
total imports that are subject of the preferences granted to LDCs? Could India indicate the legal basis for the revised scheme? Which countries and products are excluded and on which criteria? 
Are there any quotas applied on duty free imports for those products and countries covered? 
Reply : Duty preferences to LDCs are granted in te rms of the DFTP scheme of India. As per the 
scheme, as of now, India provides duty free market access on about 96 % of its tariff lines 
(at 6 digit HS classification) and 2.2% of the line s are under preferential duties. Only 1.8% of the 
tariff lines have been retained in the Exclusion List, with no duty concessions. Customs Notification 
No. 8/2014 dated 1
st of April, 2014, whereby the scheme was expanded provides legal basis of the 
DFTP scheme. Scheme is open to all LDCs. However , in order to become beneficiary of the DFTP Scheme, individual LDCs are required to submit to  the Government of India, a Letter of Intent and 
details of officials who would be responsible for issuing the Certificate of Origin in the prescribed 
format. Presently, 31 out of the 48 LDCs have be come beneficiaries to the scheme. Out of this, 
21 LDC beneficiaries are from Africa. Some of th e products which have been excluded under the 
scheme are agricultural products like poultry, milk and milk products, fruits, coffee, tea, cereals 
and others items like  crude/rough marble, specific steel products, refined copper, cathodes etc. 
No specific quotas have been put under the DFTP scheme. 
Page 31, para 2.32, Compulsory Industrial licensing, paragraph 
The Report mentions that "The IEM, according to the authorities, is required principally for data 
collection purposes on investment and type of industrial activity. Industrial licenses are valid for an 
initial period of three years following which they are extendable for up to a maximum period of 
seven years." 
EU Question  8: Is the extension period of seven years inclusive of the initial three years?  
Reply:  Yes, for all sectors other than Defence Sector.  
For Defence Sector the initial validity of Industri al Licence has been increased from present three 
years to seven years with a provision to seek an  extension of three years. (DIPP Press Note 5 
of 2015 series) 
The Report also mentions that "There are also two industries reserved for the public sector: atomic 
energy and railway operations other than construction, operation and maintenance":  
EU Question 9 : Has India conceived any plans in the future to open atomic energy and railway 
operations other than construction, operation and maintenance to privatization? 
Reply:  Since these sectors are crucial with respect to national interest & security and are of 
sensitive nature, FDI is prohibited in these sector s. At present, there are no plans to open these 
sectors for allowing FDI. WT/TPR/M/313/Add.1 
 
- 89 - 
 
  However, Govt. has allowed FDI upto 100% under the automatic route in Construction, operation 
and maintenance of the railway infrastructure projects as specified in the Consolidated FDI Policy 
(12th May, 2015) as per Para 6.2.17 of the Consolidated FDI Policy 2015 . 
The Report mentions "In November 2011, the DIPP also notified the National Manufacturing Policy 
(NMP) whose overall goal is to raise the share of manufacturing in GDP to 25% and create 100 
million jobs over a decade or so. To implement the policy, national investment and manufacturing 
zones (NIMZs) have been created".  
EU Question 10 : Have certain NIMZs already been identified? If so, could India provide additional 
details? 
Reply: Government has granted "in-principle" approval to a total of 20 National Investment and 
Manufacturing Zones ( NIMZs ), out of which 12 NIMZs are located outside the Delhi-Mumbai 
Industrial Corridor ( DMIC ) region.  These are: (i) Nagpur in Maharashtra (ii) Prakasam in Andhra 
Pradesh (iii) Chittoor in Andhra Pradesh (iv) Meda k in Telangana and (v) Tumkur in Karnataka (vi) 
Kolar in Karnataka (vii) Bidar in Karnataka (viii) Gulbarga in Karnataka (ix) Kalinganagar, Jajpur 
District in Odisha (x) Ramanathapuram District of Tamil Nadu (xi) Auraiya District in Uttar Pradesh 
and (xii) Jhansi District in Uttar Pradesh.  
Under phase-I of the DMIC project, 8 Investment Regions have also been accorded "in-principle" 
approval of Government for setting up as NIMZs as per guidelines approved by the Government. 
These are (i) Ahmedabad-Dholera Investment Region, Gujarat; (ii) Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra; (iii) Manesar-Bawal Investment Region, Haryana; (iv) Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan;  (v) Pithampur-Dhar-Mhow 
Investment Region, Madhya Pradesh;  (vi) Dadri-Noida-Ghaziabad Investment Region, Uttar 
Pradesh; (vii) Dighi Port Industrial Area, Maharashtra; and (viii)Jodhpur-Pali-Marwar Region in Rajasthan. 
The Report mentions "In addition to compulsory in dustrial licensing and reservations for the public 
sector, environmental clearance under the Environment Protection Act, 1986, is required from the 
Ministry of Environment and Forests, for 29 industries prior to establishing industrial units".   
EU Question 11 : Is there a defined timeline for obtaining these clearances? Is MoEF a single 
window for obtaining clearances for all 29 industries?  
Reply: Environmental Impact Assessment (EIA) notification, 2006 is a subordinate legislation 
under Environmental (Protection) Act, 1986 requir ing mandatory prior environmental clearance for 
39 types of economic activities. The notification provides for defined time limits for each stage 
of environmental clearance process. The EIA notification, 2006 is administered by Ministry 
of Environment, Forest & Climate Change but has delegated the powers for consideration 
of environmental clearances at State level in ea ch 39 types depending upon size and capacity of 
the project.   
 
Page 27, Para 2.15 - import 
EU Question 12: Could India clarify if there is a longer te rm strategy to ensure predictable, more 
trade facilitating polices for import with a view to create a better and more predictable business 
environment for trade?  
Reply:  Indian maintains a limited number of tariff lines under "prohibited" and "restricted" list. 
A few items are for exclusive trading by the State Trading Enterprises. The list has remained more 
or so stable for the last ten years. Even for exports, the item wise provisions clearly indicate that over the last few years, India has stable trade policy regime. 
 
Page 32 para 2.35 Micro, small and medium enterprises  
Micro, small and medium enterprises (MSMs) as defined in the Micro, Small and Medium 
Enterprises Development Act, 2006 (Section 3), account for around 8% of India's GDP, 45% of manufacturing output and 42% of exports, and pr ovide employment for a significant share of the 
population according to estimates by the Minist ry of Micro, Small and Medium Enterprises. 
Historically, in order to support these enterprises, the production of certain products could only be 
carried out by them. The number of such reserv ed items has been reduced gradually over the 
years with around 20 items currently on the list (see Section 3.3.1.4). Despite this reservation, WT/TPR/M/313/Add.1 
 
- 90 - 
 
  approved non-medium and small-scale companies may also produce items reserved on condition 
they obtain an industrial license from the DIPP and undertake to export at least 50% of their 
annual production. 
EU Question 13: Are there any benefits and incentives schemes that are available to foreign 
entities that would contribute to support the MSMs sector in India?  
Reply: No such scheme is operating under Ministry of MSME. 
Page 34 Para 2.42 on BIT model 
EU Question 14 : India recently published its new model BIT. Could India clarify the timeframe for 
further developing its BIT model? Could India indicate if it has intentions to replace or modify its 
existing BITs? If so, could India provide further information regarding the planned steps in this 
regard?   
Reply:  The Draft Indian Model Bilateral Investment Tr eaty (BIT) is awaiting the approval of the 
Competent Authority. Once the model BIT text is approved, BITs would be negotiated on the basis 
of this model.  
 
Page 35 Para 3. 4. On risk  management and customs.  
It is stated that "India uses a RMS as a trade facilitation measure to selectively screen only high 
and medium risk cargo for customs examination ", but the regulations of FSSAI (India's Food 
Safety and Standards Authority" impose 100% sampling and testing for all imported agri food entering India. This de facto imposes high costs of transaction, including for products that have repeatedly and successfully passed the sampling/testing (also taking into account the perishable 
nature of food items stored in precarious facilities for several days due to the limited available test 
laboratories) 
EU Question 15 : Could India explain the rational of pre-shipment inspections for certain textiles 
and clothing articles? Does India intend to simplify this procedure for example by providing 
exemptions? Could India confirm that  the legal basis for these pre-shipment inspections consists of 
"Paragraphs 25 and 27 of the Export and Import Policy" as notified to the WTO Secretariat and 
that no additional legislation has been adopted?  
Reply: For import of textile and textile articles, pre-shipment certificate ensures that the 
consignment is permitted subject to the condition that they shall not contain any of the hazardous 
dyes whose handling, production, carriage or use is  prohibited by the Government of India under 
the provisions of Environment (Protection) Act, 1986. 
Page 36 section 3.1.2 - customs valuation 
EU Question 16 : Could India clarify what are the conditio ns for accepting import prices between 
related parties and how such conditions comply with the WTO Customs Valuation Agreement?  
Reply : Rule 2(2) of the Custom Valuation Rules 2007 enumerates the persons who shall be 
deemed to be "related". It has made clear by explanation thereto that the sole agent, sole 
distributor or sole concessionaire can be termed as related only if they fall within the criteria of this sub rule. Further, Rule 3(3) provides that where buyer and seller are related, the transaction value 
can be accepted if the examination of circumstan ces of the sale of the imported goods indicate 
that the relationship did not influence the price or  if the importer demonstrates that the declared 
value of the goods being valued, is approximately close to one of the test values namely transaction value of identical/similar goods, in sales to unrelated buyers in India, deductive value 
for identical/similar goods or computed for identical/similar goods ascertained at or about the 
same time can be used. 
India's Custom valuation rules are compatible with WTO Custom valuation Agreement P. 37, para 3.14 – tariff values 
The WTO Secretariat states that the transaction value is also generally used to assess the 
additional duty on imports. Nonetheless, for impo rts of some packaged goods, which, if produced WT/TPR/M/313/Add.1 
 
- 91 - 
 
  domestically, would be subject to a maximum retail price (MRP), the value of the goods is 
determined using the MRP declared on the package minus an "abatement" for like domestic goods. The latter practice is not in line with the WTO Customs Valuation Agreement. However, this is not the only concern as regards maximum retail price. Indian rules lay down that products (there are 
some products though exempted by India in 2011) have to be labelled with the MRP before they 
arrive to India. This is a significant burden for exporters to India. Moreover, different VAT rules in 
each Indian State result in different MRPs. This makes labelling costly and complicated.  
EU Question 17: Has India any intention to amend the MRP rules in order to facilitate for trade 
and business?   
Reply: India is open to any constructive suggestions for facilitating trade. In the meanwhile, 
as per amendment order No. GSR-385(E) dated 14.5.2015, it has been stipulated that necessary declarations may be made on a sticker at the principal display panel of the pre-packaged 
commodity. 
Page 37, para 3.16 - custom procedures 
EU Question 18 : Could India provide more information on the number of cases where appeals 
were launched against customs valuation decisions? 
Reply: There is no separate data readily available on the number of cases where appeals were 
launched against customs valuation decisions. However, details of total appeals is as under:  
Year 2012-13  
 Commissioner 
(Appeal) CESTA T High Court Supreme 
Court 
Appeal by trade  8286  2518 1136 79 
Appeal by 
Department  1172 624 179 46 
 Year 2013-14  
 Commissioner 
(Appeal) CESTA T High Court Supreme 
Court 
Appeal by trade  11694  1992 828 62 
Appeal by 
Department  882 1080 365 48 
 
Page 38 Para 3.18 - applied tariffs 
India applies a complex system of tariffs with separate published MFN and effective rates in 
addition to ad-hoc exemptions notified by Custom s Notifications that decreases predictability and 
can act as impediment to trade.  
EU Question 19:  Does India intend to modernize its tariff information system so as to provide 
information to traders in a single form or gateway? 
Reply: The current rate of Customs duties for each tariff line is available at the ICEGATE "Customs 
Duty Calculator" [https://www.icegate.gov.in/Webappl] 
Page 40 Para 3.27-3.29 – applied tariffs 
The WTO Secretariat rightly notes that applied tariffs increased by 1%. Given the additional taxes, 
As noted by the Secretariat, applied tariffs have  not decreased but increased by 1%. Para. 3.29 
states "The addition of these duties and charges to  the applied tariff raises the actual duty paid by 
the importer significantly above the effective app lied tariff rate. All imports, unless exempt, must 
pay the effective rate of customs duty, plus th e AD, plus any cess applicable, and the Education WT/TPR/M/313/Add.1 
 
- 92 - 
 
  and Higher Education Cess; the 4% SAD is then calculated as a share of this final value. As a 
result, the overall average applied tariff including such charges rises from 13% to 28.3%".  
EU Question 20: Does India intend to suppress the additi onal duty and the special additional 
duties when the Goods and Services Tax will star t being applied? (those duties were created to 
offset local taxes as the paragraphs 3.27-3 .30 of the WTO Secretariat report recall).   
Reply: Normally, since the local taxes such as VAT, CST, etc. and the central excise duty are 
proposed to be subsumed in the GST, AD and SAD will also be subsumed into GST and a unified 
IGST rate will be a pplicable on imports. 
Page 43 para 3.29  - Other charges affecting imports   
EU Question 21: Will India consider either suspending the Special Additional Duty on products for 
which the former Additional Duty has already been suspended or making a commitment to adopt 
concrete measures in order to si mplify the refund mechanism?  
Reply: Countervailing duty is charged at a rate eq ual to the excise duty, for the time being 
leviable, on a like article if produced or manufac tured in India and if such excise duty on a like 
article is leviable at any percentage of its value,  the additional dutyto which the imported article 
shall be so liable shall be calculated at that percentage of the value of the imported article. 
[Section 3(1) of the Customs Tariff Act, 1975 (51 Of 1975)]  
 
Special Additional Duty is charged so as to count er-balance the sales tax, value added tax, local 
tax or any other charges for the time being leviable on a like article on its sale, purchase or 
transportation in India [Section 3(5) of the Customs Tariff Act, 1975 (51 Of 1975)]. 
 
Both "countervailing duty" (AD) and "Special Additi onal Duty" (SAD) are in the nature of equalizing 
duties so as to ensure that imports goods suffer the same level of domestic duties that indigenous 
goods suffer. Moreover, input tax credit of both "c ountervailing duty" (AD) and "Special Additional 
Duty" (SAD) are available for manufacturers usin g imported goods as inputs. Therefore these 
duties are in the nature of equalizing duties. 
 
The EU notes that imported spirits face 29 different  state markets within India, each with different 
internal tax structures. A variety of apparently discriminatory tax and other market access 
measures imposed by state governments continue to compound the market access problems created by national measures such as the 150% tariff. Some of the worst such state measures have been raised in WTO Consultations initiated by the EU under DS380. That Consultation was 
requested in 2008 and has resulted in some impr ovements, but there are a number of apparently 
discriminatory measures implemented by state governments which continue to seriously impair access to the state markets concerned. New forms of seemingly discriminatory measures are 
regularly proposed by different states (for example Delhi's pricing restrictions for imported spirits). 
The EU notes that there is no effective resort to domestic Indian law for challenges covering 
discriminatory measures applied by state governments.  
EU Question 22: What are the steps considered by India to ensure that Indian States bring their 
practices in conformity with India's WTO obligations? 
Reply: Under the federal structure in India, the Constitution provides powers to the State 
Governments to levy Excise duties on certain products including wines and spirits. Pursuant to the 
discussion with various State Governments, a number of State Governments have amended the s a m e  a n d  i t  i s  u n d e r s t o o d  t h a t  t h e  s a m e  h a v e  been rationalized. However, the Government of 
India is continuously working with the concerned State Governments to rationalize the duty, if any, 
on wines and spirits. 
The EU also notes that cut and polished diamonds have been made subject to a 25% effective 
import duty in September 2014.  
 
EU Question 23: What is the rationale behind such decision, bearing in mind that such hike can 
contribute to illicit customs value declaration and the expansion of unregistered supply channels at the detriment of transparent suppliers, such as th ose operating in the EU? Does India contemplate 
any further import duties or levy increases on cut/polished diamonds? WT/TPR/M/313/Add.1 
 
- 93 - 
 
  Reply: Changes in import tariffs are done keeping in  view interest of consumer and domestic 
industry. It may not be possible to discuss the reasons for specific changes.  
Page 45, Table 6.3 -Tariff Rate quotas 
EU Question 24: Can India provide further information in particular on the rate of use of these 
quotas as the last notification by India dates back 2011 and covers 2004-10? In case they were 
not 100% used, would India consider facilitating importers' use of these quotas? 
Reply:  Information is being collected and will be provided in India's notifications.  
Page 47 para 3.40 - Import prohibitions 
EU Question 25 : The report states that "import prohibitions are mainly for health reasons and 
safety reasons and include a wide range of products." Can India  provide a scientific justification for the prohibition of the items listed in table 3.8.? Could India explain the rationale for prohibiting 
the imports of mat and offal of wild animals and animal fats? Could India clarify whether a similar 
ban on domestic production and commerce of animal fats is in place? 
Reply: Prohibition on imports of certain products and the reasons thereof are:- 
 
i. Import of Wild Animals (including their Parts and Products) as defined in the Wild Life 
(Protection) Act, 1972 is "Prohibited".  
ii. A n i m a l  f a t s  u n d e r  C h a p t e r  1 5  o f  I T C  ( H S )  i s  " P r o h i b i t e d "  i n  t e r m s  o f  P r i n c i p l e s  o f  
restrictions related to protection of human, animal or plant life and health. 
Page 51, para 3.51-and para 3.53 import  quotas and import restrictions  
EU Question 26: Regarding the import quotas on marble and similar stones, how does India 
justify such quantitative restriction to imports, effetely depriving its processing industry of a supply source? In relation to Trade Notice No. 12/2014 of 8
th January 2015 on the Allocation of Quantity 
of Rough Marble and Travertine Blocks for import, can India confirm that the 472 companies listed 
in annex cannot import more than the quantity allocated, which results in a de facto maximum import limit per applicant? Could India explain why imports of new motor vehicles are restricted to 
specified ports? Could India provide further justification regarding the obligation to import second 
hand cars only through a single port? 
Reply : Marble is a sensitive item for India because of ecological and health safety reasons. A fine 
balance has to be maintained between requirement of mineral resource vis-à-vis  
environment/ecological concerns. On account of this, mining is allowed only after environmental clearance and there are several conditions stipulated in mining licenses. 
Regarding motor vehicles, Import clearance requires assessment of value, duty, compliance to 
quality and other parameters.  Whereas , most of the items are allowed to be imported from all 
Custom designated ports, port restriction criteria has been introduced for few items where the 
above mentioned parameters (assessment of va lue, duty, compliance to quality and other 
parameters) cannot be assessed in all ports. The designated ports ensure quick clearance of the 
goods for imports and exports purposes. 
Page 58 Para 3.85 - safeguards 
EU Question 27: Could India provide justification of its high number of initiation of investigations 
and imposition of safeguard measures? Could In dia provide information on the value of trade 
affected by the safeguard measures in place? 
Reply:  In accordance with the provisions of Rule 5 of Customs Tariff (Identification and 
Assessment of Safeguard Duty) Rules, 1997,Safegu ard Investigation are initiated only against 
those cases where on examination of the application, it is found that there is prima facie evidence 
of increased imports and such increase in import s has caused irreparable damage to the domestic 
industry. However, if after completing the investigation upon analyzing the multiple parameters and taking into account the views and evidences produced by the various interested parties, WT/TPR/M/313/Add.1 
 
- 94 - 
 
  Director General (Safeguards) feels that the case does not warrant recommendation for imposition 
of Safeguard duty, the investigation so initiated may be terminated. 
Page 60, para 3.94 - TBT notifications 
EU Question 28:  India appears to have notified relatively few, 11 TBT measures to the WTO 
between 2011 and 2014. The EU had requested Indi a – via the India WTO-TBT enquiry point - in 
several cases to notify Indian measures that fell under the scope of the WTO TBT Agreement. 
Those were not notified or in some cases, the TBT notification was carried out only after the 
adoption of the measure (such as in IND/47). Could India clarify if there is a systematic approach in the government that aims at ensuring that all relevant TBT measures are notified at an early 
stage in order to allow other WTO members to comment on? Does India have plans to improve the 
timeliness and frequency of its notification procedures? 
Reply:  Since few products have been brought under technical regulation, the notification to WTO 
TBT Committee has also been few.  It is a continuo us process and as and when TRs are adopted, it 
is being notified to WTO Secretariat. 
Page 60 para 3.95 - conformity  assessment and certification 
The report states that a number of products ar e subject to BIS compulsory registration scheme 
(e.g. electronics) or to mandatory BIS certification. Both schemes entail third party conformity 
assessment procedures.  
EU Question 29:  Does India intend to allow, in the future, lower risk products (e.g. electronics) to 
be placed in the Indian market on basis of a Su ppliers Declaration of Conformity (SDoC) combined 
with a market surveillance system? 
Reply: The Department of Electronics and Information Technology, Ministry of Communication and 
Information Technology, Govt. of India has notified 30 Electronic and IT products under 
Compulsory Registration Scheme (CRS) of BIS.  The Govt. of India in consultation with BIS may 
bring more low risk products under th e CRS scheme which is similar to SDoC.    
EU Question 30:  Can India confirm that as regards the compulsory registration scheme for 
electronic and information technology goods (IND/44 and IND/47), that testing certificates issued 
by foreign laboratories accredited by members of  the ILAC/IAF schemes or issued by members of 
the IECCB scheme will co ntinue to be accepted? 
Reply:  As on date, BIS is accepting test reports of laboratories recognized by BIS within India. 
However, there is a provision of acceptance of test reports of laboratories of other countries only in 
case there is a mutual agreement with such co untries.  For components of Electronic and IT 
equipment, the test reports of IECEE CB and certification of foreign certification bodies are 
accepted by BIS and BIS recognized laboratories.   
Page 60 para 3.96 – certification and conformity assessment 
The report states that 92 types of products ar e subject to the mandatory BIS certification mark. 
The Indian authority's state that fees are fixed based on the cost of operations.  
EU Question 31: Could India provide clarification regarding the cost structure of certification that 
appears to be based on the number of products marketed (whether marketed in India or not)? In particular, can India explain why it charges a marking fee per product with the BIS mark (unit fee)? Can India explain why it charges the BIS mark  fee also on products with the BIS mark even 
when not sold in the Indian market?  Could India provide explanations on how the varying fees are 
considered to be covering only the cost of certification of a product? Could India provide further information if the budget of BIS is segregated depending on its different functions i.e. certification 
and standardization in order to check if certification fees only cover the cost of certification 
services provided? Could India explain what is the rationale for the "advance minimum marking fee for the production likely to be marked", especially in the light of the fact that it depends on the product to be marked? 
Reply: The cost structure of product certification is based on the Marking Fee Policy and based on 
this policy the advance minimum marking fee for a licence is charged by BIS to partly cover its WT/TPR/M/313/Add.1 
 
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  administrative expenses, cost of market samples, cost of testing of samples and other overhead 
expenses.  The calculated marking fee or the mini mum marking fee whichever is higher is to be 
paid by the manufacturer every year. Based on the quantum of production, sampling can be done for more number of samples, ho wever no extra charge is levied upon the manufacturers for the 
same. The marking and overall fees are equal to  the fees levied by BIS to its domestic 
manufacturers and there is no disparity.  Even if domestic manufacturers are exporting product 
with BIS mark to outside India they have to pay making fee to BIS. This fee is charged to cover 
the travelling and other costs in case complaint is received from outside India for a BIS marked 
product. 
The marking fee is based on the quantum of produc t marked with the BIS standard mark. In case 
the BIS standard Mark has been used on the prod uct it is imperative that the manufacturer shall 
pay the marking fee for all such products, as per practice at international level. 
The cost varies from product to product since th e cost of sample and testing charges vary from 
product to product. 
Even though there is separate budgeting, the cost of Standardization is recovered from 
certification fees since BIS is a self-supporting organization. 
The marking fee is taken in advance since cost of certification in a year (which includes cost of 
purchase of sample, analysis of samples drawn from factory as well as market) is borne out of the 
advance marking fee submitted by the manufacturer. This advance marking fee is adjusted on 
completion of operative period of licence as per the actual production covered with BIS Standard 
Mark. 
The last TPR in 2011 highlighted that there were 81 products subject to the mandatory BIS 
certification mark, now 92. One of them, planned by that time, has already been implemented. It 
is the case of import pneumatic tyres into India which according to mandatory certification must 
bear an ISI logo on each tyre and pay a fee for it; their manufacturers must deposit a bank 
guarantee not required to nationals; the certification cannot be done in European facilities in compliance with EU or UN norms. 
EU Question 32:  Does India consider adhering to the 1958 UN-ECE agreement, which defines 
harmonized vehicles safety requirements widely accepted worldwide? Would such membership not spare extra administrative and financial burden on  importers and reduce uncertainty to economic 
operators?   
Reply:  No. India would not recognize regulations under the 1958 agreement administered by 
World Forum for Harmonization of Vehicle Regulations (WP.29) of UNECE as international 
regulations.  India is already a member of 1998 agreement.  Page 61 para 3.98– certification and conformity assessment 
EU Question 33: Does India contemplate raising any additional fees related to market 
surveillance for compliance with BIS standards and, if so, could India elaborate on their rationale? 
Reply: Under BIS Product Certification Scheme, BIS does not charge any fee other than the 
marking fee based on production or mini mum marking fee, whichever is higher.  
EU Question 34 : Could India indicate if it plans to expand the list of products subject to 
mandatory BIS certification (and in particular but not only) for steel products? If so, for which 
ones? In that case, could India provide further information regarding those additional products 
would be subject to such BIS certification and an indicative timeline? For those products, could also India indicate which potential risks it intends to tackle that would justify introducing a third party conformity assessment procedure such as the BIS certification?  
Reply: The relevant Ministry of the Government of India, in consultation with BIS, decides about 
the products to be brought under mandatory certification. For steel products, please refer to www.steel.gov.in , the official website of Ministry of Steel.  An advance notification is provided to all 
stakeholders with time lines whenever it is intended to bring any product under mandatory 
certification.  
 WT/TPR/M/313/Add.1 
 
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  EU Question 35: Does the Bureau of Indian Standards (BIS) have any plans for issuing new 
certification guidelines for the steel/metal industry?  
Reply:  The BIS formulates standards for products including steel products. Technical 
Regulations/Quality Control Orders are issued mainly to protect consumer interest. Several steel products have been covered by this. There is a standard process of certification of the products. 
Once certified, there is no restriction on selling these products obtained from domestic producers 
or import. For further details, the official website of Ministry of Steel- www.steel.gov.in  may be 
referred. 
Page 60 para 3.97- foreign prod ucers' mandatory certification 
EU Question 36: In order to obtain a BIS license, a foreign manufacturer must set up a 
liaison/branch office in India. Taking into account the requirement that a foreign manufacturer 
must have a legal representative in India, could India give the rationale for requiring a bank 
guarantee (which is an additional requirement that is only applicable for foreign manufacturers, 
not for domestic ones)?  
Reply:  The performance bank guarantee is intended to protect the Bureau of Indian Standards 
(BIS) during the tenure of the licence and is invoked only in case of breach of any condition of the 
agreement signed between BIS and licensee. Ration ale for bank guarantee is preventive security 
measure to cover the loss of revenue which may arise out of any liability/unpaid fee, penalty etc. 
on part of foreign manufacturers and also takes care of legal expenses if any, on account of supply 
of standard mark product in a country other than India. The marking and overall fees are comparable to the fees charged by other members of similar schemes and are equal to the fees levied by BIS to its domestic manufacturers. In case of breach of Marking Fee by domestic 
manufacturers there are other national laws and legal framework for recovery of dues, penalties, 
liabilities etc., the provision of bank guarantee has not been imposed for domestic manufacturers. However, this Law of land cannot be enforced in foreign countries. Therefore, to protect BIS interest, Performance Bank Guarantee is sought which is approved by Law Ministry. 
Page 62 para 3.102- accreditation 
The report states that 14570 laboratories are re cognized under the BIS Laboratory Recognition 
Scheme.  
EU Question 37 : Can India indicate how many of those laboratories are foreign laboratories? 
Can India clarify if there are specific conditions applied to foreign laboratories in order to be recognized by BIS (e.g. local branch in India) or if accreditation by an accreditation body member of ILAC/IAF is a sufficient condition for a laboratory to be recognized by BIS?   
Reply: It is informed that the number of laboratories that are recognized under the BIS 
Laboratory Recognition Scheme is 145 only and not 14,570. At present, no foreign laboratory is recognized under the Laboratory Recognition Scheme of BIS.  At present, the same provisions, as 
are applicable in case of Indian laboratories, are applicable in the case of foreign laboratories as 
well. The details are available on the BIS website www.bis.org.in . Accreditation by an accreditation 
body, which is member of APLAC/ILAC is one of the pre-conditions for considering a laboratory, 
whether Indian or Foreign, for recognition under  the Laboratory Recognition Scheme of BIS. 
Page 62 para 3.103 – labelling 
The license number and FSSAI logo can indeed be  added in an affixed label. However, other 
essential information (list of ingredients, expiration date –given for illustration-) cannot be added 
and have to be printed in English or Hindi directly on the package because FSSAI regulations prohibit the use of stickers. This restricts market access to India and nullifies reciprocity, as most Indian trade partners, including the EU and the US, allow the use of stickers.   
EU Question 38:  Could India provide justifications of its divergence from CODEX 
(CODEX STAN 1-1985) and international practice regarding the use of stickers for labelling of food products?  Could India further explain if it had identified technical impediments to the use of 
stickers as a means for providing all mandatory food labelling information, bearing in mind that 
India accepts stickers for labelling India specific information?  WT/TPR/M/313/Add.1 
 
- 97 - 
 
  Reply: Codex does not prescribe that the labelling requirement can be met through additional 
sticker(s). The core information regarding product ingredients, composition, nutrition values, Best Before or Use by dates etc. can only be provided  by the manufacturer and none else. The label has 
to be an inseparable part of the container/ pack age. Hence, permitting additional stickers as a 
means of information from any other source or even the manufacturer is likely to compromise with 
the sanctity of information which is the basic requirement for a consumer for making informed 
choices. 
EU Question 39: What is the present Indian position on the requirement that the packaged 
products which are subject to the provisions of the Legal Metrology Act from 2009 must be labelled 
with the Maximum Retail Price (MRP) before they are imported to India?  
Reply: The importer have to ensure following declarations on the pre-packaged commodities; 
before release of produc ts in market for sale. 
 
(i)  Name and address of the importer; 
(ii) Name of the commodity; 
(iii) Net quantity in the form of standards we ights & measures in SI system of unit; 
(iv) Month and year of import; 
(v) Retail sale price in the form of MRP : Rs.-----inclusive of all taxes; 
(vi) Consumer care details; 
These declarations may be either in English or Hindi language. Other additional languages are 
optional.  Wherever necessary declarations may be made on a sticker at the principal display panel of the 
pre-packaged commodity as per Amendment Order No. GSR-385(E) dated 14.5.2015 
 
EU Question 40: Are there any plans to relax this requirement as this considerably increases the 
importers' burdens, (calculations are normally base d on several factors including freight, insurance 
and internal taxes? 
Reply: There are no such plans. The sticker provision itself is a big relaxation for importers. 
 Page 62 para 3.104 requirement regarding the use of methyl bromide in food. 
Food safety.  
The EU is concerned because India requires impo rted goods in particular fruit and vegetable 
destined for human consumption to be treated with internationally banned chemical known as methyl bromide. In addition, India requires fumigation to take place at the port of entry for a high 
fee. The impact is that India sanctions exporters from countries that have decided not to expose 
their consumers to the negative health effects of  methyl bromide. In some cases, the Indian 
authorities grant import licenses only if both fumigation and an alternative treatment take place 
simultaneously rendering the food unviable or ex tremely costly to export without any scientific 
justification for such requirements.  
EU Question 41: Does India consider reforming the current  system to ensure that requirements 
are compatible with its international obligations and for wine and spirits, will India reform the 
current requirements o as to adjust to the OIV recommendations?  
Reply:  It may be noted that Codex does not take ownership for OIV. However, the standards for 
wine and spirits are at final stages of approval and in the process of draft notification. The same 
will be notified in the WTO-SPS as soon as these are draft notified.  
EU Question 42: What is India's intention regarding the use of alternatives substances to 
methyl-bromide (given the health and environmental damages that it causes). Would India provide 
guidance on the technical assurances of efficacy of the alternative treatments to be provided by 
exporting countries to India? WT/TPR/M/313/Add.1 
 
- 98 - 
 
  Reply:  There is no ban on use of Methyl Bromide for quarantine and pre-shipment application. 
This fact is evident as recorded under para 6, Article - 2 H of Montreal protocol where the production and use of Methyl bromide is not cont rolled by Montreal protocol. The Methyl bromide 
treatment at point of entry is done as per Plant Quarantine regulations in imports to safeguard the 
Indian agricultural bio-security where pre-export  conditions of treatment is not fulfilled by 
exporting countries. The treatment requirements are based on Pest Risk Analysis (PRA). Moreover 
the exporting partners are free to suggest the alternative treatment with proven efficacy."  
Page 62 para 3.106 - SPS 
EU Question 43: Does India consider exempting products accompanied by certification from an 
ILAC-accredited laboratory from sampling?  
Reply: It depends on each regulator and it is not automatic. For example, for components of 
electronics and IT equipment, test reports of IECEE CB and registration of foreign certification 
bodies are accepted by BIS and BIS recognised laboratories. 
EU Question 44: The EU would like to seek clarity from the Government of India whether the 
WTO SPS (Sanitary and Phytosanitary) committee is notified to all cases regarding import 
conditions (food safety/standards) raised by th e FSSAI (Food Safety and Standards Authority of 
India), and whether the full 60 days is allowed for commenting? Can India confirm that consideration is given to any comments made by Members? Could India share the number of days 
in which it would generally issue the final notification to public after receiving & considering the 
comments of WTO members? Does India consider a pplying the regionalisation principles of the 
SPS committee without delay?  
Reply: If the regulations/rules and procedures are of SPS nature, all rules/regulations made under 
the Food Safety and Standards Act, 2006 are sent  to the WTO-SPS Committee and also published 
giving 60 days' time period for comments as per the provisions of WTO SPS Agreement. The rules 
and regulations are finally notified after due cons ideration of the comments received from the WTO 
members. Normally, every endeavour is made to notify the final regulation within a period of 
six months if the comments are not substantial requiring re-assessment by the scientific bodies. 
The principle of regionalization would be gove rned as per Article 6 of the SPS Agreement. 
FSSAI authorities maintain they are aligning to Co dex as regards standards. As India is a signatory 
of Codex since 1964, they should comply with it . Just the adoption of Codex, instead of the 
alignment to it, would be easier and quicker and would allow resources to be used in any other 
field. Furthermore, India has even adopted their own standards for certain products without having 
any production of them. That is the case of tabl e olives. While being very active in the discussions 
taken around this product in the Codex meeting held in Jamaica in October 2012, India has not 
introduced Codex standards for table olives which were adopted in that occasion and enter into 
force a year later. As a consequence of that, se veral EU containers of table olives, which have 
been entering into the Indian market for the last 25 years, were blocked for non being compliance 
with Indian standards despite the conformity with Codex.  
EU Question 45: The lack of alignment of the import requirements with those of the Codex 
Alimentarius is disrupting trade unnecessarily (e.g. table olives; dried, heat-treated and cured meat products, whole-wheat pasta). FSSAI authoritie s maintain that they align their standards to 
Codex.  Could Indian authorities explain under which parameters is the review of the current 
system going to be produced? Is India considering adopting the Codex Alimentarius? For labelling through stickers, is India working on solutions that are viable and practical for economic operators?  
Reply:  Harmonisation of standards for table olives with Codex standards is in the process. 
As regards blind adoption or harmonisation with Codex Standards, India has to consider harmonisation keeping in view its own ground realities and local requirements/adaptations. 
 
Page 63, para 3.109 - SPS  With regard, specifically, to pork products, India has been considering only heat treatment, 
ignoring other processing methods (e.g. curing by  various means) that also provide an adequate 
measure of safety, as has been scientifically demo nstrated and recognised by all major importing 
countries. Thus cured products, while identified in the Customs Tariff (HS021011-021020), have WT/TPR/M/313/Add.1 
 
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  not been envisaged in the Indian sanitary regulati ons. A new draft certificate submitted recently to 
the WTO considers salt treatment but applied only to deboned meat which is not in line with international practices.  
Furthermore, some of the sanitary requirements incl uded in the Indian sanitary certificates are not 
in line with the international standards. Regarding fresh pork meat, India only allows the imports of this product from countries that are free from Aujeszky's disease. This requirement doesn't 
meet the OIE recommendations, nor the regionalisation principle. 
 
EU Question 46: Is India considering to align in particular to the standards of the World Animal 
Health Organisation (OIE) for SPS matters? Could India provide a scientific justification for its 
requirements, in the health certificates, of freedom  from animal diseases that are not listed in the 
OIE? 
Reply: Yes, India is considering aligning in particular to the standards of the World Animal Health 
Organisation (OIE) for SPS matters. The requirement of Enterovirus Encephalomyelitis, 
Transmissible Gastro Enteritis, Porcine Brucellosis, and Anthrax in the health certificate has been 
made as these diseases are enlisted in the Terrestrial Manual or in Terrestrial Animal Health Code of OIE. 
 
Page 63 para 3.110 - plant pest risk 
EU Question 47: Could India provide a list of quarantine pests and general import conditions? 
Reply:  The list of Quarantine Pests and general import conditions are available on the following 
web link: http://plantquarantineindia.ni c.in/POISPub/pdffiles/pqorder2015.pdf. 
EU Question 48: Are Indian authorities considering the simplification of the Plant Quarantine by 
means of producing a negative list (which means same treatment for the same pest)?  
Reply:  The Indian Plant Quarantine regulations are in line with IPPC provisions. 
 
EU Question 49: Are Indian authorities considering the use of other fumigants as per 
international standards?   
Reply:  Yes. India is open to any alternative suggestions as per International Standards.  
Page 65 para 3.122 - export taxes 
EU Question 50: Further to the information provided on export taxes, could India provide 
additional information on the preferential transpor t fees applicable for the export of certain raw 
materials? 
Reply: Issues related to transport fees are not a taxation matter.  
Page 68 para 3.134 - subsidies. 
EU Question 51: Could India provide updated information on how it determines its current per 
capita GNI in constant 1990 dollars? 
Reply: As per the provision stated in Article 27.6 of ASCM, per capita GNI in 1990 dollars is being 
provided by the WTO Secretariat based on the data released by the World Bank.   
Page 71 para 3.148 - duty drawback 
The duty drawback brand rate scheme showed a significant increase form 2011-12 (Rs 2.2 B) to 
2013-14 (Rs 3.2Bn).  
EU Question 52 : Could India provide further information for the reasons and the possible 
underlying trade patterns of this significant increase? 
Reply:  Reasons for increase in quantum of brand rate disbursals over .time would include more 
exporters opting for it on account of inapplicability, non-availability or insufficiency of all industry WT/TPR/M/313/Add.1 
 
- 100 - 
 
  rates, migration of exports to Duty Drawback Sc heme, better levels of documentation, enhanced 
time frames for filing of applications, grea ter emphasis on timely verification, etc. 
Page 72. chapter 3.2.7 -export finance 
Contrary to the this chapter of the report, WTO Secretariat's background document 
G/AG/W/125/Add.2 on Export Credits, Export Credit Guarantees or Insurance Programmes 
provides no data on export financing schemes applied by India .  
EU Question 53: When will India provide detailed data on its applied export financing schemes?  
Reply:  Data on outstanding export credit are publis hed regularly in the Economic Survey, GoI and 
also in the "Statistical Tables Relating to Bank s in India", RBI (Table 16. Database on Indian 
Economy is available at http://dbie.rbi.org.in ). Data on Export Credit Refinance (ECR) limit set by 
the RBI from time to time and utilization of the ECR facility by banks to access liquidity from the 
RBI are published regularly in RBI's Monthly Bulletin (Table No. 5).  
Page 73, Para 3.156 - export finance 
 
EU Question 54: The EU welcomes the inclusion of export credit under the revised Priority Sector 
Lending guidelines for banks.  Could the author ities clarify whether they expect the overall 
quantum of lending in this area to rise as a result given the relatively low limits on this line of 
lending?   
Reply:  Priority Sector loans are competitive loans without any price cap. Guidelines are revised as 
per the needs of the Indian economy. 
 
The Export Credit extended as per the details below would be classified as priority sector: 
 
Domestic banks Foreign banks with 20 
branches and above Foreign banks with less 
than 20 branches 
Incremental export credit over corresponding date of the preceding year, up to 2 
percent of ANBC or Credit 
Equivalent Amount of Off-Balance Sheet Exposure, 
whichever is higher, effective 
from April 1, 2015 subject to a sanctioned limit of Rs. 25 
crore per borrower to units 
having turnover of up to Rs. 100 crore. Incremental export credit over 
corresponding date of the preceding year, up to 2 percent 
of ANBC or Credit Equivalent 
Amount of Off-Balance Sheet Exposure, whichever is higher, 
effective from April 1, 2017 (As 
per their approved plans, foreign banks with 20 branches and 
above are allowed to count 
certain percentage of export credit limit as priority sector till March 2016). Export credit will be 
allowed up to 32 percent of ANBC or Credit 
Equivalent Amount of 
Off-Balance Sheet Exposure, whichever is 
higher. 
 
Export credit includes pre-shipment and post shipment export credit (excluding off-balance sheet items) as defined in Master Circular on Rupee / Foreign Currency Export Credit and Customer Service to Exporters issued by RBI's Department of Banking Regulation. 
 
Page 75, para 3.164 - banking regulation 
EU Question 55:  Could India provide further information on what measures are taken in case a 
bank does not meet the priority sector lending targets?  
Reply: Scheduled Commercial Banks having any shortfall in lending to priority sector shall be 
allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) 
established with NABARD and other Funds with NABARD/NHB/SIDBI, as decided by the Reserve Bank from time to time. The interest rates on ba nks' contribution to RIDF or any other Funds, 
tenure of deposits, etc. shall be fixed by Reserve Bank of India from time to time. 
Non-achievement of priority sector targets and sub-targets will be taken into account while 
granting regulatory clearances/approvals for various purposes. WT/TPR/M/313/Add.1 
 
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  Page 79 para 3.184- price controls/p atents/pharmaceutical pricing policy 
EU Question 56:  Could India provide further information on whether it plans to expand the 
existing National Pharmaceutical Pricing Policy and Drugs (Price Control) Order? Does India 
consider covering medical devices (such as stents) and patented drugs? If so could India provide a 
timeline on the implementing such measures?   
Reply:  The Government has constituted a Core Committee to review and recommend the revision 
of National List of Essential Medicines, 2011 (NLE M) in the context of contemporary knowledge of 
use of therapeutic products.  Once the revision takes place, the proposal for including the list under price control would be initiated.  The revision of the NLEM list is expected in the current 
years. Presently no patented drugs are included in  the NLEM. Further only two medical devices viz. 
Intra-Uterine Device (IUD) and Condoms are in the list of Essential Medicines and are under price 
control.    
Page 81, para 3.191 - 3.196  public procurement.   
India conducted a public consultation on a draft public procurement bill.  
EU Questions 57: Could India provide further information on the intentions of modernizing its 
public procurement system and taking up the dr aft public procurement bill? When does India 
expect the new comprehensive legislation for central level to be adopted? In light of the fact that 
India is intending to make its legislation GPA compatible – what are India's intensions as regards 
the reservations for policy purposes currently included in the draft law?  
Reply : India is in the process of formulating a comprehensive government procurement 
legislation. It is yet to be considered and passed by the Indian parliament. Once it is passed and 
implemented, issue of India acceding to GPA of the WTO would be examined. As bill is yet to be 
introduced before the parliament, further details ab out the contents of the bill cannot be provided. 
 Page 82, Para 3.196- regulatory framework for public procurement 
The current regulatory framework for India's public procurement includes the General Financial 
Rules (GFRs), 2005; the Delegation of Financial Powers Rules (DFPR); the Manual on Policies and Procedures for Purchase of Goods issued by the Mi nistry of Finance; Government orders regarding 
price or purchase preference or other facilities to sellers in the handloom sector, cottage and 
small-scale industries and to CPSEs; and the guidelines issued by the Central Vigilance Commission to increase transparency and objectivity in public procurement. There are also sectorial laws such as the Telecom Regulatory Authority Act 2000, the Electricity Act 2003, and the 
Petroleum and Natural Gas Board Act 2006, which also  regulate public procurement. In addition, 
various Government instruments and agencies including ministries and departments (e.g. the Public Works Department and the National Highwa ys Authority of India) have their own public 
procurement system.  
EU Question 58 : Are there any steps by the Indian government to make the tender process for 
the government projects easier for international co mpanies to bid for? What are the current issues 
that the government faces with regards to tender bids from international companies?   
Reply: As of now, there is no bar on international companies to bid for participation in tendering 
process in India.  International companies which are ready to do business in Rupees terms for 
domestic purchases do not face any problems.  Many of the international companies have their 
Indian subsidiaries who bid in the domestic  government procurements in Rupee terms. 
The International Companies can also participate in Global Tenders floated by the Government agencies.  
Page 83 para 3.201 -preferential polic ies at Central government level 
EU Question 59: Could India provide statistical information of the current share of MSEs in public 
procurement in India at central level? Could India also provide further information on how the 20% value reservation for MSEs will be implemented? Will targets established at the level of individual procurement projects or separate procuring entities or at central level? 
Reply: The procurement from MSEs by Central PSUs is around 15% of total procurement by them.  WT/TPR/M/313/Add.1 
 
- 102 - 
 
  Each Central Ministry/Department/PSU will ensure  achievement of minimum of 20% procurement 
from MSEs. Targets will be fixed for their total procurement not at individual procurement project 
level. The 20% procurement from MSEs has become mandatory from 1st April, 2015. 
Page 83, para 3.205 – government procurement 
 
EU question 60: Could India give the list of states where procurement is governed by general 
financial rules?    
Reply: The General Financial Rules cover procurements in the Central Government, its attached 
offices, autonomous bodies and Public Sector Un dertakings etc.  All the States have their own 
financial rules for procurement of goods, services and works.  Some of these rules are modelled on 
the lines of the Central General Financial Rules.   
Page 84; section 3.3.5 - IPR policy 
EU Question 61: When will the next iteration of the Policy be released and will it be the final 
version? Have plans been developed to achieve the aims set out in the Policy and, if so, when will 
they be made public? Is India considering a higher level protection of patent than currently? 
Reply:  The final draft of the National IPR Policy as su bmitted by the IPR think tank is under active 
consideration of the Government.  
Page 85, para 3.213.   
 While the number of patent applications has been steadily increasing, the number of patents granted has decreased by one-third. This may indica te that the backlog of patent applications is 
growing.  
 EU Question 62: Can India clarify if the backlog of patent applications is growing and what 
actions it is taken to address this problem? 
Reply:  With a view to speed up the disposal of patent applications, additional 252 posts of 
Examiners and 76 posts of supervisory officers  (Controllers) have been approved by the 
Government in the 12
th Plan. The Government is making all out efforts to complete the recruitment 
of all the vacant posts of Examiners and Controllers in the current year itself.  
 
Besides, as a short-time measure, 263 Contract Ex aminers of Patents (equally qualified as regular 
Examiners) are also being recruited and their process of selection is ongoing. Further streamlining 
the functioning of Patent Office by simplifying the patent procedures and regulations along with 
inculcating more automation and IT enablement in the patent work-flow has been accorded top priority  
 
Page 86 para 3.216.   
The Supreme Court of India in its judgement [Novartis A.G. vs. Union of India] said that 
"The amended portion of Section 3(d) clearly sets up a second tier of qualifying standards for chemical substances/pharmaceutical products in order to leave the door open for true and genuine inventions but, at the same time, to check any a ttempt at repetitive patenting or extension of the 
patent term on spurious grounds." Further it wa s said that "efficacy" should be understood as 
"therapeutic efficacy", which must be judged "strictly and narrowly". In paragraph 190 of the judgement, the Court held that "in whichever way Section 3(d) may be viewed, whether as setting 
up the standards of "patentability" or as an extension of the definition of "invention",  
 EU Question 63: Can India clarify how it ensures that the interpretation of section 3(d) of India's 
Patent Act does not introduce a patentability criterion ("enhanced therapeutic efficacy") additional 
to the three provided for under the Agreement on  Trade-Related Aspects of Intellectual Property 
Rights TRIPs which in Article 39.3 requires that "any inventions … in all fields of technology" to be patentable "provided that they are new, involve an inventive step and are capable of industrial application"? 
Reply:  The provision Section 3(d) applies to all fields of technology. As per section 3(d) of the 
patents Act, efficacy requirement is invoked when the subject matter involves "mere discovery of a WT/TPR/M/313/Add.1 
 
- 103 - 
 
  new form of a known substance or the mere discovery of any new property or new use for a 
known substance or of the mere use of a know n process, machine or apparatus". Unless the 
requirement of the efficacy is met with, a new form of a known substance or mere use of a known process, machine or apparatus is not an invention -meaning thereby that the criteria of 
patentability are not fulfilled. Thus, the effi cacy requirement is the inventive step.  
 
The Hon'ble Court states in this regard that "efficacy means the ability to produce a desired or 
intended result. Hence the test of efficacy in the context of section 3(d) would be different 
depending upon the result the product under consideration is desired or intended to produce. In other words, the test of efficacy would depend upon the function, utility or the purpose of the 
product under consideration. Therefore, in the case of a medicine that claims to cure a disease, 
the test of efficacy can only be 'therapeutic efficacy'." 
 Page 85 para 3.218 . 
 
Another important development in the area of patents since the last Review is the issuance in March 2012 of India's first and only compulsory lice nce so far. The Controller General of Patents, 
Designs and Trade Marks issued a compulsory licence under Section 84 of the Patents Act deciding 
that the reasonable requirements have not been sa tisfied with respect to the patented invention; 
the patented invention is not available to the public at a reasonable price; and that the patented invention has not been worked in the territo ry of India as required by the law.  
 
EU Question 64: Can India clarify how it ensures that the interpretation being worked in the 
territory of India reflects the text of the Ag reement on Trade-Related Aspects of Intellectual 
Property Rights ("TRIPS") that eliminates discrimination based on whether inventions are produced 
locally or imported in Article 27.1 which states that "… patents shall be available and patent rights enjoyable without discrimination as to the place of  invention, the field of technology and whether 
products are imported or locally produced") 
Reply:  Article 27 relates to patentable subject matter and states that patents shall be available in 
all fields of technology provided they are new,  involve an inventive step and are capable of 
industrial application. The issue in question relates to "Nexavor" which is an existing patent in India. The patent was given after evaluating it against the Indian patent law which is compliant 
with TRIPS Article 27. 
 
However, Article 31 of TRIPS allows members States to issue compulsory license. Article 31 
concerns only those inventions on which a patent has been granted. The authorizations are to be 
considered on individual merits. In addition Article 8 of TRIPS mandates countries to adopt measures to protect public health and nutrition and the Doha declaration on TRIPS and Public 
Health clearly states that WTO member States are free to set down conditions to enable issue of 
compulsory license. Section 84 of the Patent Act is therefore compliant with Articles 8, 31 and the Doha declaration. Since it can only apply after the patent has already been granted, it is erroneous 
to link Art 27.1 with Section 84 of the Patent Act.   
 
In keeping with the provision, India's section 84  sets down conditions when such a grant of 
compulsory license could be considered. The Compulsory license was issued in the case of 
"Nexavor" as it did not meet the reasonable requ irements of the public, was exorbitantly priced 
and was not worked in the territory.  The interpretation of the term "working of the patent" has been given by the Intellectual Property Appellate Board (IPAB) in the Bayer Vs Natco case and has 
been upheld by the hon'ble High Court.(this decision has been explained in detail in Q39 raised by 
Mexico, may not be required here because the import of the question is different)  
Page 88 para 3.225 3.225.  
India's National Manufacturing Policy of 2012 the Fund will have the option to approach the 
Government for issue of a compulsory licence for the technology which is not being provided by 
the patent holder at reasonable rates or is not being worked in India.  
EU Question 65: Can India clarify how it ensures that the interpretation being worked in the 
territory of India reflects the text of the Ag reement on Trade-Related Aspects of Intellectual 
Property Rights ("TRIPS") that eliminates discrimination based on whether inventions are produced 
locally or imported in Article 27.1 which states that "…patents shall be available and patent rights WT/TPR/M/313/Add.1 
 
- 104 - 
 
  enjoyable without discrimination as to the place of  invention, the field of technology and whether 
products are imported or locally produced)". 
Reply:  Same as in reply to Q. 65. Compulsory license can only issue under the relevant provisions 
of the Patent Act. These provisions of th e Act are compliant with TRIPS provisions 
Page 88 para 3.225 - IPR and climate change 
EU Question 66: Could India provide information if the technology Acquisition and development 
Fund (TADF) has purchased IP rights? If so could India provide further information on what kind of IP rights were acquired and how these were utilized by TADF? 
Reply: No the TADF has not purchased any IP right 
Page 89 para 3.3.5.3 on Trademarks EU Question 67: Is India planning to accede to the Nice Agreement concerning the international 
classification of goods and services for the purpose of registration of marks? 
Reply: The matter is under active consideration by the Government. 
Page 91 para 3.3.5.4 Industrial designs 
EU Question 68: Is India planning to accede the Hague Agreement concerning the international 
deposit of industrial designs? 
Reply : There is no decision on this issue. 
Page 97 para 3.267 - customs and IPR registration 
EU Question 69: Could India provide information as to the reasons why no Geographical 
Indications were registered by the customs authority? Is India planning accession the WIPO administered Lisbon Agreement for the Protection of Appellations of Origin and their International 
Registration?  
 Reply:  The right holders need to give a notice for registration manually or online using Automated 
Targeting and Recordation System (ARTS) available at http://ipr.icegate.gov.in/IPR/index.jsp  to 
the Commissioner of Customs at any Customs Station where allegedly infringing goods are likely 
to be imported.  
There is no decision on accession to the WIPO administered Lisbon Agreement. Page 94 para 3.3.5.7 Protecti on of new plant varieties 
EU Question 70: Is India considering the extension of the list of crop species/genera for which 
plant variety protection can be granted to all plant species/genera? 
Reply:  Ninety two botanical genera/ species have so far been notified by the Govt. of India on the 
recommendation of Authority which are eligible for registration and protection under the Protection 
of Plant Variety and Farmers Right (PPVFR) Act, 2001. 
Further, the Authority has also prioritized list of crops/species for protection in future.   Page 95 para 3.261 on Trade secrets and test data protection 
There is no statute in place in India at this time  for the protection of pharmaceutical, agrochemical 
and traditional medicine-related data against disclosure and reliance by third parties. Such test 
data is said to be protected under the Official Secrets Act. However, it is not clear how India 
implements the second obligation under Article 39. 3 of the TRIPS Agreement, which is in addition 
to the obligation to provide protection against disclosure, namely, protection of such data against 
unfair commercial use. 
EU Question 71: Can India clarify how it implements the second obligation under Article 39.3 of 
the TRIPS Agreement to protect test data against unfair commercial use? WT/TPR/M/313/Add.1 
 
- 105 - 
 
  Reply:  Article 39.3 relates to the specific case when data pertinent for seeking approval of the 
authority is shared with the marketing regulator. The text of this Article does not specifically state that member countries would need to comply with the requirement of data exclusivity. It only states that the regulator will need to protec t it from unfair commercial use. Therefore, no 
additional obligations which are not present in text can be interpreted.  The obligation on the 
authorities is to keep the test data secret and no t allow it to be accessed by third parties through 
unfair means. India complies completely with its obligations under Article 39.3 of TRIPS.  
Page 96 para 3.262 In 2004, an Inter-Ministerial Committee was set up to make 
recommendations on test data protection. In its report submitted on 31 May 2007, the Committee 
recommended, inter alia, that the term of data protection for agricultural chemical products should 
be three years from the date of marketing approval in India; that the term of data protection for 
traditional medicines should be five years from the date of marketing approval and that there 
should be an indefinite transition period for phar maceuticals. After the transition period, the term 
of data protection would be five years from the date of the first marketing approval anywhere in 
the world. These recommendations are reportedly being considered by the Ministry of Commerce 
and Industry, Ministry of Agriculture and Ministry of Health. 
 EU Question 72 : Can India indicate if it intends to adopt the recommended provisions on test 
data protection for agricultural chemical products? And what it plans for pharmaceuticals?  
EU question: Can India clarify how provisions allowing generic applicants to rely on proprietary 
test data submitted to regulatory authorities in other countries during the relevant protection period complies with the second obligation under Article 39.3 of the TRIPS Agreement to protect 
test data against unfair commercial use? 
Reply:  There is no decision yet on the issue.  
 
Article 39.3 relates to the specific case when data pertinent for seeking approval of the authority is 
shared with the marketing regulator. The text of  this Article does not specifically state that 
member countries would need to comply with the re quirement of data exclusivity. It only states 
that the regulator will need to protect it from unfair commercial use. Therefore, no additional 
obligations which are not present in text can be interpreted.  The obligation on the authorities is to keep the test data secret and not allow it to be accessed by third parties through unfair means. 
India complies completely with its obligations under Article 39.3 of TRIPS. 
 
Page 97, paras 3.266/3.268- IPR enforcement at  border 
EU Question 73 : The reports note that India's border IP enforcement rules go beyond the 
minimum requirements of the TRIPS Agreement. The table 3.27 shows that there was only very 
few IPR infringements registered by Customs give n the significant value of India's foreign trade.   
Could India provide further insight regarding the relatively low level of infringements registered? 
Reply: While border measures for imports exist for Trademarks, patents, Geographical 
Indications, Designs and Copyrights, there ha ve been no recordals for designs and GIs. 
Most cases of infringement relate to Trademark infringements. 
Page 99,  Para 4.1; Agricultur e, 4.1.1 General policy framework 
 
EU Question 74: The EU would welcome further details on India's plans to consolidate and 
expand its position as an exporter of agricultural products. To what extent would a stable, transparent and standards driven regulatory regime  could promote this aim? In what way is India 
hoping to improve agri-investment and technology in the sector?  
Reply: India is constantly investing in agriculture and well-being of its poor farmers.  The priority 
is to improve technology available to the farmers.   India has a transparent regulatory regime and 
we are always making efforts to improve the same.  WT/TPR/M/313/Add.1 
 
- 106 - 
 
  Page 100 Paragraph 4.12-Measures affecting exports. 
  The report states that on 12 February 2014 the Indian Government approved a subsidy at the rate of Rs 3,300 per tonne towards marketing and promotion services of raw sugar. The scheme 
continues during the current sugar season 2014-15 and on top of that, Indian regional 
Maharashtra government has decided in April to gr ant an additional export subsidy of Rs1,000 per 
tonne of raw sugar. 
 
EU Question 75: In the light of the above, could India explain:  
a. How it interprets the "implementation period" as referred to in paragraph 9.4 of the 
Agreement on Agriculture and the end data of it. 
b. What are the rules in India governing the gran ting of export subsidies by the regional 
authorities? Are regional governments bound by the commitments India has taken in the 
WTO?  
Reply:  The Hong Kong Ministerial Declaration makes it clear that developing countries would 
continue to be exempt from reduction commitments on export subsidies listed in subparagraphs 
(d) and (e) of paragraph 1 of Article 9 of the Ag reement on Agriculture. Therefore, Members which 
are benefiting from S&D treatment during the implementation period would continue to benefit 
from such provisions till a new agreement is in place. In the spirit of the on-going reform process 
under Article 20 of the Agreement on Agriculture, while developed Members continue to provide huge export subsidies, developing countries should  not be deprived of S&D treatment during the 
interim period which is only a fraction of what is being given by the developed countries.  
EU Question 76: Can India provide information about the export markets for its sugar surplus? 
Which amount has been exported since 2010 with subsidized prices?  
Reply:  South Africa, neighboring countries like Burma, Sri Lanka and Gulf countries like UAE, Iran 
etc are main export markets of Indian sugar.  
Since 2010 no sugar has been exported by India with subsidy.   A total of 7.5 lakh MT of raw sugar 
was exported in 2013-14 sugar season ,  with incentive that is eventually passed on to the farmers towards their cane dues arrears. 
Page 102, Paragraph 4.19- Price Support Scheme  
EU Question 77: Can India provide the average selling pric e for the 4.5 mio t wheat exported in 
2012/13 and the 2 mio t exported in 2014/15. Can India provide the average selling price for the 
7 mio t wheat sold on internal market in 2012/13 and the 6 mio t sold in 2014/15. Can India 
indicate total budgetary outlay per budget years 2010 to 2014 for the agencies involved in Price 
Support Scheme, if possible broken down per agency 
Reply: The Food Corporation of India has exported a total quantity of 4.24 million MT of wheat 
against the 4.5 million MT authorised in 2012-13.  It has further exported a total quantity of 
1.56 million MT of wheat against the 2.0 million MT  authorised in 2013-14. The average realization 
price has been about $303. 
Details of subsidy released are available at the website of the Department of Food and Public 
Distribution.  
Page 105 paragraph 4.30-Energy 
EU Question 78: What is India's plan to reduce its energy (oil and gas) import dependence from 
77% today to about 67% by 2022, and make it more energy secure? What is the plan/ roadmap to support cleaner fuel (gas) in India?  
Reply: As per present trend and expected growth in  India it is recognized that 10% reduced 
dependence on imported crude oil will require substantial increase in domestic production by adopting new state of art technology, conserva tion measures, adoption of alternative fuels 
including renewable energy sources. India has ad opted multi-pronged strategy to achieve this WT/TPR/M/313/Add.1 
 
- 107 - 
 
  target. Government of India has taken various measures/initiative to increase domestic share of 
crude oil and natural gas such as:  
 Enhance production from the existing field by adopting Improved Oil Recovery 
(IOR)/Enhanced Oil Recovery (EOR) measures using induction of latest technology.  
 Bring into production new discoveries at the earliest. In tune with Government's stated 
principle of ease of doing businesses, a policy framework for early monetization of 
hydrocarbon discoveries under PSC regime has been approved by the Government. This policy has addressed rigidities in the timelines of the PSC and has allowed the 
contractors to start production at the earliest. 34 cases have been already resolved 
under this policy framework involving resources worth $ 5 billion.  
 Marginal Field Policy (MFP) has been formulated to monetize the marginal fields of ONGC 
and OIL which have not been monetized for various reasons in the past. Monetization of 
these discoveries under this policy throug h International Competitive Bidding (ICB) 
would also help in boosting Oil & Gas production of the Country. Lucrative fiscal terms with more autonomy is proposed in the policy for making it investor friendly.  
 A new Uniform Licensing Policy (ULP) is being formulated which covers all type of 
hydrocarbons viz. Conventional Oil & Gas, Unconventional Hydrocarbons like Shale Oil & Gas , CBM, Gas Hydrate etc. This would help in development of all type of hydrocarbons 
under single license.  
 Revision of prices of domestic natural gas is expected to incentivize production of natural 
gas in the country. Ministry is also considering to provide premium for gas discoveries in Deep Water, Ultra Deep Water and High Pressure High Temperature (HPHT) discoveries. 
Regarding the point raised on plan to support clean fuel (gas), it may be noted that highest 
priority in allocation of natural gas has been given to the transport (CNG) and domestic households (PNG). During August, 2014, Government decided to meet 100% demand of CNG and 
PNG sector through supply of the cheaper domestic gas. GAIL has also been authorized to supply 
10% over and above the allocation to meet any fluctuation in demand. As on 31
st March, 2015, 
about 3.00 million households and 2.26 million vehicles are benefitting from these clean and 
conventional fuels. The Ministry of Petroleum and Natural Gas also aims to expand the PNG 
network across the country, raising the number of households connected with PNG to 10 million 
within 5 years.  
Further, laying of another 15000 km of additional gas pipeline to complete the national grid is 
being monitored. Out of the proposed 15000 km gas additional pipeline, 11900 km is already 
authorized and is at various stages of implemen tation. In order to expedite the work, 2500 km of 
gas pipelines are being planned on the PPP mode. 
Page 106, Paragraph 4.32 – oil and gas 
EU Question 79: For exploration and production activities in oil and gas sector, does India plan to 
move from NELP to Open Acreage Licensing Policy during new bidding rounds? 
Reply: A new Uniform Licensing Policy (ULP) is being formulated which covers all type of 
hydrocarbons viz. Conventional Oil and Gas, Unco nventional Hydrocarbons like Shale Oil and Gas, 
CBM, Gas Hydrate etc. This would help in development of all type of hydrocarbons under single license. The Open Acreage Licensing is being considered. The National Data Depository (NDR) is 
being set up as it is considered to be a critical requisite for moving to OALP in the country.  
Page 108, Paragraph 4.45- electricity 
EU Question 80: The Report mentions "The JNNSM further required that in order to avail of the 
subsidies all solar projects should use cells and modules manufactured in India, and 30% local 
content was required for plants or installations for a solar thermal project," - Will subsequent phases of JNNSM also require 30% local content requirement? Is this also applicable for State-owned solar projects not linked with JNNSM? WT/TPR/M/313/Add.1 
 
- 108 - 
 
  Reply:  30% Local Content Requirement was stipulated only in respect of tenders issued for 
allocation of Solar Thermal Projects.  There is no proposal for allocating solar thermal projects as of now.  The State Governments have issued their Solar Policy independently, however, none of 
the State Governments have allocated Solar Power Projects with DCR Content.  
The Domestic Content Requirement under Phase II of National Solar Mission has been increased up 
to 100% for 50% of the total planned capacity. Fu rthermore, in September 2011, the Ministry of 
New & Renewable Energy published revised new draf t guidelines for installation of wind turbine 
models in India which stipulate that manufacturers of Wind Turbine Generators of capacities more 
than 15 MW would have to set up a manufacturing ba se in India. Additionally, prices per kw paid 
to developers are very low even under its cost, uncertain and different into the different States.   EU Question 81: Taking into account these constraints, how shall India attract investment from 
foreign companies in renewable energy? What ar e the views/plans of the government in this 
regard?  
Reply:  Government of India (GOI) has announced revision of targets of National Solar Mission to 
100 GW by 2022 which is a long term action plan to attract investment.  Also, the DCR Content is 
miniscule as compared to the total capacity so fa r added and the future plans thereof.  GOI has a 
policy to support Domestic Manufacturing on one side while encouraging oversees manufacturing units to supply solar products with latest technology at competitive prices.  GOI is also extending 
custom and excise duty exemption on import/suppl y of plant & machinery required for setting up 
of solar power projects in the country.  Several schemes have also been launched wherein the 
foreign investors can set up solar power projects in solar parks, developed by GOI.  
EU Question 82: Do Indian authorities plan to establish a National Wind Mission to promote this 
kind of renewable?  
Reply: Prospective policy decisions in this regard will be notified on the website http://mnre.gov.in  
as and when initiated.  
 
EU Question 83: Do Indian authorities have any data about the implementation of this additional 
solar purchase obligation in 2013 and 2014? Do Indian authorities have or plan a similar obligation 
for wind energy?  
Reply: As per the provisions of the Electricity Act, 2003, one of the functions of the State 
Electricity Regulatory Commission is to promote the generation of electricity from renewable source of energy, and also to specify a percenta ge of renewable energy sources out of the total 
consumption of electricity. Further, with the amendment of the Tariff Policy, 2006 in January, 
2011, the State Commissions are required to reserv e a minimum of 0.25% for purchase of solar 
energy by the end of 2012-13 and further go up to 3% by 2022.  
 
The solar installed capacity till date is 3383 MW against renewal purchase obligation requirement of 4813 MW for the year 2014-15. All the State Commissions except Sikkim, have notified the 
Regulations specifying the Renewable Purchase Obligation for the obligated entities in their State.  
 
Renewal purchase obligation has also been laid down for wind energy as well.  
 
Page111, para 4.58 Services 
 EU Question 84: Could India explain what are the costs to  be borne by foreign commercial banks 
with respect to the new policy on priority sector lending. Is India's government considering 
covering part of these costs? 
Reply:  Priority sector loans are competitive loans and the extant guidelines on priority sector do 
not lay down any preferential rate of interest for such loans. As such banks do not incur any 
additional cost for lending to priority sectors as compared to non-priority sector loans. 
Page 113 para 4.70 - banking services 
EU Question 85: Could India provide further information on how the principle of reciprocity is 
considered in practice for the purpose of the "Sch eme for Setting up Wholly-Owned Subsidiaries by 
Foreign Banks in India"? What are the criteria for determining reciprocity for the purpose of the WT/TPR/M/313/Add.1 
 
- 109 - 
 
  Scheme? Have India determined reciprocity of a foreign country for the Scheme already? If so, 
which one? 
Reply: The policy on presence of foreign banks in India has followed two cardinal principles of 
(i) Reciprocity and (ii) Single Mode of Presence. These principles are independent of the form of presence of foreign banks. Therefore, these prin ciples continue to guide the framework of the 
future policy on presence of foreign banks in In dia. In general, foreign banks organized as WOS 
would enjoy greater freedom in terms of opening of branches. 
The factors taken into account while considering applications for setting up WOS in India include, 
inter alia, the economic and political relations with the country of incorporation of the parent bank and reciprocity with home country of the parent bank. 
Page 114 para 4.73 – commercial banks 
 
EU Question 86: Can India provide further information on the application of the Special Economic 
Zones Act 2005 to International Financial Services Centres, including any market impact analysis in this area. 
Reply:  International Financial Services Centre (IFS C) has been set up under Section 18(1) of 
Special Economic Zones Act, 2005.  
IRDAI has issued the IRDAI (IFSC) Guidelines, 2015 for establishing an IFSC Insurance Office 
(IIO). These Guidelines are available at: 
https://www.irda.gov.in/ADMINCMS/cms/wha tsNew_Layout.aspx?page=PageNo2465&flag=1 . 
 
Page 116, Para 4.90 - insurance  
EU question 87 : Could India explain whether the increase of foreign equity limit applies to all 
sectors of insurance, i.e. life and non-life insurance, reinsurance, insurance intermediation, services auxiliary to insurance. Is the full liftin g of equity caps envisaged as part of India's 
"investor-friendly" FDI policy? 
Reply: The details regarding increase in foreign equity limit for insurance sector is available in the 
latest Consolidated FDI Policy circular dated 12
th May, 2015. 
 
Page 122, 123, Para 4.103, 4. 109 and Table 4.8 on telecoms 
 
In the next years, India can expect to see a huge increase in the demand for mobile broadband access, most users probably demanding higher download speeds than the target of 2Mbps set for 
2020.   
 EU Question 88: How does India intend to address the massive demand and expand capacity? 
What will be the role of foreign investors? 
Reply: India welcomes investment in telecom infrastructure for expansion of broadband services. 
FDI policy has already been liberalized and 100% FDI is permitted for all telecom services. Private investment is also being encouraged through policy measures. In addition, public investment through the USO fund is being taken up to extend  broadband to rural and remote areas across the 
country. 
 EU Question 89: Can India provide more information about the ongoing reform in the postal 
sector, in particular about the changes in the structure of the India Post. How will it affect the 
scope of the postal monopoly? 
Reply:  The Indian Post Office Act, 1898 clearly lays down monopoly of Central Government viz the 
Department of Posts, in carrying letters. However, owing to the fact that the word "letter" has not 
been defined in the said Act, makes it difficult for the Department to enforce this monopoly. As a 
result, the private couriers carry letters in the name of documents. The Indian Post office Act is under examination in the Department and amendments are being worked out in order to make it up-to-date and resolve the anomalies by also defining the word letter. 
 WT/TPR/M/313/Add.1 
 
- 110 - 
 
  International Postal Business is regulated by UPU Conventions established in 1874. It is the 
primary forum for cooperation between postal sector Players. Postal services have been identified as a sub sector under the sector communication service which also has the courier services as a sub-sector. 
 
As per the directions of the Hon’ble Prime Minister  of India, an inter-Ministerial Task Force on 
leveraging the Post Office networ k headed by Sh TSR Subramanian,  former Cabinet Secretary, was 
constituted in August 2014. The recommendations of the Task Force were submitted in December 
2014. The Task Force has made several recommendations about the re-structuring the Department by setting up Strategic Business Un its for different businesses of the Department, 
such as, E-Commerce, Banking, Insurance and Retail. Setting of these corporate SBUs will also 
require amendments to the IPO Act, 1898. The recommendations of the Task Force are under 
examination in the Department and a decision shall be taken about any structural changes in consultation with the various stakeholders. 
 
The Department is presently fulfilling its Un iversal Service Obligations without getting 
compensated by other private players in the market , who operate only in the profitable areas and 
segments and whose operations are also presently not perfectly within the legal sphere.  
 Page 124, Para 4.114-cabotage  
EU Question 90: Could India indicate to what extent the exemptions from cabotage restrictions 
granted in the years 2012-2013-2014/2015 referred to trading of international cargoes (e.g. 
feedering and relay practices) and/or movement of empty containers?  
Reply:  The details of chartering permission given to foreign flag vessels are as mentioned below: 
Year 2012-13 2013-14 2014-15 
International Cargoes  
  1180  1082  1650  
Empty containers  0800 TEUs export-import 
containers from Nhava 
Sheva to Mundra Port 
and back, granted on 
05.12.12 1000 x20' and 700x40' 
import empty 600x20' 
2500 TEUs from Nhava 
S h e v a  t o  M u n d r a  i n  t h e  
lay can 28.10.13 to 
29.11.13 granted on 
04.11.13 1. 500 TEUs empty 
containers from Nhava 
Sheva to Pipava Port 
granted on 27.06.14 
2. 500 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 11.07.14 
3. 1000 TEUs empty 
containers from Nhava 
Sheva to Pipava Port 
granted on 16.07.14. 
4. 1000 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 25.07.14. 
5. 1000 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 11.08.14. 
 
With regard, specifically, to signalling system s under the terms of a guideline issued by the 
Railway Board, suppliers of software embedded el ectronics systems and technology products for 
railway signalling are obliged to set up indigenous manufacturing and testing facilities in India. 
Furthermore, the same suppliers shall commit to a progressively phased indigenization programme WT/TPR/M/313/Add.1 
 
- 111 - 
 
  of supply in respect of manufacturing that must reach 100% in three years' time further to the 
market entry.  
EU Question 91: Which plans does India have on the short/medium term to attract FDI and to 
what extent are the above mentioned measures compatible?  
Reply:  To attract FDI, sectoral guidelines for Domestic/Foreign Direct Investment in Rail sector 
including signalling systems have been issu ed by Ministry of Railways in Nov, 2014. 
 
Page 129 para 4.145 - Professional services   
The legal services sector is an essential enabler to attract and promote foreign investment. 
However, India continues to maintain stringent restrictions on this vibrant international sector – against the trend noticed in many of India's emerging neighbouring countries.   
EU Questions 92:  Could India indicate if in a bilateral agreement it has waived the nationality 
requirement on a reciprocal basis? If so, with which country? 
Reply: The Bar Council of India (BCI), a statutory body under the Advocates Act 1961, and the 
legal services regulator in India, entered into an MoU with the Law Council of Australia in the year 
2010 for an agreement with regard to exchange of law students and law teachers. The BCI is also 
in dialogue with regulators in many countries such as the USA, UK, Japan, etc. with respect to commercially meaningful access for lawyers and law firms on reciprocal basis. The matter regarding opening up of legal services in India to foreign lawyers/law firms, on reciprocal basis, 
is currently under consideration by the Government of India in consultation with the BCI and other 
stakeholders.  
EU Question 93: Can India provide more information on the justification for banning foreign law 
firms? Does the government have any plans to allow more competition within the corporate legal 
sector? Are there any intentions to open up this sector? 
Reply: The matter regarding opening up of legal services in India to foreign lawyers/law firms is 
currently under consideration. Any decision in this regard will be taken by the Government of India 
in consultation with the Regulator, the Bar Council of India, and other stakeholders. Any decision on this matter will however be subject to, inter-alia, the principle of reciprocity, which is provided for in the Advocates Act, 1961. 
 
Page 130, Para 4.147 - Professional services  
EU Question 94: With which countries has ICAI concluded mutual recognition agreements on the 
recognition of professional qualifications of foreign accountants if any? 
Reply:  ICAI has signed MOU/MRA with accounting institutes in Republic of Ireland, Canada 
(North America), UK, New Zealand, Australia, Republic of Djibouti, UAE, Oman, Bhutan and 
Saudi Arabia. 
 
Page 130, para 4.151- Tourism  
EU Question 95: Can India provide more information on the licensing system, mentioned in point 
4.151? Can India provide more information on the elig ibility criteria that services providers need to 
fulfil to obtain a licence? 
Reply:  The Ministry of Tourism has a scheme of approving Travel Agents, Tour Operators, 
Adventure Tour Operators and Tourist Transport Operators (service providers) to ensure high 
quality and standards in their service delivery so as to promote Tourism in India. This is a voluntary scheme open to all bonafide agencies. This is not a licensing scheme, rather an accreditation system. 
 
Information regarding the eligibility criteria that the service providers need to fulfil to obtain the recognition from Ministry of Tourism is available on the website of the Ministry. 
 WT/TPR/M/313/Add.1 
 
- 112 - 
 
  Page 131, para 4.153- Tourism 
 EU Question 96: Can India provide more information on taxes as mentioned in 4.153 (A service 
tax (12.36%), an education cess (2%) and a secondary and higher education cess (1%)) that are 
levied on travel agents, tour operators, and on tourist transport operators)? Given that India did 
not commit tourist guides service in GATS, could India clarify whether foreign tourist guides can 
provide services in this area? 
Reply:  Service Tax is a tax levied on the transaction of certain services specified by the Central 
Government under the Finance Act, 1994. It is an indirect tax (akin to Excise Duty or Sales Tax) 
which means that normally, the service provider pays the tax and recovers the amount from the 
recipient of taxable service.  
Education Cess: Education cess is an additional levy on the basic tax liability. 
 
Secondary and higher Secondary education Cess:  It is the Cess imposed to finance secondary and 
higher education.   
 
Clarification on Foreign tourist Guides providing Services in India: 
 
Under India's autonomous /applied regime, foreign tourist guides can come to India for providing 
services subject to their meeting the entry regula tions as inscribed in India's Employment Visa 
Guidelines, available under the website of the Ministry of Home Affairs of India 
(http://mha1.nic.in/foreigDiv/OverviewVisa.html ). 
 
Further, as part of preferential treatment to LD C services and service suppliers under LDC Services 
waiver in the WTO, India has agreed to commit a quota of 250 tourist guides conversant in a foreign language other than English language from among the LDCs. These services are to be 
offered either as a contractual service suppliers (C SS) or as an Independent Professional (IP) who 
are permitted entry based on contract with a company in India for a limited duration.  
WT/TPR/G 313- Report by the Government of India 
Para 3.2 and Para 3.3 on the business climate 
The EU does not share the view that doing business has become easier since last TPR. The EU 
would like to stress that the lack of predictability of the legal environment may well be counterproductive to the attraction of FDI that the government is looking for. For example, the 
cases of the application of a retroactive taxation on companies (e.g. the Vodafone case). 
EU Question 97: Could India explain if the Government is considering measures and regulations 
to avoid this kind of retroactive negative effects, in particular in the case of taxation? 
Reply: The Finance Minister in his Budget Speech, 2014 has outlined the policy of the Government 
that the Government will not ordinarily bring about any change retrospectively which creates a 
fresh liability. Further, it was decided that all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfers and coming to the notice of the Assessing Officers will be scrutinized by a High Level Committee which has been constituted by the CBDT 
before any action is initiated in such cases. Further, a Committee has also been set up to look into 
the issue of liability of MAT on FIIs for the period prior to 1.4.2015.  
Page 9, para 2.26 - export of services' statistics and policies 
EU Question 98:  The EU would like to congratulate the Government for the Global Exhibition on 
Services, held in New Delhi recently.   What further steps are planned to contribute to realise 
India's potential as an exporter of services, in particular professional services? What are the reforms is India looking at to build its services sector? What were the main outcomes from the 
GES?  WT/TPR/M/313/Add.1 
 
- 113 - 
 
  Reply: For promotion of international trade in services, the Government of India follows a 
multipronged strategy of negotiating commercially meaningful market access through multilateral, plurilateral and bilateral trade agreements, trade promotion through participation in and organization of  international fairs/exhibitions, focused strategies for specific markets and sectors, 
increasing competitiveness through domestic regulatory reforms and provision of fiscal benefits 
through schemes like Service Exports from India Scheme (SEIS). The SEIS shall apply to many service sectors including professional services like legal and accounting services, architectural 
services, engineering and integrated engineering se rvices, and various health related professional 
services. The details of the SEIS are available at the website of the Department of Commerce 
(http://www.commerce.nic.in ). 
As far as domestic reforms are concerned, these are targeted at improving the competitiveness of 
the domestic service sectors so as to help us increase our services exports.  
The main objective of the Global Exhibition on Services (GES), 2015 was to serve as a platform to 
enhance strategic cooperation and develop synergie s between competitive players of the services 
sector in India with their global counterparts. About 60 countries and 18 Indian states participated 
in GES 2015. The exhibition saw 350 exhibitors exhibiting their services and about 3000 B2B 
meetings taking place. Seminars on various services sectors were also held. The GES is now a calendar event with the next edition to be held from 24th -26th February, 2016. 
Page 10, para 2.31- Agriculture and Food Security 
 EU Question 99: Given the limitations highlighted and to help future agricultural growth, what 
planned initiatives are there to increase agricultural productivity in areas listed?   
Reply: To increase agriculture productivity, Government has been supporting programmes like 
agriculture research, pest and disease control, training, extension and advisory services, inspection services and marketing promotion services including marketing infrastructure.  
 
Page 12 paragraph 3.5- Reforms in FDI policy    
EU Question 100: Could India define what is meant by "state of the art" technology" in order to 
allow FDI in defence above 49%?  
Reply:  Press Note 3 of 2014 of Department of Indust rial Policy and Promotion elaborates the list 
of defence items requiring industrial license/prior government approval.  The same is available on 
the official website http://www.dipp.nic.in . 
 
Page 14, para 4.4  - FDI opening in the defence sector 
 
EU Question 101 : Could India give examples of the high  potential and high-technology products 
and products which are important for regional value chains that it is seeking to achieve further 
growth in?  
Reply:  Under the "Make in India" initiative, 25 sectors in manufacturing, infrastructure and service 
activities which will be the focus for promoting the industrial base in the country. Some of these 
sectors include pharmaceuticals, biotechnology, chemicals& petrochemicals, textiles etc. Apart 
from promoting growth, India is also  exploring the possibility of being part of part of regional value 
chains in these sectors.  
 
Page 16, para 5.6- WTO negotiations  
EU Question 102: Could India provide information on the timeline for finalizing its categorization 
of commitments under the Trade Facilitation Agreement? Is there a timeline to constitute the 
National Trade Facilitation Committee?  
Reply: India is in the process of consulting all stakeholders and finalizing the category A 
commitments. The National Trade facilitation Committee is being constituted by the Department of 
C o m m e r c e ,  G o v e r n m e n t  o f  I n d i a .   I t  w i l l  b e  an inter-departmental committee with adequate 
representations from all stakeholders.  
 WT/TPR/M/313/Add.1 
 
- 114 - 
 
  Page 12 Para 3.2 "New reform agenda. Make in India" 
 EU Question 103 : Could India elaborate what impact woul d the implementation of the "make in 
India programme" have on India foreign trade policy, including on its trade liberalization 
commitments in the framework of the Doha Round of the WTO as well as on opening up Indian 
market to import from third countries in the framework of its ongoing bilateral and regional 
negotiations listed in the report?   
 
Reply:  The "Make in India" initiative of the Government of India aims to encourage manufacturing 
in India. 
The focus is on 25 sectors of the economy for job creation and skill enhancement. Some of these 
sectors are: automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism 
and hospitality, wellness, railways, auto components, design manufacturing, renewable energy, 
mining, bio-technology, and electronics. 
It is expected that the initiative will increase  GDP, exports and imports, and attract capital and 
technological investment in India from all over the world. As explained in the Foreign Trade Policy 
(FTP) Statement 2015 and other documents on the new Foreign Trade Policy for 2015-2020, 
(available at www.dgft.gov.in ), there is a synergy between the "Make in India" initiative and the 
objectives of India's multilateral, regional and bilateral trade engagements. WT/TPR/M/313/Add.1 
 
- 115 - 
 
  EUROPEAN UNION 
FOLLOW-UP QUESTIONS 
EU Question 13: Are there any benefits and incentives schemes that are available to foreign 
entities that would contribute to support the MSMs sector in India?  
 Reply: No such scheme is operating under Ministry of MSME. 
 
Page 34 Para 2.42 on BIT model  
EU Question 14: India recently published its new model BIT. Could India clarify the 
timeframe for further developing its BIT model? Could India indicate if it has intentions to replace or modify its existing BITs? If so, could India provide further information regarding the planned steps in this regard? 
 
Reply: The Draft Indian Model Bilateral Investme nt Treaty (BIT) is awaiting the approval of 
the Competent Authority. Once the model BIT text  is approved, BITs wo uld be negotiated on 
the basis of this model.  
 EU follow up question: Could India further clarify if it plans to renegotiate its existing BITs on 
the new model or only apply the new model for subsequent, new negotiations? 
 
Reply:  Decision with regard to new negotiations would be taken once the draft model BIT is 
approved by the competent authority. 
 
Page 38 Para 3.18 - applied tariffs  
India applies a complex system of tariffs with separate published MFN and effective rates in 
addition to ad-hoc exemptions notified by Customs Notifications that decreases predictability and can act as impediment to trade.  
 
EU Question 19:  Does India intend to modernize its tariff information system so as to 
provide information to traders in a single form or gateway?  
Reply: The current rate of Customs duties for each tariff line is available at the ICEGATE 
"Customs Duty Calculator" [https://www.icegate.gov.in/Webappl] 
 
EU follow up question: The "Customs Duty Calculator" shows the published MFN duty for each 
entry, but this is not necessarily the actual applied tariff for those given goods originating from a given source country. The current system of Indian tariff exemptions means that a trader needs to 
be aware of all the different, sometimes dozens  of notification that relate to the product 
beforehand to be able to select the right entry for the actual applied duty. Could India consider making the "Customs Duty Calculator" more user friendly?  Would India consider including the 
"European Union" in the menu of import sources?  
 
Reply: The effective rate of Basic Customs Duty on most items is collated in Notification No. 
12/2012-Customs dated 17.03.2012 [as amended from time to time]. There are a few other 
standalone exemption notifications for specific pu rposes such as import by diplomatic persons, 
import by specified importers, exemptions on the basis of specified countries of origin etc.  
 
The Customs Duty calculator [https://www.icegate. gov.in/Webappl] offers an interactive drop 
down menu wherein the importer can select the appropriate exemption notification from a menu of choices. The text of all exemption notifications is available on website of the Central Board of Excise and Customs (CBEC). 
 
It also provides an option to select preferential notification in case of imports under FTA/PTA. Inclusion of European Union in the menu of import sources is not relevant for the present since 
there is no FTA/PTA with the European Union. 
 WT/TPR/M/313/Add.1 
 
- 116 - 
 
  Page 47 para 3.40 - Import prohibitions 
 EU Question 25: The report states that "import prohibitions are mainly for health reasons and safety reasons and include a wide range or products." Can India  provide a scientific 
justification for the prohibition of the items listed in table 3.8.? Could India explain the 
rationale for prohibiting the imports of mat and offal of wild animals and animal fats? Could India clarify whether a similar ban on domestic production and commerce of animal fats is in 
place? 
 Reply: Prohibition on imports of certain products and the reasons thereof are:-  
(i) Import of Wild Animals (including their Parts and Products ) as defined in the Wild 
Life (Protection) Act, 1972 is "Prohibited".  
 
(ii) Animal fats under Chapter 15 of ITC (HS) is "Prohibited" in terms of Principles of 
restrictions related to protection of human, animal or plant life and health 
 
EU follow-up questions: Could India clarify if it considers all wild animals as 
protected/endangered? Could India further clarify if it allows the domestic production and commerce of animal fat? If so, could India provide explanation for banning the import of animal fat? If India prohibits the production and domest ic sale of animal fat, could India provide the 
reference to its relevant domestic regulations? 
 
Reply:  The domestic regulation in this regard is the Indian Wildlife (Protection) Act, 1972 and the 
details are available at the following link: http://envfor.nic.in/legis/wildlife/wildlife1.html . 
 
Page 51, para 3.51-and para 3.53 import quotas and import restrictions 
 
EU Question 26: Regarding the import quotas on marble and similar stones, how does India justify such quantitative restriction to imports, effetely depriving its processing industry of a 
supply source? In relation to Trade Notice No. 12/2014 of 8
th January 2015 on the Allocation 
of Quantity of Rough Marble and Travertine Bl ocks for import, can India confirm that the 472 
companies listed in annex cannot import more than the quantity allocated, which results in a de facto maximum import limit per applicant? Could India explain why imports of new motor 
vehicles are restricted to specified ports? Could India provide further justification regarding 
the obligation to import second hand cars only through a single port?  
Reply: Marble is a sensitive item for India because of ecological and health safety reasons. A 
fine balance has to be maintained between requirement of mineral resource vis-à-vis 
environment/ecological concerns. On account of this, mining is allowed only after environmental clearance and there are several conditions stipulated in mining licenses. 
 
Regarding motor vehicles, Import clearance requires assessment of value, duty, compliance to quality and other parameters.  Whereas , most of the items are allowed to be imported 
from all Custom designated ports, port restriction criteria has been introduced for few items 
where the above mentioned parameters (assessment of value, duty, compliance to quality and other parameters) cannot be assessed in all ports. The designated ports ensure quick 
clearance of the goods for imports and exports purposes. 
 EU follow up question: Could India provide further clarification how the limitation of import of 
marble contributes to lessening the exhaustion of its domestic marble resources?  
 
Reply: Limitation of import of marble is only one of many conditions that govern Marble import 
policy. 
 
Page 60, para 3.94 - TBT notifications  
EU Question 28: India appears to have notified relatively few, 11 TBT measures to the WTO 
between 2011 and 2014. The EU had requested India – via the India WTO-TBT enquiry point 
- in several cases to notify Indian measures that fell under the scope of the WTO TBT Agreement. Those were not notified or in some cases, the TBT notification was carried out 
only after the adoption of the measure (such as in IND/47). Could India clarify if there is a WT/TPR/M/313/Add.1 
 
- 117 - 
 
  systematic approach in the government that aims at ensuring that all relevant TBT measures 
are notified at an early stage in order to allow other WTO members to comment on? Does India have plans to improve the timeliness and frequency of its notification procedures?  
Reply: Since few products have been brought und er technical regulation, the notification to 
WTO TBT Committee has also been few.  It is a continuous process and as and when TRs are 
adopted, it is being notified to WTO Secretariat. 
 
EU Follow up questions to EU Question 28: Could India indicate if it has an inter-agency 
mechanism in place to ensure that all relevant regulatory changes are notified to the TBT Committee pursuant to India's obligation? 
 
Reply: All regulatory agencies in India notify all the relevant regulatory changes through 
Department of commerce, which is the nodal Department, to the WTO as per the provisions of 
WTO TBT Agreement.  
 
Page 60 para 3.96 – certification and conformity assessment 
 
The report states that 92 types of products are subject to the mandatory BIS certification 
mark. The Indian authority's state that fees are fixed based on the cost of operations.  
EU Question 31: Could India provide clarificatio n regarding the cost structure of certification 
that appears to be based on the number of products marketed (whether marketed in India or not)? In particular, can India explain why it charges a marking fee per product with the 
BIS mark (unit fee)? Can India explain why it charges the BIS mark fee also on products 
with the BIS mark even when not sold in  the Indian market?  Could India provide 
explanations on how the varying fees are cons idered to be covering only the cost of 
certification of a product? Could India provide further information if the budget of BIS is 
segregated depending on its different functions i.e. certification and standardization in order 
to check if certification fees only cover the cost of certification services provided? Could 
India explain what is the rationale for the "a dvance minimum marking fee for the production 
likely to be marked", especially in the light of the fact that it depends on the product to be 
marked?  
Reply: The cost structure of product certification is based on the Marking Fee Policy and 
based on this policy the advance minimum marking fee for a licence is charged by BIS to partly cover its administrative expenses, cost of market samples, cost of testing of samples 
and other overhead expenses.  The calculat ed marking fee or the minimum marking fee 
whichever is higher is to be paid by the manufacturer every year. Based on the quantum of production, sampling can be done for more numbe r of samples, however no extra charge is 
levied upon the manufacturers for the same. The marking and overall fees are equal to the 
fees levied by BIS to its domestic manufacturers and there is no disparity.  Even if domestic 
manufacturers are exporting product with BIS mark to outside India they have to pay making fee to BIS. This fee is charged to cover the travelling and other costs in case 
complaint is received from outside India for a BIS marked product. 
 The marking fee is based on the quantum of pr oduct marked with the BIS standard mark. In 
case the BIS standard Mark has been used on the product it is imperative that the 
manufacturer shall pay the marking fee for all such products, as per practice at international level.  
The cost varies from product to product since the cost of sample and testing charges vary 
from product to product.  
Even though there is separate budgeting, th e cost of Standardization is recovered from 
certification fees since BIS is a self-supporting organization.  
The marking fee is taken in advance since cost of certification in a year (which includes cost 
of purchase of sample, analysis of samples drawn from factory as well as market) is borne out of the advance marking fee submitted by the manufacturer. This advance marking fee is adjusted on completion of operative period of  licence as per the actual production covered 
with BIS Standard Mark. WT/TPR/M/313/Add.1 
 
- 118 - 
 
  The last TPR in 2011 highlighted that there were 81 products subject to the mandatory BIS 
certification mark, now 92. One of them, planned by that time, has already been implemented. It is the case of import pneumatic tyres into India which according to 
mandatory certification must bear an ISI logo on each tyre and pay a fee for it; their 
manufacturers must deposit a bank guarantee not required to nationals; the certification 
cannot be done in European facilities in compliance with EU or UN norms. 
 
EU follow up question: Could India provide further indications how the certification and 
standardisation activities of BIS are separated in its budget and on the use of its revenue? Could India provide figures of BIS revenue  from certification activities?  
 
Reply:  Allocation of budget and use of revenues in certification and standardization activities of 
BIS is done keeping into consideration various attributes which inter-alia includes manpower allocation in that particular activity. 
 
The revenue generated from BIS Certification activity in the financial year 2013-14 under Foreign Manufacturers' Certification Scheme is 62.25 million Indian Rupees. 
 
Page 61 para 3.98– certification and conformity assessment  EU Question 33: Does India contemplate raising any additional fees related to market 
surveillance for compliance with BIS standards and, if so, could India elaborate on their 
rationale?  
Reply: Under BIS Product Certification Scheme, BIS does not charge any fee other than the 
marking fee based on production or minimum marking fee, whichever is higher.  
EU follow up question: Could India confirm that it has no plan to introduce additional fee(s) to 
cover the cost of market surveillance in addition to the existing marking fee?  
 Reply:  Presently there is no proposal to introduce additional fee to cover the cost of market 
samples under Products Certification Marks Licensing Scheme, at this stage.  
 
Page 60 para 3.97- foreign producers' mandatory certification 
 
EU Question 36: In order to obtain a BIS license, a foreign manufacturer must set up a liaison/branch office in India. Taking into account the requirement that a foreign 
manufacturer must have a legal representative in India, could India give the rationale for 
requiring a bank guarantee (which is an additional requirement that is only applicable for foreign manufacturers, not for domestic ones)? 
 
Reply: The performance bank guarantee is in tended to protect the Bureau of Indian 
Standards (BIS) during the tenure of the license an d is invoked only in case of breach of any 
condition of the agreement signed between BI S and licensee. Rationale for bank guarantee 
is preventive security measure to cover the loss of revenue which may arise out of any 
liability/unpaid fee, penalty etc. on part of fore ign manufacturers and also takes care of legal 
e x p e n s e s  i f  a n y ,  o n  a c c o u n t  o f  s u p p l y  o f  s t a n d a r d  m a r k  p r o d u c t  i n  a  c o u n t r y  o t h e r  t h a n  
India. The marking and overall fees are compar able to the fees charged by other members 
of similar schemes and are equal to the fees le vied by BIS to its domestic manufacturers. In 
case of breach of Marking Fee by domestic manufacturers there are other national laws and legal framework for recovery of dues, penalties, liabilities etc., the provision of bank 
guarantee has not been imposed for domestic manufacturers. However, this Law of land 
cannot be enforced in foreign countries. Therefore, to protect BIS interest, Performance Bank Guarantee is sought which is approved by Law Ministry. 
 
EU follow up question: The EU understands that India requires foreign companies to have an 
Indian legal representative for the purpose of the certification and marking to act on behalf of the 
applicant.  Such a legal representative acts on behalf of a foreign applicant.  Could India further 
explain why – in addition of requiring a domestic representative – it also requires a bank 
guarantee from foreign manufacturers?  
 WT/TPR/M/313/Add.1 
 
- 119 - 
 
  Reply:  Legal representative on behalf of foreign applicant is liable for legal actions in case of any 
violation whereas the bank guarantee is for covering the loss of revenue which may arise on the part of foreign manufacturers   
Page 62 para 3.103 – labelling 
 The license number and FSSAI logo can indeed be added in an affixed label. However, other 
essential information (list of ingredients, expiration date –given for illustration-) cannot be 
added and have to be printed in English or Hindi directly on the package because FSSAI regulations prohibit the use of stickers. This restricts market access to India and nullifies reciprocity, as most Indian trade partners, including the EU and the US, allow the use of 
stickers.   
 Reply: The core information regarding list of ingredients, nutritional value, Best Before or 
Use by dates etc. can only be provided by the manufacturer and no one else and hence have 
to be on the main label. The label has to be an inseparable part of the container and as per 
the Packaging & Labelling Regulations; all information should be grouped together and 
displayed in one place. Hence permitting additional stickers as a means of information from 
any other source or even the manufacturer is likely to compromise with sanctity of information which is the basic requirement for a consumer for making informed choices.  
Page 65 para 3.122 - export taxes 
 EU Question 50: Further to the information pr ovided on export taxes, could India provide 
additional information on the preferential transp ort fees applicable for the export of certain 
raw materials?  
Reply: Issues related to transport fees are not a taxation matter.  
 
EU follow up question: Could India provide information on preferential/special transport fees 
applicable to certain goods that are destined for exportation?  
 
Reply: It is re-iterated that transport fees are not a taxation matter and the exporter is at liberty 
to opt for any mode of transport given commercial considerations. 
 
Page 68 para 3.134 - subsidies.  
Page 75, para 3.164 - banking regulation 
 EU Question 55:  Could India provide further information on what measures are taken in case a bank does not meet the priority sector lending targets?  
 
Reply: Scheduled Commercial Banks having any shortfall in lending to priority sector shall be allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) 
established with NABARD and other Funds wi th NABARD/NHB/SIDBI, as decided by the 
Reserve Bank from time to time. The interest rates on banks' contribution to RIDF or any other Funds, tenure of deposits, etc. shall be fixed by Reserve Bank of India from time to 
time. 
 Non-achievement of priority sector targets and sub-targets will be taken into account while granting regulatory clearances/approvals for various purposes. 
 
EU follow up question to question 55: Could India provide information if in the past any banks 
were subject to the RBI decision to contribute to the RIDF? Could India clarify what regulatory 
clearances/approvals would be affected in the case of a bank does not comply with priority sector 
lending targets?  
 
Reply: All Scheduled Commercial Banks with shortfalls in priority sector targets have been 
contributing to RIDF as per the extant policy. Th e policy sets a level playing field for the banks.  
In terms of RBI's guidelines, non-achievement of priority sector targets and sub-targets will be 
taken into account while granting regulatory clearances/approvals for various purposes. Branch 
licensing is such an example. WT/TPR/M/313/Add.1 
 
- 120 - 
 
  Page 86 para 3.216. The Supreme Court of Indi a in its judgement [Novartis A.G. vs. Union 
of India] said that "The amended portion of Section 3(d) clearly sets up a second tier of qualifying standards for chemical substances/pharmaceutical products in order to leave the door open for true and genuine inventions but, at the same time, to check any attempt at 
repetitive patenting or extension of the patent term on spurious grounds." Further it was 
said that "efficacy" should be understood as "t herapeutic efficacy", which must be judged 
"strictly and narrowly". In paragraph 190 of the judgement, the Court held that "in 
whichever way Section 3(d) may be viewed, whether as setting up the standards of 
"patentability" or as an extension of the definition of "invention", 
 Page 100 Paragraph 4.12-Measures affecting exports. 
  
The report states that on 12 February 2014 th e Indian Government approved a subsidy at 
the rate of Rs 3,300 per tonne towards marketing and promotion services of raw sugar. The 
scheme continues during the current sugar season 2014-15 and on top of that, Indian 
regional Maharashtra government has decided in April to grant an additional export subsidy of Rs1,000 per tonne of raw sugar. 
 
EU Question 75: In the light of the above, could India explain:  
 
a. How it interprets the "implementation peri od" as referred to in paragraph 9.4 of the 
Agreement on Agriculture and the end data of it. 
  
b. What are the rules in India governing the granting of export subsidies by the 
regional authorities? Are regional govern ments bound by the commitments India has 
taken in the WTO?  
 
Reply: The Hong Kong Ministerial Declaration makes it clear that developing countries would continue to be exempt from reduction commitments on export subsidies listed in subparagraphs (d) and (e) of paragraph 1 of Article 9 of the Agreement on Agriculture. 
Therefore, Members which are benefiting from S&D treatment during the implementation 
period would continue to benefit from such provisions till a new agreement is in place. In the spirit of the on-going reform process under Article 20 of the Agreement on Agriculture, while 
developed Members continue to provide huge expo rt subsidies, developing countries should 
not be deprived of S&D treatment during the interim period which is only a fraction of what is being given by the developed countries. 
 
EU follow-up questions:   
a. The EU would like INDIA to clarify which developed WTO members continue to provide 
exports subsides for sugar, as indicated in the previous response.  
In addition, the EU thanks India for the explanation and wishes to follow-up on the issue 
which includes systemic concerns for the EU, including possible breach of country's WTO 
commitments justified by the developing country status of the country.   
b. According to the Secretariat's background document G/AG/W/125/Rev.2 on export 
subsidies, only less than five countries continue to grant export subsidies in compliance 
with their scheduled commitments whereas export subsidy expenditure has clearly fallen 
significantly over the past years. At the same time the Article 9:4 subsidies have been used by at least ten developing countries and the trend is up. That kept in mind and in the light of India's views on Hong Kong Ministerial Declaration providing a legal basis for 
developing countries to continue to be exempted from reduction commitments on export 
subsidies,  Could India clarify the following:  
i. What are India's export subsidy reduction commitments in Section II of Part IV of 
India' schedule of concessions which India allegedly continues to benefit of until a 
new agreement is in place? 
ii. What is the legal effect of the Hong Kong Ministerial Declaration on Section II of Part 
IV of the schedules of the WTO members? WT/TPR/M/313/Add.1 
 
- 121 - 
 
  c. The EU would also like to submit again the question on the same issue which have not 
been replied by India: What are the rules in India governing the granting of export 
subsidies by the regional authorities? Are regional governments bound by the 
commitments India has taken in the WTO? 
Replies:  
 a) As long as the Doha Round remains  unfinished, Members can continue to provide export 
subsidies subject to product-specific reduction commitments within the limits specified in the 
Schedule of the WTO Member concerned.   (b) India has reserved the right to use export subsidies under the Uruguay Round Agreement on 
Agriculture. The Hong Kong Ministerial Declaration makes it clear that developing countries would 
continue to be exempt from reduction commitments on export subsidies listed in subparagraphs (d) and (e) of paragraph 1 of Article 9 of the Ag reement on Agriculture. Therefore, Members which 
are benefiting from S&D treatment during the implementation period would continue to benefit 
from such provisions till a new agreement is in place.  
(c) The commitments undertaken by India in the WTO are national commitments.  
 
Page111, para 4.58  Services  
EU Question 84: Could India explain what are the costs to be borne by foreign commercial 
banks with respect to the new policy on priority sector lending. Is India's government considering covering part of these costs? 
 
Reply: Priority sector loans are competitive loan s and the extant guidelines on priority sector 
do not lay down any preferential rate of interest for such loans. As such banks do not incur 
any additional cost for lending to priority sectors as compared to non-priority sector loans . 
 
EU follow up question to question 84: Could India clarify why when priority sector loans are 
considered competitive ones, does India imposes a certain target for such loans?  
 
Reply: Priority sector refers to those sectors of the economy which, though viable and 
creditworthy, may not get timely and adequate cred it in the absence of this regulatory thrust. 
These include loans to farmers for agriculture and allied activities, micro and small enterprises, 
poor people for housing, students for education an d other low income groups and weaker sections.  
RBI's priority sector guidelines do not lay down an y preferential rate of interest. Banks in India are 
free to determine their lending rates according to their Board approved policies. 
 
Page 113 para 4.70 - banking services  
EU Question 85: Could India provide further information on how the principle of reciprocity is 
considered in practice for the purpose of the "Scheme for Setting up Wholly-Owned Subsidiaries by Foreign Banks in India"? What are the criteria for determining reciprocity for 
the purpose of the Scheme? Have India determin ed reciprocity of a foreign country for the 
Scheme already? If so, which one?  
Reply: The policy on presence of foreign banks in India has followed two cardinal principles 
of (i) Reciprocity and (ii) Single Mode of Pr esence. These principles are independent of the 
form of presence of foreign banks. Therefor e, these principles continue to guide the 
framework of the future policy on presence of foreign banks in India. In general, foreign 
banks organized as WOS would enjoy greater freedom in terms of opening of branches. 
 The factors taken into account while considering applications for setting up WOS in India 
include, inter alia, the economic and political relations with the country of incorporation of 
the parent bank and reciprocity with home country of the parent bank.  
EU follow up question to question 85: Could India further clarify how political relations are 
taken into account of assessing reciprocity for bank regulatory issues? Could India clarify what authority assesses the political relations in this respect? Could India provide a response to the WT/TPR/M/313/Add.1 
 
- 122 - 
 
  questions weather India had determined reciprocit y of a foreign country for the Scheme already? 
If so, which one?  
 Reply: As a part of the process of examination of any application of a foreign bank for presence in 
India, the aspects relating to reciprocity is looked  into by the Government of India. The guidelines 
related to bank regulation and supervision are the same for all banks, and no differential treatment is accorded to any bank. 
 
The applications of foreign banks for presence in India are examined on the basis of two cardinal 
principles of (i) reciprocity and (ii) single mode  of presence. These principles are independent of 
the form of presence of foreign banks. These pr inciples continue to guide the framework of the 
policy on presence of foreign banks in India including that of wholly owned subsidiaries of foreign 
banks in India.  
Page 124, Para 4.114-cabotage 
 EU Question 90: Could India indicate to what extent the exemptions from cabotage 
restrictions granted in the years 2012-2013-2014/2015 referred to trading of international 
cargoes (e.g. feedering and relay practices) and/or movement of empty containers?  Reply: The details of chartering permission gi ven to foreign flag vessels, are as mentioned 
below: 
 
Year 2012-13 2013-14  
2014-15 
 
International 
Cargoes  
  1180  1082  1650  
Empty containers  0800 TEUs  export-
import containers from 
Nhava Sheva to Mundra 
Port and back, granted 
on 05.12.12 1000 x20' and 700x40' 
import empty 600x20' 
2500 TEUs from Nhava 
S h e v a  t o  M u n d r a  i n  t h e  
lay can 28.10.13 to 
29.11.13 granted on 
04.11.13 1. 500 TEUs empty 
containers from Nhava 
Sheva to Pipava Port 
granted on 27.06.14 
  
2. 500 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 11.07.14 
  
3. 1000 TEUs empty 
containers from Nhava 
Sheva to Pipava Port 
granted on 16.07.14. 
  
4. 1000 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 25.07.14. 
  
5. 1000 TEUs empty 
containers from Nhava 
Sheva to Mundra Port 
granted on 11.08.14.   
 
With regard, specifically, to signalling systems under the terms of a guideline issued by the 
Railway Board, suppliers of software embedded  electronics systems and technology products 
for railway signalling are obliged to set up indigenous manufacturing and testing facilities in 
India. Furthermore, the same suppliers shall commit to a progressively phased 
indigenization programme of supply in respect of manufacturing that must reach 100% in three years time further to the market entry.  
 
EU follow up question to question 90: Could India indicate to what extent the exemptions from 
cabotage restrictions granted during the years 2012 to now referring to trading of international cargoes (e.g. "feedering and relay practices") and/or movement of empty containers?  
 WT/TPR/M/313/Add.1 
 
- 123 - 
 
  Reply: EU Question No. 90 has already been replied. It may be noted that the information sought 
earlier was for the duration 2012-13, 2013-14 and 2014-15. The question now asked by EU also 
requires information during the year 2012 to now for which the reply has already been provided.  WT/TPR/M/313/Add.1 
 
- 124 - 
 
  GUATEMALA 
Question 1: In paragraph 2.30 states that, in order to simplify and speed up procedures for 
registration and licensing of foreign investors, an electronic window has been created in which the required formalities will be met. Is a mechanism to monitor the results generated from this new 
system contemplated? 
 Reply:  Out of the 26 Central Services identified for integration with eBiz, 14 services have already 
gone live. Other 12 services are expected to be integrated in this financial year.  
 eBiz project is expected to lead to savings in time, cost and efforts for the entrepreneurs. Concerned authorities are attempting a common application form and process for incorporation of 
a company, allotment of Permanent Account Nu mber (PAN) & Tax Deduction Account Number 
(TAN) and employer registration with Employ ees' State Insurance Corporation (ESIC) and 
Employees' Provident Fund Organization (EPFO). 
 
This portal also provides facility to track specific application and to monitor the performance of various government agencies. 
 
Question 2: Paragraph 3.4 states that India has implemented a risk management system (RMS) 
in customs, for trade facilitation. Please provide details about the implementation process and internal reforms in this regard? 
Reply: The exponential growth in trade volumes means that the traditional approach of 
scrutinizing every document and examining every co nsignment will simply not work, as it would 
neither be desirable nor possible to constantly increase the resources with the increasing 
workload. Also, there is a need to reduce the dwell-time of cargo at the ports and airports and to reduce the transaction costs in order to enhance the competitiveness of Indian businesses, 
by expediting release of cargo where compliance is high. This necessitates that the department 
should be selective in its approach to deployment  of its resources. The advances in Information 
Technology offer an opportunity to address these challenges faced by the department by putting in 
place an effective risk management system. The primary objective of the Risk Management 
System, therefore, is to strike an optimal bala nce between facilitation and enforcement and to 
promote a culture of compliance. It is intended to improve the management of the resources of the department to enhance the efficiency and effectiveness in meeting stakeholder expectations 
and to bring the Customs processes at par with the best international practices. The Risk 
Management System (RMS) has been adopted for both imports and exports.  
 
Question 3: Paragraph 3.18 states that the effective rate of customs duties may be modified 
during the year. To have the latest information, Is there a website for importers/exporters to keep 
them  aware of these changes and any other chan ges in additional charges affecting imports? 
Reply: Information regarding charges, taxes, levies and fees to be paid by importers/exporters 
are be accessed at http://cbec.gov.in . The current rate of Customs duty for each tariff line is 
available at the ICEGATE "Customs Duty Ca lculator" [https://www.icegate.gov.in/Webappl] 
 
Question 4:  In paragraph 4.105, it is indicated that rural tele density has increased, but there 
remains a significant difference between rural and urban areas. What strategy has planned to reduce this gap? 
Reply: National Telecom Policy 2012 has an objective of increase in rural tele-density to 70 by the 
year 2017 and 100 by the year 2020. Department  of Telecommunications has drawn up an 
investment plan to provide mobile connectivity to uncovered villages in a phased manner over the 
next five years. With a view to attract investment in telecom services, FDI has already been raised 
to 100%. The method of increasing rural penetration includes the Universal Services Obligation Fund to provide capital and operational subsidy for investment in rural and remote areas.  
 WT/TPR/M/313/Add.1 
 
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  HONG KONG, CHINA 
Questions on the Secretariat Report 
 A. Trade Policies and Practices by Measure 
Special Economic Zones (SEZs) (Page 68-69, para 3.135-3.139) 
 1. SEZs may be established by the central or state governments or by private developers 
(including foreigners) as joint ventures with the State or fully private.  
  Question: Could India advise if there are any differences in requirements and restrictions between 
foreigners and local private developers in establishing SEZs, either as joint ventures with the State 
or as private developers? What is the proportion of foreign to local investments in establishing 
SEZs?  
Rely: Provisions of SEZ Act/Rules are equally applicable to local as well as foreign investors with 
no differentiation between them.   
Export-oriented units (EOUs)   
(Page 70-71, para 3.140-3.14 5; Page 11, para 3.2) 
 2. The EOU scheme complements the SEZ scheme. The main objectives of the EOU scheme are to 
increase exports and foreign exchange revenues, promote the transfer of latest technologies, 
stimulate foreign direct investment, and generate additional employment. EOUs are similar to SEZs but may be located anywhere in the country.   
 
Question: Are there any differences in requirements between foreign and local investment in 
setting up EOUs? What is the proportion of foreign to local investments in EOUs according to latest 
figures? Are there any special incentives to attract foreign investment to participate in the EOU 
scheme?  Reply:  No, The proportion of foreign investments to the total investments in EOUs for 2012-13 is 
39.46% and for 2013-14 is 27.81%., 100% FDI is permitted through automatic route. 
 Micro-and small enterprises (MSEs)  
(Page 76, para 3.169; Page 160, Table A3.7) 
 3. At the State level, the schemes implemented to support the development of MSEs include: 
the development of industrial estate, tax incentives, and subsidies for electricity and capital.  
 Question: Given Hong Kong, China also has large number of small enterprises, could India share 
with us its plan regarding the development of industrial estate, how it operates and in what way 
MSEs can benefit from the industrial estate?  
 Reply:  Under Micro and Small Enterprises – Cluster Development Programme (MSE-CDP), 
financial grants is provided for development of land, provision of water supply, drainage, Power 
distribution, non-conventional sources of Energy for common captive use, construction of roads, common facilities such as First Aid Centre, Canteen and other need based infrastructural facilities 
to MSEs in the new/existing industrial estates/areas.   
 The Patent System  (Page 93, para 3.247) 
 
4. We noted that India's copyright law provides for fair use clauses.  
Question: Does India provide fair use exceptions for parody, satire, caricature, pastiche and user-
generated content in its copyright law?  If yes,  what are the details?  Is there any copyright 
exception for education purposes?  If yes, what are the details?  
 WT/TPR/M/313/Add.1 
 
- 126 - 
 
  Reply : Yes, India does provide fair use exceptions under Section 52 of the Indian Copyright Act, 
1957 as amended in 2012. Copyright exceptions are also provided, inter alia, for education purposes such as for collection of works consisting of non-copyrighted matters along with copyrights works, for instruction purpose, fo r purposes of research and exceptions for 
performances in educational institutions. 
 Question: Could India further explain the operation of  its "notice-and-take-down" procedures? 
What other measures has India put in place to combat online infringing activities?  Has India 
assessed the effectiveness of its measures in combating online infringing activities?  Reply : On a written complaint from the owner of copyright in the work complaining that such 
transient or incidental coverage is an infringement written complaint from owner of copyright in 
the work complaining that such transient or incidental storage is an infringement, such person responsible for the storage shall refrain from facilitating such asses for a period of 21 days or till 
he receives an order from the competent court refraining from facilitating asses. The procedure for 
take down notice and this written complaint has been given in Rule 75 of the Copyright Rules 2013. 
 
Other measures put in place to combat online infringing activities include legal remedies for circumvention of effective technological measures and penalties for online infringement.  
B. Trade Policies by Sector 
Banking  (Page 111, para 4.58) 
 
5. Pursuant to the revised guidelines issued by th e Reserve Bank of India (RBI) on priority sector 
lending, foreign commercial banks with 20 or more branches must achieve overall priority sector 
target of 40% of adjusted net bank credit (ANBC)  or a credit equivalent amount of off balance 
sheet exposure (OBSE), whichever is higher, along with the sub-targets for agriculture and weaker sections category within a maximum period of five years ending on 31 March 2018, as per the action plans submitted by them as approved by RBI.  Other foreign banks must achieve overall 
priority sector target of 32% of their ANBC/credit equivalent of OBSE. 
 Question: Do the revised guidelines apply to domestic banks? If so, is there any difference 
between the requirements for foreign and domestic banks?  What would be the consequences for 
those banks failing to achieve the target, if any?  
Reply : The details of the eligible priority sector are available in our circular on Priority Sector 
Lending-Targets and Classification FIDD.CO.Plan.BC.54/04.09.01/2014-15 dated April 23, 2015. (Available at https://rbi.org.in/Scripts/NotificationUser.aspx?Id=9688&Mode=0 ) 
 
(Page 114, para 4.73) 
 6. The Indian Government has proposed to set up, as a part of a special economic zone (SEZ), 
an International Financial Services Centre (IFSC) at Gandhinagar, Gujarat and the IFSC Banking 
Units will be regulated by RBI.  
Question: We are interested to know more about the scope and the latest development of the 
IFSC as well as the corresponding guidelines for the entities to be established in the IFSC. Would there be any difference in the requirements for and/or the benefits of setting up offshore banking units in the IFSC, as compared with other SEZs?  Would there be any measures to encourage or 
attract more foreign-invested banks to the IFSC? 
 Reply:  International Financial Services Centre (IFS C) has been set up under Section 18(1) of 
Special Economic Zones Act, 2005. 
 IRDAI has issued the IRDAI (IFSC) Guidelines, 2015 for establishing an IFSC Insurance Office 
(IIO). These Guidelines are available at: 
https://www.irda.gov.in/ADMINCMS/cms/wha tsNew_Layout.aspx?page=PageNo2465&flag=1  
 WT/TPR/M/313/Add.1 
 
- 127 - 
 
  Maritime Transport  
(Page 125, para 4.121)  7. Vessel-sharing agreements of the liner-shipping industry have been exempted from Section 3 of 
the Competition Act 2002 since December 2013 and will be valid until February 2016 subsequent 
to several extensions.  During the first exemptio n period, 30 vessel-sharing agreements were filed 
with the authority. 
 
Question: We would like to know more about the rationale behind this exemption.  What is the 
view of your authority on the impact of the vessel-sharing agreements on the competitiveness of the liner-shipping industry and the efficiency of the market?  Is there any plan to remove such 
exemption in future? 
 Reply:  Vessel Sharing agreement [VSAs], which was initially exempted from the provisions of 
section 3 of the Competition Act, 2002, for a period  of one year w.e.f. the 11th of December 2013 
until the 10th of December 2014] has been exempted for one more year w.e.f. the 5th February, 2015 up to the 4th February 2016, after a joint review of the said exemption conducted by the 
Competition Commission of India and the Directorate General of Shipping, Government of India, 
for ease of doing business in the liner shipping in dustry in India, without however, compromising 
the core competition principles. The evaluation of  benefits of the exemption to the industry is 
expected to be carried out in August–September, 20 15 i.e. after a considerable utilization of period 
of exemption by the shipping lines. The view of all stakeholders would be taken in this regard. 
Further, at present, the exemption is valid up-to 04.02.2016, and there is no specific plan to withdraw the exemption before that period. 
 
(Page 126, para 4.125)  
8. The Ministry of Shipping has issued the Guide lines for Determination of Tariffs for Projects at 
Major Ports 2013 with a view to liberalizing certain aspects of tariff regulations to invite more private investment in the port sector.  
Question: How were the Guidelines implemented in the past year? Is there any increase in foreign 
investment? Will there be any review on the effectiveness of the Guidelines in inviting more private investment?  
 
Reply:  In 2013, Ministry of Shipping issued Guidelines for Determination of Tariff for Projects at 
Major Ports with a view to liberalize certain aspect s of tariff regulation in order to invite more 
private investment in the port sector.    These guidelines are adhered to while awarding projects 
for port development.  There has been positive response from port operators and investors to these guidelines.    The Tariff guidelines are regularly reviewed based on feedback received from stakeholders and with a view to ma ke them more investor friendly. 
 
 WT/TPR/M/313/Add.1 
 
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  INDONESIA 
GOVERNMENT REPORT 
 1 ECONOMIC ENVIRONMENT 
1.1 Recent Economic Developments 
Page 16 Para 5.3  
"A major outcome of the Bali Ministerial Confer ence is the decision on a Trade Facilitation 
Agreement (TFA). India is a party to this decision  and would abide by the obligation to notify its 
Category A and B commitments in accordance with the provisions of the Agreement. India has undertaken a host..." 
 
Question: Could India please provide its intention to notify its Category A commitments under 
TFA that the original deadline was the end of July 2014?  
 
Reply:  India is in the process of finalizing ca tegory A commitments. The Notification and 
ratification timelines have been kept open ended as per the Protocol acceded to, in WTO on 
27.112014. 
 SECRETARIAT REPORT  
SUMMARY 
Page 8 Para 1  
"During the period under review, India continued its efforts to liberalize and facilitate trade, such 
as through the introduction of self-assessment in customs procedures  and the elimination of 
state-trading requirements for some agricultural products. India also proceeded with further 
structural reforms including by eliminating price controls on diesel and relaxing foreign direct 
investment (FDI) restrictions in some sectors. Nonetheless, the tariff structure remains complex and the simple average MFN tariff rate increased during the review period."  
Questions: 
 1. Could India elaborate more on the self-assessment in customs procedures ? Which customs 
procedures will the self-assessment cover?  
Reply: Self-assessment is mandatory for all exporters.  Every exporter is required to self-assess 
the duty and the same may be verified by proper officer of Customs. In case of any discrepancy, 
the assessment made by exporter may be re-assessed by the officer of Customs. 
Thus, self-assessment covers both import and export procedures under the Customs Act, 1962.  2. Which government institution is in charge of this self-assessment?  
Reply:  Self-assessment of Customs duty is the respon sibility of the Central Board of Excise & 
Customs, Department of Revenue, Ministry of Finance, Government of India.   
3. Has the program ( self-assessment in customs procedures ) had a positive impact on 
international trade in India? If so, please elaborate?  
Reply : Yes, self-assessment in Customs procedures was introduced  with an objective of curtailing 
time of clearance and the associated costs by rely ing more on  the declarations filed by importer 
and exporter and  subjecting only perceived to be risky consignments   for examination and re 
assessment and not all  consignments  in a  routine manner.   By increasing facilitation level under self-assessment regime, the clearance time is gets reduced considerably.  
 
Page 10 Para 9  
"India has continued to streamline customs procedures and implement trade facilitation measures. 
With a view to facilitating trade, India adopted the use of self-assessment in its customs WT/TPR/M/313/Add.1 
 
- 129 - 
 
  procedures in 2011, and around 97.6% of India's imports were processed via the risk 
management system. Despite the implementation of these measures India's import regime remains complex, especially its licensing and perm it system, and its tariff structure, which has 
multiple exemptions, with rates varying according to product, user or specific export promotion 
programme." 
 Question: Will the Goverment of India simplify its complex import regulation, e.g. licensing and 
permit system, as well as its tariff structure?  
 Reply: Post Economic Liberalization, of early 90s, India has a considerably liberalized and 
simplified import regime. India's autonomous re forms for streamlining custom procedures and 
implementing trade facilitation are based on international best practices & standards. Introduction 
of new initiatives and expanding scope of existing facilities such as EDI, RMS, e-Payment, the ACP 
as well as direct delivery of containers at the port rather than clearing them after being brought to 
the container freight stations, introduction of  self-assessment for both imports and exports, 
automation of transshipment procedures etc. co ntributed to the reduction of customs clearance 
time.  
 
2 TRADE AND INVESTMENT REGIME 2.2 Trade Policy Formulation and Objectives  2.2.2 Trade policy goals 
 
Page 26 Para 2.13  
"Increasing India's share in global exports rema ins the main thrust of the Government's trade 
policy goals. The main goal of the FTP 2009-14 was to  make India a global player in world trade by 
doubling its share of global trade by 2020. This was to be achieved through fiscal measures such 
as tax incentives, credit for export schemes, institutional changes, rationalization of procedures, 
diversification of export markets and increased market access, including through regional trade agreements. The FTP is announced every five years and reviewed and adjusted annually. The new 
FTP for 2015-2020 was released on 1 April 2015.  Its goal is to make India a significant 
participant in international trade and to raise Indi a's share of global exports from 2% to 3.5% by 
2020. This is expected to be achieved by providin g a sustainable and stable policy environment for 
foreign merchandise and services trade; linking rules, procedures and incentives for trade with 
other recent initiatives such as "make in India", "digital India" and "skills India"; promoting the 
diversification of India's exports by assisting key sectors to become more competitive; and creating an architecture for India's engagement with key regions of the world. The acceleration in 
exports is expected to be achieved through exempt ion and remission of indirect taxes on inputs for 
producing final export products, imports of capita l goods at concessional rates of duty, and by 
stimulating services exports and focusing on specific products and markets."  
Questions: 
 1. Could India elaborate more on the significant changes between the new FTP (2015 – 2020) 
with the previous FTP?  
Reply:  India's new Foreign Trade Policy (FTP) for 2015-2020 was released on 1.4.2015. The main 
difference between the new Foreign Trade Policy and the previous one is that FTP 2015-20 
introduces two new schemes. The "Merchandise Exports from India Scheme" (MEIS) is for export of 
specified goods to specified markets. The "Servi ces Exports from India Scheme" (SEIS) is for 
increasing exports of notified services. These repl ace multiple schemes earlier in place, each with 
different conditions for eligibility and usage of scrips. 
 
2. Has the previous FTP achieved its goals?  
Reply: It would be evident from the fact  that over  last ten years, India's merchandise trade  increased 
manifold from US$ 195.1 billion in 2004-05 to US$ 764.6 billion in 2013-14. As per the World Trade 
Organization  (WTO), India's share in global exports and im ports increased from 0.8 per cent and 1.0 per 
cent respectively in 2004 to 1.7 per cent and 2.5 per cent in 2013. Its ranking in terms of leading 
exporters and importers improved from 30 and 23 in 2004, to 19 and 12 respectively in 2013. While 
India's total merchandise trade as a proportion of gross domestic product (GDP) increased from 29.0 per cent in 2004-05 to 41.8 per cent in 2013-14, India's merchandise exports as a proportion of GDP WT/TPR/M/313/Add.1 
 
- 130 - 
 
  increased from 12.1 per cent to 17.0 per cent during the same two time periods. The export performance 
was achieved despite the global uncertainty, and volatility in global commodity prices since 2008. 
 
2 TRADE AND INVESTMENT REGIME 
2.4 Investment Regime 
2.4.1 Legal framework for business  
Page 30 Para 2.30 
 "Establishing a company in India requires investors to register or obtain licences from various Government agencies, both in the Central and relevant State Governments. This is 
time-consuming and confusing. The Department of Industrial Policy Promotion based in the 
Ministry of Commerce and Industry (DIPP) indicate s that some 16 steps must be completed before 
an investor can establish a company. This has led to India being consistently ranked poorly by the 
World Bank's "starting a business" ranking (179 out of 189 economies in 2014 compared to 177 in 
2013). To streamline the process, the Government through the DIPP is establishing 
"eBiz", a web-based portal which is a one-stop  shop for delivery of services to investors 
by the Government which is expected to a ddress the needs of business from inception 
through its lifecycle.  This is expected to significantly reduce the amount of time and money 
spent by investors in obtaining licences to start a business. According to the September 2014 "Make in India" initiative of the new Government, all Central and State Government departments 
and ministries were expected to be integrated in eBiz by end-2014. The project which is being 
operated as a public-private partnership covers fi ve pilot States during the first year covering 65 
services (18 central Government and 47 State services, with a further 21 (8 Central and 13 State) 
services to be added during the second and third ye ars of the project. The project is also expected 
to be extended to a further five States. The Government expects to provide over 200 State and central Government services through this platform during the next seven years." 
 
Questions:  1. What is the current progress of the implementation of eBiz? 
Reply:  Out of the 26 Central Services identified for integration with eBiz, 14 services have already 
gone live. Other services are expected to be integrated in this financial year. 24 State services of the 10 pilot States are being implemented.  
 
2. Has the program had a positive impact on streamlining the process of establishing company in 
India?   
Reply:  Ebiz Project will lead to savings in time, cost and efforts of entrepreneurs. DIPP is 
attempting a common application form and process for incorporation of a company, allotment of Permanent Account Number (PAN) & Tax Deduction Account Number (TAN) and employer registration with Employees' State Insurance Corporation (ESIC) & Employees' Provident Fund 
Organization (EPFO). 
 2 TRADE AND INVESTMENT REGIME 
2.4 Investment Regime 
2.4.1 Legal framework for business  
Page 32 Para 2.34 
 "In addition to compulsory industrial licensing and reservations for the public sector, environmental clearance under the Environment Protec tion Act, 1986, is required from the Ministry 
of Environment and Forests, for 29 industries prior to establishing industrial units. At the level of 
State Governments, companies are subject to land use, and industrial location laws. Most States also provide incentives for investment." 
 
Question:  
1. Please identify the 29 industries that have the above-mentioned additional requirements?   
 WT/TPR/M/313/Add.1 
 
- 131 - 
 
  Reply:  The details of the specific industries th at require prior environmental clearance are 
available at the following link: http://envfor.nic.in/legis/eia/so1533.pdf  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 
3.1.1 Customs procedures and requirements   
Page 35 Para 3.4 
 "India uses a risk management system (RMS) as a trade facilitation measure to selectively screen only high and medium-risk cargo for customs examination. As at end October 2014, about 97.6% 
of India's imports was processed via RMS. The authorities indicate that RMS for processing imports 
is operational at almost all customs offices."  
Question: What are the RMS criteria for determining a high and medium risk cargo?  
 
Reply: There are large  numbers of parameters to determine the nature of risk associated with 
cargo. This may include source country, type of commodities, type of importers, compliance record 
of importer/exporter etc.    Page 35 Para 3.5 
 
"Importers with a good track record and complying with qualifying criteria are entitled to be 
accredited for special clearance procedures under the Accredited Client's Programme (ACP).  As at 
31 October 2014, 251 ACP importers were allowed to self-assess their consignments with no need 
for examination, with a view to meeting India's commitments to simplify and harmonize Customs' 
procedures under the revised Kyoto Convention." 
 
Question:  1. Could India provide more information on the qualifying criteria required to obtain a special 
clearance procedure under the Accredited Client's Programme (ACP)?   
 
Reply: The eligibility criteria for an importer to qualify under the "Accredited Clients Program" is 
as follows: 
i. They should have imported goods valued at Rs. Ten Crores [assessable value] in the 
previous financial year;  or  paid more than Rs. One Crore of Customs duty in the 
previous financial year; or, in the case of importers who are also Central Excise 
assesses, paid Central Excise Duties over Rs. One Crore from the Personal Ledger Account in the previous financial year, or they should be recognized as "status holders" under the Foreign Trade Policy  
ii. They should have filed at least 25 Bills of Entry in the previous financial year in one or 
more Indian Customs stations. 
iii. They should have no cases of Customs, Central Excise or Service Tax, as detailed 
below, booked against them in the previous three financial years.  
a) Cases of duty evasion involving mis-declaration / mis-statement/collusion / 
willful suppression / fraudulent intent whet her or not extended period for issue of 
SCN has been invoked. 
b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / 
import / export goods warranting confiscation of said goods. 
c) Cases of mis-declaration / mis-statement / collusion / willful suppression / 
fraudulent intent aimed at availing CE NVAT credit, rebate, refund, drawback, 
benefits under export promotion/reward schemes. 
d) Cases wherein Customs/Excise duties and Service Tax has been collected but not 
deposited with the exchequer. WT/TPR/M/313/Add.1 
 
- 132 - 
 
  e) Cases of non-registration with the Department with intent to evade payment of 
duty/tax". 
 
iv. They should also not have any cases booked under any of the Allied Acts being 
implemented by Customs.   
v. The quality of the submissions made by the applicants to Customs should be good as 
measured by the number of amendments ma de in the bills of entry submitted by 
them in relation to classification of goods, valuation and claim for exemption benefits. 
The number of such amendments should not have exceeded 20% of the bills of entry 
during the previous financial year. 
vi. They should have no duty demands pending on account of non-fulfillment of Export 
obligation. 
vii. They should have reliable systems of record keeping and internal controls and their 
accounting systems should conform to recogn ized standards of accounting. They are 
required to provide the necessary certificate from their Chartered Accountants in this 
regard as per format given in the Application form. 
Page 35 Para 3.6 
 
"To import specific goods, in certain instances, certificates of registration and import permits (e.g. 
certificates of origin and sanitary and phytosanit ary certificates) issued by different agencies are 
required . These certificates must be submitted at the time of filing the bill of entry." 
 
Questions:  
1. Could India identify which products are on the list of specific goods?  
Reply:  In case of import of agricultural products, marine products, processed food items, meat 
and meat products, SPS certification is required. 
 
2. Could India specify the names of the different agencies which issue the import permits?   
Reply: Some of the agencies issuing import permits are:- 
i. Directorate General of Foreign Trade (Department of Commerce),  
ii. Directorate of Plant Protection, Quarantine & Storage (Department of Agriculture & 
Cooperation), 
iii. Ministry of Environment, Forests & Climate Change,   
iv. Department of Animal Husbandry, Dairying and Fisheries  
Page 35 Para 3.7 
 "Regarding time required for customs clearance, the mean evacuation time for import 
consignments at Chennai Port was 8 days and 19 hours, according to a study conducted by the 
Central Board of Excise and Customs. The authoritie s consider that the introduction of EDI, RMS, 
e-Payment, the ACP as well as direct delivery of co ntainers at the port rather than clearing them 
after being brought to the container freight stations, and a provision for self-assessment 
contributed to the reduction of customs clearance time." 
 Question: 
 
1. Could India describe any other initiatives that may also have contributed to the reduction of 
time required for customs clearance?   
 WT/TPR/M/313/Add.1 
 
- 133 - 
 
  Reply:  Indian Customs has extended 24x7 Customs Clearance Facility for specified imports and 
export to 18 sea ports covering all major sea port s. Similarly the facility has been extended to 
17 air cargo complexes for specified imports and all exports."Single Window Customs Clearance" 
by integration other regulatory agencies/Departments with Customs is also under implementation. 
Furthermore, to dispense with physical document s and its submission to Customs, adoption of 
digital signature in phases have been commenced. Th is will enable paperless trade and will reduce 
compliance cost considerably. Indian Customs has also reduced significantly the number of 
mandatory documents for general import and export to three each.  Further a mechanism has 
been put in place in form of hi gh-level administrative body i. e "Customs Clearance Facilitation 
Committee" (CCFC) at each seaport and airport with the responsibility of ensuring expeditious Customs clearance of imported and export goods.  The Committee include senior functionaries of 
other regularity agencies/departments such as Food  safety and Standards Authority of India, Plant 
Quarantine, Animal Quarantine, Drug Controller of India etc. The CCFC is mandated to meet regularly to remedy constraints impacting clearance of imported and export goods.  A Central 
CCFC  has also been set up to oversee expeditious clearance of import and export goods.   
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 
3.1.4 Tariffs 3.1.4.1 Applied tariffs   
Page 40 Para 3.22 
 "The simple average applied MFN tariff in 2014-15 is 13%, up from 12% at the time of the last 
Review (2010-11). The overall increase is mainly due to a rise in tariffs in agriculture (WTO 
definition), whose overall average at 36.4% remains considerably higher than the average for non-agricultural products (9.5%).  The increase in the average tariff for agriculture is mainly due to an 
increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% in 2014-
15), oilseeds and fats (from 18.5% to 33.2%), and sugars and confectionary (from 33.4% to 41%). Above average tariff protection is also found in a number of other products such as beverages, spirits and tobacco (77.5%), and coffee and tea (74.8%). The average MFN tariff for 
non-agricultural products also rose from 8.9% to 9.5%, primarily due to increased tariffs on 
transport equipment from 21.5% to 32.1%. Average tariffs also rose for minerals and metals, chemicals, textiles, leather and rubber and electric machinery (Table 3.4)." 
 
Question:  
1. When does India plan to reduce tariffs on its ag ricultural products which are high compared to 
non-agriculture products?   
Reply: The effective tariff rate of agricultural products is fixed in response to the price volatility in 
the domestic market and as a measure of balancing the interests of consumers and domestic 
farmers. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 
3.1.5 Other charges affecting imports  
Page 42 Para 3.27 
 "The AD and SAD continue to be applied to imports in lieu of excise (CENVAT) and local state taxes respectively. The AD, which was introduced in 1975 to offset domestic excise taxes, is currently 
charged at the general rate of 12.5%, raised fr om 10% at the time of previous Review. […] 
Imports that are exempt from customs duty, either  through an exemption notification or by the 
tariff and the AD, are exempt from payment of the SAD as well." 
 
Question:  
1. The report indicates that India imposes an Addi tional Duty (AD) and Special Additional Duty 
(SAD) on imports. On what basis are these duties applied? And what are the basis for the increase?   WT/TPR/M/313/Add.1 
 
- 134 - 
 
  Reply : Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of excise duty 
charged on the domestic production of a similar item. Similarly, Education Cess and Higher Education Cess charged as a percentage of the Excise Duty for domestic goods was also charged on similar imported goods. However, w.e.f 01.03.2015, Education Cess and Secondary & Higher 
Education Cess leviable on all excisable goods has been fully exempted. Simultaneously, the 
standard ad valorem rate of duty of excise (i.e . CENVAT) has been increased from 12% to 12.5%.  
Similarly, Special Additional Duty (SAD) is charged on imported goods in lieu of sales tax/value 
added tax charged on the domestic sale of goods. 
 Both these taxes are in the nature of counter vailing/equalizing taxes and thus would apply to 
imported goods so as to provide a level playing fi eld for domestic industry. Moreover, the credit of 
these additional duties is available to be set-off against domestic taxes such as Central Excise Duty 
and Service Tax under the CENVAT Credit Rules. Li kewise, a full refund of the SAD can be claimed 
by an importer once the imported goods are sold in the domestic market on payment of State VAT. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 
3.1.9 Import prohibitions, restrictions, and licensing 
3.1.9.4 Import quotas   Page 51 Para 3.51 
 
"India maintains import quotas for marble and similar stones (HS 25151100 and 25151210) and 
for sandalwood (HS 44039922).  Quotas are established annually and administered on an MFN 
basis. There is no maximum limit to be allocated per applicant. Applications are examined upon 
receipt and assessed according to the criteria stated in the notifications and circulars issued by DGFT on a yearly basis." 
 
Question:  1. Why does India maintain import quotas on these two products?  
Reply:  India maintains import quota on Marble and similar stones on the ground of "Conserving 
exhaustible natural resources". These items have been notified to WTO in 1997(WT/BOP/N/24 dated 22.05.1997) by India under Article XX(g).  
 
For sandalwood, Import restrictions have been put on because India imports only legally produced Sandalwood and does not become party to illegal international trade in sandal wood and also to 
keep account of imported sandalwood so that illegally felled domestic sandalwood is not passed off 
by the unscrupulous elements as imported sandalwood. 
 
2. What are the determinants behind the quota level?   
Reply:  Quotas are being determined in consideration of the need of certain categories of marble 
and sandalwood for Indian market.  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 3.1.12 Standards and other technical requirements 
3.1.12.1 Standards 
 Page 59 Para 3.87  
"Standards in India are established based on the provisions of the Bureau of Indian Standards 
(BIS) Act 1986 and BIS Rules 1987. The BIS is responsible for formulating and enforcing standards for 14 sectors, and development of activities relating to certification of product and 
quality systems, testing and calibration, enforcement, international cooperation, and creating 
awareness among consumers; other agencies are responsible for enforcement of standards (and 
technical regulations) in other areas (Table A3.3). Sectoral coordination committees have been 
established for food processing, power, steel, auto motives, textiles, and information technology, in 
order to develop harmonized standards at the national level. International standards are often WT/TPR/M/313/Add.1 
 
- 135 - 
 
  adopted as Indian standards under the numbering system of ISO/IEC, or are harmonized with 
international standards in areas of India's trade interests."  Question: 
 
1. How often is the list of Indian standard products updated?  
Reply:  T h e  l i s t  o f  I n d i a n  S t a n d a r d s  i s  u pdated as and when the Standards are 
published/revised/withdrawn and is available on BIS website http://www.bis.org.in . 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Measure Directly Affecting Imports 
3.1.12 Standards and other technical requirements 
3.1.12.3 Certification an d conformity assessment 
 
Page 60 Para 3.96 
 "The BIS is the national certifying body. Conformity assessment procedures are regulated by the 
BIS Act 1986, the BIS Rules 1987, and BIS (Certification) Regulations 1988. The central 
Government, on grounds of public interest, notifies which articles or processes should conform to an Indian standard and should bear the BIS certification mark under a licence from BIS. Some 92 products are subject to the mandatory BIS cert ification mark. As at 1 January 2015, there were 
842 products under voluntary certification. According to the authorities, the requirements for the 
use of the BIS certification mark are the same for domestic and imported products. Besides the normal product certification scheme, the BIS also grants licences to environment-friendly products 
under a special scheme and awards the ECO mark to such products." 
 Question: 
 
1. Please indicate the criteria for determining which product should carry the mandatory BIS 
certification mark?  
Reply:  The criteria for determining which product shall carry the mandatory BIS Certification Mark 
is as per clause 14 of BIS Act 1986 which is reproduced below: 
 "14. If the Central Government, after consulting the Bureau, is of the opinion that it is necessary 
or expedient so to do, in the public interest, it may, by order published in the Official Gazette,  
 
a. notify any article or process of any scheduled industry which shall conform to the Indian 
Standard; and 
b. direct the use of the Standard Mark under a licence as compulsory on such article or 
process. 
Explanation - For the purposes of this section, th e expression "scheduled industry" shall have the 
meaning assigned to it in the Industries (Development and Regulation) Act, 1951." 
 The various Ministries of the Government of India issue Quality Control orders from time to time, 
relevant link for which are given in BIS website, http://www.bis.org.in  and websites of other 
ministries of the Government of India. 
 
2. Can India please indicate which products have been licensed as being "environment-friendly"?  
Reply:  The details of the products covered are given in the BIS website 
http://www.bis.org.in/cer t/prod_cert_scheme.asp . 
 
3. What are the specific criteria for a product to be granted an ECO license?  
Reply:  The specific criteria for products cove red under eco-marking scheme are given at 
http://www.bis.org.in/cer t/prod_cert_scheme.asp . 
 WT/TPR/M/313/Add.1 
 
- 136 - 
 
  3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measure Directly Affecting Imports 3.1.13 Sanitary and phytosanitary requirements   
Page 63 Para 3.107 
 "The Food Safety and Standards Authority of In dia (FSSAI), established under FSSA, is mandated 
to establish standards for articles of food and to  regulate their manufacture, storage, distribution, 
sale and import with a view to ensuring availability of safe and wholesome food for human consumption, and contributing to the development of international technical standards for food, sanitary and phytosanitary standards. Other main institutions involved in the establishment and 
implementation of SPS measures are the Ministry of  Health and Family Welfare, the Department of 
Animal Husbandry, Dairying, and Fisheries in the Ministry of Agriculture; the Directorate of Plant Protection, Quarantine and Storage in the Ministry of Agriculture; the BIS; and other state 
government agencies. India's national enquiry points under the WTO SPS Agreement are: the 
Department of Animal Husbandry, Dairying, and Fisheries for animal health and related issues; the Ministry of Health and Family Welfare for food  safety related issues; and the Department of 
Agriculture and Cooperation for plant health or  phytosanitary issues. Between 2011 and 2014, 
India made 23 notifications to the Committee on SPS Measures."  Question: 
 
1. Could India explain whether the regulation by FSSAI also applies to domestically-produced 
product as is the case of imported products?  
Reply: The regulations notified by the FSSAI are equa lly applicable to the domestically produced 
product as well as imported products without any discrimination. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Exports 3.2.4 Export prohibitions, restrictions, and licensing 
3.2.4.1 Export prohibitions 
  
Page 67 Para 3.125  
"Export prohibitions apply mainly for environmental, food-security, marketing, pricing, and 
domestic supply reasons, and to comply with international treaties. Since its previous Review, the list of products subject to export prohibitions in India has remained largely unchanged; on 
9 September 2011, export prohibition on non-basmat i rice and wheat was removed. (Table A3.4)." 
 Question:  
1. Could India gives detailed information on the list  of products that are prohibited for export?  
 
Reply:  The list of items which are prohibited for exports is attached as Annex A  at the end of this 
note. These can also be seen at dgft.gov.in. 
 
Annex A- List of Items prohibited for exports 
Sl. 
No. Tariff 
Code/ 
Chapter Description 
1 0106 
0208 0210 
0300 
0407 0408 
0410 
0502 All wild animals, animal articles (including their products and derivatives), 
excluding those for which ownership certificates have been granted and those required for transactions for education, scientific research, and 
management under the Wild Life (Protection) Act 1972, including their parts 
and products WT/TPR/M/313/Add.1 
 
- 137 - 
 
  Sl. 
No. Tariff 
Code/ 
Chapter Description 
0504 
0505 0506 
0507 
0508 0509 
0510 
0511 1504 1506 
1516 
1517 1518 
1600 
3000 
2 01063100 
01063200 
01063900 Live exotic birds, excluding albino budgerigars, budgerigars, Bengali finches, 
white finches, and zebra finches (w hich may be exported subject to 
preshipment inspection). 
3 02011000 
02012000 
02013000 02021000 
02022000 
02023000 Beef of cows, oxen and calf 
4 02061000 
02062100 
02062200 
02062900 
02102000 Beef in the form of Offal of cows, oxen, and calf 
5 02011000 Meat of buffalo (both male & female) fresh and chilled or frozen: carcasses 
and half-carcasses. 
6 02012000 Meat of buffalo (both male & female) fr esh and chilled or frozen: Other cuts 
with bone in. 
7 03000000 Marine species and their parts, products, and derivatives mentioned in the 
Schedules of the Wild Life (Protection) Act 1972 and included in the schedule of CITES 
8 03037999 Bêche-de-mer (sea cucumber) 
9 03057100 Shark fins of all species of Shark  
 
10 03061100 
03062100 Rock lobsters: Panulirus Polyphagus 300 gmas whole chilled, live or frozen, 
250 gm as whole cooked; 90 gm as tail. 
11 03061100 
03062100 Rock lobsters: Panulirus Homarus 200 gmas whole live, chilled or frozen, 
170 gm as whole cooked; 50 gm as tail. 
12 03061100 
03062100 Rock lobsters: Panulirus Ornatus 500 gmas whole live/chilled or frozen, 425 
gm as whole cooked; 150 gm as tail. 
13 03061210 
03061290 
03062200 Sand lobster: Thenus orientalis 150 gm as whole; 45 gm as tail. 
14 05061049 
05119999 Human skeletons 
15 05059010 Peacock tail feathers. 
16 05119999 Handicrafts and articles of peacock tail feathers. 
17 05061041 
05061049 
05079040 Shavings of shed antlers of Chital and Sambhar. WT/TPR/M/313/Add.1 
 
- 138 - 
 
  Sl. 
No. Tariff 
Code/ 
Chapter Description 
18 05119999 Manufactured articles of shavings of shed antlers of Chital and Sambhar 
19 05080050 Sea shells, including polished sea shells and handicrafts made out of those 
species included in the Schedules of Wild Life (Protection) Act 1972. 
20 0713 
07131000 
07132000 
07133100 
07133200 
07133300 
071339 
07133910 
07133990 
07134000 
07135000 
071390 
07139010 
07139091 
07139099 Dried leguminous vegetables, shelled, whether or not skinned or split 
[excluding Kabuli Chana and 10,000 MTs of Organic pulses and lentils per 
annum] 
21 100610 
10061090 
10062000 
100630 10063010 
10063090 
10064000 Non-basmati rice through non- EDI ports (except export under Food Aid 
Programme and export to Maldives under bi-lateral Trade Agreement). 
 
(Export of non-basmati rice was prohibited since October, 2007.  The same has been made free by the private parties out of privately held stocks only through EDI ports vide Notification No. 71 dated 09.09.2011 and also 
through LCS on Indo-Nepal and Indo-B angladesh border vide Notification 
No. 98 dated 23.02.2012) 
22 100110 
10011090 
100190 
10019020 
10019039 Wheat (including durum wheat) and meslin through non-EDI ports (Export 
of wheat was prohibited since February, 2007.  The same has been made 
free through EDI ports vide Notification No. 72 dated 09.09.2011 and also 
through LCS on Indo-Nepal and Indo-B angladesh border vide Notification 
No. 99 dated 23.02.2012). Government has also permitted 20 lakh tons of 
wheat out of FCI stocks through CPSUs of Department of Commerce. 
23 06010000 
06020000 
12110000 06011000 
06012010 
06021000 06029020 06029030 Plants and plant portions of wild origin, of species specified in any of the 
Schedules of the Wild Life (Protection) Act 1972 or Appendix I of CITES or in 
the Export Licensing Note 1. 
24 14011000 Muli Bamboo ( Export was free till 31.03.2010) 
25 15010000 
15020010 
15020020 15020030 
15020090 
15030000 15050010 15050020 
15050090 
15060010 15060090 Tallow, fat and/or oils of any animal origin, excluding fish oil, buffalo tallow 
and lanolin 
26 All Codes 
under 
Chapter 15 All edible oils under Chapter 15 of Sche dule 1 of ITC(HS) Classification of 
Export and Import Items [except a few exemptions namely export of (a) 
Castor Oil (b) coconut oil from all EDI Ports and through all Land Customs 
Stations on Indo-Bangladesh, Indo-Nepal, Indo-Bhutan and Indo-Pakistan 
borders (c) Deemed export of edible o ils(as input raw material) from DTA to WT/TPR/M/313/Add.1 
 
- 139 - 
 
  Sl. 
No. Tariff 
Code/ 
Chapter Description 
100% EOUs for production of non-edible goods to be exported (d) edible oils 
from DTA to SEZ to be consumed by SEZ units for manufacture of processed 
food products subject to applicable value addition norms (e) export of oil 
produced out of minor forest produce even if edible, ITC(HS) Code 
15159010, 15159020, 15159030, 15159040, 15179010 and 15219020) (f) 
10,000 MTs of organic edible oil per a nnum subject to certain conditions and 
(g) edible oil in branded consumer pa cks of up to 5 Kgs through EDI ports 
subject to MEP of USD 900 per MT] 
27 2903 Chemicals under the Montreal Protocol when exported to a country which is 
not party to the Montreal Protocol on substances that deplete the ozone layer. 
28 40141010 Condoms  (Which are meant for Family Planning operations of Government 
of India)  
29 44011000 
44012100 44013000 Wood and wood products in the form of logs, timber, stumps, roots, barks, 
chips, powder, flakes, dust, pulp and charcoal, other than sawn timber made exclusively out of imported logs/timber. 
30 44011010 
44011090 Fuel wood in logs, in billets, in twigs, in faggots or in similar forms;  wood in 
chips or particles;  sawdust and wood waste and scrap, whether or not 
agglomerated in logs, briquettes, pellets or similar forms 
31 44020010 
44020090 Wood charcoal whether or not agglomerated 
32 44071010 
44071020 
44071090 
44072910 
44072990 
44079910 
44079920 
44079990 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, 
sanded or end jointed, of a thickness exceeding 6 mm, other than sawn 
timber made exclusively out of imported logs/timber 
33 12119050 
44039922 Sandalwood in any form, but excluding finished handicraft products of 
sandalwood, machine finished sandalwood products, sandalwood oil 
34 44039918 
44079990 Red sanders wood in any form, whether raw, processed or unprocessed, 
excluding Value added products of Red Sanders wood such as Chips, 
Powder, Extracts, Dyes, Musical Instruments, Parts of Musical Instruments, 
Furniture, Parts of various sizes of furniture (maximum cross section: sizes: 
15 cm X 15 cm; Planks: 20 cm X 7.5 cm and maximum length 2.5 Mtrs), 
toys, dolls & other handicrafts made from Red Sanders wood procured from 
legal sources. 
35 47010000 Mechanical wood pulp 
36 47020000 Chemical wood pulp, dissolving grades 
37 47030000 Chemical wood pulp, soda or sulphate, other than dissolving grades 
38 47040000 Chemical wood pulp, sulphite, other than dissolving grade 
39 47050000 Semi-chemical wood pulp 
 4 TRADE POLICIES BY SECTOR 
4.1 Agriculture 
4.1.1 General policy framework 4.1.1.3 Internal measures  
Page 102 Para 4.17 
 "key objective of India's domestic agricultural policy is to ensure stability of food supply and 
income support for the nearly 60% of the population  that is dependent on agriculture. This policy 
is implemented through price support for farmers such as MSPs for 25 major commodities  and WT/TPR/M/313/Add.1 
 
- 140 - 
 
  for sugar, and the market intervention scheme (MIS) for other crops, input subsidies for fertilizers, 
power and water, as well as food subsidies (through the targeted public distribution system)."  Question: 
 
1. Could India provide a list of the 25 major commodities that are given MSPs?  
Reply:  The list of 25 major commodities that are given MSP are given at Table 4.3 (page no.103) 
of the WTO Secretariat Report. 
   WT/TPR/M/313/Add.1 
 
- 141 - 
 
  JAPAN 
Report by India (WT/TPR/G/313) 
 
2 ECONOMIC ENVIRONMENT 2.6 Major Challenges 
2.6.1 Agriculture and Food Security 
 Question 1 (Page 10, Paragraph 2.31): The improvement of agricultural productivity is 
essential for enhancing farmers' livelihood and the points listed in this paragraph such as 
increasing the irrigated area and investing in research would be effective measures to increase productivity. However, a large part of the government budget is spent on market price support and the public food distribution system. Could India explain why the government doesn't direct 
more funds to agricultural investment rather than to market price support? 
 Reply: The Government supports the farm sector in India through various programmes for 
agricultural research and education, extension, irrigation and for facilitating easier and cheaper 
access to inputs such as seeds, fertilizers and credit.  MSP operations are carried out only in the event of market prices falling below the administered prices. 
 
Market support prices are for providing minimum remunerative price to the farmers to prevent 
them from resorting to distress sale. For most of the commodities under MSP, generally market prices rule above MSP and, therefore, Government is not required to make any procurement in 
respect of these commodities.  The issue of MSP is  linked to livelihood and food security of the 
poorest of the citizens; a large number of these working in the agriculture sector. In as far as other ways to enhance the farmers livelihood is concerned, India has been constantly working to 
improve the infrastructure for agricultural sector.  
 3 THE NEW REFORM AGENDA 
3.8 Rationalizing Subsidies 
 Question 2 (Page 13, Paragraph 3.14): The report describes that "the support extended in 
India seeks to sustain the livelihoods of the score s of small and marginal farmers rather than for 
large scale commercial farming". Nevertheless, the report by the High Level Committee on 
reorienting the role and restructuring of the FCI points out that no more than 6% of the total 
farmers benefitted from the procurement under MSP.  In order to ensure support focused on small 
and marginal farmers, what kind of concrete  measures is the Indian government taking?  
 Reply:  The Government/ FCI has taken following meas ures to improve outreach of procurement 
system to the small and marginal farmers: (i)  Wide publicity of the specifications such as 
acceptable moisture content, foreign matters etc. are given so that farmers may bring their produce accordingly and may not face any difficul ty after bringing their produce at purchase 
centres. Handbills/pamphlets are also distributed to  farmers for their awareness. (ii) At purchase 
centres/markets necessary facility for cleaning and weighment are provided, arrangement of 
moisture meters and gunnies are made so that prompt acceptance of farmer's produce can be ensured. (iii) In States like MP, where the farm ers and cooperative societies are registered, the 
information about date and time for bringing th e produce at the centre are given through SMS. 
(iv) Besides regulated markets, temporary procurement centres are also opened to facilitate easy approach of farmers to MSP operations. 
 
Question 3 (Page 13, Paragraph 3.14):  The report states that "the government has undertaken various measures such as decentralized 
procurement."  
  Please could India explain the details  of the decentralized procurement? 
 
Reply:  The scheme of Decentralized Procurement of f ood grains has been introduced with a view 
to effecting savings in food subsidy, enhanc ing the efficiency of procurement and public WT/TPR/M/313/Add.1 
 
- 142 - 
 
  distribution and encouraging local procurement to the maximum extent thereby extending the 
benefits of MSP to local farmers. Under th e decentralized procurement scheme, the State 
Government itself undertakes direct purchase of paddy and wheat on behalf of Government of India. Purchase centres are opened by the Stat e Governments and their agencies as per their 
requirements.  The State governments procure, st ore and distribute foodgrains under TPDS and 
other welfare schemes.  In the event of the total quantity of wheat and rice thus procured falling short of the total allocation made by the Centra l Government for meeting the requirement of TPDS 
and other schemes, the Central Government, through FCI, meets the deficit out of the Central Pool 
stocks. Only a few of the State Governments are presently undertaking Decentralized Procurement.  
 What is "the bias towards wheat and rice in incentive structures"? 
Reply:   These are major food grains consumed by the population in the country and there is no 
bias towards wheat and rice in the incentive structures. These are most widely grown food crops in 
India since long and due to large production base , rice are often ruling below MSP in the market 
during harvest season, which requires price support by the Government. For majority of the other commodities, prices occasionally fall below MSP and then only concerned agencies undertake 
procurement operations. FCI has a very robust sy stem for controlling the procurement operations 
and providing food grains for distribution. While other procurement agencies do not have such a 
robust system, which needs to be strengthened.  
The report adds that measures such as decentralized procurement remove the bias. How does the 
decentralized procurement address the removal of the bias?  
Reply:  The decentralized procurement system helps in providing better coverage to the farmers 
and foodgrains procured locally, which may be of specially preferred variety, are distributed locally. This system also helps in saving costs and preventing transit losses.  
 
5 INDIA AND THE WTO 5.1 WTO Negotiations  
Question 4: (Page 16, Paragraph 5.6): The Indian Government's report reads "India is in the 
process of finalizing its categorization of commitments under the Agreement and would be filing the notification in keeping with the provisions of TF agreement." In light of this statement, how is 
India's notification of category A commitments pr ogressing? When does India anticipate being able 
to notify its category A commitments?  
 
Also, how is India's ratification of the TFA progre ssing? When does India anticipate being able to 
notify the WTO of its acceptance of the TFA?  Reply: The preparation for notification of category A commitments and ratification of TFA are 
currently underway. No specific date has been fixed for the same.  
 
Report by the Secretariat (WT/TPR/S/313) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 3.1.4 Tariffs 
3.1.4.2 Bound tariffs 
 Question 5 (Page 42, Paragraphs 3.24-3.25): The report mentions that "around 75% of the 
tariff is bound", and in particular, "71.1% for non-agricultural products" is bound. Furthermore, 
the report mentions that there exists a "consi derable gap between applied and bound rates of 
tariff". In light of this assessment, how does India attempt to ensure a high degree of predictability 
in its tariffs? 
 
Reply : It may be true that there exists a gap between applied and bound rates of tariff. However, 
India has been reducing its import duties over th e years. While the average bound MFN rate for all 
products is around 48%, the applied rates are much lower than the bound rates especially in the 
case of agricultural goods, a testament to India's steady and continued autonomous tariff liberalization. The simple average MFN applied tariff for all products was just about 13.5% and for WT/TPR/M/313/Add.1 
 
- 143 - 
 
  non-agricultural products 10.2% in 2013. As many as 69% of India's agricultural tariff lines 
attracted MFN applied tariffs ranging from 25 to 50% ad valorem . In case of non-agricultural tariff 
lines, the MFN applied rates range from 5 to 10% ad valorem for as many as 76% tariff lines. 
Apart from the occasional adjustment in the tariffs on some agricultural commodities in the face of 
high volatility in food prices, in most cases tariffs have been reduced rather than raised and have 
generally been continued at the lower levels. 
3.1.11 Anti-dumping, countervailin g, and safeguard measures 
3.1.11.2 Safeguards  
Question 6 (Pages 57-58, Paragraph 3.79): We would like to clarify India's organization 
relating to safeguards investigation. Is it correct that the Director General Safeguards is the investigating authority? If so, how many people engage in safeguard investigation tasks in the section of DG safeguards?  
 
Reply:  In exercise of the powers conferred by sub-se ction (5) of section 8B of the Customs Tariff 
Act, 1975, the Central Government vide Rule 3 of Customs Tariff (Identification and Assessment of 
Safeguard Duty) Rules, 1997, appoints Director General (safeguards) by notification in the Official 
Gazette as the investigating authority for recommending Safeguard duty.  
As per Rule 3 of Safeguard Rules, the Central Government may provide to the Director General the 
services of such other persons and such other facili ties as it deems fit. Presently, 31 officers are 
posted in this Directorate including the Director General.  
Question 7 (Page 57-58, Paragraph 3.79): We understand that the Director General may 
self-initiate a safeguard investigation. Concerning the self-initiation how many investigations were initiated under the DG's self-initiative so far? If any, please clarify the products' name subjected to 
the investigation.  
 Reply: There has been no investigation carried on self-initiation basis by DG (Safeguards) during 
the period of review. However, so far only one investigation was initiated by DG (Safeguards) 
under the Self initiation category on 7 July, 2004 concerning imports of Starch (chapter Heading-
1108), Modified Starch (chapter Heading-3505), and Manloc (Cassava, Tapioca) based Sago (chapter Heading-1903). 
 
Question 8 (Page 57, Paragraph 3.78): Does India's investigating authority consider that 
"Unforeseen Development" stipulated in Article XXI of GATT is a legal requirement for imposing 
safeguard measures? If so, how does India evaluate what is unforeseen development? 
 Reply:  Though, there is no express provision unde r the domestic rules to analyse unforeseen 
circumstances and the methodology that should be followed for analysing unforeseen 
developments or the WTO Agreement on Safeguards, DG (Safeguards) follows the provisions of Article XIX of GATT, 1994 and the Agreement on Safeguards, which, obligates the national authorities to examine the "unforeseen developments" which led to the serious injury to the 
Domestic Industry. Accordingly, the Directorate of Safeguards has been consistently examining the 
issue of "unforeseen developments" in its investigations.  
3.1.12 Standards and other technical requirements 
3.1.12.1 Standards  
Question 9 (Page 59, Paragraph 3.88): Could India indicate sectors in which it has not yet 
aligned Indian Standards with International standards?  Reply: There are many Indian Standards which are not aligned with international standards. 
It may not be feasible to clearly list all such sectors.  
(Question 10: Page 59, Paragraph 3.90) 
Could India indicate specific BIS website addresses (not the address of top page of BIS website) in 
which draft standards themselves are posted for comments? 
 
Reply:  The draft Indian Standards that have been issued for eliciting technical comments are 
available in the link: http://www.bis.org.in/sf/ pros_setting_std.asp . WT/TPR/M/313/Add.1 
 
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3.1.13 Sanitary and phytosanitary requirements  Question 11 (Page 64, Paragraph 3.112): The WTO report (WT/TPR/S/313) describes that the 
Directorate of Plant Protection, Quarantine and St orage in the Ministry of Agriculture has been 
working to develop a system of e-certification for phytosanitary requirements.  
Can India outline its current development of the e-certification system? Does the e-certification 
aim to develop a bilateral system between India and other countries or ePhyto hub-system which is being developed under the IPPC framework?  
Reply:  India performs all its Plant Quarantine activities through an on-line system namely "Plant 
Quarantine Information System (PQIS)". However, as  of now there is no on-line sharing of e-phyto 
certificates with any trading partner. Further India supports to e-phyto hub system being 
developed by IPPC. 
 3.2 Measures Directly Affecting Exports 
3.2.4 Export prohibitions, restrictions, and licensing 
3.2.4.1 Export prohibitions  Question 12 (Page 67, Paragraph 3.125): This Secretariat report describes that export 
prohibitions on non-basmati rice and wheat were removed on 9 September 2011. We understand 
that those prohibitions of basmati rice and wheat had been implemented in accordance with paragraph 2(a) of Article XI of GATT 1994. Those prohibitions have not been notified to the 
Committee on Agriculture. What are the reasons for not notifying them? When will India notify 
them?  
Reply:  India has been submitting its notifications accordance with the applicable rules. 
3.2.6 Export support and promotion 
3.2.6.1 Special economic zones (SEZs) 
 Question 13 (Pages 68-69, Paragraph 3.136): As mentioned in this Paragraph, although both 
the exemption of MAT and on export profits and dividend distribution tax were allowed for SEZ 
companies as an incentive to enhance foreign in vestment, promote employment and obtain foreign 
currency through exports under the Government of India (GoI)'s SEZ Act 2005, the exemption of MAT against SEZ companies was suddenly withdrawn on April 1, 2012, through THE FINANCE BILL 
2011 and the exemption from dividend distribution tax was also eliminated in 2011. Usually, due 
to significant depreciation costs, start-up companies tend to see losses in the initial phase. The legal amendment significantly reduced the merits of investment in SEZ. Furthermore, it is 
unreasonable to apply MAT and dividend distribution tax to the companies which invested in SEZ 
according to the policy of the GoI prior to 2011. Is the Ministry of Finance considering 
grandfathering investments that took place before 2011 regime?  We would like to ask the Ministry of Finance what kind of relief measure they considering for such companies now. 
 
Reply : Minimum Alternate Tax (MAT) is levied on the principle that everyone participating in the 
economy must contribute to the exchequer. As a result, grandfathering investments made before 
Finance Act, 2011 would mean that the grandfathered unit would be exempt from levy of MAT for 
all times to come which would be against the basic principle behind levy of MAT.  
3.3.5 Intellectual property rights 
3.3.5.1 Introduction  Question 14 (Page 84, Paragraph 3.208): C ould you introduce your IP support to SMEs in 
order to promote a domestic innovation?  
 Reply:  Office of the Development Commissioner (MSME), Ministry of MSMEs is implementing 
a scheme "Building awareness on Intellectual Property Rights for MSMEs", under NMCP schemes. 
Under the scheme this office is extending IP su pport to SMEs in order to promote domestic 
innovation. The guidelines of the said scheme is available on the official website of this office 
i.e. http://www.dcmsme.gov.in . 
 WT/TPR/M/313/Add.1 
 
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  3.3.5.2 Patents 
 Question 15 (Page 85, Paragraph 3.213): The Secretariat Report mentions that "the backlog 
of patent applications is growing." In this regard, kindly indicate any measures which have been or 
will be undertaken by the Government of India to address this issue, including: 
 
1. Measures to reduce the backlog, 
 
Reply:  With a view to speed up the disposal of patent applications, additional 252 posts of 
Examiners and 76 posts of supervisory officers  (Controllers) have been approved by the 
Government in the 12th Plan. The Government is making all out efforts to complete the 
recruitment of all the vacant posts of Examiners and Controllers in the current year itself. 
 
2. Rules, regulations, guidelines or any other legal instruments to expedite the examination 
procedure of certain applications which require earlier processing and patenting, 
 
Reply: There is no accelerated examination system for patent application in the IP Office at 
present. However, all pros and cons of the issu e including possible fallouts of introducing the 
accelerated examination system in view of the country's patent system is under study.  
3. Other measures relevant to the issue. 
 
Reply: Besides, as a short-time measure, 263 Contract Examiners of Patents (equally qualified as 
regular Examiners) are also being recruited and their process of selection is ongoing. 
Further streamlining the functioning of Patent Office by simplifying the patent procedures and 
regulations along with more automation and IT enablement in the patent work-flow has been accorded top priority 
 
Question 16 (Page 86, Paragraph 3.216): India's Patent Act section 3(d) sets a different 
standard for pharmaceutical /chemical products from other industrial fields. Could India explain the consistency with the non-discriminatory principle declared in TRIPs 27.1? 
 
Reply:  Section 3(d) applies to all fields of technology and is therefore compliant with TRIPS 27.1. 
As per section 3(d) of the patents Act, efficacy  requirement is invoked when the subject matter 
involves "mere discovery of a ne w form of a known substance or the mere discovery of any new 
property or new use for a known substance or of the mere use of a known process, machine or apparatus". Unless the requirement of the efficacy is met with, a new form of a known substance 
or mere use of a known process, machine or appa ratus is not an invention -meaning thereby that 
the criteria of patentability are not fulfilled. Thus, the efficacy requirement is the inventive step.  Question 17 (Page 86, Paragraph 3.216): The Secretariat Report mentions that in the 
judgment of the Supreme Court of India "it was said that 'efficacy' should be understood as 
'therapeutic efficacy', which must be judged 'strictly and narrowly'". Could India clarify the consistency between this interpretation and the above mentioned principle in TRIPs 27.1? 
 
Reply: The decision of the Supreme Court of India is consistent with the commitments under 
Article 27.1 of the TRIPS Agreement. 
 
The provision Section 3(d) applies to all fields of technology. As per section 3(d) of the patents Act, efficacy requirement is invoked when the subject matter involves "mere discovery of a new form of 
a known substance or the mere discovery of any new property or new use for a known substance 
or of the mere use of a known process, machin e or apparatus". Unless the requirement of the 
efficacy is met with, a new form of a known substance or mere use of a known process, machine or apparatus is not an invention -meaning thereby that the criteria of patentability are not fulfilled. 
Thus, the efficacy requirement is the inventive step.  
 The Hon'ble Court states in this regard that "efficacy means the ability to produce a desired or 
intended result. Hence the test of efficacy in the context of section 3(d) would be different 
depending upon the result the product under cons ideration is desired or intended to produce. 
In other words, the test of efficacy would depend upon the function, utility or the purpose of the product under consideration. Therefore, in the case of a medicine that claims to cure a disease, 
the test of efficacy can only be 'therapeutic efficacy'." WT/TPR/M/313/Add.1 
 
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  Question 18 (Pages 86-87, Paragraph 3.217): In the report, it was noted that a very specific 
type of product (a breakthrough innovative pharmaceutical product) suffered from 3(d) rejection. Could India elaborate on the efficacy standard of 3(d) in the case of protecting such a 
breakthrough innovation? 
 
Reply:  The reference in the paragraph relates to the drug "Sovaldi" used for treatment of 
Hepatitis C. 
 
The application filed by the concerned company wa s rejected by the Controller after examination 
of facts. However, the applicant had appealed in the High Court of Delhi and the case has since then been remanded back to the patent office by the Hon'ble Court. Therefore there is no decision 
yet on the case. 
 However, it may be stated that the provisions in Indian Patents Act including those for 
patentability as mentioned under section 2(1)(j) and the exclusions from patentability as 
mentioned in section 3 and 4 are completely TRIPS compliant. During examination of applications, these criteria are applied equally to all types of inventions including breakthrough innovation. 
If any breakthrough innovative pharmaceutical product was rejected under section 3(d), 
as alleged, it must have been on the merits and on application of the relevant provisions in the Patents Act without any sort of discrimination. The legal regime in India provides the avenue to the applicant to appeal the decision with which it is aggrieved in the Intellectual Property Appellate 
Board or under Writ in the High Court. 
 Question 19 (Page 87, Paragraph 3.218): The Secretariat Report notes that India's first 
Compulsory License had been issued under the Patent Act, Sec 84. Sec 84 requires "not worked in 
the territory of India". Could India explain the relationship between this wording and TRIPs 27.1?  
 
Reply:  Article 27 relates to patentable subject matter and states that patents shall be available in 
all fields of technology provided they are new,  involve an inventive step and are capable of 
industrial application. The issue in question relates to "Nexavor" which is an existing patent in India. The patent was given after evaluating it against the Indian patent law which is compliant 
with TRIPS Article 27. 
 However, Article 31 of TRIPS allows members States to issue compulsory license. Article 31 
concerns only those inventions on which a patent has been granted. The authorizations are to be 
considered on individual merits. In addition Article 8 of TRIPS mandates countries to adopt 
measures to protect public health and nutrition and the Doha declaration on TRIPS and Public 
Health clearly states that WTO member States are free to set down conditions to enable issue of 
compulsory license. Section 84 of the Patent Act is  therefore compliant with Articles 8, 31 and the 
Doha declaration. Since it can only apply after the patent has already been granted, it is erroneous to link Art 27.1 with Section 84 of the Patent Act.   
 
In keeping with the provision, India's section 84 sets down conditions when such a grant of 
compulsory license could be considered. The Compulsory license was issued in the case of 
"Nexavor" as it did not meet the reasonable requ irements of the public, was exorbitantly priced 
and was not worked in the territory.  The interpretation of the term "working of the patent" has been given by the Intellectual Property Appellate Board (IPAB) in the Bayer Vs Natco case and has 
been upheld by the Hon'ble High Court.(this decision  has been explained in detail in Q39 raised by 
Mexico, may not be required here because the import of the question is different).  3.3.5.3 Trademarks 
 
Question 20 (Page 90, Paragraph 3.233): With respect to protection of well-known 
trademarks, paragraph 3. 233 of the WTO Secretaria t Report, could India provide us with data of 
the average time taken for the procedures against malicious trademark application or registration, 
that is, opposition to registration and appeal for cancelling registration? Speedy completion of these procedures can prevent a third party with a malicious application of the trademark from 
counterfeiting in a timely manner, if India has a plan to accelerate them, please provide us with 
information about it.  Reply:  No average time for resolution of conteste d matters can be committed to because the time 
taken would depend on the delays if any on the part of the parties to the case and the fact that WT/TPR/M/313/Add.1 
 
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  decisions can be appealed against in IPAB and the higher Courts. 
 However, the government has taken a number of me asures to address backlogs in processing of 
applications and disposal of opposition matters. These include: 
 
 A complete automation in function of Trade Marks Registry  
 The Government has sanctioned 62 posts of regular Examiners and 100 posts of contract 
Examiners who could be engaged fo r examination of applications. 
 The office of the Trade Marks Registry has been instructed to take up contested matters 
which have been settled between the parties and to dispose such cases on basis of settlement. Many special drives for disposal of such cases are set up from time to time 
and such drives have yielded appreciable results.  
 Possibility of settlement of such cases through mediation is also being explored. 
3.3.5.8 Trade secrets and test data protection 
 
Question 21 (Page 96, Paragraph 3.261): The report clearly pointed out India's lack of 
legislation for the TRIPs obligation under 39.3. This was formerly stated by the Indian authority*. 
Could India explain how to satisfy the obligation set under TRIPs 39.3? 
*Report on Steps to be taken by Government of India in the context of Data Protection Provisions of Article 39.3 of TRIPS Agr eement by Mrs. Satwant Reddy 
 
Reply:  Article 39.3 relates to the specific case when data pertinent for seeking approval of the 
authority is shared with the marketing regulator. The text of this Article does not specifically state that member countries would need to comply with the requirement of data exclusivity. It only 
states that the regulator will need to protec t it from unfair commercial use. Therefore, no 
additional obligations which are not present in text can be interpreted.  The obligation on the authorities is to keep the test data secret and no t allow it to be accessed by third parties through 
unfair means. India complies completely with its obligations under Article 39.3 of TRIPS. 
 3.3.5.9 Enforcement  
Question 22 (Page 96, Paragraph 3.264): With respect to paragraph 3.264 of the WTO 
Secretariat Report, please provide us with details of the situation of criminal punishment, such as numbers, by each IP Right, of cases or persons punished. 
 
Reply:  India has federal set up with civil and criminal cases filed in various courts- at the district 
level in case of criminal enforcement and trade secret violations and in the high courts. The 
information on civil cases is not maintained centrally. Information on criminal enforcement is 
compiled by the National Crime Record Bureau and it is available on the web site (http://www.ncrb.gov.in ) 
 
4 TRADE POLICIES BY SECTOR 
4.1 Agriculture 4.1.1 General policy framework 
4.1.1.3 Internal measures 
 Question 23 (Page 102, Paragraph 4.19): The report claims the fact that the Government 
authorized the FCI to sell its stock for the export of wheat. If the price at which the FCI released 
is lower than the procurement price, this is regarded as giving the same effect of export subsidies and distorting the international trade. Please coul d India show the price and the buyers of released 
wheat? 
 
Reply: Export of wheat by FCI has been done thro ugh competitive open tenders. The average 
export price has been 303.35 USD per MT in the case of export of wheat by FCI. 
Question 24 (Page 104, Paragraph 4.23): The High Level Committee on reorienting the role 
and restructuring of the FCI issued a report. 
 WT/TPR/M/313/Add.1 
 
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   That report criticizes that "no more than 6% of the total agricultural households directly 
benefitted from the procurement of wheat and rice under MSP." How does India analyze the reasons for this consequence? How will the Government reform the scheme to deal with this problem? 
Reply:  The Government/ FCI has taken following measures to improve outreach of procurement 
system to the small  and marginal farmers:- (i)  Wide publicity of the specifications such as acceptable moisture content, foreign matter etc. are given so that farmers may bring their produce 
accordingly and may not face any difficulty after bringing their produce at purchase centres. 
Handbills / pamphlets are also distributed to farmers for their awareness.   
  The report also points out that stocks have been hugely excessive with substantial leakage. 
How is the amount of procurement determined in light of ensuring food security? How are 
the excessive stocks managed and cleared? How much rotten grain in the stocks is disposed of each year? 
Reply:  At purchase centres/ markets necessary facility for cleaning and weighment are provided, 
arrangement of moisture meters and gunnies are made so that prompt acceptance of farmer's produce can be ensured. (iii) In States like MP, where the farmers and cooperative societies are 
registered, the information about date and time fo r bringing the produce at the centre are given 
through SMS. (iv) Besides regulated markets, temporary procurement centres are also opened to facilitate easy approach of farmers to MSP operations.  
For food security programmes, Government requir e s  n e a r l y  6 0  m i l l i o n  M T  o f  f o o d g r a i n s  e v e r y  
year. The targets for procurement of wheat and rice are fixed on the basis of the estimations made by the State Governments in such a manner that this requirement could be smoothly met. Due to 
various factors, there was accumulation of stocks earlier, which are being liquidated now in a 
planned manner and procurement is also being optimized through various policy measures so that there is no accumulation of surplus stocks under Central Pool. Accrual of damaged foodgrains is 
minimal.  The FCI has an accrual of nearly 18800 MT of damaged foodgrains during 2014-15 
including major portion, which got damaged due to natural calamities like cyclones/ floods.  4.4 Services 
4.4.1 Financial services 
4.4.1.2 Insurance  
Question 25 (Page 116, Paragraph 4.90): 
Regarding paragraph 4.90 describing the Insurance Laws (Amendment) Ordinance 2014, issued on 26 December 2014, have the laws (Amendment) Ordinance 2014 already been put in force? If not, 
when shall they become effective? 
 Reply:  The Parliament has already passed the Insurance Laws (Amendment) Act, 2015 and the 
same is effective from 26th December, 2014. 
 
4.4.3 Transport 4.4.3.1 Maritime transport 
4.4.3.1.1 Shipping 
 Question 26 (Page 125, Paragraph 4.121): With regard to Voluntary Discussion Agreements 
(VDA), it has not yet been exempted from the In dian Competition Act, but it has been exempted 
from competition laws by virtually all of India's primary competitors and trading partners – Japan, Singapore, China, US, Canada, Korea, and Taiw an. VDA allows members to discuss market and 
trade conditions and economic trends in the shipping sector, and it also has the authority to 
discuss rates and charges and agree on voluntary an d non-binding guidelines.  If exempted from 
Indian Competition Act, it will encourage carrier investment in shipping services to India, and it also provides rate stability and transparency to the Indian Shipping industry and trading partners.  
We would be grateful if you could share your thoughts on the future prospects on VDA exemption 
from the Indian Competition Act.  
Reply:  Presently, as a first step, the Vessel Sharin g Agreements have been exempted from the 
Competition Act, 2002, for the first time in India in December, 2013 for a period of one year and again exempted for one more year w.e.f. the 5th February, 2015 up to the 4th February 2016, WT/TPR/M/313/Add.1 
 
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  after a joint review of the said exemption conducted by the Competition Commission of India and 
the Directorate General of Shipping, Government of India. VDAs have the potential ability to impact competition in the market and are not usua lly favoured given their elements of discussion 
of freight and therefore the possibility of frei ght fixing. This may distort market dynamics and 
potentially jeopardise fair play and competition to bid. Thus, while recognizing the value of 
formation of consortia towards bringing in efficiencies in operations and the ability of VSAs to effect cost cuts without infringing on the pricing system for freight, the VDAs have generally been 
a cause of concern as they are perceived to restrict or eliminate competition. It appears that VDAs 
have been prohibited by other countries as well.  5 APPENDIX TABLES 
 
Question 27: (Page 142, Table A2.1): The report says that the limit of foreign investment in 
the telecommunication sector is 74%. However, acco rding to [Consolidated FDI Policy Circular of 
2014], the limit of foreign investment in telecom services is already 100%, so that description 
seems to be incorrect.  
 
Reply: It is clarified that 100% foreign investment is permitted (49% under automatic route and 
beyond 49% through Government approval) for telecom services. 
  WT/TPR/M/313/Add.1 
 
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  KENYA 
Question 1: We note from the Secretariat Report that the Government of India aim to achieve a 
sustained growth of GDP of 7%-8% or above within  the coming 3-4 years. What strategy is the 
Government intends to adopt and implement in or der to achieve the above projected growth rates 
of the GDP. 
 Reply:  The Government of India has its reforms agenda to remove the structural bottlenecks that 
come in the way of attaining higher growth. Initiatives that have been taken by the government 
include using Direct Benefit Transfers for giving various subsidies; "Make in India" along with initiative attendant facilitatory measures to boost the manufacturing  sector; "Skill India" initiative with an aim of providing training and skill developm ent to  millions of youth; efforts to amend the 
Land Acquisition, Rehabilitation and Resettlement (Amendment) Bill, 2015 in order to facilitate 
acquiring land ; numerous measures to improve infrastructure that inter alia  include increased 
outlay on roads and rail in the budget 2015-16, focus on developing national waterways; revenue 
collected from hiked excise duty on petrol and diesel to be used directly for construction of 
highways ; "Deen Dayal Upadhaya Gram Jyoti Yojana" for feeder separation to be launched to augment power supply in rural areas; passing of Coal Mines (special provisions) bill, 2015 and 
Mines and Minerals (development and regula tion) amendment bill, 2015 to ensure higher 
investments in the sectors and adequate supply of crucial inputs among many other initiatives.  Question 2: The Secretariat report indicates that the FDI remains prohibited in certain agricultural 
activities, gambling and lotteries, and real estate. What is the rational of prohibiting FDI in these 
sector and whether there are plans to open these sector to FDI?  
Reply: Since all the above sectors are crucial with respect to national interest and security and are 
of sensitive nature with its social and economic impact of wide nature, FDI is prohibited in these sectors. Any plans to open these sectors for allo wing FDI will be taken in consultation with 
stakeholders. WT/TPR/M/313/Add.1 
 
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  REPUBLIC OF KOREA 
Questions Regarding the Secretariat Report 
 Page 26-27 (Para 2.13, Para 2.14) 
 
The new FTP for 2015-2020 was released on 1 April 2015. Its goal is to make India a significant participant in international trade and to raise Indi a's share of global exports from 2% to 3.5% by 
2020. This is expected to be achieved by providin g a sustainable and stable policy environment for 
foreign merchandise and services trade; linking rules, procedures and incentives for trade with other recent initiatives such as "make in India", "digital India" and "skills India"; promoting the diversification of India's exports by assisting key sectors to become more competitive; and 
creating an architecture for India's engagement with key regions of the world. The acceleration in 
exports is expected to be achieved through exempt ion and remission of indirect taxes on inputs for 
producing final export products, imports of capita l goods at concessional rates of duty, and by 
stimulating services exports and focusing on specific products and markets.  
 Despite this focus on increasing exports, India continues to use trade policy as a means to 
regulate domestic supply and to address short-term objectives such as containing inflation and 
fluctuations in commodity prices. Thus export taxe s, minimum export price, as well as adjustments 
to import duties, are used on an ad hoc basis through a notification by the DGFT. During the period under review for instance, exports of onio ns, sugar and potato were subject to changing 
minimum export prices to regulate domestic supply of these products. Export prohibitions on 
edible oils have been extended on an annual basis since March 2008 with some exceptions introduced on 8 June 2013. Onions are a particularly sensitive item and export prohibitions and 
minimum export prices are used liberally to contro l exports. For instance, exports of onions were 
banned on 29 June 2012. Exports of onions were then permitted but subject to a minimum export price of US$650 per metric tonne on 14 August 2013 which was increased to US$900 per metric 
tonne on 19 September 2013 and US$1,150 per metric tonne on 1 November 2013, before being 
reduced to US$800 per metric tonne on 16 December 2013, US$350 per metric tonne on 19 December 2013 and to US$150 per metric tonne on 26 December 2013, and then removed on 4 March 2014. Minimum export prices of US$500 per metric tonne were then reinstated on 
2 July 2014, and reduced to US$300 per metric tonne on 21 August 2014. Similarly minimum 
export prices and/or export prohibitions are used periodically for other agricultural products such as potatoes, rice, sugar and pulses. During the period 3 July 2009 and 31 March 2013 export 
restrictions were placed on wheat flour and export s of cotton were subject to prior registration of 
contracts with DGFT. In February-March 2014 the Government decided to provide a subsidy of Rs 3,333 per metric tonne (US$55), raised to Rs 3,371 per tonne for August-September 2014, to 
sugar mills to export raw sugar of up to 4 million tonnes during the 2013/14 and 2014/15 
marketing years.  Question 1: Korea welcomes India's announcement of the release of the new FTP for 2015-2020 
which is intended to build India's standing and role within the context of international trade. In this 
regard, could India provide an update on its prep arations for providing a sustainable and stable 
policy environment for foreign merchandise and services trade?  
 
Reply:  A key objective of India's foreign trade policy is to provide a stable and sustainable policy 
environment for trade in merchandise and services. 
 
FTP 2015-2020 covers a 5 year time frame to ensure a sustainable and stable policy environment for merchandise and services trade. The policy aims at simplification schemes for Merchandise and Services exports, trade facilitation, promoting the ease of doing business, capacity building of new 
and potential exporters. There will be a mid- term review and assessment of the Policy.  
 The details are enumerated in the FTP documents available on the DGFT website 
(http://www.dgft.gov.in ). 
 
Question 2: According to the Secretariat Report, at present India's trade policy is used as a 
measure to regulate domestic supply and to address more short-term objectives. Taking this into WT/TPR/M/313/Add.1 
 
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  account as well as the fact that trade policy should be favourable to market opening, does India 
have any plans to review and improve the goals of its trade policy system?  Reply: India's trade policy balances the need for trade liberalization, global economic integration 
and domestic growth objectives. 
 There has been a steady and autonomous liberali zation of India's trade and over the years the 
Indian economy is becoming increasingly integrated with the global economy.  
 The goals and objectives of India's foreign trade policy and the details of India's Foreign Trade 
Policy for 2015-2020 may be seen in the documents available on the DGFT website 
(www.dgft.gov.in ). 
 
Page 29 (Para 2.22) 
 
Out of 15 RTAs notified by India to the WTO, four include provisions on services as well as goods (with the Republic of Korea, Malaysia, Japan, an d Singapore) although, as noted, the SAFTA Trade 
in services (SATIS) agreement is in force but not notified to the WTO while India and ASEAN have 
recently signed a Services and Investment Agreement. India's tariff liberalization in its RTAs tends to vary greatly depending on the negotiating partner. Among its notified RTAs that have been considered by either the Committee on Regional Trade Agreements or the Committee on Trade 
and Development, India's tariff liberalization commitments range from zero tariffs liberalized in the 
partial scope Agreement with Chile, to 23.6% in its FTA with Singapore, 75.3% with Malaysia and 86.6% with Japan. With ASEAN, India commits to liberalize 75% of its tariff lines for imports from 
ASEAN countries. According to the authorities partial scope agreements should not be a measure 
for computing the level of liberalization; liberalizati on should be looked at only in reference to full 
scope agreements. 
 
Question 3: When India determines the level of tariff liberalization on various FTAs, what key 
factors do Indian authorities take into account and consider?   
Reply: The level of tariff liberalization is contingent on inter alia many factors like the reciprocity 
by trading partner, export interests in the trading partner, domestic sensitivity for stakeholders, overall ambition in other areas of negotiations etc. 
 
Page 30 (Para 2.24)  
There have been concerns expressed in recent years regarding the potentially negative impact of 
RTAs, notably on Indian industry. The Department  of Commerce recently conducted an internal 
analysis of various FTAs, and found that the utilization of several FTAs by India's FTA partners was not significant. Given the low impact of FTAs on Indian industry, it is not clear what the immediate 
benefits of existing FTAs are and what if any implications for India's policy there may be on its 
current RTA negotiations. According to the authorities each negotiation is driven by the overall balance of interests with the specific trading partner(s). 
 
Question 4: It is understood that upgrading existing FTAs would represent effective measures to 
ensure greater benefits to industry. In what ways  do you think India's cons ervative analysis will 
influence India's policy on upgrading existing FTAs, including the Korea-India CEPA?  
 Reply:  Any review of an existing FTAs takes inter alia into account factors such as factors like the 
reciprocity by trading partner, export interests in the trading partner, domestic sensitivity for 
stakeholders, overall ambition in other areas of negotiations etc. 
 Page 53 (Para 3.59) 
 
During the period under review, significant changes were made to India's anti-dumping legislation. 
These changes include: (i) adjustments to the rules governing mid-term and sunset reviews; 
(ii) changes to the definition of domestic industry to bring in flexibility; (iii) new rules defining 
situations that are considered to represent the circumvention of anti-dumping duties, and providing for anti-circumvention investigations to address such circumvention; and (iv) elaboration of a refund procedure applicable where an importer  considers that the amount the duty paid is in 
excess of actual margin of dumping. The authorit ies state that these changes were adopted mainly WT/TPR/M/313/Add.1 
 
- 153 - 
 
  to bring clarity and to align them with provisions of the WTO Agreement. These involved 
amendments to the Customs Tariff (Identificatio n, Assessment and Collection of Anti-Dumping 
Duty on Dumped Articles and for Determination of Injury) Rules 1995 in March 2011 and in January 2012. 
 
Question 5: India made significant changes to its anti-dumping legislation during the period 
under review. Could India explain these legislativ e changes in detail? Please elaborate on the 
changes, particularly with regard to the ru les governing mid-term and sunset reviews. 
 Reply:  Section 9A(5) of the Customs Tariff Act 1975, as well as Rule 23 of the Anti-dumping Rules 
made thereunder, lay down the provisions for conducting a sunset review. These are available in 
the public domain and can be seen at http://www.cbec.gov.in . 
 
Amendments carried out in the Anti-dumping Rules during the review period are indicated below: 
 
i. Vide Notification No.86/2011  - Customs (N.T.) dated 1st December, 2011,Rule 
2(b) of the Anti-dumping Rules was amended as follows:  
2(b) "domestic industry" means the domest ic producers as a whole engaged  in  
the manufacture  of  the  li ke  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 thereo f in such case the term 'domestic industry' may be 
construed as referring to the rest of the producers. 
 
The aforesaid amendment provides flexib ility to the Designated Authority to 
decide based on the merits of the case to  include or exclude a domestic producer 
as domestic industry.  
 
ii. The rules concerning circumvention of anti-dumping duties were notified vide 
Notification No. 6/2012-Customs (N.T) dated 19th January, 2012 by introducing Rule 
25 to 28 in the Anti-dumping Rules. Under the said Rules, the following types of 
activities amount to circumvention of anti-dumping duty when goods are imported in to India: 
(a) Import of goods in an unassembled, unfinished or incomplete form 
and assembled, finished or completed in India or in such country to avoid payment of anti-dumping duty. 
(b) Imports of goods by altering the description, name or composition of 
an article. 
(c) Imports of goods subject to anti-dumping duty through exporters or 
producers or countries not subject to anti-dumping duty. 
iii. Rule 21 is for the refund of duty. No tification No. 6/2012-Customs (N.T) dated 
19 January, 2012 introduced Rule 21 A, thereby introducing the procedure related to the 
Determination of amount paid in exce ss of actual margin of dumping. Details 
of the amendments can be seen at http://www.cbec.gov.in  . 
 
 WT/TPR/M/313/Add.1 
 
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  MALAYSIA 
SECRETARIAT REPORT 
 Summary, para. 8, p. 8 
 
India's trade policy objectives are stipulated in it s Foreign Trade Policy (FTP), which is issued every 
five years, but revised periodically to take into  account internal and external factors. The new 
2015-20 FTP, released on 1 April 2015, aims to make India a significant participant in international 
trade and to raise its share of global exports to 3. 5% in 2020. This is expected to be achieved by 
providing a sustainable and stable policy environment for foreign merchandise and services trade; linking rules, procedures and incentives for trade with other recent initiatives such as "make in 
India", "digital India" and "skills India"; promoting the diversification of India's exports by assisting 
key sectors to become more competitive; and creating an architecture for India's engagement with key regions of the world. 
 
Question 1: Appreciate if India could provide on-line link to the revised Foreign Trade Policy (FTP) 
2015-20.  
 
Reply: Foreign Trade Policy 2015-20 is available at http://dgft.gov.in/exim/2000/ftp2015-20E.pdf . 
 
Summary, para 15, p. 9. 
 
India's WTO bound tariff levels are much higher than the applied rates, especially for many agricultural products. These gaps allow the Government to modify tariff rates in response to 
domestic and international market conditions, but at the same time, they reduce tariff 
predictability.  
Question 2:  Appreciate if India could share its level of ambition in reducing water between bound 
and applied duty for Agriculture products under the current DDA negotiations.  Reply:   India's level of ambition in reducing water between bound and applied duty for agriculture 
would depend crucially upon the level of ambition  in cutting domestic support by the developed 
countries and the extent to which S&D provisions are available for developing countries in the market access pillar. 
 WT/TPR/M/313/Add.1 
 
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  MALAYSIA 
ADDITIONAL QUESTIONS 
GOVERNMENT REPORT 
2.6.2 The Manufacturing Challenge 
 
2.32 India accounts for 1.8% of the world's manufacturing output. However, manufacturing growth, in recent years, has remained tepid. The share of manufacturing has stagnated at about 
16% of GDP and manufacturing exports have remained stagnant at about 10% of GDP. 
While basic and capital goods appear to be on the path of recovery, intermediate goods are yet to 
emerge out of difficulties, and the consumer good s sector led by consumer durables continues to 
experience negative growth. 
 
2.33 The Government's "Make in India" initiative aims to promote the country as an investment destination, spur manufacturing and promote employment. It also envisages the development of 
infrastructure including i-ways besides highways, ports, optical fibre networks, gas grids and water 
grids.  
Question:  Given the enmeshed nature of the current gl obal supply chain, what are the steps that 
India is taking to facilitate the sourcing (particularly imports) of the materials needed for "make in India" to succeed?  
Reply:  "Make in India" initiative aims at improving competitiveness of Indian industry, making 
India a global hub for manufacturing, design and innovation. Design and innovation are two important factors that promote manufacturing in a country in a big way. However, other inputs are 
also required for carrying out these manufacturing ac tivities. These inputs are to be obtained at a 
competitive price whether from India or outside India.  
Under this initiative, 25 sectors in manufacturing, infrastructure and service activities which will be 
the focus for promoting the industrial base in the country. Some of these sectors include pharmaceuticals, biotechnology, chemicals& petrochemicals, textiles etc.  Apart from promoting growth, India is also exploring the possibility of being part of part of regional value chains in these 
sectors. 
 2.6.3 Infrastructure Development 
 
2.36 The Government also proposes to set up 5 new Ultra Mega Power Projects, each of 4,000 MWs in the "plug-and-play" mode, i.e. all clearances and linkages will be in place before the 
project is awarded by a transparent auction system. The Government is also considering a similar 
approach in other infrastructure projects such as roads, ports, rail lines, airports etc.  Question:  In the interest of transparency and efficiency, does India have any plans to consolidate 
all plans/auctions/awards of its nation-wide infrastructure projects in a single repository?  
 Reply : No. The inference that a single repository promotes "transparency and efficiency" is not 
understood. 
  Public procurement for goods and services in India is undertaken by Central Govt Depts and 
Ministries, State Govts (and State-related entities including local bodies) and SOEs. The 
effort is to ensure robust participation to discover competitive market prices at optimal cost to govt. Procurement is through open, competitive bidding, with all notices up on the relevant websites, major newspapers and journals, industry association sites, etc (including 
overseas for international, competitive bidding- with publicity through our Missions abroad). 
Indian NITs, RfQs, EOIs, including through e- procurement, receive among the most robust 
responses worldwide. Eligibility conditions address the need for project-specific expertise, 
execution-capability and technical skills.  WT/TPR/M/313/Add.1 
 
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   The reference to "nation-wide" projects is probably to multi-State projects like Industrial 
Corridors or National Highways - procurement by the Authorities concerned is also through 
open, transparent bidding. 
3.3 Reforms in FDI policy 
 
3.4 A major game changing reform in the near fu ture would be the introduction of the Goods and 
Services Tax (GST) effective from 1 April 2016. Th e implementation of the GST would lead to the 
elimination of other taxes such as Central Excise duty, Service tax, State Value-Added tax, octroi, 
Central Sales Tax, State-level sales tax, entry tax, stamp duty, turnover tax, tax on consumption or sale of electricity and taxes on transportation of goods and services, thus removing the multiple layers of taxation that currently exist in India. 
 
Question:  Can India provide more details on the prop osed mechanism for implementation of GST 
on 1 April 2016, particularly on the proposed rates and exempted products?  
 
Reply:  In the 122nd Constitutional Amendment Bill, GST is proposed as a tax that will be levied 
both by the Union and the States. The mechanism fo r implementation of the same is delineated in 
the bill itself. Article 279A is proposed to be inco rporated in the Constitution that provides for the 
creation of the Goods and Service Tax Council (GSTC), an all pervasive body that has the mandate of taking various important decisions relating to proposed GST regime including the taxes to be s u b s u m e d  i n  G S T ,  r a t e  of  t a x e s  e x e m p t e d  p r o d uc t s  e t c .  T he  l a w s  r e l a t i n g  t o  G S T  b o th  f o r  t h e  
Centre and the States as well as for the Integrated GST would be legislated on the basis of the 
recommendations of the said GSTC.  
Question:   Could India also deliberate on how the proposed GST system would simplify the 
current tax system, particularly on consolidation of central and state taxes? Are all the states in India on board with GST as a single tax mechanism? 
 
Reply:  The introduction of Goods and Services Tax (GST) is the most ambitious indirect tax 
reforms in India post its independence in 1947. This reform proposes to do away with a large number of taxes levied on different economic activities by the Central and State Governments. 
Presently the Central Government levies tax on ma nufacture (Central Excise duty), provision of 
services (Service Tax) interstate sale of goods (l evied by the Centre but collected and appropriated 
by the States) and the States levy tax on retail sales (VAT), entry of goods in the State (Entry 
Tax), Luxury Tax, Purchase Tax etc. All these taxes are proposed to be subsumed in a single tax 
called the Goods and Services Tax (GST) which will be levied on supply of goods or services or 
both at each stage of supply chain starting from manufacture or import and till the last retail level. 
GST is proposed to be a dual levy where the Central Government will levy and collect Central GST 
(CGST) and the State will levy and collect State GS T (SGST). The Centre will also levy and collect 
Integrated GST (IGST) for interstate supply of g oods and services. For a temporary period of two 
years an Additional Tax not exceeding 1% is also proposed to be levied by the Centre on interstate 
supply of goods which will be collected and retain ed by the state from where the supply originates. 
 This tax reform will lead to creation of a single national market, common tax base and common 
tax laws for the Centre and States. Another very significant feature of GST will be that input tax 
credit (except for the Additional Tax) will be ava ilable at every stage of supply for the tax paid at 
the earlier stage of supply. This feature would mitigate cascading or double taxation in a major 
way. This tax reform will be supported by extensive use of Information Technology which will lead 
to greater transparency and accountability of the tax administrations of the Centre and the States and also improved compliance levels. The introduction of GST will be big step in improving cooperative federalism and most of the states are broadly in favor of the GST. 
 
Question:  Are there plans to address or streamline the import taxes? 
 
Reply:  The import taxes are reviewed in the context of annual Budget of the Government of India. 
 WT/TPR/M/313/Add.1 
 
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  SECRETARIAT REPORT 
 Summary  
6. As recognized by the Government, structural bottlenecks remain a barrier to achieve a higher 
growth. This includes delays in project approval , ill-targeted subsidies, low manufacturing base 
and low agricultural productivity, difficulty in land acquisition, weak transportation network and 
power supply, and strict labour regulations an d skill mismatches. These bottlenecks are being 
addressed through investment in infrastructure and education, simplification of the business environment by eliminating overregulation, and incr easing predictability in trade and investment 
regimes. 
 
Question : What are the programmes and strategies which the Indian Government have drawn up 
to address structural bottlenecks? 
 
Reply:  The Government of India has its own reforms agenda to remove the structural bottlenecks 
that come in the way of attaining higher growth. Some of the bottlenecks have already been 
addressed to, while others are being tackled. Init iatives that have been taken by the government 
to de-bottleneck these constraints include using Direct Benefit Transfers for giving various subsidies; "Make in India" along with initiative attendant facilitatory measures to boost the manufacturing sector; "Skill India" initiative with an aim of providing training and skill 
development to millions of youth; efforts to amend the Land Acquisition, Rehabilitation and 
Resettlement (Amendment) Bill, 2015 in order to facilitate acquiring land ; numerous measures to improve infrastructure that inter-a-lia include increased outlay on roads and rail in the budget 
2015-16, focus on developing national waterways;  revenue collected from hiked excise duty on 
petrol and diesel to be used directly for construction of highways ; "Deen Dayal Upadhaya Gram Jyoti Yojana" for feeder separation to be launched to augment power supply in rural areas; passing 
of Coal Mines (special provisions) bill, 2015 and Mines and Minerals (development and regulation) 
amendment bill, 2015 to ensure higher investments in the sectors and adequate supply of crucial 
inputs among many other initiatives  
 
2.2.1 Trade policy formulation  
2.9. Trade policy is formulated and implemented by the Department of Commerce in the Ministry 
of Commerce and Industry, with the assistance of  other Ministries and agencies, including the 
Ministry of Finance, the Reserve Bank of India an d other sectoral Ministries such as Agriculture, 
Consumer Affairs, Food and Public Distribution , Textiles, Petroleum and Steel. The role of the 
Department of Commerce, according to its Annual Report for 2012-13 is "to facilitate creation of an enabling environment and infrastructure for accelerated growth of exports"……………. The 
Department formulates, implements and monitors the Foreign Trade Policy (FTP) which is issued 
every five years and reviewed annually, and forms the basic policy framework for the promotion of 
exports and trade.  
Question: Can India share with Malaysia the priorities and strategies on agricultural development 
that are reflected in India's Foreign Trade Policy documents? When will the next FTP be issued?  
 
Reply:  The desired details can be obtained at the following links: 
 
I-Foreign Trade Policy Statement (2015-2020):  
http://dgft.gov.in/exim/2000/FTPstatement2015.pdf  
II-Foreign Trade Policy (2015-2020): http://dgft.gov.in/exim/2000/ftp2015-20E.pdf  
Next Foreign Trade Policy will be due in 2020. 
 WT/TPR/M/313/Add.1 
 
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  2.2.2 Trade policy goals 
 2.15. Import policy is also largely driven by domestic supply considerations. In the case of sugar for instance, import duties were lifted temporarily in 2012 to allow an increase in imports but 
reinstated at 10% in July 2012. Such frequent changes to policy are disruptive and reduce 
predictability in India's trade policy. In a report prepared on sugar policy, headed by the Chairman of the Economic Advisory Council to the Prime Mini ster on 5 October 2012, it was stated that "the 
export-import policy of the Government does not allow firms to have a long-term relation 
internationally and impedes the growth of the sector. The policies are unanticipated and create uncertainty for the firms. Also the short term cyclicality, which is largely a consequence of Government intervention, adversely affects the long-term strategic development of the 
sector". The authorities note that India's autonomous measures are occasionally taken to provide a 
stable and predictable policy regime for agricultur al trade. In February 2013, some of the major 
processed and/or value added agricultural prod ucts such as wheat of meslin flour (HS 1101), 
cereal flours (HS 1102), milk products (HS 3501), butter and other fat derivatives from milk 
(HS 0405) etc. were exempted from export restrictions/bans.  
Question: Can India share if there is a mechanism of consultation between business and 
Government which is conducted regularly and how can comments from the private sector be lodged digitally?  
Reply:  Consultation with stakeholder is an integral part of Foreign Trade Policy formulation. 
Representations from stakeholders can also be made through emails.  
2.3 Trade Agreements and Arrangements 
 2.3.1 WTO 
 
2.17. India's most recent notifications (Table 2.1) include those for domestic support for agriculture, import licensing procedures, and quantitative restrictions with regard to the WTO Trade Facilitation Agreement. India has not yet submitted its Category A notification. 
 
Question: Malaysia commends India's trade facilitation measures as stated in the Government 
Report from para 4.8 to 4.12. Can India share when is the targeted date for India to submit its 
Category A notification and deposit the Instrument of Acceptance to WTO? 
 Reply:  I n d i a  i s  f i n a l i z i n g  c a t e g o r i z a t i o n  o f  c o m m i t ments and the date for notification will be 
decided by the competent authority. 
 2.4.2.1 Policy   
2.40 …the introduction of FDI up to 51% in mult i-brand trading subject to Government approval; 
for single- and multi-brand retailing, other conditions also apply including local sourcing of up to 30% from Indian "small industries" and establishment only in cities with a population of above 1 
million (Table A2.2) 
 Question 1: Can India provide more details on the other conditions imposed for FDI on multi-
brand retail?  
 Question 2 : Also, it is currently widely reported in the Indian media that the current government 
led by BJP is opposing FDI on multi-brand but has not reversed the policy decision. Could India 
confirm that the FDI policy on multi-brand retailing is still applicable? If so, how many applications 
have been approved to be implemented and how many are being processed?  
Replies to Question 1 & 2: 
 As per Para 6.2.16.4 of the Consolidated FDI Policy, 2015, FDI upto 51% is allowed under 
Government approval route subject to certain co nditions.. No decision has been taken by the 
Government with regard to change of the FDI policy in Multi Brand Retail Trading (MBRT). Only one proposal for investment in MBRT was approved by the Government. No other proposal for investment in MBRT has been received.  WT/TPR/M/313/Add.1 
 
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  For further details, the Consolidated FDI Policy Circular dated 12th may, 2015 available on DIPP 
website may be referred.  3.1.1 Customs procedures and requirements 
 
3.3. Imports into India can be classified as: imports for home consumption, warehousing, transhipment, transit, re-importation, and imports for special economic zones (SEZs).3 All imports 
for home consumption require clearance of goods after payment of the duties and charges. 
Importers must file a bill of entry, which may be processed manually or through the electronic data interchange system. As at end October 2014, 126 customs offices out of the total of 377 offices had electronic data interchange (EDI) facilities; about 98% of declaration documents were 
processed electronically.4 The bill of entry may be filed prior to the arrival of the goods to allow for 
faster clearance, but no earlier than 30 days before the arrival date of the vessel or aircraft carrying the goods. 
 
3.4. India uses a risk management system (RMS) as a trade facilitation measure to selectively 
screen only high and medium-risk cargo for custom s examination. As at end October 2014, about 
97.6% of India's imports was processed via RMS.5 The authorities indicate that RMS for processing 
imports is operational at almost all customs offices.  Question: Malaysia understands that India has implemented the electronic data interchange (EDI) 
and risk management systems (RMS) as measures for trade facilitation. Malaysia would like to 
learn more about the system. Is there any trade facilitation problems encountered and how are they resolved?  
 
Reply:  The exponential growth in trade volumes means that the traditional approach of 
scrutinizing every document and examining every co nsignment will simply not work, as it would 
neither be desirable nor possible to constantly increase the resources with the increasing 
workload. Also, there is a need to reduce the dwell-time of cargo at the ports and airports and to reduce the transaction costs in order to enhance the competitiveness of Indian businesses, by expediting release of cargo where compliance is high. This necessitates that the customs 
department should be selective in its approach to  deployment of its resources. The advances in 
Information Technology offer an opportunity to ad dress these challenges faced by the department 
by putting in place an effective risk manageme nt system. The primary objective of the Risk 
Management System (RMS), therefore, is to strike an optimal balance between facilitation and 
enforcement and to promote a culture of compliance. It is intended to improve the management of the resources of the department to enhance the efficiency and effectiveness in meeting 
stakeholder expectations and to bring the Custom s processes at par with the best international 
practices. The Risk management System (RMS) has been adopted for both imports and exports. In 
view of the above it can be said that RMS is a Trade Facilitative measure and it has improved the efficiency of Custom clearances.  Mo re details on RMS can be found at http://www.cbec.gov.in  
 
3.1.3 Rules of origin  
3.17. Changes in India's rules of origin since 2011 include the adoption of preferential rules of 
origin with regard to imports from Malaysia and Japan under bilateral FTAs, which entered into force on 1 July 2011 and 1 August 2011, respectively. India does not apply non-preferential rules 
of origin. Preferential rules of origin are app lied under regional and bilateral trade agreements 
(Table 3.2). Maximum foreign-content requirements  range from 30% to 70%; other criteria to 
determine origin are sufficient transformation and change in tariff classification.  
Question: Since 2012, Malaysia has received more than 300 requests to verify the signatures and 
Regional Value Content (RVC) under ASEAN-India  FTA and Malaysia-India CECA. Malaysia is 
concerned on the frequent requests made by Indian Customs to verify compliance to Rules of 
Origin. While it is beneficial to conduct verifications from time to time, too-frequent verification 
requests often delay shipments and affect the efficiency of our bilateral trading system. Further, as per the Agreements, such enquiries should be channelled through the proper mechanism/country 
focal point.  
 Could India explain the reason for Indian Customs'  extensiveness in disputing/questioning the COs 
issued by Malaysia? WT/TPR/M/313/Add.1 
 
- 160 - 
 
  Reply:  The question raised by Malaysia is essentially bilateral and relates to Regional Trade 
Agreements that India and Malaysia are party to.  India has previously clarified to Malaysia in appropriate fora that Indian Customs only made requests for verification through nominated government authorities.  Since the process of verification of genuineness of a COO in a Custom 
House, as also the processing of an import decl aration (Bill of Entry), is a transparent one, the 
importer may, through the exporter or otherwise, request confirmation from the issuing authorities 
o f  g e n u i n e n e s s  o f  t h e  C O O .  S u c h  r e q u e s t s  s h o u l d  n o t  b e  t r e a t e d  a s  h a v i n g  b e e n  m a d e  a t  t h e  
behest of the Indian Customs. FTAs contain provis ions for the importing country to make enquiries 
with the importer regarding the claim for preferential treatment.  This process is however distinct from a Government to Government request for retroactive check on compliance with Rules of Origin.  
 
Indian Customs has made requests for verification of origin in fourteen instances to Malaysia up to May, 2015.  It is also relevant that in none of these cases, sufficient details of compliance with the 
Rules of Origin have been provided by Malaysia.  In many of these cases, no response has been 
provided at all.   
It would not be out of place to mention that during the year 2014-15, the Indian administration 
has received 1019 requests for verification under various agreements, which have been responded most expeditiously by government authorities.   
Question:  The Customs department of India in Chennai requires importers of jewellery to provide 
bond based on the assessable value for imports from  Malaysia. On top of that, importers are also 
required to provide bank guarantee for the impo rt duty difference (normal duty minus MICECA 
duty). The bank guarantee will only be refunded around 2 to 3 months which will affect the 
importers' financial.  
What steps are being taken by India to expedite the refund to the importers? 
 Reply:  The question raised by Malaysia is essentially bilateral and relates to Regional Trade 
Agreements that India and Malaysia are party to.  M I CECA p rovid e s  that i n c as e  of reas onab le 
doubt as to the authenticity or accuracy of the COO.  The customs authority of the importing Party 
may suspend provision of preferential tariff treatm ent while awaiting the result of verification.  
However, it may release the good to the importer subject to any administrative measures deemed 
necessary, provided that they are not held to be subject to import prohibition or restriction and 
there is no suspicion of fraud.   
3.1.4.1 Applied tariffs 
 3.22. The simple average applied MFN tariff in 2014-15 is 13%, up from 12% at the time of the last Review (2010-11). The overall increase is main ly due to a rise in tariffs in agriculture (WTO 
definition), whose overall average at 36.4% remain s considerably higher than the average for non-
agricultural products (9.5%). The increase in the average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% in 2014-
15), oilseeds and fats (from 18.5% to 33.2%), and sugars and confectionary (from 33.4% to 
41%). Above average tariff protection is also found in a number of other products such as beverages, spirits and tobacco (77.5%), and coffee and tea (74.8%).  
 
Question: According to para 3.22 the overall increase of applied MFN tariff in 2014-2015 is mainly 
due to rise in tariff in agriculture. Can India please advise the reasons behind the increment in tariff for mentioned products in agriculture (eg: cereals, oilseeds, sugar & etc)?  
 
Reply:  The tariff rate for cereals was increased as a response to the price volatility in the domestic 
market. Duty rates are calibrated keeping in view various relevant factors such as domestic and 
international demand and supply situation and pric e trends and projection of crop yields etc. 
Agriculture continues to be the sector employ ing the largest percentage of India's working 
population (56%), with health of the agricultural sector being a crucial determinant of the health 
of the economy and economic well-being of a large chunk of the population. 
 WT/TPR/M/313/Add.1 
 
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  3.1.11.1 Anti-dumping an d countervailing measures 
 3.57. As at the time of the previous review, India is one of the most active users of anti-dumping 
measures among WTO Members; between 2011 and 2014, India initiated 82 anti-dumping 
investigations against 23 trading partners (Chart  3.4). The authorities state that anti-dumping 
investigations are initiated and conducted in accordance with the established rules under relevant legislation. 
 
Question: Malaysia is concerned on the growing number of anti-dumping investigation cases 
initiated by India. To date, 6 Malaysian products are imposed with AD duty and 4 products are currently under investigation.  
 
As a Member of the WTO and the global trading system, how does India ensure AD investigations are not conducted to accord protection of its Domestic Industries? 
 
Reply:  Presently, 5 products originating in or exported from Malaysia are having anti-dumping 
duty in force and 3 products are under anti-dumping investigation. 
 
The anti-dumping investigations are conducted in India by DGAD in terms of Customs Tariff Act and Anti-dumping Rules framed thereunder, which are in consonance with the WTO Agreement to provide a level playing field to the domestic indu stry vis-à-vis injurious dumping and to prevent 
the unfair trade thereof. 
 3.59. During the period under review, significant changes were made to India's anti-dumping 
legislation. These changes include: (i) adjustments to the rules governing mid-term and sunset 
reviews; (ii) changes to the definition of domestic  industry to bring in flexibility47; (iii) new rules 
defining situations that are considered to represent the circumvention of anti-dumping duties, and 
providing for anti-circumvention investigations to address such circumvention; and (iv) elaboration 
of a refund procedure applicable where an importer  considers that the amount the duty paid is in 
excess of actual margin of dumping. The authorit ies state that these changes were adopted mainly 
to bring clarity and to align them with provisions of the WTO Agreement. These involved 
amendments to the Customs Tariff (Identificatio n, Assessment and Collection of Anti-Dumping 
Duty on Dumped Articles and for Determinat ion of Injury) Rules 1995 in March 201148 and in 
January 2012.49 
 
Question: Can India explain further on what the new rules defining situation that are considered 
to represent the circumvention of anti-dumping du ties are and how effective has the rules been in 
curbing circumvention since its introduction in 2012?  
 Reply:  The rules concerning circumvention of anti-dumping duties were notified vide Notification 
No. 6/2012-Customs (N.T) dated 19th January, 2012 by introducing Rule 25 to 28 in the Anti-
dumping Rules and can be seen at www.cbec.gov.in . These also have been notified to WTO vide 
WTO document No. G/ADP/N/1/IND/4 dated 1 Marc h, 2012Under the said Rules, the following 
types of activities amount to circumvention of anti-dumping duty when goods are imported into 
India: 
 
a. Import of goods in an unassembled, unfinished or incomplete form and assembled, 
finished or completed in India or in such co untry to avoid payment of anti-dumping duty. 
b. Imports of goods by altering the description, name or composition of an article. 
c. Imports of goods subject to anti-dumping duty through exporters or producers or 
countries not subject to anti-dumping duty. 
India has not initiated any anti-circumvention investigation so far and hence it  will be premature 
to judge the effectiveness of the said Rule.  
3.61. On 19 January 2012, rules regarding the dete rmination of the amount paid in excess of the 
actual margin of dumping and circumvention of  anti-dumping duty were issued.51 The rules 
stipulate inter alia that if an importer considers that he/she has paid any anti-dumping duty 
imposed in excess of the actual margin of dumping, he/she may file an application for 
determination of the actual margin of dumping before the authority; various specific procedural WT/TPR/M/313/Add.1 
 
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  rules and principles concerning the calculation of such margin are also stipulated. The rules also 
provide definitions of circumvention of anti-dumping duty. In addition, rules regarding refund of anti-dumping duties paid in excess of actual margin of dumping were issued on the same date. Under the rules, an importer who has paid any anti-dumping duty in excess of the actual margin of 
dumping in relation to any imported goods may submit an application to the authorities to claim 
refund. The application will be scrutinized by the authorities for a refund, which must be made within 90 days of the receipt of the application if the authorities find the application satisfactory. 
 
Question: Can India provide some clarification on how circumvention of anti-dumping duty is 
defined under the rules which were introduced from 19 January 2012?  
Reply:  The relevant rules concerning circumvention of anti-dumping duties were notified vide 
Notification No. 6/2012-Customs (N.T) dated 19th January, 2012 by introducing Rule 25 to 28 in 
the Anti-dumping Rules and can be seen at http://www.cbec.gov.in . These have also been notified 
to WTO available in WTO document no. G/ADP/N/1/IND/4 dated 1 March, 2012. Under the said 
Rules, the following types of activities amount to  circumvention of anti-dumping duty when goods 
are imported in to India: 
 
1. Import of goods, subject to anti-dumping duty, in an unassembled, unfinished or 
incomplete form and assembled, finished or completed in India or in such country to avoid payment of anti-dumping duty. 
 
2. Imports of goods, subject to anti-dumping duty, by altering its description, name or 
composition. 
 
3. Imports of goods subject to anti-dumping duty through exporters or producers or 
countries not subject to anti-dumping duty. 
 
The domestic industry is the eligible party to apply for circumvention investigation under the Rules. So far, India has not initiated any anti-circumvention investigation.   
3.62. Under Article 5 of the Customs Tariff Rules, anti-dumping investigations can be initiated by 
the Directorate General of Anti-Dumping and Allied Duties (DGAD), in the Department of Commerce, upon a written application by or on behalf of domestic industry, or on its own initiative 
if there is justification to launch an investigation. The authorities state that, during the review 
period, no anti-dumping investigations were initiated by the DGAD suo moto; all investigations were initiated based on applications by or on behalf of domestic industries. An application is 
scrutinized by the DGAD to ensure it is adequately documented and provides sufficient evidence 
for initiation. If the evidence is not adequate, a "deficiency letter" is issued. For an investigation to be initiated the petitioners must account for at le ast 25% of total domestic production of the like 
article; and the domestic producers expressly supporting the application must account for more 
than 50% of the total production of the like arti cle by those expressly supporting and opposing the 
application. Dumping per se is not actionable. For a petition to proceed, the DGAD must examine the accuracy and adequacy of the evidence pr ovided and determine that there is sufficient 
evidence of dumping, injury, and causal link between the dumped imports and alleged injury, 
before initiating an investigation. In addition, other injury causes have to be investigated so that they are not attributed to dumping. 
 
Question: Can India clarify if the DGAD provides initial advisory services to the domestic industry 
before official submission of a petition is made by a petitioner? If not, where would the prospective 
petitioner go to for help before putting together his petition? 
 
Reply:  No initial advisory services to the domestic industry are provided by DGAD before official 
submission of a petition and the petitioner has to prepare its petition taking into account the 
parameters and substantiated facts and suffici ent evidence required under the Antidumping 
Agreement   
3.65. Indian legislation provides for levying anti-d umping duty retrospectively, where it is deemed 
that there is a history of dumping that caused the injury or when the injury is caused by massive dumping, in a relatively short time. The retrospective application may not go beyond 90 days of the date of imposition of a provisional duty. No retrospective application prior to the date of WT/TPR/M/313/Add.1 
 
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  initiation of an investigation is allowed. The authorities state that no retrospective application of 
duties took place during the period under review. Question: Can India clarify if it has levied anti-dumping duty retrospectively for any of its cases 
so far? 
 
Reply:  No, India has not levied anti-dumping duty retrospectively. 
 
3.71. Anti-dumping duty is not payable on produc ts imported by units in special economic zones 
(SEZs) or export-oriented units (EOUs), or on products imported under the Advance Authorization Scheme. The final anti-dumping duty paid on impo rted goods used in the manufacture of export 
goods may be refunded as brand rate of duty dr awback in accordance with the drawback rules.55 
 
Question: Can India explain if the exemption of anti-dumping duty (on products imported by units 
in Special Economic Zones or exported oriented units or on products imported under the Advance 
Authorization Scheme) is regulated by any law or regulation?  
 Reply:  Exemption from Antidumping duty is allo wed on inputs being imported for export 
production under the schemes like Advance Authorization Scheme, EOU and SEZ schemes. The 
relevant provisions for Advance Authorization Scheme and EOU Scheme are available in the Foreign Trade Policy (FTP) and that of SEZ Scheme in the SEZ Rules, 2006 as amended. These can be seen at http://www.dgft.gov.in  and http://commerce.gov.in .  
 
3.1.11.2 Safeguards  
3.80. If a request is made for provisional safeguard measures, full and detailed information 
regarding the existence of critical circumstances and how a delay in applying the measures would cause damage difficult to repair needs to be considered. The Director General may record 
preliminary findings in such cases and issue a public notice. These preliminary findings are placed 
before the central Government through the Standi ng Board on Safeguards. Provisional measures 
may be imposed by the central Government for up to 200 days.  
Question:  Can India explain if provisional safeguard measures are imposed for cases other than 
those the petitioner specifically filed?  
Reply:  Yes. Under Sub Rule (4) of Rule 5 read with Sub rule(1) of Rule 9  and Rule 10 of the 
Safeguard Rules, Director General of Safeguards may in critical circumstances, record the preliminary findings regarding serious injury or threat of serious injury for imposition of provisional 
safeguard measures. Subsequently , Central Government may impose the provisional duty on the 
basis of the recommendation of the Director General in its Preliminary findings. So far, no such provisional safeguard measures have been imposed. .  
3.82. In accordance with the Foreign Trade (Development and Regulation) Amendment Act 2010 
(No. 25 of 2010), safeguard measures can take the form of duty surcharges or quantitative restrictions.60 Such quantitative restrictions may not be applied on imports of goods originating 
from a developing country if the share of imports does not exceed 3%, or on imports of goods 
originating from more than one developing country so long as the aggregate of imports from all countries does not exceed 9% of the total import s of such goods into India. The public notice 
recording the final findings under Rule 9(3) of the Act is published in the Official Gazette. 
 Question: Can India explain which is the more common form of measures applied whether it is 
duty surcharge or quantitative restriction?  
Reply: As of now, Safeguard Duty is the  commo n form of Safeguard measure being applied.. So 
far as quantitative restrictions are concerned, no such investigation has been initiated so far.   
3.1.9 Import prohibitions, restrictions, and licensing 
 3.39. Import restrictions may be imposed under Section 3 of the Foreign Trade (Development and 
Regulation) Act 1992 and through notifications in the Official Gazette, under Section 11 of the 
Customs Act 1962, declaring the importation or exportation of any good as prohibited or restricted. Import restrictions may be imposed for security, self-sufficiency, balance-of-payments, health, and moral reasons. 
 WT/TPR/M/313/Add.1 
 
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  Question: The Food Safety and Standards of India has banned the usage of Sodium Acid 
Pyrophosphate in biscuits which is basically one of the main ingredients used by Malaysian companies. However, this acid is allowed in breads. This acid is also widely used in other countries.   
Are there plans for the FSS of India to review the ban applied to biscuits any time soon? 
 Reply:  As per the existing FSS (Food Product Standards and Food Additives) Regulations, 2011, 
Sodium Acid Pyrophosphate is not permitted. However, the issue will be placed before the 
Scientific Panel for its consideration and review.  Table A3. 2 Safeguard investigations, 2011-14 
 
Question: On the case of saturated fatty alcohol, the recommendation by DGS is 20% (first year), 
18% (second year), and 12% (third year –six months only).  
 
However, the final decision is Safeguard duty is 20% (for 200 days from 28.08.14).  
Can India confirm whether the imposition of safeguar d on saturated fatty alcohol is only limited to 
200 days from 28.08.2014, and not in a three year stage as per recommendation by DGS?  Going back to the conduct of investigation on the ca se of saturated fatty alcohol, as an interested 
party, the Government of Malaysia had highlighted in a timely manner and in clear terms the 
violations to WTO Agreement on Safeguards, including Articles 2, 3, 4(2a), 6 and 9.1. However, those issues remain unaddressed and unanswered by the Indian investigation authority while it 
went forward with the final decision and imposition of the safeguard duty. 
 Reply:  Preliminary findings of DG(Safeguards) was issued on 26 May, 2014 and available in the 
public domain. It was also notified to WTO (WTO Document No. ----- dated 3 June, 2014) 
proposing SG duty of 20%. Subsequently, final fi ndings were issued on 9 October, 2014 and can 
be seen at http://www.dgsafeguards.gov.in  as well as the WTO Document 
G/SG/N/11/IND/12/Suppl.1 dated 22.10.2014. Hence, the Government of India,  vide Notification 
No. 1/2015-Customs (SG) dated 13 March, 2015 imposed Safeguard duty with effect from the 
date of the imposition of provisional safeguard duty, i.e. 28 August, 2014 up to 27 February, 2017 
based on the final findings. Accordingly, the SG du ty is placed for a period of three years w.e.f. 
28.08.2014.   
 As regards Malaysia's query on the violation of provisions of Agreement on Safeguards including 
Articles 2, 3, 42(a), 6 and 9.1, Government of India would like to state the following: 
 Final findings of the DG (Safeguards) is available in the public domain and can be seen at http://www.dgsafeguards.gov.in .   The same has also been communicated to all interested parties 
and notified to WTO (WTO document No. G/SG/N/11/IND/12/Suppl.1 dated 22.10.2014). So far as 
the specific Articles indicated by Malaysia is concerned, Government of India would like to state the following:- 
 
i. Article 2 of Agreement on Safeguards 
Para L, Clause(44) to (48) of the Final Findings provides in detail that there is a surge 
in imports during the Period of Investigation, both in absolute terms as well as in 
relation to production and consumption as per the mandate of Article 2 of Agreement on Safeguards. 
ii. Article 3 of Agreement on Safeguards 
The investigating authority has followed the provisions of Article 3 of Agreement on 
Safeguards by giving public notice of the Initiation of Investigation, Preliminary Findings and Final Findings. Sufficient opportunities were also provided to all the 
interested parties including the Embassy of Malaysia through Public Hearing and 
receiving their written submissions, each  of which has been examined and duly 
incorporated in the Final Findings..  WT/TPR/M/313/Add.1 
 
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  iii. Article 4(2a) of Agreement on Safeguards 
Requirement of Article 4(2a) of Agreement on Safeguards have been followed during 
the investigation and the same has been mentioned in details at Para L, Clause (39) to (64) of the Final Findings. 
iv. Article 6 of Agreement on Safeguards 
The observation on "critical circumstances" has been stated in details in Para G of the 
preliminary findings as required under Article 6 of Agreement on Safeguards. The 
provisional measure so applied also meets other requirements under Article 6, as 
would be evident from the preliminary findings. 
v. Article 9(1) of Agreement on Safeguards 
P ara L , Clau s e  (8 3 ) of the  fina l f ind i ng s  c le arly me ntions  that as  the  imp orts  from 
developing nations except Malaysia, Thailand and Indonesia do not exceed 3% 
individually and 9% collectively, the import of product under consideration originating from developing nations except Malaysia, Thailand and Indonesia, will not attract 
Safeguard Duty in terms of proviso to Section 8B of the Customs Tariff Act, 1975. 
Chapter (3 Trade Policies an d Practices by Measure) 
 
3.1.9.4 Import quotas 
 3.51. India maintains import quotas for marble and similar stones (HS 25151100 and 25151210) and for sandalwood (HS 44039922). Quotas are established annually and administered on an MFN 
basis. There is no maximum limit to be allocated per applicant. Applications are examined upon 
receipt and assessed according to the criteria stated in the notifications and circulars issued by DGFT on a yearly basis. 
 
Question  Appreciate if India could provide reason as to why quotas is imposed on sandalwood 
(HS44039922) and how much is the annual quotas?  
 
Reply:  I m p o r t  o f  S a n d a l  w o o d  i s  " R e s t r i c t e d "  a n d  s u b j e c t  t o  a  c e i l i n g  i n  e a c h  l i c e n s i n g  y e a r  
( P r e s e n t  c e i l i n g  i s  4 7 9 5  M T ,  s u b j e c t  t o  m o d i f i c a t i o n ,  i f  a n y ,  t o  b e  n o t i f i e d  f r o m  t i m e  t o  t i m e ) .  Imports will be permitted only against an Import Authorisation issued in consultation with the 
Ministry of Environment and Forest (see Procedure is (I) below). The ceiling of Sandal wood for 
each financial year will be monitored by the Ministry  of Environment and Forest to ensure that it is 
not exceeded. The license will be valid for a pe riod of one year from the date of issue. 
 
3.2.4.2 Export licensing quotas  
3.129. Exports of milk powder, wheat, edible oil,  pulses, and non-basmati rice were subject to 
quantitative restrictions between 5 December 2011 and 13 June 2014.99 Exports of sugar (by state-trading enterprises) are subject to quota under preferential regimes with the United States and the European Union and exports of stone aggr egates to the Maldives were made subject to 
export quotas on 1 January 2014.100 On 4 July 2014,  quantitative export restrictions on organic 
sugar were eliminated.101 Exports of brown seaw eeds and sandalwood oil are subject to export 
quotas set by the DGFT. 
 
Question: Appreciate if India could provide details of  the export quotas imposed on sandalwood 
oil and the reasoning for the imposition?  
 
Reply:  No export quotas have been notified. 
 3.2.5 State trading enterprises 
 
3.130. State-trading export privileges for some ag ricultural and forest produce, including sugar 
(for exports under preferential regime), onions, and gum karaya, have been accorded to STEs with 
a view to enabling better marketing, realization of  better prices, ensuring a steady domestic supply 
and preventing wide domestic price fluctuations.102 Similarly, with a view to ensuring a reliable WT/TPR/M/313/Add.1 
 
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  supply of kerosene and liquefied petroleum gas (LPG ), which are used as household fuels, exports 
are allowed only through STEs. Further, exports by STEs are deemed necessary for conservation and proper utilization of some ores of metals.  
Question: What kind of privileges/ incentives is given by the Indian government to state-trading 
forest product export companies? Is the privileges/incentives also extended to the foreign-based companies operating in India?  
 
Reply:  No state-trading forest product export companies have been set up by Government of 
India.   
Chapter (4 Trade Policies by Sector) 
 4.1.1.1 Measures affecting imports 
 
4.3. There are significant differences in applied tariff rates for specific agricultural products within product groups. For example, among vegetable fats and oils, the applied MFN tariff rate on crude 
palm oil and edible margarine is 7.5% and that on crude soybean is zero. Similarly, vegetable oils 
(HS 1507-HS 1515) have traditionally been protected by high applied MFN tariffs. The average applied MFN tariff rate on animals and animal products is 30.4%, with most products subject to a 30% tariff.2 Imported fresh and frozen chicken cuts are subject to a 100% applied MFN tariff rate. 
Applied MFN tariff rates on oats and rye are zero, wh ile rates on other cereals, such as some types 
of rice and wheat (of seed quality) are 80% and 50%, respectively.  
Question: Appreciate India to provide further clarificat ion on the difference of tariff between 7.5% 
for crude palm oil and edible margar ine compared to zero for soybean?  
 
Reply:  All crude edible oils, including crude soyabean oil attract basic customs duty of 7.5%. 
Further, all refined edible oils, including refined soyabean oil (edible grade), attract basic customs duty of 15%. WT/TPR/M/313/Add.1 
 
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  MEXICO 
Questions based on REPORT OF INDIA (W/TPR/G/133) 
3. New reform program. 3.1 (P. 11) Question 1:  Is the new reform agenda includes the signing of labor agreements of the ILO? 
Reply:  India is a founding member of ILO and has deep and abiding respect for International 
Labour Standards (ILS). ILO prescribes ILS in form of Conventions and Recommendations. There is no as such concept as "Labour Agreements" available with ILO. However, Conventions are 
subject to ratification by member countries which is  a voluntary process. In India, we ratify an ILO 
Convention only when our national law and practice s are in full conformity with the provisions of 
the Convention. 
3.6 Reforms of the labor sector. Point 3.9 (P. 14) 
Question 2:  What does the alignment of labor laws with the requirements of the labor market 
mean? 
Reply: Labour Law reforms is a continuous process. Labour Laws in India are enacted after the 
detailed consultations with the stake holders and due consideration is given to the requirements of 
the Labour market.  As there is constant change s in the requirements of the labour market, the 
Labour Laws in India also amended time to time.  At present, a detailed and extensive review of 
Labour Legislations is being undertaken in the light of the contemporary requirements of the 
labour market. 
4.2 Trade facilitation measures. Point 4.11 (p. 16) 
Question 3:  Regarding the "Standards Conclave" 2014, What reforms, legislative and 
institutional, have been carried out according to the deliberation of the "Standards Conclave" last 
year? 
Reply:  The Standards Conclave 2014 was an exerci se to raise awareness among stakeholders 
about Standards & technical regulations etc.  The necessary reforms in pursuance to the 
deliberations and assessment of gaps is an on-goi ng and long drawn process.  It is premature to 
report legislative or institutional reforms of this exercise at this stage. 
REPORT OF THE SECRETARIAT (W/TPR/S/133) 1.1 Recent economic developments. 1.3 (P.14) Question 4:  What do you mean by "strict labor regulations" in the context of sustained growth? 
Reply:  The term "strict labor regulations" has been used by the Secretariat in its report. We have 
no comments on the same. 
Investment Regime 2.4. 2.4.1 (P. 31) 
Question 5:  Mexico wants to know what services sectors is required to establish as a wholly 
owned subsidiary and if the approval  of the Reserve Bank of India is subject to this legal form for 
foreign investment, as some service sectors require authorization Board of Foreign Investment Promotion (no automatic approval route for establishing FDI) e.g. Broadcasting, print media and 
telecommunications (allowed to invest over 49% is required); Public and private banking 
(over 49%) and non-scheduled air services transport (over 49%). 
Reply:  The Question pertains to investment in Services Sector. The Services Sectors are covered 
from Para 6.2.7 to 6.2.17 of the Consolidated FDI Policy, 2015. Further, Financial Services are separately mentioned in Para 6.2.18 of the extant  FDI Policy 2015. Some of the sectors covered 
under the said Paras of the FDI Policy are under Automatic Route, some are under Government 
Approval Route and some are on both Automatic/Government Approval Route, the details of which WT/TPR/M/313/Add.1 
 
- 168 - 
 
  are provided in Chapter 6 of the extant Consolidated FDI Policy for each sector. The Consolidated 
FDI Policy, 2015, is available on the official webs ite of the Department of Industrial Policy and 
Promotion i.e., http://www.dipp.nic.in . 
Investment Regime 2.4. Section 2.32 (P.32) 
It is explained that there are two industries reserv ed for the public sector atomic energy and rail 
operations with some exceptions, indicating that investors in all other industries do not require 
government approval, but must submit a memorand um of employer industry to Secretary of DIPP 
industrial permits for an industrial license. 
Question 6:  Mexico asks whether the memorandum is required for both domestic and foreign 
investors and if the grant of industrial license is subject to the amount of investment, the type of industrial activity or any other requirement rela ted to the origin of the investment. It also 
requested India to discuss what is required to re new or extend the applicable license after expiry 
of the initial term of three years are. 
Reply:  The consolidated FDI policy circular of 2015 issued on 12-5-2015 provide the details of 
Foreign investment of the Government.   
Presently, an Industrial License (IL) is required only for following five industries mainly on account 
of security, strategic and environmental concerns  
i. Electronic Aerospace and Defence equipment: all types  
ii. Industrial explosives including detonating fuses, safety fuses, gun powder 
nitrocellulose and matches  
iii. Distillation and brewing of alcoholic drinks.  
iv. Cigars and cigarettes of tobacco and manufactured tobacco substitutes  
v. Specified Hazardous chemicals i.e. (a) Hydrocyanic acid and its derivatives, 
(b) Phosgene and its derivatives and(c) Isocyanates and diisocyanates of 
hydrocarbon, not elsewhere specified (example Methyl isocyanate).  
For manufacture of any other items other than the above, investors may file an Industrial 
Entrepreneur Memorandum (IEM) with Secretaria t for Industrial Assistance (SIA) in this 
Department on-line at e- biz portal: http://www.ebiz.gov.in .   
The industrial license is required for above five industries for both domestic as well as foreign 
investors irrespective of amount of investment.  
For renewal or extension of IL the procedure ha s been explained in DIPP Press Notes No. 5 and 9 
of 2014 series. Industrial Licenses have initial va lidity of three years, fu rther extendable up to 
seven years.  However, for defence sector the initial validity of Industrial Licence has been 
increased from present three years to seven years with a provision to seek an extension of three 
years. DIPP Press Note 5 of 2015 series refers. In case, the licensee starts the commercial 
production within the validity period, the license continues to be valid. 
Investment Regime 2.4. Paragraph 2.34 (P.33) 
Question 7:  Mexico requested information on the type of investment incentives that provide most 
of their States and whether these incentives are also granted to foreign companies wishing to 
establish industrial units out of the 29 sectors listed. 
Reply:  Consolidated information in this regard is not available.  
Foreign investment 2.4.2, Point 2.38 (P.33) 
Question 8:  The paragraph explains that there are two main routes for FDI in India: the 
automatic route and not automatic. Regarding the second, Mexico requested to know the type of 
information to be provided by foreign investors in  addition to apply to the Board for the Promotion WT/TPR/M/313/Add.1 
 
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  of Foreign Investment. We also want to know the criteria for activities that require prior 
government approval for foreign investment above 49% (investments not exceeding 12,000 crore). In particular, the approval criteria for broadcasting services, written media and telecommunications; public and private banks, an d non-scheduled services of air transport is 
required. 
Reply:  The extant Consolidated FDI Policy, 2015, is available on the official website of this 
Department i.e., www.dipp.nic.in  . FDI in activities not covered under the automatic route requires 
prior Government approval and are considered by th e FIPB. Further, each such sector services are 
subject to relevant conditionalities as detailed in the FDI Policy under the respective Paras. All such 
conditionalities are examined at the time of receipt of an application/proposal. The proposals involving investments exceeding Rs  3,000 crore under government approval route are considered 
by Cabinet Committee on Economic Affairs (CCEA). 
Foreign investment 2.4.2. Point 2.39 (P.34) 
Question 9:  Mexico wants to know the criteria the Cabinet Committee on Economic Affairs (CCEA) 
uses to approve FDI of over 12,000 crore. And cases in which such approval may be denied. 
Reply:  The Cabinet Committee on Economic Affairs ( CCEA) examines the FIPB proposals based on 
FDI policy with total foreign equity inflow of more than Rs. 3,000 crore in consultation with the 
various Administrative Ministries/Departments. 
3.1.11.1 Antidumping and count ervailing measures. (P. 57) 
Question 10:  Could India explain in detail what the procedure continues to meet regularly with 
the obligation under Article 5.5 of the AAD to no tify the government of the exporting Member 
regarding its decision to initiate an anti-dumping investigation? 
Reply:  Under Rule 5(5) of the Anti-dumping Rule s, the Designated Authority notifies the 
governments of the exporting countries through th eir embassies/representatives in India regarding 
receipt of anti-dumping application from the domestic industry before proceeding to initiate an anti-dumping investigation. 
3.1.11.1 antidumping and countervailing measures. Point 3.59 (P. 57) 
Question 11:  Concerning the amendments to the "Customs Notification (non-tariff) 
No. 86/2011)" listed in paragraph ii) of paragraph 3.59 of WT / TPR / S / 313 "(ii) Changes to the definition of domestic industry to bring in flexibility", as amended on 1 December 2011. 
Could India provide further details on the said mo difications and how to give greater flexibility? 
This under which they have not been notified to the respective WTO committees. 
Reply:  The amendment provides flexibility to the Designated Authority to decide whether to 
include or exclude a domestic producer as domestic industry, keeping in view the factual matrix of 
the case. 
3.1.11.1 antidumping and countervailing measures. Point 3.59 (P. 57) 
Question 12:  How common is the use of avoidance procedures under the new rules and, if so, 
what is the alleged circumvention of the standard 25 most requested argued in the proceedings? 
Reply: The question is not clear. However, the relevant rules concerning circumvention of anti-
dumping duties were notified vide Notificati on No. 6/2012-Customs (N.T) dated 19th January, 
2012 by introducing Rule 25 to 28 in the Anti-dumping Rules. However, India has not initiated any 
anti-circumvention investigation during the present review period. 
3.1.11.1 antidumping and countervailing measures. Point 3.70 (P. 61) 
Question 13:  How often is the application of price undertakings accepted, and what were the 
reasons why India has decided not to accept these price undertakings requests? 
Reply : India does not accept price undertaking offers considering them as impractical to monitor.  WT/TPR/M/313/Add.1 
 
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  3.1.11.1 anti-dumping and countervailing measures. Point 3.71 (P. 62) 
Question 14:  Are there considerations, at least similar in practice, to those set out in paragraph 
3.71 for goods that could possibly be subject to countervailing duties? 
Reply : Countervailing duty is not payable on products imported by units in special economic zones 
(SEZs) or export-oriented units (EOUs), or on products imported under the Advance Authorization Scheme. The final countervailing duty paid on imported goods used in the manufacture of export 
goods may be refunded as brand rate of duty drawba ck in accordance with the drawback rules. Till 
date, countervailing duty has not been imposed on any product. 
3.1.12.1. Standards. Point 3.87 (P.64) 
Question 15:  Is the Bureau of Indian Standards (BIS) a government organizations or an NGO? 
How the BIS is formed? 
Reply:  The Bureau of Indian Standards is a Body Corporate that came into existence through an 
Act of Parliament. 
3.1.12.1. Standards. Point 3.90 (P.65) 
Question 16:  Who can make comments on the draft standard approved by the technical 
committee? 
Reply:  When a Technical Committee approves the draft, it is circulated to Stakeholders for 
comments as well as posted on th e BIS website for public comments. 
3.1.12.2 Technical Regulations. Point 3.92 (P.65) 
Question 17:  Regarding the deadline for comment Are there situations in which the term can be 
extended to 90 days? 
Reply:  Technical Regulation at draft stage is notified at WTO Secretariat giving 60 days' time for 
comments from the date of notification as per the provision of TBT Agreement. 
3.1.12.3 certification and conformi ty assessment. Point 3.96 (p. 66) 
Question 18:  What is the special scheme for granting the license of "environment- friendly"? 
What products are granted such license? 
Reply:   Special Scheme refers to the Scheme for Certification of environment friendly products 
known as ECO Mark. The details of the scheme an d the products covered are given in the BIS 
website http://www.bis.org.in/cer t/prod_cert_scheme.asp . 
3.1.12.4 Accreditation. Point 3100 (P. 67) 
Question 19:  Is the National Accreditation Board for Testing and Calibration Laboratories (NABL) 
a government organizations or an NGO? Is the NABL only accreditation body in India? 
Reply: NABL is an autonomous body under the Department of Science and Technology, 
Government of India. NABL is the National Accreditation Board for Testing and Calibration 
Laboratories. However for accreditation of certification bodies and inspection bodies another designated body named ‘National Accreditation Board for Certification Bodies (NABCB) is functional 
under the Quality Council of India (QCI), Department of Industrial Policy and Promotion (DIPP), 
Government of India. Both these accreditation bodies are MRA/MLA signatories of ILAC/IAF for 
their respective programs.    
Labelling 3.1.12.5. 3.103 (P.68) 
Question 20:  Please inform if the country has had any problems or have experienced problems 
against the food packaging regulations? If the an swer is yes, please provided details about the 
country and the problem faced from it. 
Reply : No WT/TPR/M/313/Add.1 
 
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  4.4.2 Telecommunications 4.102 (P.138) 
The paragraph states that Telecom Dispute Settlement and Appellate Tribunal (TDSAT) resolves 
the differences between the government and lic ensees, between service providers and between 
them and consumers; also  deals with the appeals against the decisions of the Telecommunication 
Regulatory Authority of India. 
Question 21:  Mexico wishes to know whether the Tribunal also settles disputes between 
telecommunications regulators and the private sector with foreign participation under the same 
conditions with regard to Indian nationals. 
Reply:  The jurisdiction of TDSAT extends to inter-al ia disputes between licensed service providers 
and the regulator. 
Telecommunications 4.4.2. 4.109 (P.140) 
The paragraph states that funds Universal Service Obligation Fund (USOF) are allocated to "eligible 
operators" in the public and private sectors for th e implementation of development projects of the 
telecommunications infrastructure and broadband in rural areas (for example, the provision of 
rural public telephones, home telephones and infrastructure for mobile and broadband services). 
Question 22:  We ask India to explain the definition of  "eligible operators" in this context. 
Reply:  "Eligible operators" means the entities having valid license or registration or authorization 
from Central Government/Department of Telecommunications for providing telecom services or 
infrastructure or any other entities as may be specified in this regard by the Central Government 
from time to time. 
4.4.4 Professional Services (P.147) 
Question 23:  Mexico is interested to know more details about the memorandums of 
understanding or agreements on mutual recognition of foreign qualifications that India has with 
other countries, particularly in North and Latin America. 
Reply:  With countries in North and Latin America, in the field of accounting profession, India has 
signed a Memorandum of Understanding with the Canadian Institute of Chartered Accountants 
(CICA) of Canada and a Technical Cooperation Ag reement with the Information Systems Audit and 
Control Association (ISACA) of USA. The ICAI  has also signed MOU/Technical Cooperation 
Agreements with relevant bodies in various countries like Ireland, UK, New Zealand, Australia, 
UAE, Oman, Saudi Arabia, Bhutan, etc.   
4.4.5 Tourism. 4.151 point (p. 148) 
Question 24:  Mexico wants to know more details about how cooperation between UNEP, UN 
World Tourism Organization and the Government of India results in generation of quality 
standards? 
Reply:  Certain organizations such as the UNEP and the UN World Tourism Organization have 
developed the "Global Sustainable Tourism Criteria" (GSTC) for adoption by hotels and tour 
operators, drawn from criteria generated by a variety of sources. 
Against this background, it was considered necessary to define criteria for sustainable tourism to 
suit Indian conditions, while also considering criteria generated by other sources, including the 
GSTC. In consultation with stakeholders, the Mi nistry of Tourism has developed the Sustainable 
Tourism Criteria for India (STCI) keeping in view issues such as the anthropogenic character applying to all major human impacts on the environment; local community participation, engagement and benefit; guidelines set by the Ministry of Environment & Forests, Government of India; water harvesting; lessons from successes and failures, both national & international; etc. 
More details on the Sustainable Tourism Criteria for India (STCI) and indicators may be accessed 
from the website of the Ministry of Tourism. WT/TPR/M/313/Add.1 
 
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  NEW ZEALAND 
1. AGRICULTURAL TARIFFS 
Report by the Secretariat (WT/TPR/S/313): p. 40, para 3.22  
 
New Zealand notes the Secretariat Report conclude s India's "simple average applied MFN tariff in 
2014-15 is 13%, up from 12% at the time of the last Review (2010-11)", which is mainly due to a 
rise in the average tariff on agricultural products  (36.4%), which are already "considerably higher" 
than for non-agricultural products (9.5%).  The Report by the Secretariat (p. 100, para 4.4)  
also notes that "variability, as well as the complex process for the notification of tariff-rate 
changes, can create uncertainty and act as an impediment to trade". 
 Question 1: What plans does India have to introduce greater stability for applied tariffs on 
agricultural products, and in the longer-term align them more closely to non-agricultural products? 
 
Reply : The effective tariff rate of agricultural products is fixed in response to the price volatility in 
the domestic market and as a measure of balancing the interests of consumers and domestic 
farmers.  
 2. TARIFF RATE QUOTA 
Report by the Secretariat (WT/TPR/S/313): p. 44, para 3.33  
 India is the world's largest producer of milk with domestic demand continuing to increase at a significant rate. New Zealand understands that  domestic supply is struggling to meet the 
demand. However, page 44, paragraph 3.33 of the Secretariat Report says "India scheduled tariff 
rate quotas (TRQs) on five lines at the HS six-digit level", including skimmed milk powder and whole milk powder. 
 
Question 2: Could India please explain the rationale for maintaining tariff rate quotas for milk 
powders?  
 
Reply : The TRQs are part of India's scheduled commitments. Apart from having to fulfil certain 
conditions, importers are free to decide whether or not to avail of these quotas, based on demand, commercial viability and other relevant factors. 
 
3. GOVERNMENT PROCUREMENT  Report by the Secretariat (WT/TPR/S/313): p.81, para 3.191   
 
New Zealand welcomes India's utilisation of e-procurement, and moves to formulate "a comprehensive government procurement legislation that is applicable to all parts of the central 
Government".  
 Questions 3: What is the expected timeframe for this legislation to come into force? Does India 
intend to adopt a single portal for central gove rnment agencies to publish tender enquiries, 
in order to make these more accessible to potential tenderers?  If so, what is the expected date for 
this?  
Reply : Central legislation is yet to be considered by the parliament therefore a specific time 
cannot be indicated. As far as portal is concerned, India already has a single portal www.eprocure.gov.in  for Central Government agencies to pub lish their tender enquiries. As per the 
current instructions, all the Central Government Departments/Ministries and their attached 
subordinate offices/PSUs etc. have to necessarily publish all their tender notices on Central Procurement Portal (CPP) www.eprocure.gov.in  developed by NIC. The CPP has given an 
opportunity to the vendors to see all proposed procurement of the Central Government at one 
place.  Apart from above, electronic procurem ent has enhanced transparency and trust in the 
procurement system.    WT/TPR/M/313/Add.1 
 
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  4. SANITARY AND PHYTOSANITARY MEASURES 
Report by the Secretariat (WT/TPR/S/313): p. 62, para 3.106  New Zealand notes India’s efforts "to increase transparency of the scientific basis upon which 
India's SPS measures are adopted", including en suring SPS measures which might affect the 
trading interests of other parties are notified to the WTO SPS Committee.   
Questions 4: What further steps does India have planned to ensure SPS notification requirements 
continue to be met?  Can India provide information on how it has considered concerns raised by members in the SPS 
Committee regarding import restrictions for products including apples, pears and citrus; import 
conditions for pork and pork products; and import requirements for blueberries and avocados?  
Reply:  All the rules and regulations made under the Food Safety and Standards Act, 2006 are 
being notified to the WTO-SPS as soon as it is draft notified in the Indian Gazette.   
Normally 60 days' time is provided for comments. Comments received are considered before 
finalising the regulation.  5. GOODS AND SERVICES TAX (GST) 
Indian Government Report (WT/TPR/G/313: pg 12, para 3.6  
 Page 12, paragraph 3.6 of the Indian Government report notes that: 
 
"A major game changing reform in the near future would be the introduction of the Goods 
and Services Tax (GST) effective from 1 April 2016. The implementation of the GST would 
lead to the elimination of other taxes such as Central Excise duty, Service tax, State Value-
Added tax, octroi, Central Sales Tax, State-leve l sales tax, entry tax, stamp duty, turnover 
tax, tax on consumption or sale of electricity and taxes on transportation of goods and services, thus removing the multiple layers of taxation that currently exist in India. " 
 
Questions 5: Will these other taxes and duties be eliminated at date of introduction of the GST 
(1 April 2016)? What taxes, duties and cess will cont inue to be applied to imports, and which of 
these are specific to different States and ports of entry? 
 Reply: information about elimination of taxes is given in the para itself. Normally, since the local 
taxes such as VAT, CST, etc. and the central excise  duty are proposed to be subsumed in the GST, 
Additional duty of Customs (known as CVD) and SAD  will also be subsumed into GST and a unified 
IGST rate will be a pplicable on imports. 
 
6. TRADE POLICY CHANGES 
Report by the Indian Government (WT/TPR/G/313): pg 15 para 4.14   
 
New Zealand shares India's concern at page 15, paragraph 4.14 of the Government Report about 
"the rising incidence of non-tariff barriers, in the form of sanitary and phytosanitary (SPS) and technical barriers to trade (TBT)" 
 
However, New Zealand notes that the Food Sa fety and Standards Authority of India (FSSAI) 
has extended on a number of occasions the impl ementation dates for a number of regulations. 
In particular, we refer to F.No. 4/15015/30/2011 (dated 7 June 2013) introducing labelling 
requirements for the packaging of imported items. The implementation date for this regulation has 
been extended twice and most recently, in notification F.No. 4/15015/30/2011 (dated 16 December 2014), it was extended to 1 July 2015. New Zealand understands that the 
I n d i a n  G o v e r n m e n t  i s  u n d e r t a k i n g  a  r e v i e w  o f  F S S A I  r e g u l a t i o n s  f o l l o w i n g  c o n c e r n s  r a i s e d  b y  
importers directly and by WTO Members in the TBT Committee.   
Question 6: Will the date for implementation of this re gulation be further extended pending a full 
review addressing concerns?   Reply:  It will not be extended further. However, th is requirement has been allowed to be met by 
affixing a sticker in the customs bonded area in respect of imports. WT/TPR/M/313/Add.1 
 
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  7. SERVICES TRADE 
Report by the Indian Government (WT/TPR/G/313): p. 9 para 2.26  New Zealand welcomes India's objective of engaging with "business and governments from across 
the world to promote greater trade in services between India and the rest of the world" and 
increasing "FDI flow in the services sector".  
The Report by the Secretariat (WT/TPR/S/313, p. 29, para 2.23)  notes India's FTA practise 
is GATS-based, as well as India's statement that  in its most recent agreement with ASEAN its 
services commitments are "well within the existing autonomous regime". The report concludes that while India's FTA commitments on services go beyond its GATS commitments, India's applied 
regime remains more liberal.  
 Question 7: Does India plan to promote services trade and attract increased services sector FDI 
by making commitments that reflect its applied regi me and future autonomous liberalisation; so as 
to provide greater certainty for foreign investors and services providers to operate in India?   
Reply:  India has a liberal FDI Policy for Service Sectors. In many service sectors, FDI is permitted 
up to 100% on automatic route, subject to sectoral  guidelines and regulations. However, services 
sectors subject to FDI caps and other conditionalities are covered from Paras 6.2.7 to 6.2.18 of the Consolidated FDI Policy, 2015 available on the offi cial website of the Department of Industrial 
Policy and Promotion i.e., http://www.dipp.nic.in  . Further, it has been the endeavour of the 
Government of India to improve the ease of doing business in India through, inter-alia, providing a 
stable policy environment. 
 
As regard to reflecting the applied regime and future autonomous liberalization in FDI in our commitments in services, the decision is taken after consultation with all concerned stakeholders. 
 WT/TPR/M/313/Add.1 
 
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  NORWAY 
Trade Facilitation:  
 Question 1:  The report states that India continues to have a complex import regime 
(Intro para. 10) ("especially its licensing and permit system, and its tariff structure, which has 
multiple exemptions, with rates varying according to product, user or specific export promotion programme"). Since India is in the process of "streamlining customs procedures and implementing 
trade-facilitation", is India now pursuing these reforms based on international best practices and 
standards? Will all customs offices be using the same procedures, including EDI, by a certain date ("as at end October 2014, 126 customs offices out of the total of 377 offices had electronic data 
interchange (EDI) facilities") to increase the uniform application of trade facilitation measures? 
Reply:  Post Economic Liberalization, of the early 90s, India has a considerably liberalized and 
simplified import regime. India's autonomous re forms for streamlining custom procedures and 
implementing trade facilitation are based on international best practices & standards. Indian Customs Administration has introduced trade facilitation measures based on global best practices 
such as self-assessment, Authorised Economic Op erators (AEO) scheme, Risk Management System 
(RMS) for both export and import, Post Clearance Audit/on site Post Clearance Audit, Time Release Study etc. All EDI and non EDI ports in India follow the same procedures. While it may be true 
that out of 377 declared custom stations only 126 are EDI enabled, this has to be appreciated in 
the right perspective as at the end October 2014, 98% of declared documents were processed electronically through EDI only. Also, many of the Non EDI Custom station are non – operational or have been declared custom stations for limited purpose/specific period, and therefore has very 
little trade. Expansion of Customs Stations under EDI is on-going process. 
 Question 2: In para 2.17 and 3.9 in the Secretariat's report (WT/TPR/S/313), it is noted that 
India has not yet submitted its Category A notification to the WTO Secretariat. What is the 
schedule for India's process towards ratification and acceptance of the WTO Trade Facilitation 
Agreement? 
Reply: India intends to notify its category A commitmen ts and ratify the TFA shortly. The date for 
notification will be decided by the competent authority.  
 Question 3:  In para 3.4 and 3.5 of the Secretariat's report (WT/TPR/S/313), it is noted that India 
uses a Risk Management System which covers 99.6 % of India's imports, whereas 97.6% 
of India's imports are processed via RMS. What obstacles prevent India from reaching 100% 
processing through RMS?  
Reply : Some of the minor Customs locations are not EDI enabled and hence RMS is not 
operational at these locations. Coverage of EDI and hence RMS at these locations is being 
enhanced based on IT priortisation schedule of CBEC. 
 Question 4: Reference is made to para 3.1.1.1 of the Secretariat's report (WT/TPR/S/313), where 
it is noted that India still maintains Preshipment Inspections (PSI). What is the purpose of these 
Preshipment Inspections? Will the system change  when WTO's Trade Facilitation Agreement comes 
into force for India? Which control aspects are taken care of by PSI which could not be taken care of in ordinary customs controls?  Are PSIs requ ired also for ACP companies (ACP = Accredited 
Client's Programme)?  
Reply: Presently Pre – Shipment Inspection (PSI) is prescribed for metallic waste and scrap. 
The purpose  behind Pre-shipment Inspection is to confirm that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, or any other explosive material in any 
form either used or otherwise. It also checks and ensures that it does not contain radiation level 
(gamma and neutron) in excess of natural background. This is not against the WTO's Trade Facilitation Agreement.  According to Article 10. 5.1 of TFA "Members shall not require the use of 
pre-shipment inspections in relation to tariff classification and customs valuation". India does not 
resort to PSI either for tariff classification or custom valuation. Since the intended purpose for PSI 
is national security it is not linked to Accredited Client Programme (ACP). WT/TPR/M/313/Add.1 
 
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  The ACP is designed to provide recognition and the incentive of facilitation to clients who maintain 
high levels of compliance. Under this programme, clients who are assessed as highly compliant would be given assured facilitation by the Risk management System. The objective of ACP is to 
create a climate of voluntary compliance. 
 
Question 5: According to para 3.7 in the Secretariat's report (WT/TPR/S/313) the mean clearance 
time is more than one week. What is the clearanc e time expected to be after the listed measures 
are introduced (EDI, RMS, e-Payment, ACP)? 
Reply: Measures such as EDI, RMS, e-payment, ACP etc. have already been implemented. 
As reported,  Time Release Study (TRS) conducted  for the period July 2013  –December 2013 at JNCH  reveals the following key finding in respect of RMS (Risk Management System) facilitated Bills of Entry (B/E) [requiring no examination and assessment by Customs): 
 
i.  To decide an RMS facilitation   3.86 minutes  
ii.  To give out of Charge after registration is   4 hours 59 minutes   
iii.  Hence, the average total time taken by Customs is  5 hours 2.86 minutes  
Question 6: Does India have or plan to introduce special measures for expediting clearance 
procedures for food and other kinds of perishable  goods, like the provisions set forth in WTO ATF 
Article 7.9? 
Reply: India is mostly compliant of the provisions of  the various sub paras of Article 7.9 of TFA. 
India is also in the process of augmenting the existing facilities.  
 Telecom: 
 
Question 7: Reference is made to para 4.103 of the Secretariat's report (WT/TPR/S/313), 
regarding the guidelines for the development of the telecom sector in India. 
The Merger & Acquisition Policy applies a market based charge on administratively allocated GSM 
Spectrum, albeit on a pro – rata basis for the ba lance period of the previous license (Unified 
Access Services License – UASL). The spectrum was bundled in this license prior to 2012. However, charging at market based spectrum for the remainder period without any promise of spectrum being made available post expiry of  the UASL period would put in jeopardy any 
investment in such spectrum for a partial period. The entire UASL (license along with the entity) 
should be allowed to be transferred to a new en tity/merged entity under M&A policy to create a 
stimulus for M&A. Only if the period of license or spectrum allocation sought is 20 years 
post-Merger and Acquisition should a market based pricing be applied to any administratively 
allocated 'GSM/CDMA' spectrum. Will such changes in the treatment of spectrum allocation be 
considered to promote M&As? 
Reply:  The allocation of spectrum is delinked from the licenses and has to be obtained separately 
as per prescribed procedure. At present, no such change is under consideration. 
 Question 8: The NIA's for spectrum auction states that any spectrum acquired through auction 
will have a lock in period of three years or until Minimum Roll out obligation is completed. The 
tenure of the Roll out obligation is five years. The M&A policy has also formed a linkage to this. 
When spectrum is acquired through a market based auction this clause inhibits M&A activities. While the roll out obligation should clearly be transferred to the new entity there is a perceived 
ambiguity in the Department of Telecommunication on the applicability of the 3 year lock in for 
sale of equity of a licensee. Will the three year lock in period apply for M&As as long as the roll-out 
obligations are transferred to the Merged or Acquiring entity? 
Reply:  No such proposal is under consideration. 
 
Question 9:  When are the Spectrum Sharing and Spec trum Trading guidelines going to be 
finalized and released? 
 WT/TPR/M/313/Add.1 
 
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  Reply:  Spectrum Sharing and Trading guidelines are under consideration of the Government. 
 Question 10: Active infrastructure sharing (radio access network) reduces the operating expense 
and the capital expenditure for faster network pe netration in rural areas. The DoT policy dated 
1 April 2008 and further the NIA in 2012 stated Active infrastructure sharing would be permitted. 
When is infrastructure sharing likely to be allowed? 
Reply:   A c t i v e  i n f r a s t r u c t u r e  s h a r i n g  w i l l  b e  c o n s i d e r e d  o n l y  a f t e r  t h e  f i n a l i z a t i o n  o f  p o l i c y  o n  
spectrum sharing. However, Telecom Service Providers (TSPs) are free to provide bandwidth to 
other TSPs. 
 Question 11: Reference is made to para 4.107 of the Secretariat's report (WT/TPR/S/313), 
regarding India's framework for allocation of licenses and spectrum. When is the spectrum in 700 MHz band going to be approved for commercial mobile use? And when is its auction expected? 
Reply:  Spectrum in 700 MHz band for commercial mobile use is under consideration of the 
Government.   
Question 12: Spectrum in 2.5 GHz is already allocated to state owned Telecom operators in India 
and to ISRO. When is spectrum going to be made available for auction for BWA/LTE for 
broadband? 
Reply:  The Regulator's recommendations are awaited in this regard. 
 
Finance sector: 
 Question 13: Reference is made to para 4.60 of the Secretariat's report (WT/TPR/S/313), 
regarding policies towards financial inclusion. How many Payment Banks and Small Banks will be 
granted the permission to operate in India? Wh at is the criteria for shortlisting the same? 
Reply:  
 
1. Small Finance Banks: 
 
As per the Guidelines for Licensing of "Small Finance Banks" in the Private Sector, Resident individuals/professionals with 10 years of expe rience in banking and finance; and Companies 
and Societies owned and controlled by residents will be eligible as promoters to set up small 
finance banks. Existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and local area banks (LABs) that are owned and controlled by residents can also opt 
for conversion into small finance banks. The minimum paid up voting equity capital for small 
banks shall be Rs. 100 crore.   
2. Payments Banks: 
 
As per the Guidelines for Licensing of "Payments Banks", the existing non-bank Pre-paid Payment Instrument (PPI) issuers authorized  under the Payment and Settlement Systems 
Act, 2007 (PSS Act); and other entities such as individuals; Non-Banking Finance Companies 
(NBFCs), corporate banking correspondents (B Cs), mobile telephone companies, super-
market chains, companies, real sector cooperatives that are owned and controlled by 
residents; and public sector entities are eligible to set up payments banks. Existing PPI 
licence holders could opt for conversion into payments banks. A promoter/promoter group can have a Joint Venture with an existing scheduled commercial bank to set up a payments 
bank. The minimum paid up voting equity capi tal of the Payments Bank shall be Rs. 100 
crore.  Promoter/Promoter Groups should be "fit and proper" in order to be eligible to promote 
small finance banks/payment banks. RBI would assess the "fit and proper" status of the 
applicants on the basis of their past record of sound credentials and integrity; financial soundness and successful track record of professional experience or of running their 
businesses, etc. for at least a period of five years. WT/TPR/M/313/Add.1 
 
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  Further, the applicants were required to fu rnish their business plans along with project 
reports with their applications. The business plan was required to address how the bank 
proposes to achieve the objectives behind setting up of these banks.  
The process of scrutiny of applications is under way for evaluation of the applicants based on 
the above criteria. Banking being a highly leveraged business, licences shall be issued on a very selective basis to those who conform to the above requirements, who have an 
impeccable track record and who are likely to conform to the best standards of customer 
service and efficiency.  Number of Payments Banks and Small Finance Banks to be licensed under these guidelines 
would depend on the conformity of the applicants to the requirements as above. 
 Bilateral Investment Treaties: 
Question 14: India has released a Draft Indian Model Bilateral Investment Treaty Text for 
comments by 10 April. When is the revision process expected to be completed? What policy implications will the revision have for future BIT negotiations? 
Reply:  The Draft Indian Model Bilateral Investment Tr eaty (BIT) is awaiting the approval of the 
Competent Authority. Once the model BIT text is approved, BITs would be negotiated on the basis of this model.   
Agriculture – Domestic support: 
 Question 15: Norway has taken note of recent Indian media stories that suggest India may be 
preparing reforms to domestic support of agricult ure. Such reforms are reported to be shifting 
from price support that is considered to be trade distorting support in the Agreement on Agriculture, to non- or minimally trade distorting  support in the green box. Norway is encouraged 
by these reports, and would appreciate any further information on the proposed changes.  
Reply:  India has been notifying its domestic support from time to time in accordance with the 
WTO Agreement on Agriculture.  Reforms in agriculture sector is an ongoing process and all options of efficient and WTO compliant delivery of  domestic support are considered and adopted, 
wherever required.  The  fact that India is still home to largest malnourished population of 
194.6 million as per recent report of FAO, should  worry as collectively and strengthen our resolve 
to food security measures.  
Fertiliser Control Order: 
 Question 16: It is our understanding that all fertilisers that are to be sold in India have to be 
registered under the Fertiliser Control Order (FCO). The registration process is, however, seen as 
unclear and quite cumbersome. Our reports say that it usually takes more than three to four years to get a new product registered under the FCO due to fact that companies are required to do trials over multiple locations and seasons with Indian Council of Research (ICAR)/ICAR recognised 
institutes, thereafter submit the report to a committee which reviews the trial reports and then 
approves/disapproves. The resulting delays in supplying new fertiliser solution has an impact on 
yields and income levels for Indian farmers. 
Question 17: Would the Indian Government consider simplifying these procedures, for instance 
by issuing a general guideline wherein the minimum percentage level of various nutrients would be 
laid out to facilitate quicker approval for sales to the local market?  
Reply:  Suggestion by Norway is well received and has been forwarded to relevant department for 
their examination. WT/TPR/M/313/Add.1 
 
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  OMAN 
Question: 25% of India's tariff lines are unbound. Is India planning to bind them soon?   
 Reply: There is no plan presently under consideration in this regard. 
 WT/TPR/M/313/Add.1 
 
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  PERU 
Based on what is stated in document WT / TPR / G / 313 of April 28, 2015, Peru has the 
following questions: 
2. ECONOMIC ENVIRONMENT 
2.4. Exports, imports and trade balance 
2.4.5. Trade in services 
 Paragraph 2.25.- A new annual initiative to promote the export of services is the Conclave on 
Services, which to date has been held twice and whose purpose is to bring together all partners on 
a single platform, identify problems and prepare a roadmap for the promotion of exports of 
services. 
Question no. 1:  Can India provide more information about the Conclave on Services: who 
participates, what are the dates on which these have been held, what is the date of the next Conclave? If there is a site about the Conclave, the Peru would appreciate it. 
Reply : With a view to providing an interactive platform, the Services Conclave was organized for 
the first time in 2013. The primary aim of the Conclave is to address issues and bottlenecks affecting international trade, including the need for necessary domestic regulatory reforms in 
various service sectors and to develop a roadmap for augmenting international trade in 
consultation with concerned stakeholders. The conclave seeks to bring together all stakeholders, such as domain experts, academicians, industry practitioners as well as government 
representatives, under one umbrella for maximizing  benefit to industry, business and economy.   
Two editions of services conclaves have been held so far. These were organized during 
November 2013 and November 2014 respectively.  The next edition of the Conclave is likely to be 
held on the sidelines of the Global Exhibition on  Services scheduled during February 24-26, 2016.  
There is no specific website for the Conclave but the information about the conclave can be 
accessed on the website of the Department of Commerce, Ministry of Commerce and Industry, 
Government of India at http://www.commerce.nic.in  
2. ECONOMIC ENVIRONMENT 
2.6. Main challenges 2.6.3. Infrastructure development  
Question 2:  Paragraph 2.41 states that the program of special economic zones in India will be 
strengthened in the future. Preliminarily, how Indi a would strengthen that program and when is it 
expected? 
Reply : Special Economic Zone Policy is an open platform where concerned stakeholders including 
SEZ developers, units, state Governments, Central Govt. Ministries/Departments, Trade 
Bodies/Associations etc. are free to give their in puts/feedback/suggestions on the basis of which 
necessary changes are incorporated with the SEZ policy. In order to resolve problems/issues faced 
by stakeholders, necessary instructions/guidelines/circulars have been issued from time to time. 
The practice will be followed in future as well in  order to further strengthen the SEZs in India.  
3. THE NEW REFORM PROGRAM 
3.8. Rationalisation of subsidies  
Question 3:  Paragraph 3.12 states that food grains are procured from farmers at the minimum 
support price for the Public Distribution Syst em. Who and how the minimum support price is 
determined? How often the minimum support prices are reviewed? 
Reply:  The Minimum Support Price (MSP) is fixed to protect farmers from distress sale of their 
produce and to protect them from exploitation. Minimum Support Prices (MSPs. MSP is announced 
by the Government following the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP takes into account various factors including the cost of cultivation/production, changes in input prices, input/output price parity, inter-crop price parity, WT/TPR/M/313/Add.1 
 
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  effects on the cost of living, effects on general price level, parity between prices paid and prices 
received by farmers etc.  MSP is announced for both the Kharif, the two crop seasons every year. 
4. TRADE POLICY 
4.1. Foreign trade policy  
Question 4:  Paragraph 4.3 states that the foreign trade policy for 2009-2014 included several 
measures to stimulate exports, which provided greater diversification of export destinations in Latin America. What were these measures to stimulate exports and which sectors were targeted? 
Indicate, if appropriate, whether these measures have been notified to the WTO under the 
Agreement on Subsidies and Countervailing Measures and provide its notification number etc. 
Reply : Exports to Latin American countries were facilitated through schemes like the Focus Market 
Scheme etc. Details of these schemes are availabl e in Chapter 3 of the Foreign Trade Policy for 
2009-2014, which is in the public domain & can be seen at http://www.dgft.gov.in . Most of these 
schemes have been removed in the Foreign Trade Policy 2015-20. Government of India is in the 
process of consolidation of information for notifying to the WTO SCM Committee. 
5. INDIA AND THE WTO 
5.1. WTO Negotiations 
 
Question 5:  Paragraph 5.6.-India is finalizing the categorization of its commitments under the 
Agreement, and would be filling the notification in a ccordance with the provisions therein. It is also 
creating the National Trade Facilitation Committee. 
When would India report its commitments in category A under the Agreement on Trade 
Facilitation? Can you provide more information on the creation of the National Trade Facilitation 
Committee (at what stage is the process of creation and who would form the National Committee)? 
Reply:  India is in the process of consulting all stakeholders and finalizing the category A 
commitments. The National Trade facilitation Committee is being constituted by the Department of 
C o m m e r c e ,  G o v e r n m e n t  o f  I n d i a .   I t  w i l l  b e  an inter-departmental committee with adequate 
representations from all stakeholders. 
Based on what is stated in document WT / TPR / S / 313 of April 28, 2015, Peru has the 
following questions: 
2. TRADE AND INVESTMENT REGIME 
2.2. Development and trade policy objectives 
2.2.1. Formulation of trade policy 
 Question 6:  According to paragraph 2.11, the Agricultural and Processed Food Products Export 
Development Authority (APEDA) is responsible for pr omoting the export of 14 agricultural products 
and processed food products and to monitor the im portation of sugar. What are the agricultural 
products under its jurisdiction? What are the specific actions taken by the APEDA to promote these exports? 
Reply:  The 14 scheduled agricultural products under the jurisdiction of APEDA are: 
1. Fruits, Vegetables and their products 
2. Meat and Meat Products 
3. Poultry and Poultry Products 
4. Dairy Products 
5. Confectionery, Biscuits and Bakery Products 
6. Honey, Jaggery and Sugar products 
7. Cocoa and its products, Chocolates of all kinds WT/TPR/M/313/Add.1 
 
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  8. Alcoholic and Non Alcoholic Beverages 
9. Cereal & Cereal products 
10. Groundnuts, Peanuts and Walnuts 
11. Pickles, papads and Chutneys 
12. Guar Gum 
13. Floriculture and Floriculture products 
14. Herbal and Medicinal Plants. 
Specific actions taken by APEDA to promote these items include: promotion of Export oriented 
production, support for R&D and quality assurance, fixing of quality standards and Specifications 
for the Scheduled products, Inspection & Certification of Processing Plants, Storage & Transportation Points for Meat products, Infrastructure for Transportation, Handling and Storage, 
Improving Packaging of products, Market Deve lopment and Promotion, Market Intelligence 
(which includes Undertaking Surveys & Feasibility Studies), and Training in Various Aspects of the 
Scheduled products industries. 
2. TRADE AND INVESTMENT REGIME 
2.3. Trade Agreements and Arrangements 
2.3.2. Regional and preferential agreements  
Paragraph 2.24. There have been concerns expressed in recent years regarding the potentially 
negative impact of RTAs, notably on Indian industry. The Department of Commerce recently conducted an internal analysis of various FTAs, an d found that the utilization of several FTAs by 
India's FTA partners was not significant.21 Given the low impact of FTAs on Indian industry, it is 
not clear what the immediate benefits of existing FTAs are and what if any implications for India's 
policy there may be on its current RTA negotiations. According to the authorities each negotiation is driven by the overall balance of intere sts with the specific trading partner(s). 
 
Question 7:  In light of internal analysis by the Commerce Department, what would be the 
reasons why Indian partners in several LAC lot of them will not be worth? What are the reasons 
why FTAs have little impact on the Indian industry? What action is the Government of India to 
reverse this situation? 
Reply:  The internal analysis has only covered countries in East Asian region which whom India has 
an FTA.  It is for the trading partners to analyse the level of preferential imports vis a vis the total imports into India. However, some of the possi ble reasons could be the low level of awareness 
among exporters of the FTA, administrative i ssues such as the procedure for obtaining the 
certificate of origin, tariff liberalization may not have been completed etc. The Government of India is engaged in the task of increa sing the awareness of the FTAs for the domestic stakeholders. In 
this context, the Government of India has conducted FTA outreach programmes across the 
country, facilitated the development of a trade in formation portal and disseminated information on 
FTAs on its website. 
2. TRADE AND INVESTMENT REGIME 
2.4. Investment regime 
2.4.1. Legal framework for business 
2.4.1.2. Micro, small and medium enterprises  
Question 8:  With regard to paragraph 2.35, how Micro and Small and Medium Enterprises 
Development Act, 2006 (Section 3) defines micro, small and medium enterprises? 
Reply : Section 7(1) of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 
categorized the enterprises into manufacturing and services, which are further classified as micro, 
small and medium enterprises (MSMEs) based on the investments in "Plant and Machinery" and in 
"Equipments" respectively as under: WT/TPR/M/313/Add.1 
 
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  a. In the case of the enterprises engaged in  the manufacture or production of goods 
pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951, as – 
i. A micro enterprise, where the investment in plant and machinery does not exceed 
twenty five lakh rupees; 
ii. A small enterprise, where the investment in plant and machinery is more than twenty 
five lakh rupees but does not exceed five crore rupees; or 
iii. A medium enterprise, where the investment in plant and machinery is more than five 
crore rupees but does not exceed ten crore rupees; 
b. In the case of the enterprises engaged in providing or rendering of services, as:  
i. a micro enterprise, where the investment in equipment does not exceed ten lakh 
rupees; 
ii. a small enterprise, where the investment in equipment is more than ten lakh rupees 
but does not exceed two crore rupees; or 
iii. a medium enterprise, where the investment in equipment is more than two crore 
rupees but does not exceed five crore rupees. 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Investment regime 
3.1.11. Anti-dumping, counterva iling and safeguard measures 
3.1.11.1. Antidumping and countervailing measures  
Paragraph 3.59.- During the period under review, significant changes were made to the 
anti-dumping legislation India: (...) ii) changes in the definition of domestic  industry for flexibility; 
(...) 
Question 9:  What were the changes in the definition of domestic industry and how these changes 
contributed flexibility? 
Reply:  Vide Notification No.86/2011 - Customs (N.T.) dated 1
st December, 2011, Rule 2(b) of the 
Anti-dumping Rules was amended as follows: 
2(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 such case the 
term 'domestic industry' may be construed as referring to the rest of the producers. 
The amendment provides flexibility to the Designat ed Authority to decide whether to include or 
exclude a domestic producer as domestic industry, even though it is related to the 
exporter/importer or itself an importer, keep ing in view the factual matrix of the case. 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Investment regime 
3.1.11. Anti-dumping, counterva iling and safeguard measures 
3.1.11.1. Antidumping and countervailing measures  Paragraph 3.62- Under Article 5 of Regulation Customs Tariff, the Directorate General of 
Antidumping and Allied Duties (DGAD), established within the Department of Commerce may 
initiate an antidumping investigation upon receipt of a written request a domestic industry or on 
behalf of, or on its own initiative if there is justification to launch. WT/TPR/M/313/Add.1 
 
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  Question 10 : As set in Indian legislation, what are the justifications that may apply to the 
Directorate General of Antidumping and Allied Duties (DGAD) under which it can initiate an 
antidumping investigation on its own initiative? 
Reply:  Rule 5(4) of the Anti-Dumping Rules provides for suomoto initiation of anti-dumping 
proceedings by the Designated Authority on the basis of information received from the 
Commissioner of Customs or from any other source. In such circumstances, the Authority can 
initiate an anti-dumping investigation on its own without any complaint/petition filed by the domestic industry in this regard, provided the Authority is satisfied that sufficient evidence exists 
as to the existence of dumping, injury and caus al link between the dumped imports and the injury 
caused to the domestic industry. 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Investment regime 3.1.11. Anti-dumping, counterva iling and safeguard measures 
3.1.11.2. Safeguards 
 Question 11:  Is there a specific policy framework for research and application of safeguard 
measures in the framework of preferential trade agreements? Will the same rules apply as for the 
case of the WTO safeguard? 
Reply:  In addition to Global Safeguard Measures under the WTO agreement on safeguard, 
Bilateral Safeguard mechanism is a part of almost all Free Trade Agreements (FTAs) India has signed so far and these are governed by the rule s framed to that extent under the respective 
FTAs. Bilateral safeguard mechanism under FTAs is available in the Public domain and can be seen 
at http://commerce.gov.in . 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Investment regime 
3.1.11. Anti-dumping, counterva iling and safeguard measures 
3.1.11.2. Safeguards  
Paragraph 3.79.- The Director General (Safeguards) in the Department of Revenue is responsible 
for hearing petitions and carry out investigations on safeguards. The request for an investigation on safeguards must be submitted in writing to the Director General by the domestic industry concerned or on their behalf. The Director General may also initiate an investigation on its own 
initiative in response to information received from a Commissioner of Customs (...) 
An interministerial body (the Permanent Board of Safeguards), chaired by the Secretary of 
Commerce, examines the recommendations of the Director General (Safeguards) (...). 
Question 12 : What kind of information is received by the Director General (Safeguards) from 
Commissioner of Customs that forms the basis of initiating an investigation on its own initiative? 
Who makes up the Standing Board on Safeguards? On whom or who bears the ultimate decision to 
apply a safeguard measure? 
Reply:  Under the domestic law, Global safeguard investigations are governed by Customs 
Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997. Sub Rule (4) of Rule 5 
states that "Notwithstanding anything contained in sub-rule (1), the Director General may initiate 
an investigation suo motu if he is satisfied with  the information received from any Commissioner of 
Customs appointed under the Customs Act, 1962 (52 of 1962) or any other source that sufficient 
evidence exists as referred to in clause (a), clause (b) and clause (c) of sub-rule (3)". Clause (a), 
(b) & (c) of sub-rule (3) refers to the requirement of sufficient evidence regarding -  
a. increased imports; 
b. serious injury or threat of serious injury; and 
c. a causal link between increased imports and alleged injury or threat of serious injury. 
Standing Board on Safeguards is an inter- ministerial committee chaired by the Commerce 
Secretary. It has representatives from the De partment of Revenue (Ministry of Finance), 
Department of Industrial Policy & Promotion, Depart ment of Agriculture & Cooperation, Ministry of WT/TPR/M/313/Add.1 
 
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  External Affairs and any other as co-opted by the chairperson. Ultimate decision to apply a 
safeguard rests with the Department of Revenue in the Ministry of Finance. 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.3. Measures affecting production and trade 3.3.1. Incentives 
3.3.1.2. Explicit subsidies 
 Question 13:  Regarding paragraph 3.160, who are regarded as poor and traditional coastal 
fishermen? Is there a definition in the national legislation? What kind of gear, appliances, utensils 
and fishing techniques are made available to them ? Are these fishermen subject to some type of 
fisheries management? 
Reply:  "Poor Fishermen" covers fishermen belonging to "poor community" who require up-liftment 
socially or economically. Traditional coastal fishermen are those who do fishing activities within the 
territorial waters of India and carry out only day long fishing. There is no specific definition of poor 
and traditional coastal fishermen in the National Legislation. These fishermen mostly use gill-nets, hand-lines and at times also undertake hand op erated small trawls. The vessels used by them 
mostly are in the range of 9-13 meters of overall length (OAL). These vessels are without wheel 
houses. Fishermen are regulated by the Governments of the respective State/Union Territories through their Marine Fishing Regulations Act (M FRA), and the rules and regulations promulgated 
thereunder. MFRAs have provisions on elements of fisheries management which  inter alia  cover 
elements of fishing management like registration and licensing of fishing vessels and earmarking areas for fishing vessels; gear and craft management; season and area (zonation) control, access 
conditions, prohibition on harvest of certain fish species and trade thereof etc. WT/TPR/M/313/Add.1 
 
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  PERU 
ADDITIONAL QUESTIONS  
TRADE POLICY REVIEW OF INDIA 
 
Question 1:  Could the India: How is implementing projects in agriculture competitiveness? 
(Paragraph 4.1.1.1, Report of Secretariat) 
 
Reply : It needs to be kept in view that the cost of cultivation for the farmers is high in India due 
to the small size of farm holdings. The small farmers generally produce for themselves and sell the 
limited surplus in the market. Therefore, adopting  appropriate import and export policies (such as 
suitable tariffs, state trading of some items and ta riff rate quota etc.) are of great significance for 
sustainability of farming in India.  
Question 2:  Could India explain what criteria changes tariff rates for agricultural products? 
Do you have scheduled additional modifications? (Paragraph 4.4, Secretariat Report).  
Reply : The effective tariff rate of agricultural products is fixed in response to the price volatility in 
the domestic market and as a measure of balancing the interests of consumers and domestic farmers. 
 
Question 3 : Could India explain the reasons for the impl ementation of measures to support prices 
of cotton, rice and sugar? (Paragraph 4.17, Secretariat Report).  
Reply:  Agriculture in India is not remunerative. The share of agriculture and allied sector in gross 
domestic product (GDP) in 2013-14 was 13.9 % while it contributed 54.6% to the total employment of the country. About 99% of farm ho lding have less than 10 hectares of land which 
does not to generate enough income to maintain a minimum standard of living. India's agriculture 
is subjected to structural disadvantages arising out of small and fragmented land holdings, depletion in soil fertility, lack of access to markets and technology, low level of productivity and 
incomes. 
 Question 4 : Could India elaborate what were the benefi ts of implementing improvements in the 
procedures for Customs valuation? How does it benefit exports from third countries? (Paragraph 
3.1.1, Secretariat Report). 
 Reply : Measures such as EDI, RMS, e-payment, AC P etc. to improve customs procedures have 
already been implemented. These have helped cust oms authorities to reduce the time required to 
clear an import consignment. Time Release Study  (TRS) conducted  for the period July 2013  –December 2013   at JNCH (Jawaharlal Nehru Customs House), which is a major Customs House, 
reveals the following key finding  in respect of RMS (Risk Management System)   facilitated  Bills of 
Entry (B/E) [requiring no examination and assessment by Customs):  
i. To decide an RMS facilitation: 3.86 minutes  
ii.  To give out of Charge  after registration is: 4 hours 59 minutes  
iii. Hence, the average total time taken by Customs is: 5 hours 2.86 minutes  
Question 5:  Could you point out India What are the criter ia for preferential quotas on imports of 
sugar and onions traded as State? (Paragraph 4.11, Secretariat Report). 
 Reply:  Most of the items can be imported into India without any restrictions. Only a few items are 
under State Trading Enterprises (STE) category. The exclusive right to export or import is granted 
to an enterprise under the provisions of the Fore ign Trade Policy (FTP). These STEs work purely on 
commercial considerations.  Para 2.20 of FTP 2015-20 , which is in public domain prescribes the details.  WT/TPR/M/313/Add.1 
 
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  PHILIPPINES 
Under Trade Policies and Practices by Measure in paragraph 3.59, the Secretariat report that 
during the period under review, significant changes were made to India's anti-dumping legislation, 
in particular adjustments to the rules governing mid-term and sunset reviews. 
 
Question 1:  Could India please provide updates on the mid-term and sunset reviews that were 
conducted? What were the results of these reviews? Could India please provide statistics on 
continuation or recurrence of dumping and injury? 
 Reply:  D u r i n g  t h e  p e r i o d  o f  r e v i e w ,  I n d i a  i n i t i a t e d  5 5  N o s .  o f  s u n s e t  r e v i e w s  a n d  1 4  N o s .  o f  
mid-tem reviews. Out of these initiated review investigations, 39 Nos. of sunset reviews and 
13 Nos. of mid-term reviews have been completed by giving findings. All these findings are 
available in the public domain and can be s een at http://www.commerce.nic.in/traderemedies. 
 WT/TPR/M/313/Add.1 
 
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  RUSSIAN FEDERATION 
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/314) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1.13 Sanitary and Phytosanitary requirements 
3.106. p 62  
The authorities state that, with the aim of aligning India's SPS-related standards with the Codex, 
the scientific review has been conducted and the formal adoption procedure of standards is continuing. In the Committee on SPS Measures, concerns were raised regarding, inter alia , import 
restrictions on apples, pears and citrus, import co nditions for pork and pork products, and import 
requirements for blueberries and avocados during the period under review. 
 Question1: Could you please specify the Indian SPS-related standards, which were mentioned in 
the paragraph above, and what was the basis for the mentioned scientific review? 
 Reply:  The contents of the source para emanate from the exercise undertaken for harmonisation 
of Indian standards for Additives, Heavy Metals, mycotoxins, naturally occurring toxic substances 
etc. with those of Codex and the same may be read to this limited extent only.  3.109. p 63 
 
Imports of animal products into India require sanitary import permits (SIPs) issued by the 
Department of Animal Husbandry, Dairying and Fisheries; permits must be obtained prior to 
shipping from the country of origin. The Department issues SIPs for livestock products based on an 
import risk analysis. Permits are valid for one year  or six months depending on the nature of the 
products, and may be used for multiple consignments. A SIP is not a licence, but a certificate 
verifying that India's sanitary requirements ar e fulfilled. Imports of live animals and animal 
products falling under the restricted items as per Export-Import Policy require an import licence issued by the Director General of Foreign Trade after an import risk analysis is conducted by the Department of Animal Husbandry, Dairying and Fisheries for such import. Imports of animal 
products are only allowed through designated ports where animal quarantine and certification 
services are available (Amritsar, Bangalore, Che nnai, Delhi, Hyderabad, Kolkata, and Mumbai). 
Imports of fish products are allowed through the sea port of Vishakhapatnam (in the State of 
Andhra Pradesh), the sea port and airport of Kochi, and the land customs station at Petrapole 
(for imports from Bangladesh only).  
Question 2:   Please specify the internet site or other sources of information where it is possible to 
find the said import risk analysis.   Reply:  The health certificates for import of livestock and livestock products are available at 
http://www.dahd.nic.in  
 
Question 3: Please explain the reasons why the land customs station at Petrapole is restricted 
only for imports from Bangladesh? 
 Reply : As the Petrapole is located on the borders of India and Bangladesh, hence it is restricted 
only for import from Bangladesh. 
 3.110 p. 63  
Imports of plants and plant materials are regulated under the Destructive Insects and Pests Act 
1914, the Plant Quarantine (PQ) (Regulation of Import into India) Order 2003, and international conventions. During the period under review, Plant Quarantine (Regulations of Import into India) 
(Second Amendment) Order 2014 and Plant Quaran tine (Regulation of Import into India) 
(Third Amendment) Order 2014 were issued. The Di rectorate of Plant Protection, Quarantine & 
Storage is entrusted with the implementation of Plant Quarantine Regulations issued under 
the Act. 
 WT/TPR/M/313/Add.1 
 
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  Question 4: Please elaborate whether the import requir ements differ from the national ones for 
animal and plant products. If yes, please explain the reasons and the rationale for such difference? 
 Reply: Import guidelines for animal and animal products mainly envisage the restriction of 
movement of the products from the country, zone and compartments infected with diseases. The 
diseases listed in the import guidelines are OIE listed diseases which are also notifiable diseases in India in accordance with the provision in the "The prevention and Control of Infectious and 
Contagious diseases Act., 2009". According to this act, interstate movement of animals and animal 
products are restricted at the time of outbreak of disease in any part of India.  As far as the import requirements for plants and pl ant materials are concerned, they are strictly in 
line with the IPPC provisions and in accordance with the ISPMs. 
 3.2.5 State trading enterprises 
3.130. p.67  
 State-trading export privileges for some agricultural and forest produce, including sugar 
(for exports under preferential regime), onions, an d gum karaya, have been accorded to STEs with 
a view to enabling better marketing, realization of  better prices, ensuring a steady domestic supply 
and preventing wide domestic price fluctuations. Similarly, with a view to ensuring a reliable supply of kerosene and liquefied petroleum gas (LPG ), which are used as household fuels, exports 
are allowed only through STEs. Further, exports by STEs are deemed necessary for conservation 
and proper utilization of some ores of metals.  
Question 5: We are concerned about the mechanism of In dian wheat export through Open Market 
Sales Schemes (OMSSs) which is implemented by State Trading Corporation of India (STC) as well 
as with Indian wheat subsidies bill. Could India please elaborate on the said supportive measures 
in order to clarify the estimated distortive effect on the global wheat market? Would the Indian government please further indicate the amounts of exported wheat during the review period? 
 
Reply:  There were supportive measures provided to STC for export of food grains by FCI. The 
STC facilitated the tendering process and handled the export operations for FCI on payment basis. The export was done on the basis of competitiv e tendering and discovery of best international 
price.  Government has in all sold only 57.97 milli on MT of wheat over three years through FCI in 
the international market in this manner. 
3.3.1.3. Credit policies. 
Table 3.19 Preferential interest rates to exporters, 2014 p.75 
 Question 6: Indian textile industry is one of the most competitive at the global market 
furthermore the Indian textile products represent the major articles of Indian export to Russia. 
Taking this into account the preferential interest rate (2%) granted by the Central Government to 
Indian textile exporters for as long as 6 years is considered as the important subsidy with 
considerable effect to the global textile market. Could India please explain how the said measures 
comply with its commitments regarding export subsidies?  
Reply:  With effect from 1 July, 2010, the interest rates are based on base rate system and there 
is no difference between the interest rates charged for export activities vis-à-vis the other 
activities. Moreover, at present, there is no interest subvention being provided.  
 
Export subsidies, if any, being provided by India is not a prohibited subsidy as India is Annex VII 
country. So far as, textiles and apparel are concerns, it is understood that India has to phase out all export subsidies for the sector by 31 December, 2018.  
 WT/TPR/M/313/Add.1 
 
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  KINGDOM OF SAUDI ARABIA 
These questions and comments are based on information in the cited sections/paragraphs of the 
WTO Secretariat Report ("SR"), WT/TPR/S/313.  
1. Trade Remedies (SR Section 3.1.11, pages 53 to 57)  
 The Kingdom would like to have clarifications on several aspects of India's trade remedies 
practice: 
 1.1 The Secretariat Report provides that "As at th e time of the previous review, India is one of 
the most active users of anti-dumping measures among WTO Members."  
 
Question 1: Could India please explain why it continues to  place such high level of imposition of 
anti-dumping measures during the review period  and the extension of anti-dumping measures? 
 
Reply: When Anti-dumping petition is filed by  the domestic industry substantiating through 
evidence the dumping, injury and the casual li nk between the dumped imports and the alleged 
injury, the DGAD has to initiate the investigation after examining the accuracy and adequacy of 
the evidence provided. Accordingly, India considers that the anti-dumping measures taken were well within the provisions of Anti-Dumping Agreement.  
 
1.2 Targeting chemicals:   According to SR Chart 3.4, "chemicals and products thereof" 
accounted for 49.4 percent of India's anti-dumping investigation initiations since the last TPR. 
No other product was above 15 percent. India' s continued heavy emphasis on chemicals is a 
serious concern for the Kingdom.  
Question 2:  Could India please explain why it's trade remedies tended to fall so heavily on 
chemicals?  Reply:  DGAD is required to initiate the AD investigation once the petition is filed with complete 
evidence, irrespective of the product under consideration. 
 1.3 Transparency:  Exporters have expressed conc erns relating to lack of transparency and 
consistency in the application of trade measures by India. India, as an exporting country, has a 
major stake in the maintenance of strong disciplines to ensure that trade remedies are used only to discipline unfair trade, not to restrict fair trade. 
 
Question 3: What has India done since the 2011 TPR to improve transparency of its trade remedy 
proceedings? In particular, how does the DGAD ensure that its findings are consistent with:  
 Articles 5.2, 5.3, and 6.6 of the AD Agr eement, which require that an investigating 
authority ensure that its determinations have a sufficient factual basis.    
 Article 6.9, which requires investigating authorities, before a final determination is made, 
to "inform all interested parties of the essential facts under consideration which form the 
basis for the decision whether to apply definitive measures. Such disclosure should take place in sufficient time for the parties to defend their interests." 
 Article 12 of the AD Agreement, which requires an investigating authorities  to make 
available "in sufficient detail the findings and conclusions reached on all issues of fact and law considered material by the investigating authorities,"  including "the margins of dumping established and a full explanation of the reasons for the [dumping] 
methodology used." 
Reply:  India has been constantly improving its procedures on anti-dumping by way of easy access 
to various documents including domestic industry petition, timely notification to the interested 
parties as well to the WTO on various stages of AD proceedings etc. The final disclosure 
statements containing all essential facts required under the investigation are forwarded to all WT/TPR/M/313/Add.1 
 
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  interested parties well within the time for their comments. Once received, the same is analysed 
and indicated in the final findings, circulated to all interested parties, made available in the public domain as well as notified to the WTO in time.  
2. Other Trade Policies and Practices 
2.1 CENVAT (SR paragraphs 3.19, 3.27): CENVAT rates range from zero to 14% and in the case of petroleum products have compound rates of  duty (with an ad valorem rate of 16%). 
 
Question 4:  Could India please explain the compound rates of CENVAT as applied to petroleum 
products and why they are applied to petroleum products?  
Reply:  Compound rates of CENVAT (excise duty) are presently applicable to Light Diesel Oil (LDO) 
only. While the ad valorem component maintains the tax buoyancy, the specific rate ensures certainty and ease of administration. 
 
2.2 National Calamity Fund charges (SR paragraph 3.28): There is a charge for the National Calamity Fund for goods falling under the Sevent h Schedule, which includes petroleum oils (1%). 
The addition of these duties and charges to the a pplied tariff raises the actual duty paid by the 
importer significantly above the effective applied tariff rate.  Question 5:  Could India please explain whether various additional duties and charges applicable 
to imported products generally and to imported petroleum products specifically raise the effective 
import duty rates above India's tariff bindings?  
 Could India please explain the justifications for these additional duties and charges, and 
how they are consistent with India's WTO obligations?  
Reply:  The duties and charges mentioned in para 3.27 and 3.28 of the Secretariat Report are 
levied on imports in lieu of internal taxes and other internal charges applied to like domestic 
products as permitted in GATT Article III.2.   2.3 Solar Power/Local Content: SR paragraph 4.45 discusses subsidies contingent on local 
content in the solar power industry.  
 Question 6:  Could India please explain (a) how the contingency works and (b) whether this 
program is a trade-related investment measure?   
 Reply:  30% Local Content Requirement indicated in the Secretariat's report, was stipulated only in 
respect of tenders issued for allocation of So lar Thermal Projects. There is no proposal for 
allocating solar thermal projects as of now. The DCR Content was miniscule as compared to the total capacity added under such projects. Govern ment of India (GOI) has a policy to support 
Domestic Manufacturing on one side while encouraging oversees manufacturing units to supply 
solar products of latest technology and compet itive price. GOI has also extended custom and 
excise duty exemption on supply of plant & mach inery required for setting up of solar power 
projects in the country.  Details of all such schem es are available in the public domain and can be 
seen at http://www.mnre.gov.in . 
 
2.4 State Trading Enterprises (STEs): SR paragraph 4.11, footnote 6 states: "As regards 
non-agricultural goods and exports of certain ores are also subject to state trading." 
 Question 7:  Could India please clarify (a) whether "subject to" means that state trading is a 
requirement in all cases for these products, and (b) whether state trading of crude oil and ores 
supplies not only household consumers and farmers but non-agricultural industrial users as well? 
 Reply:  State trading means that exports of the specified commodities (under STE) can be made 
only by those State Trading Enterprises which have been authorized for this purpose. 
 WT/TPR/M/313/Add.1 
 
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  SINGAPORE 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 Trade Policy Goals, page 26 (para 2.13) 
Question:  Could India elaborate on its policy plans for the promotion of its "foreign merchandise 
and services trade", especially in the sectors of  telecoms, transport and research and development 
(R&D) services?   
Reply:  India is committed to its obligation under multilateral and bilateral agreement. Moreover, 
India is unilaterally opening its merchandise and services sector beyond its commitment. For promotion of international trade in services, the Government of India follows a multi-pronged 
strategy of negotiating commercially meaningful market access through multilateral, plurilateral 
and bilateral trade agreements, trade promotion through participation and organization of international fairs/exhibitions, focused strategies  for specific markets and sectors, increasing 
competitiveness through domestic regulatory reforms and provision of fiscal benefits through 
schemes like Service Exports from India Scheme (SEIS). The SEIS applies to many service sectors such as business services, including Research and Development Services, audio-visual services, 
construction, educational and environmental services, health related, tourism, recreational and 
transport services.  
The details of the new Foreign Trade Policy (2015- 20), including the SEIS and other schemes to 
promote merchandise trade are available at the website of the Department of Commerce (http://www.commerce.nic.in ). 
Legal Framework for Business , page 30 (para 2.29)  
Question: We note that there are "certain advantages to incorporation as a domestic company". 
Could India elaborate on what these advantages for foreign investors that incorporate as a 
domestic company in India are? 
Reply: The conditions/restrictions provided in the FDI Policy can be imposed on foreign 
investment only on pre-establishments basis. Once, foreign investment comes in India in a 
company (JV), the JV with foreign investment will be treated as Indian Company and it enjoys the same advantages so as an Indian company does. FDI Policy does not make any discrimination on post-establishment.  
 
Applied Tariffs, page 41 (para 3.23)  
Question: We would appreciate India's clarification on the procedures for application of "end-user 
exemptions", the different types of end-use exempt ions, and if there are any specific criteria to 
meet in addition to "end-use"?  
Reply:  End use based exemptions are available if the importer follows the procedure set out in the 
Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) 
Rules, 1996.  Anti-Dumping and Countervailing Measures, page 56 (para 3.69)  
 
Question: We understand that the Directorate General of  Anti-Dumping and Allied Duties (DGAD) 
is required to carry out a review for determining margins of dumping for new export or producer 
from a country that is subject to anti-dumping, provided that the exporters or producers are new 
and not related to any of the other exporters. On this, could India clarify the following: 
 Could an exporter or producer obtain the results of the review before production 
commences? In this way, the exporter or producer will know whether they would be 
subjected to dumping before  they begin the export/production.  WT/TPR/M/313/Add.1 
 
- 193 - 
 
   Should the review of the exporter or producer begin after the production and exports to 
India,  would the exporter or producer be gi ven a rebate of the anti-dumping duties that 
they have paid since the start of their export s to India should the review determine that 
the said exporter or producer should not be subjected to anti-dumping duties?  
 Are the reviews in Para 3.69 similar to the mid-term reviews conducted by the DGAD in 
Para 3.68? If so, would there be a need for th e "reasonable period of time i.e. at least 
one year" to have lapsed as is required for mid-term reviews or would it now be possible 
for a new exporter or producer to initiate a review less than one year into the imposition 
of the duty?  
Reply:  The rules governing new shipper reviews laid down under Rule 22 of the Anti-dumping 
Rules provides are as follows: 
 
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 questi on 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 antidumping duties on the product.   
(2) The Central Government shall not levy anti-dumping duties under sub-section (1) of section 9A 
of the Act, on imports from such exporters or prod ucers 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 of 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  Accordingly replies to the three questions are: 
 
 As per the Rules, the applicant has to be a producer/exporter of the product concerned. 
 The relevant Rules do not provide for any such rebate of anti-dumping duty. 
 The relevant Rules do not prescribe any time limits for making an application for 
claiming individual dumping margin.  
Special Economic Zones (SEZs), page 68 (para 3.136) 
 
Question: Paragraph 3.136 seems to suggest that manufacturing is allowed in SEZs in India. 
We would appreciate India's clarification on whether (i) this is the correct understanding; and if so, 
(ii) the other types of activities which are allowed in India's SEZs.  
Reply: Yes, manufacturing activities are allowed in SEZs in India.  
 
All sorts of business activities are allowed to be undertaken in SEZs except restrictions prescribed under Rule 26 of SEZ Rules, 2006.   
 
Trade Secrets and Test Data Pr otection, page 96 (para 3.261) 
 
Question:  Does India's IP regime relating to patents and marketing approval cover patent 
linkage?  
Reply:  India's IP regime relating to patents and marketing approval does not cover patent linkage.  WT/TPR/M/313/Add.1 
 
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  Air transport, page 127 (para 4.133)  
 Question: We note that the Airports Economic Regulatory Authority (AERA) is responsible for 
economic regulation of airports. This includes  "aeronautical services charges, the passenger 
service tax, and airport and user-development fees  for major airports; and monitoring the quality 
and reliability of services rendered at airports",  and airport operators are responsible for collecting 
the charges, fees and taxes. However, we also note  that airport operators often require airlines to 
assist with collection of these charges, fees, an d taxes fixed by AERA, for which a percentage is 
then due to airlines as taxable commission. We would like to (i) better understand the considerations for taxation of airline commissions for assisting in the collection of taxes and 
(ii) whether this policy will be applied to the non-major airports, or those not governed by AERA.  
Reply:  The information sought is available on the website of the Ministry of Civil Aviation and of 
the DGCA.   
 
Pages 128 (Para 4.136) 
Question:  We note that the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) varies from 
4% to 30% in different states and that, in general, the cost of ATF in India is 40-45% higher than 
international averages. Does India have any plans to reduce the level of variance of the VAT on ATF among different states? Also, what are the steps being taken to rationalize the relevant taxes to reduce the cost of ATF in India? 
Reply:  The policy for Goods and Services Tax is under formulation.  The VAT of ATF will depend on 
the contours of this Policy. 
 Page 128 (Para 4.138) 
 
Question: We note that the operation of charter flights to/from India is liberalized for all "inclusive 
tour packages". Could India clarify its policy for other forms of non-scheduled flights, for which no 
traffic rights are exercised? 
 Reply:  The information sought is available on the website of the Ministry of Civil Aviation and of 
the DGCA.   
 
 WT/TPR/M/313/Add.1 
 
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  SWITZERLAND  
Report by the Secretariat 
 1.   Economic Environment 
1.1 Recent Economic Developments 
 Question No 1:  The agriculture sector contributes 18.2% to the current GDP, while employing 
"some 56% of the total workforce" ( para 1.2 ). This relationship reflects the low labor productivity 
in the agriculture sector. What is the strategy of the Indian government to increase the labor productivity in the agriculture sector?  
 
Reply:  The Government supports the farm sector in India through various programmes for 
agricultural research and education, extension, irrigation and for facilitating easier and cheaper access to inputs such as seeds, fertilizers and credit.  
 
Question No 2: Does India share the view of the WTO secretariat regarding the identified 
structural bottlenecks mentioned in para 1.3 ? What are the proposed reforms by India to tackle 
these structural bottlenecks? 
 Reply : Government announced various steps in order to achieve a sustained growth of 7-8% or 
above within the next 3-4 years along with macro-economic stabilization. These include promoting 
agricultural growth by supporting micro-irrigation  and watershed development ; fillip to industry 
and infrastructure through fiscal incentives and concrete measures for transport, power, and other urban and rural infrastructure and promoting micro and small enterprises by setting up Micro Units 
Development Refinance Agency Bank ; fiscal reforms with emphasis on consolidation, expenditure 
reforms and rationalization of tax structure; liberalization of foreign direct investment in selected sectors, reduction in corporate tax rate in a phased manner and increased public investment to 
catalyze investment ; simplification of tax procedures with a stable tax policy and efforts to 
implement GST ; Skill India and Digital India initiatives; measures to de-bottleneck the supply of key raw-materials like coal; "Make in India" initiative along with the attendant facilitating measures for a more conducive environment for investment; and, various measures to improve 
clarity and transparency in economic policy-making. Fiscal reforms have been bolstered by the 
deregulation of diesel prices and initiatives for direct benefit transfer (DBT).   
Question no: 3: India's workforce is large and still grow ing. However the "absence of required 
skills" in the workforce and strict labor regulations are mentioned as structural bottlenecks. What is the strategy of India to improve the skill matching of its workforce?  
 
Reply:  The Preamble to the National Policy for Skills Development, 2009 cites one of the 
challenges as creating effective convergence between school education and skill development.  The new National Policy on Skills Development and Entrepreneurship 2015 which seeks to have a fresh 
look at the 2009 Policy will deliberate on all issues  including the linkage with the school curriculum. 
Moreover, there is a centrally sponsored scheme of vocationalization of school education administered by the National Skills Development Council (NSDC). NSDC has also worked towards 
vocationalization of higher education and developed a unique model to integrate skill based 
trainings into the academic cycle of the Universities.  
1.2 Fiscal Policy 
 Question No. 4: Para 1.6  indicates that India cut fuel subsidies in the year 2014 by a sizeable 
amount. We truly welcome this important policy shift towards a sustainable fiscal policy. Regarding 
the future, how will India tackle pressure to reintroduce fuel subsidies once world oil prices start 
soaring again?  
Reply:  Government of India has decided to contain fuel subsidies by de-administering diesel prices 
and moving towards targeted subsidy for domestic  LPG, through the Direct Benefit Transfer for 
LPG consumer (DBTL) scheme namely, "PAHAL". Under the scheme, at present all 150 million LPG 
consumers in the country have been covered. Pilo t projects for similar direct transfer scheme for 
Public Distribution System (PDS) Kerosene is under way. In addition, there are other measures WT/TPR/M/313/Add.1 
 
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  t h a t  h a v e  b e e n  p u t  i n  p l a c e ,  s u c h  a s  r e d u c t i o n  i n  S K O  q u o t a ,  i m p l e m e n t a t i o n  o f  n a t u r a l  g a s  
network etc., which are expected to reduce the use of subsidized fuels. These measures reflect the country's commitment to reduce the fuel subsidy burden which effectively started in June 2010 with de-administration of petrol prices.  
 
It is noteworthy that all the above measures have been taken between June 2010 and October 2014 when the international oil prices were  high and fairly stable. Even though the Diesel 
price deregulation was done in October 2014, it was the result of gradual reduction plan which 
started in January 2013.   It may be mentioned that that the Government has been successful in continuing with the above 
measures without any major rollback.  
 1.4 Balance of Payments 
 
Question No. 5: In the reviewed period India saw "large capital inflows on average" 
(para. 1.14 ). However "capital inflows have been highly volatile in recent years" especially as 
portfolio investment declined substantially in 2013-14. How does India plan to tackle this volatility, 
while maintaining the important openness to foreign capital inflows?  
 Reply:  Both domestic and external factors have led to volatile capital inflows in recent years. 
The government has swiftly moved to correct the situation through restrictions in non-essential 
imports like gold, customs duty hike in gold and silver to a peak of 10 percent, and measures to 
augment capital flows through quasi-sovereign bonds and liberalization of external commercial 
borrowings. The RBI also put in place a special swap window for foreign currency non-resident 
deposit (banks) [(FCNR (B)] and banks' overseas borrowings through which US$ 34 billion was mobilized. 
 
In the recent past, India's trade deficit witnessed moderation, reflecting the impact of lower crude 
oil prices, among others. The lower trade and curr ent account deficit coupled with buoyant capital 
inflows resulted in the increase in foreign exchange reserves in 2013-14 and 2014-15. 
The country's foreign exchange reserves are now at a comfortable position to buffer any external 
shocks.  
2 Trade and Investment Regime 
2.2 Trade Policy Formulation and Objectives 2.2.2 Trade policy goals 
 
Question No. 6: Para 2.13 states that trade measures in India are often used for domestic policy 
goals (export taxes, temporary import duties, etc.). In its evaluation of domestic policy does India also consider less trade distorting policies? What is the reason for the extensive use of trade 
measures for domestic policy goals?  
 Reply: The export and import of most items is free in keeping with India's trade liberalization 
efforts. While using trade measures, India seeks to ensure compliance with relevant WTO rules 
and obligations  
 
3. Trade Policies and Practices by Measure 
3.1  Measures Directly Affecting Imports  3.1.1 Customs procedures and requirements  
Question No. 7: Para 3.9:  Next to the implementation of the decisions taken in Bali, the timely 
ratification of the Trade Facilitation Agreement is one of the goals for the 10th WTO Ministerial 
Conference in December this year in Nairobi. Wh en does India intend to notify its Category A 
commitments and to ratify the agreement?  
 Reply: India intends to notify its category A commitmen ts and ratify the TFA shortly. The date for 
notification/ratification will be decided by the competent authority. 
 WT/TPR/M/313/Add.1 
 
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  3.1.2. Customs valuation  
 Question No: 8: According to para. 3.11  India levies a landing charge (or loading, unloading, 
and handling) of 1% of the c.i.f. value, which is added to the c.i.f. value. Could India specify the 
policy objective of this ad valorem landing charge? What are the revenues collected from the 
landing charge used for? Who is in charge of collecting the landing charge?   
Reply:  Article 8.2 of the Customs valuation Agreemen t (Agreement on Implementation of Article 
VII of GATT 1994)states that 'in framing its legislat ion, each Member shall provide for the inclusion 
in or the exclusion from the customs value,  in whole or in part, of the following: 
 
 the cost of transport of the imported goods to the port or place of importation; 
 loading, unloading and handling charges associ ated with the transport of the imported 
goods to the port or place of importation; and, 
 the cost of insurance. 
India has provided for inclusion of the landing charges in the assessable value as per the Customs 
valuation Agreement of WTO.  "Landing charge" is not a charge paid to Customs Authorities but 
represents the cost of loading, unloading and hand ling charges associated with the transport of the 
goods to the time and place of importation. This is included in the assessable value, based on which Customs Duty is computed.  
Question No. 9: Para. 3.16  indicates that importers may file an appeal against customs 
decisions on valuation matters to the Appeals Commissioner or the Customs, Excise, and Service Tax Appellate Tribunal. Could India indicate how many appeals where logged since 2011?  
 
Reply:   Separate data on the number of appeals filed against Customs decisions on valuation is 
not maintained. However, the details of the total appeals is as under:  
 
Year 2012-13  
 Commissioner 
(Appeal) CESTA T High Court Supreme Court 
Appeal by trade  8286  2518 1136 79  
Appeal by Custom 
Department  1172 624 179 46 
 
Year 2013-14  
 Commissioner 
(Appeal) CESTA T High Court Supreme Court 
Appeal by trade  11694  1992 828 62  
Appeal by Custom 
Department  882 1080 365 48 
 
3.1.3 Rules of origin 
 
Question No. 10: According to para. 3.17  India does not apply non-preferential rules of origin. 
In the case the preferential origin of goods or the exact origin of a good cannot be determined, 
how and based on which criteria does India determine the MFN origin of a good? 
 Reply:  The criteria for issuance of non-preferential  certificate of origin in para 2.108 of the 
Handbook of Procedures (Vol 1) under the Fo reign Trade Policy 2015-2020. The twin criteria 
includes manufacture of a product and exceeding some minimal operations.  WT/TPR/M/313/Add.1 
 
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  3.1.4 Tariffs 
3.1.4.1 Applied tariffs  Question No. 11: According to para. 3.18,  the effective tariffs of India vary throughout the year 
due to changes which add to the complexity of th e tariff and uncertainty for traders. Could India 
specify which measures have been taken and put in place since 2011 to simplify this complex system and provide for more predictability for the traders? 
 
Reply:  Changes in Tariff rates of Customs Duty are carried out by amendment in the Customs 
Tariff Act, 1975 which is generally done at the time of passing of the Union Budget. However, in response to certain emergent situations the effective (MFN) rate of duty may be changed in 
between the year.  The current rate of Customs duty for each tariff line is available at the ICEGATE 
"Customs Duty Calculator" [https://www.icegate.gov. in/Webappl] as well as at Central Board of 
Excise & Customs website ( http://www.cbec.gov.in/cae1-english.htm ). 
 
Question No. 12: According to para. 3.23  there seems to be an inverted duty structure in 
several industries in India and the Tariff Commis sion has made a number of recommendations to 
rectify this. Further reductions are announced in the Budget 2015-2016 to address the problem of 
inversion. Could India provide more details as to the inputs that will benefit from those further reductions (HS code, product description, current and revised rate)?  
 
Reply:  It has already been mentioned in the secretariat report that there has been concern about 
inverted duty structure and tariff commission had made some recommendations in this regard. Some of the products where inverted duty structure correction has been carried out are: 
Aluminium Ingots (76011010) - Duty on one of its inputs i.e. Coal tar pitch has been reduced to 
5%. MEG (Mono Ethylene Glycol) (29053100) - Duty on its input i.e. denatured ethyl alcohol has been reduced to 5%. Back sheet for use in PV so lar modules (39201099) - Duty on its inputs has 
been reduced to Zero with actual use conditions.  
 3.1.5 Other charges affecting imports  
Question No 13: Para 3.27-3.27:  Could India inform whether AD charges and the Education 
Cess as well was the Higher Education Cess are also levied on domestic products and if the rates are the same?  
 
Reply: Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of excise duty 
charged on the domestic production of a similar item. Similarly, Education Cess and Higher 
Education Cess charged as a percentage of the Excise Duty for domestic goods was also charged 
on similar imported goods. However, w.e.f 01.03.2015, Education Cess and Secondary & Higher Education Cess leviable on all excisable goods has been fully exempted. Simultaneously, the 
standard ad valorem rate of duty of excise (i.e . CENVAT) has been increased from 12% to 12.5%.  
 
Similarly, Special Additional Duty (SAD) is charged on imported goods in lieu of sales tax/value added tax charged on the domestic sale of goods. 
 
Both these taxes are in the nature of counter vailing/equalizing taxes and thus would apply to 
imported goods so as to provide a level playing fi eld for domestic industry. Moreover, the credit of 
these additional duties is available to be set-off against domestic taxes such as Central Excise Duty 
and Service Tax under the CENVAT Credit Rules. Li kewise, a full refund of the SAD can be claimed 
by an importer once the imported goods are sold in the domestic market on payment of State VAT.  
Question No. 14: Para 3.29:  This paragraph explains the composition of the actual duties paid 
by importers. Due to different additional charges and taxes the paid duties lie above the effective 
applied tariff rate for all imports, unless exempt . How does India justify the application of this 
practice? Are changes in the current regime envisaged for the near future with a view to simplify 
the system? If yes, what changes are planned?  
Reply : Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of excise duty 
charged on the domestic production of a similar item. Similarly, Special Additional Duty (SAD) is charged on imported goods in lieu of sales tax/value added tax charged on the domestic sale of goods. Both these taxes are in the nature of countervailing/equalizing taxes and thus would apply 
to imported goods so as to provide a level playin g field for domestic industry. Moreover, the credit WT/TPR/M/313/Add.1 
 
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  of these additional duties is available to be set-off against domestic taxes such as Central Excise 
Duty and Service Tax under the CENVAT Credit Rule s. Likewise, a full refund of the SAD can be 
claimed by an importer once the imported goods are sold in the domestic market on payment of 
State VAT. 
 
3.1.11 Anti-dumping, countervailin g, and safeguard measures 
3.1.11.1 Anti-dumping an d countervailing measures 
 
Question No. 15: Para 3.57 and Chart 3.4  refers to initiated anti-dumping investigations 
against Europe. Could India specify, which products are concerned?  
 
Reply:  These products are:Pentaerythriotol, Phenol, Acetone, Bulk Drug Cefadroxil Monohydrate, 
Polyvinyl Chloride, Sodium Nitrite, Methylene Chlo ride, Sodium Nitrate, Flexible SlabstockPolyol, 
Morpholine, Purified Terephthalic Acid, Cold rolled flat products of stainless steel, Potassium 
Carbonate, Phenol, 2-Ethyl Hexanol, Normal Butanol. 
 3.1.12 Standards and other technical requirements 
3.1.12.3 Certification an d conformity assessment 
 Question No. 16: Para. 3.95 : For specific low-risk electric and telecom products India requires 
in-country testing, compulsory registration and re peated licensing. Switzerland would be interested 
to understand whether less trade restrictive measures, such as the recognition of foreign tests 
based on international standards, were considered?  
Reply: There is no scheme of repeated licensing. It  is for information that BIS Registration 
Scheme which is self-declaration of conformity involving independent testing from BIS recognized lab and market surveillance is the simplest and less time consuming certification.  As per BIS 
rules, testing in the laboratories in other countries is acceptable if they are covered under a mutual 
recognition agreement with BIS.  3.1.12.5 Labelling 
 
Question No. 17: Para. 3.103 : Regarding India's labelling requirements set out in the Food 
Safety and Standards (Packaging  and Labellin g) Regulations 2011, Switze rland would appreciate 
to better understand India's reasoning for demanding additional specific product information other 
than those set out in international standards (i.e. Codex Alimentarius)? Could India specify which of this supplementary information may not be prov ided on non-permanent product labels (such as 
stickers) and explain why? 
 Reply: As per the Indian Law, additional informatio n is required on (i) FSSAI logo and license 
number, and (ii) Name and address of the importer. This information is considered important for 
traceability requirements. In addition, (iii) depiction of Veg./Non veg. logo is a requirement arising 
from cultural sensitivities in the country. It is for this reason that these three are treated as rectifiable labelling deficiencies and the information on the above three counts is allowed to be 
affixed in the form of an additional sticker in the custom bonded warehouse if the same is not 
provided at the end of the original manufacturer/  exporting entity. Any other labelling defects are 
non-rectifiable. In case there are any other deviations, the same may be pointed out specifically 
for consideration of the FSSAI.   
 3.2 Measures Directly Affecting Exports 3.2.3 Minimum Export Prices 
 
Question No. 18: As indicated in para 3.124  of the Secretariat's report, India has maintained 
minimum export prices for several foodstuffs of relevance to net food importing countries such as 
edible oil. Other instruments which directly affect exports of important foodstuffs such as 
quantitative restrictions have also been implemented.   
Could India provide further detail on how decisi ons on implementation of such measures are 
made? Which institution is responsible for making these decisions and what specific criteria are applied? Does the implementation of such measures depend on world market prices? If yes, what are the threshold levels which trigger implementation? WT/TPR/M/313/Add.1 
 
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  Reply: Minimum Export Price (MEP) has/had been imposed on export of certain staple food items 
like onion, edible oils in consumer packs and potato.  The MEP is imposed with a view to ensure adequate availability of the item for domestic co nsumption and to contain inflation. MEP on export 
of onion and edible oils is reviewed by the Inter Ministerial Committee from time to time, keeping 
in view the availability of the item in the domestic market, its domestic and international prices 
among other factors and wherever required, MEP is  adjusted and notified by DGFT by way of a 
notification in the official Gazette. The details of all such notifications are available on the website 
of DGFT.  In view of exceptionally high prices of potato, MEP was imposed on export of potato in 
June, 2014 and it was removed on 20.02.2015.  3.2.6 Export support and promotion 
3.2.6.1 Special economic zones (SEZs) 
 Question No. 19: Para. 3.136  indicates that firms located in SEZs have a large number of 
benefits. What is the main purpose for the existence of SEZs?  Are there any plans to extend 
structural reforms successfully tested in SEZs to the rest of the country? And if so, in which areas?  
Reply:  Special Economic Zones have been established with the following objectives: 
 
 generation of additional economic activity; 
 promotion of exports of goods and services; 
 promotion of investment from domestic and foreign sources; 
 creation of employment opportunities; 
 development of infrastructure facilities 
As per the SEZ Policy, SEZs are treated as entiti es to be outside the Customs territory of India 
with different set of provisions viz SEZ Act & Rules. Therefore, they have been granted certain benefits which are not available to entities situated in the Domestic Tariff Area. There is no 
proposal of extending the incentives provid ed in SEZs to the rest of the country. 
 3.3.2 Competition policy and price controls 3.3.2.1 Competition policy 
 
Question No. 20: Para 3.170 : The report states that the Competition Commission of India (CCI) 
is an independent authority. How is it organized? Is it the same body that conducts the inquiries 
and takes the decisions or is there a separation between these different stages? It is mentioned 
that the CCI may self-initiate investigations. Does this mean that the majority of the investigations are initiated upon a complaint or a denunciation? 
 
Reply: As per the Competition Act, the Competition Commission of India (CCI) shall consist of a 
Chairperson and not more than six other Member s to be appointed by the Central Government. 
There are various Divisions headed by the Advisors to help the Commission in carrying out its 
activities. These Divisions are Anti-trust Division, Economic Division, Legal Division, Combination 
Division, Investigation Division , Advocacy Division and Capacity Building & International 
Cooperation Division. The CCI also has a Secretariat headed by the Secretary which acts as a link 
between the Commission and the outside world. To undertake investigation of various alleged 
cartel and abuse of dominance cases, there is a separate investigating arm in the form of office of Director General. 
 
The office of Director General undertakes the investigation of alleged violation of provisions of the competition law based on the direction of the Commission. Administratively, office of the Director General is a part of the CCI, however, in the matter of investigations it works on the arm's length 
principle. 
 CCI may take up a case suo moto  on the basis of references from government/statutory 
authorities. However, majority of the investigations are initiated upon a complaint called 
information under the Indian competition law.  So far less than 5 per cent cases have been taken up on suo moto  basis. WT/TPR/M/313/Add.1 
 
- 201 - 
 
  Question no: 21: Can the sector-specific regulations mentioned in para. 3.171  deviate from the 
main (and general) competition regulations, such as the Competition Act 2002? Do these regulations contain exceptions to the provisions of the main competition regulation?  
Reply: Some sector-specific regulations (Act) do have provisions related to competition in the 
sector. However, sector specific regulations (Act) and competition regulations (Act) are complementary in nature. As per Section 60 of the Competition Act, "the provisions of this Act 
shall have effect notwithstanding anything inconsistent therewith contained in any other law for 
the time being in force."  Provisions of the Competition Act, 2002 are applicab le to all the sectors, unless exempted by the 
Government under the provisions of the Competition Act.  
 Question no: 22: It is mentioned in para. 3.178 , that the authorities are currently formulating a 
National Competition Policy. What will be the sco pe and coverage of this policy? What are its 
intended outlines?  
Reply: National Competition Policy is under consideration of the Ministry of Corporate Affairs. The 
basic objective is to create a culture of competition in the country.  3.3.5 Intellectual property rights 
3.3.5.2 Patents 
 Question No: 23: Para. 3.216 : The Secretariat's Report makes reference to the Supreme Court's 
reading of the term "efficacy" to be understood as "therapeutic efficacy". It further cites the Court 
that Section 3(d) clearly sets up a second tier of qualifying standards for chemical substances/pharmaceutical products. Can India explain how that additional criterion and the 
second tier of qualifying standards required fo r pharmaceutical products is compliant with the 
three patentability criteria and the obligation to make patents available without discrimination as to the field of technology under Art. 27.1 TRIPS?  
Reply:  The Supreme Court of India has not set up an additional criterion for grant of a patent 
beyond that prescribed under Art 27.1 of the TRIPS Agreement.  
As per section 3(d) of the patents Act, efficacy  requirement is invoked when the subject matter 
involves "mere discovery of a new form of a known substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or 
apparatus". Unless the requirement of the efficacy is met with, a new form of a known substance 
or mere use of a known process, machine or apparatus is not an invention -meaning thereby that the criteria of patentability are not fulfilled. Thus, the efficacy requirement is the inventive step.  Section 3(d) sets up the standard for patentability as mentioned by the Court. The provision 
Section 3(d) applies to all fields of technology. The hon'ble Court states in this regard that 
"efficacy means the ability to produce a desired or intended result. Hence the test of efficacy in the context of section 3(d) would be different depending upon the result the product under 
consideration is desired or intended to produce. In  other words, the test of efficacy would depend 
upon the function, utility or the purpose of the pr oduct under consideration. Therefore, in the case 
of a medicine that claims to cure a disease, the te st of efficacy can only be 'therapeutic efficacy'." 
 
Question no: 24: In 2012, India issued a compulsory license for the anti-cancer drug patent 
sorafenib tosylate. The Report summarizes in para 3.218  the Controller General's decision and 
makes reference to the legal grounds for the issuance of the compulsory license under Section 84 
of the Patents Act, including the ground that the patented invention was not worked in the 
territory of India as required by the law. The legal basis for this ground is Section 84(1)(c) Patents Act. Could India provide clarification with regard to the scope and application of Section 84(1)(c)? 
Under this provision, does the importation of a patented product satisfy the working requirement? 
Please explain how Section 84(1)(c) relates to  the requirements under Section 84(1)(a) in 
conjunction with 84(7)(e)?  
 
Reply:   The interpretation of the term "working of a patent" has been dealt with in the Bayer Vs 
Natco Compulsory License case by the Intellectual Property Appellate Board (IPAB) which was later upheld by the High Court of Bombay. The hon'ble court stated that "…when a patent holder is 
faced with an application for compulsory license, it is for the patent holder to show that the WT/TPR/M/313/Add.1 
 
- 202 - 
 
  patented invention/drug is worked in the territory of India by manufacture or otherwise. 
Manufacture in all cases may not be necessary to establish working in India as held by the Tribunal. However, the patent holder would nevertheless have to satisfy the authorities under the Act as to why the patented invention was not being manufactured in India keeping in view 
Section 83 of the Act. This could be for diverse reasons but it would be for the patent holder to 
establish those reasons which makes it impossible/prohibitive for it to manufacture the patented drug in India. However, where a patent holder satisfies the authorities, the reason why the 
patented invention could not be manufactured in India then the patented invention can be 
considered as having been worked in the territory in India even by import. This satisfaction of the authorities is necessary particularly when the petitioner admittedly has manufacturing facilities in India." 
 
Question No. 25: Para 3.225 : In Section 4.4.3, India's National Manufacturing Policy provides 
for the option for the "Technology Acquisition and Development Fund" to request from the 
Government the issuance of a compulsory license if the patented green technology is not being 
worked in India to meet the domestic demand in a satisfactory manner. The policy paper states that compulsory licenses will be issued only within the provisions of TRIPS. Can the Indian 
Government confirm that under the policy, the wo rking requirement can be met by the importation 
of the patented technology? Can India clarify ho w the requirements under Section 4.4.3 of the 
Manufacturing Policy relate to the requirements under Section 84 Patents Act?  
Reply: Any issue of Compulsory license will only be as per the provisions of the Indian patent Act. 
As far as the 'interpretation of the term "working of a patent" has been dealt with in the Bayer Vs 
Natco Compulsory License case by the Intellectual Property Appellate Board (IPAB) which was later 
upheld by the High Court of Bombay. The hon'ble court stated that "…when a patent holder is 
faced with an application for compulsory license, it is for the patent holder to show that the patented invention/ drug is worked in the terri tory of India by manufacture or otherwise.  
Manufacture in all cases may not be necessary to establish working in India as held by the 
Tribunal.  However, the patent holder would nevertheless have to satisfy the authorities under the Act as to why the patented invention was not being manufactured in India keeping in view Section 83 of the Act.  This could be for diverse reasons but it would be for the patent holder to establish 
those reasons which makes it impossible/ prohibitive for it to manufacture the patented drug in 
India. However, where a patent holder satisfie s the authorities, the reason why the patented 
invention could not be manufactured in India then the patented invention can be considered as 
having been worked in the territory in India even by import. This satisfaction of the authorities is 
necessary particularly when the petitioner admittedly has manufacturing facilities in India."  
3.3.5.8 Trade secrets and test data protection 
 Question No. 26: Para 3.261 : The Report indicates that there is no specific legislation in place 
to protect test data submitted for regulatory approval of pharmaceuticals and agricultural 
chemicals against disclosure and reliance by third parties. Some general protection is provided by 
Indian law against disclosure of test data under the Official Secrets Act and common law principles, but not against reliance. How does Indian law and practice comply with the obligation to 
also protect test data against unfair commercial use pursuant to Article 39.3 TRIPS? How is 
reliance by a second applicant being prevented? Further to the Inter-Ministerial Committee's recommendations of 2007 to introduce a protection period for test data for agrochemical products 
and medicines of three and five years respectively, can India indicate a timeline by when the 
implementation of such a protection regime is expected? Are there any other legislative plans to 
ensure protection against reliance as per Article 39.3 TRIPS?  
Reply:  Article 39 of TRIPS relates to protection of undisclosed information. It deals with protection 
of such information when it is a trade secret and its protection when shared with the marketing regulator for seeking approval.  
 
Article 39.3 relates to the specific case when data pertinent for seeking approval of the authority is 
shared with the marketing regulator. The text of  this Article does not specifically state that 
member countries would need to comply with the re quirement of data exclusivity. It only states 
that the regulator will need to protect it from unfair commercial use. Therefore, no additional 
obligations which are not present in text can be interpreted.  The obligation on the authorities is to keep the test data secret and not allow it to be accessed by third parties through unfair means. 
India complies completely with its obligations under Article 39.3 of TRIPS.  WT/TPR/M/313/Add.1 
 
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  There are no bills in the Parliament on this issue. 
 4 Trade  Policies by Sector 
4.1 Agriculture 
4.1.1 General Policy Framework 
4.1.1.2 Measures affecting exports  
Question No. 27: Para. 4.14  of the Secretariat's Report indicates that export prohibitions and 
quotas for agricultural products are notified annually and in general for specific time periods. However, these measures may be subject to change  even during the specified time period. As the 
Secretariat notes, these changes can diminish the predictability of the regime. How does India 
ensure that relevant national and international actors are not negatively affected by this lack of 
predictability? Does India envisage to make changes to the current regime in the near future?  
Reply:  India's export policies are reviewed from time to time in consultation with the line 
ministries/departments concerned keeping in view the availability of the item, its domestic and 
international prices among other factors. Wherever required, export 
prohibitions/restrictions/export quotas are notified by DGFT by way of a notification in the official 
Gazette. The details of all such notifications are available at http://www.dgft.gov.in . Except for 
prohibition on export of pulses and edible  oils, which were in place since 2006 and 2008 
respectively, export of all agricultural products viz. rice, wheat, milk powders including casein, 
cotton etc.; have been made free as a result of su ch review. In the last few years, export quota 
was notified only for export of cotton, cotton yarn and edible oil in branded consumer packs. As on 
date there is no export quota for any product. 
 
4.1.1.3 Internal measures  
Question no: 28: In para. 4.17  the Secretariat's report states that a key objective of India's 
domestic agricultural policy is stability of food  supply and income support for the nearly 60% of 
the population that is dependent on agricultur e and that this policy is implemented by price 
support, market intervention schemes, in-put subsidies and food subsidies. From an economic 
point of view, such policy measures directly affecting agricultural and food markets can lead to 
inefficiencies in the agricultural sector and to un intended outcomes such as increasing food price 
variability on international markets. In which wa y does India assess the efficiency of these policy 
tools? Is India conducting any monitoring on possible negative effects of such measures on 
international markets, particularly if such commodities are exported? Do the Indian authorities consider agricultural policy reforms towards less market distorting and more targeted policy 
measures? 
 Reply: In view of the objectives of agricultural policy, the Government of India, from time to time 
review the performance of various programmes to ensure that these are met and takes corrective 
measures wherever required. 
 Question no: 29: In para. 4.19  of the Secretariat's Report it is stated that the Food Cooperation 
of India (FCI) which assists the Ministry of Agriculture in implementing agricultural policy is 
occasionally authorized to sell from its stock through open market sales, including for export. Are these stocks acquired by the FCI at minimum support prices? Which criteria are applied for 
authorization for export of such stocks? 
 Reply:  FCI maintains public stocks for food security programmes, which are acquired by it at MSP. 
Government allows FCI to dispose surplus stocks into the domestic market through competitive 
bidding. Occasionally Government has also permi tted FCI to export certain quantity from the 
central stock. However, due to targeted procuremen t for food security, the stocks of food grains 
are within manageable limits obviating any need for exports. WT/TPR/M/313/Add.1 
 
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  SWITZERLAND 
FOLLOW-UP QUESTIONS 
Report by the Secretariat 
 
3.3.5 Intellectual property rights 
3.3.5.2 Patents Para 3.218 
 
Re. Reply to Question 24 by Switzerland (p. 164/165; RD/TPR/432):  Do we understand India's response correctly that under Indian law a local working requirement 
applies in the sense that a patent holder is required to manufacture the patented product in India, 
with the exception that the holder is able to show/prove that local manufacturing was impossible/prohibitive for him to do? 
 
Can India explain how this condition complies with Article 27.1 TRIPS which requires non-discrimination as to whether products are imported or locally produced? 
 
Reply: Article 27.1 of the TRIPS Agreement states that patents shall be available for any 
inventions, whether products or processes, in all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application and that patents shall be 
available and patent rights enjoyable without discrimination as to the place of invention, the field 
of technology and whether products are imported or locally produced.  
It may be noted that Article 27(1) also offers some flexibility as it does not define the parameters 
of novelty, inventive step and industrial applicability, giving WTO members the scope to determine the criteria for how these should be interpreted and applied. Moreover, Article 27 should not be 
read in isolation and other relevant provisions of the TRIPS like preamble of the TRIPS (which 
recognizes the public policy objectives of national systems while adopting TRIPS), Article 7 and 8 of TRIPS and provisions of Article 30 ( Exceptions to Rights Conferred ) and 31 ( Other Use Without 
Authorization of the Right Holder) need to be read conjointly with the Article 27. This conjoined 
reading makes clear the true aspects of some of the flexibilities to the member countries to 
safeguard the public policy objectives of national system.  
 WT/TPR/M/313/Add.1 
 
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  CHINESE TAIPEI 
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/313) 
 SUMMARY 
Page 8&9 (Para 8) 
 India's trade policy objectives are stipulated in its Foreign Trade Policy (FTP), which is issued every 
five years, but revised periodica lly to take into account internal and external factors. The new 
2015-20 FTP, released on 1 April 2015, aims to make India a significant participant in international trade and to raise its share of global exports to 3. 5% in 2020. This is expected to be achieved by 
providing a sustainable and stable policy environment for foreign merchandise and services trade; 
linking rules, procedures and incentives for trade with other recent initiatives such as "make in 
India", "digital India" and "skills India"; promoting the diversification of India's exports by assisting 
key sectors to become more competitive; and creating an architecture for India's engagement with 
key regions of the world. 
 Question 1: Does India have its overall "National Deve lopment Plan"? If so, could India please 
introduce about how to formulate it and its main points? How does India coordinate "National 
Development Plan" with "Foreign Trade Policy"?  
 Reply: A number of initiatives have been taken such as "Make in India", "Digital India" and 
"Skill India" to re-energise the Indian econ omy, spur manufacturing, promote employment, 
develop infrastructure, improve connectivity, develop a skilled workforce etc.  As explained in the Foreign Trade Policy (FTP) Statement 2015 and other documents on the new Foreign Trade Policy 
for 2015-2020, (available at http://www.dgft.gov.in ), there is a synergy between these initiatives 
and India's foreign trade policy. Successful implementation of these will lead to promotion and 
diversification of India's exports. 
II.TRADE policy regime 
(3) Trade Agreements and Arrangements 
(2) Regional and preferential agreements Page 29 (Para 2.23)   
In services, India's agreements are largely based on  a GATS positive list approach and they have 
made incremental improvements to its GATS commitments. However, as stated by India in its most recent services agreement with ASEAN "all th e schedules tabled by India are well within the 
existing autonomous regime of India", suggesting that while commitments on services go beyond 
its GATS commitments, India's applied regime remains more liberal.  
Question 2: 
 
a. Since India's current applied regime is more liberal than its commitments in GATS and 
recently signed FTAs, are there any plans for India to further liberalize the services 
sector under regional or multilateral regimes? 
b. If so, could India please elaborate on th ese plans and the anticipated time frames? 
Reply : India has a liberal FDI Policy for Service Sector s. In many service sectors, FDI is permitted 
up to 100% on automatic route.  Further, it has been the endeavour of the Government of India to 
improve the ease of doing business in India through, inter-alia, providing a stable policy 
environment. 
As regard to reflecting the applied regime in our commitments in regional or multilateral 
agreements, the decision is taken after consultation with all concerned stakeholders. WT/TPR/M/313/Add.1 
 
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  (4) Investment Regime 
(1) Legal framework for business Page 32 (Para 2.33)  
The NIMZ must be declared so by the relevant State Government under the Constitution so that it 
can function as a self-governing and autonomous body.  
Question 3: 
 
a. Could India indicate that foreign investors may engage in NIMZ development? 
Reply:  No 
 
b. Since NIMZs are important for implementing the National Manufacturing Policy (NMP), 
does India have any plans to provide a legal basis for NIMZs' development (such as SEZ 
Act 2005 for SEZs)? 
Reply:  The policy is this regard has been notified. However, the procedures are in the process of 
formulation. 
 
c. If not, could India please provide detailed information regarding the rights and 
obligations of NIMZs? Can they function as self-governing and autonomous bodies? 
Reply:  The details of the NIMZ policy is available at the following link: 
http://dipp.nic.in/English/Polic ies/NIMZ_Guidelines_21032013.pdf  
 
(4) Investment Regime 
(2) Foreign Investment 
Page 34 (Para 2.43)  
A number of investment incentives are provided both by the central and State Governments to 
encourage investment in certain regions or activities (Section 3.3.1). In September 2014, the Government launched the "Make in India" programme which encourages investment in industry and services. 
 
Question 4:  
a. In the "Make in India" programme, which servic es has India targeted for attracting more 
investment?  
b. Could India please elaborate on the measures it has implemented to encourage more 
investment in services? 
Reply: Out of the 25 sectors that have been identified under the "Make in India’ initiative, services 
like tourism, wellness, media and entertainment, IC T etc. have been targeted for attracting more 
investment. All measures being undertaken under the "Make in India" initiative are also extended 
to these services sectors. More details of the of the initiative is available at the following link : 
http://www.makeinindia.com  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(1) Measures Directly Affecting Imports (11) Anti-dumping, countervailin g, and safeguard measures 
PAGE 57-58 (Para 3.79) 
 The Director General (Safeguards) in the Department of Revenue is responsible for hearing the petitions and conducting investigations on safeguards. A request for a safeguard investigation 
must be made in writing to the Director General, by or on behalf of the domestic industry. 
The Director General may also self-initiate an investigation upon information received from any Commissioner of Customs. If the safeguard measures are requested to be imposed for more than 
a year, details of efforts made or planned in orde r to adjust positively to import competition, 
including details of progressive liberalization, must be provided, under the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules 1997. Thereafter, the Director General WT/TPR/M/313/Add.1 
 
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  may initiate an investigation to determine the existence of serious injury or threat thereof to the 
domestic industry, caused by the import of an article in such increased quantities, absolute or relative to domestic production. A safeguard investigation must be completed and notified publicly within eight months of initiation of the investigation (or within the period allowed by the central 
Government). Recommendations of the Director General (Safeguards) are examined by an 
inter-ministerial body (i.e. Standing Board on Safeguards) chaired by the Commerce Secretary. The proceedings of the Standing Board on Safegu ards are not open to the public. Its views are 
placed before the Finance Minister for approval in respect of safeguard duties and before the 
Commerce Minister for imposition of quantitative restrictions. If the central Government, after conducting a safeguard investigation, is satisfied that any article is imported into India in such increased quantities and under such conditions as to cause or threaten to cause serious injury to 
domestic industry, it may, by notification in the Official Gazette , impose a safeguard duty on that 
article. The central Government may exempt any article from payment of the whole or part of the 
safeguard duty upon notification in the Official Gazette . The notification must include the article 
exempted, the quantity exempted, and the article's origin. Matters related to quantitative 
restrictions are conducted by the authorized office r in the DGFT in accordance with the Safeguard 
Measures (Quantitative Restrictions) Rules 2012. 
 
Question 5: As indicated in the Report, the central Government may exempt any article from 
payment of the whole or part of the sa feguard duty upon notification in the Official Gazette . 
The notification must include the article exempted , the quantity exempted, and the article's origin.  
 
Please explain in which circumstances the central Government would exempt an article from payment of the whole or part of safeguard duty. Al so, please explain the factors to be considered 
with regard to the article exempted, the quantity  exempted and the article's origin respectively. 
 Reply:  Imports affected for export production under certain schemes including Advance 
Authorization Scheme are exempted from payment of  safeguard duty. In this regard, the relevant 
customs notifications are Notification Nos.20/2015-Customs, 21/2015-Customs and 22/2015-Customs, all dated 01.04.2015.  
(1) Measures Directly Affecting Imports 
(12) Standards and other technical requirements Page 59 (Para 3.89.) 
 
It also has bilateral cooperation agreements (BCAs) on conformity assessment with the national standards body of Israel, Pakistan and Sri Lanka.  
 
Question 6:  
a. Do the BCAs that India signed with national standards bodies of Israel, Pakistan and 
Sri Lanka involve mutual recognition of conformity assessment results for the BIS Mark? 
Reply:  Within the framework of the conditions ment ioned in the agreements, provision exists for 
mutual recognition of inspection and test reports. 
 
b. If yes, what are the product scopes? Does the recognition of conformity assessment 
bodies rely on the international accreditation arrangements, such as IAF MLA and ILAC 
MRA? 
Reply:  The list of products will be decided after ascertaining that both the parties have technical 
competence and experience in conformity assessment of the relevant product. 
 
Page 60 (Para 3.95) 
 Conformity assessment procedures in India have largely remained unchanged since its previous 
Review; a major exception is the adoption of a new set of rules stipulating a compulsory 
registration scheme under the BIS for various electronic and information technology goods under Electronics and Information Technology Goods (Requirements for Compulsory Registration) 
Order 2012, dated 7 September 2012 (Departmen t of Electronics and Information Technology, 
Ministry of Communication and Information Technology). In addition, regulations stipulating mandatory BIS certification on various products have been introduced; these included the Steel WT/TPR/M/313/Add.1 
 
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  and Steel Products (Quality Control) Order 2012 (Ministry of Steel), Pneumatic Tyres and Tubes for 
Automotive Vehicles (Quality Control) Order 2009  (Department of Industrial Policy and Promotion, Ministry of Commerce and Industry), and Food Sa fety and Standards (Licensing and Registration 
on Food Business) Regulation 2011 (Department of Health, Ministry of Health and Family Welfare) 
 
Question 7:  
For obtaining BIS licenses and certificates for steel and steel products and for pneumatic tyres and 
tubes for automotive vehicles, what are the other requirements set by Quality Control Orders (Orders 2012 and 2009) in addition to other relevant Indian standards?  
Reply : The Quality Control Orders for Steel & Steel products are available on www.steel.gov.in  -
the official website of Ministry of Steel and may please be referred to. The other Quality Control 
Orders for various products are available on BIS website http://www.bis.org.in .  
 
Page 61 (Para 3.98)  
The products are tested in BIS laboratories and in accredited laboratories, recognized by BIS, to 
ensure standard conformity of certified products to relevant Indian standards.  Question 8: 
 
a. What are the criteria that an accredited laboratory shall meet in order to be recognized 
by BIS?  
Reply: The criteria that an accredited laboratory is required to meet in order to be recognized by 
BIS is detailed on BIS website under the URL:  http://www.bis.org.in /lab/lrsIntro.asp . 
 
b. For countries that have not concluded BCAs or MRAs (Mutual Recognition Agreement) 
with BIS, how do laboratories located in those countries obtain recognition by BIS? Are there any such foreign laboratories?  
Reply: Countries with which BIS has not entered into Mutual Recognition Agreement are at liberty 
to apply to BIS for recognition under the Laboratory Recognition Scheme for all products other 
than the electronic & IT products covered under Chapter-IV, Rule 16 of the BIS Rules, 1987. The condition of signing of mutual recognition agreement is indirectly applicable only in the case of 
electronics & IT products. At present, no fore ign laboratory has been recognized under the 
Laboratory Recognition Scheme of BIS.  
Page 62 (Para 3.103) 
 The Legal Metrology Act 2009, the Legal Metrology (Packing Commodities) Rules 2011, and Food Safety and Standards (Packaging  and Labellin g) Regulations 2011 regulate labelling requirements 
in India. There is no mandatory labelling requirement for genetically modified products. The Food 
Safety and Standards (Packaging and Labelling) Regulation 2011, notified on 10 July 2013, stipulates that domestic manufacturers are obliged to display the licence number and the FSSI 
logo on the label from 1 January 2015. The author ities state that the Regulations are not notified 
to the WTO since they are not intended to be applied to India's trading partners. If relevant products are imported, importers are allowed to affix labels with respect to the licence number and 
FSSI logo on the products. 
 Question 9: "The Legal Metrology Rules" of India, in  terms of the rules of showing date of 
production, date of import, date of expire on the imported items, the time period between date of 
import and date of expire have to be kept be low 60% of the total preservation period, and the 
Maximum Market Price (MRP) price must be shown on  the imported items. With the influences of 
shipping date, weather condition, difficulty of counting MRP price and other man-made or 
non-man-made factors, the date of import and MRP price cannot be predetermined before the 
shipping date. If the required information provid ed by exporters fails to meet the requirements 
shown due to the predetermination difficulties, does the India authority provide any remedies for 
the foreign exporters? Or the penalties will be implemented directly? 
 WT/TPR/M/313/Add.1 
 
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  Reply: Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011 grants the Central 
Government the power to relax the rules after a scertaining the genuineness permit a manufacturer 
or a packer to pack for sales the packages for reasonable period by relaxing one or more provision of these Rules with such corrective measures as may be specified.  
 
(1) Measures Directly Affecting Imports (13) Sanitary and phytosanitary requirements 
Page 63 (Para 3.111) 
 The authorities consider it imperative to conduct all plant quarantine inspections as per international standards/guidelines. Accordingly, the National Standards for Phytosanitary Measures 
for Important Activities have been developed and adopted to facilitate the export and import of 
agricultural commodities. To streamline plant quarantine activities, efforts have been made to fully computerize plant quarantine stations for spee dy and transparent functioning. The web-based 
Plant Quarantine Information System (PQIS) is op erational and providing online plant quarantine 
services.  
Question 10: Our exporters have expressed concern abou t different provinces having different 
import requirements on the same plant products when applying for the import permits before exporting. Could India explain why the same pl ant commodity may need different phytosanitary 
requirements stated on the import permits among the different provinces? 
 
Reply:  The country specific Phytosanitary import conditions are arrived based on Pest Risk 
Analysis (PRA) and hence the conditions may vary from country to country based on the pest 
prevalence. 
 (1) Measures Affecting Production and Trade 
(4) Government procurement 
Page 81 (Para 3.190)  Since 2012, the use of e-procurement has become th e norm in government procurement in India. 
All ministries/departments of the central government must use e-procurement to publish all tender 
enquiries (from 1 January 2012), CPSEs from 1 Fe bruary 2012, and autonomous/statutory bodies 
from 1 April 2012.  On 5 October 2012, the Department of Telecommunications issued a 
notification concerning its policy for according preference to domestically-manufactured telecom 
products in procurement due to security considerations.  
Question 11: The Department of Electronics and Informational Technology (DeitY) published the 
list of products for Preferential Market Access (PMA) and noted that the list might also undergo 
change in July 2013. Will the India side provide an y clarification on whether any change have been 
made and to provide the latest list of products for PMA?  
 
Reply:  The policy for providing preference to dome stically manufactured electronic goods was 
earlier notified vide DeitY Gazette Notification da ted 10.02.2012 due to security considerations and 
in Government procurement.  
 DeitY has issued revised product Notifications dated 22.05.2014 for 6 Electronic Products (Desktop 
PCs, Dot Matrix Printers, Tablet PCs, Laptop  PCs, Smart Cards, LED Products) and product 
Notifications dated 01.10.2014 for three new Electronic Products (Biometric Access Control/ Authentication Devices, Biometric Finger Print Sensors and Biometric Iris Sensors).   
Page 96 (Para 3.262) 
 In 2004, an Inter-Ministerial Committee was set up to make recommendations on test data 
protection. In its report submitted on 31 May 2007, the Committee recommended, inter alia , that 
the term of data protection for agricultural chemical products should be three years from the date of marketing approval in India; that the term of data protection for traditional medicines should be 
five years from the date of marketing approval an d that there should be an indefinite transition 
period for pharmaceuticals. After the transition period, the term of data protection would be five years from the date of the first marketing approval anywhere in the world. These recommendations are reportedly being co nsidered by the Ministry of Commerce and 
Industry, Ministry of Agriculture and Ministry of Health. WT/TPR/M/313/Add.1 
 
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  Question 12: As for the term of data protection, please elaborate about the indefinite transition 
period for pharmaceuticals and what the new development with respect to the data protection for pharmaceuticals is.  
Reply:  Article 39.3 relates to the specific case when data pertinent for seeking approval of the 
authority is shared with the marketing regulator. The text of this Article does not specifically state that member countries would need to comply with the requirement of data exclusivity. It only 
states that the regulator will need to protect it from unfair commercial use. Therefore, 
no additional obligations which are not present in text can be interpreted. The obligation on the authorities is to keep the test data secret and no t allow it to be accessed by third parties through 
unfair means. India complies completely with its obligations under Article 39.3 of TRIPS. 
 
IV. Trade Policy by Sectors (4) Service 
(1) Financial services 
Page 113 (Para 4.70)  
On 6 November 2013, the RBI announced the "Scheme for Setting-Up of Wholly-Owned 
Subsidiaries (WOS) by Foreign Banks in India" ba sed on the principles of reciprocity and single 
mode of presence. …A foreign bank opting for the branch form of presence must convert into a WOS when such conditions become applicable to it, or when it becomes systemically important on 
account of its balance-sheet size in India. (Notes no.59)  Foreign banks that commenced banking 
business in India before August 2010 have an option to continue their banking business through the branch mode. 
 
Question 13:  
a. Could India please provide us with further information regarding the implementation of 
the "Scheme for Setting-Up of Wholly-Owned Subsidiaries by Foreign Banks in India"? 
How many foreign banks have applied to set up wholly-owned subsidiaries or convert their existing branches into wholly-owned subsidiaries? 
b. We would appreciate it if Indian authorities can inform us if there is any intention to 
allow foreign banks to establish more branches. 
Reply: The Reserve Bank of India (RBI) released th e framework for setting up of Wholly Owned 
Subsidiaries (WOS) by foreign banks in India in November, 2013. The same is available on the RBI 
website http://www.rbi.org.in . RBI has so far given approval to two banks –one for conversion and 
one for setting up of WOS in India. Further, a foreign bank currently having branch presence in 
India applied for conversion to WOS. 
 The branch expansion of both the existing fore ign banks and the new entrants present in the 
branch mode would be subject to RBI's Branch Licencing Policy. The guidelines on branch 
authorization presently applicable to domestic scheduled commercial banks and as amended from 
time to time would generally be applicable to WOS of foreign banks. In accordance with extant guidelines, WOS would be permitted to open branches in India (except at certain sensitive 
locations) without having the need to take prior permission from Reserve Bank of India in each 
case.  
(4) Service 
(3) Transport Page 124 (Para 4.114)  
The Merchant Shipping Act 1958, as amended, says th at the cabotage, in principle, is reserved to 
Indian flag vessels (Part XIV). Nonetheless, the Act, in Sections 406 and 407, enables applications to be considered for relaxation from cabotage on a case-by-case basis, subject to the guidelines 
prescribed for the purpose. 
 Question 14: 
 
a. What are the criteria used in evaluating the application for relaxation from cabotage? WT/TPR/M/313/Add.1 
 
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  b. For a better understanding of India's shipping policy, we would like to ask India to 
elaborate on its policies or regulations on container repositioning and inland water transportation. 
c. Is inland water transportation open to foreign vessels?  
Reply:   
 a. The cabotage relaxation for container repositioning are given only on case- to- case basis, 
keeping in view any hardship caused by an collision/ accident, restrictions imposed by any 
particular ports due any technical /installation of RMQC, industrial action by workers of a port, or 
on receipt of No Objection Certificate from the Indian national Ship-owners Association [INSA] on a particular request based on some urgent requirements etc. 
 
b. The Directorate General of Shipping, Government  of India have issued guidelines for grant of licenses to foreign flag vessel under clause (3) of section  406 and clause (2) of section 407 of the 
Merchant Shipping Act, 1958, initially vide Shipping Development Circular No. 2 of 2002 dated 
08.11.2002 which has further been revised by DGS Circulars No. 07 of 2003 dated 11.06.03, 08 of 2003 dated 14.08.03 [read with memorandum dated 21.11.03 and 31.12.03], Shipping 
Development Circular No. 01 of 2008 dated 25.04.08 [read with memorandum dated 13.05.08, 
amendment dated 22.07.08], & other later circulars. All circulars are available on the official website of the Directorate General of Shipping, Govt. of India [ http://www.dgshi pping.gov.in ]. 
By clicking on "Shipping Notices" link available on the home page of the website, all DGS orders & 
DGS circulars pertaining to Shipping Development branch may be accessed. I t may be noted that 
no permission to any foreign flag vessel can be granted, unless a No Objections Certificate [NoC] 
is issued from the Indian National Ship-owners Association [INSA]. INSA need to ensure that no 
Indian flag vessel is available to carry out the work proposed to be done by foreign flag vessel. 
Once NoC from INSA is granted, the permission to relax cabotage [i.e. license to operate for Indian coastal trade] is granted. 
 
c. Inland transportation is allowed only for Indian ships.  Page 125 (Para 4.122) 
 
India has ratified 32 such IMO instruments (out of 55) with currently six others are being considered. 
 
Question 15:  
a. Following ratification, does India internalize these IMO instruments into domestic 
regulations for implementation? 
b. What are the 6 IMO instruments being considered?  
Reply :  
 
a. Indian national legislation is suitably amended, time to time, through appropriate Parliamentary process, so as to give effect to the implementa tion of an International Convention/instrument, 
to which India becomes a party.  
 b. The following are the six International Conventions which are under consideration: 
 
i. AFS CONVENTION (International Convention on the Control of Harmful Anti-fouling 
Substances on Ships) 2001. 
ii. Maritime Labour Convention, 2006. 
iii. BWM Convention (International Convention  for Control and Management of Ship’s 
Ballast Water  and Sediments) 2004 WT/TPR/M/313/Add.1 
 
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  iv. BUNKER CONVENTION (International Convention on Civil Liability for Bunker Oil 
Pollution Damage) 2001. 
v. OPRC/HNS (Protocol on Preparedness, Re sponse and Co-operation to Pollution 
Incidents by Hazardous and Noxious Substances) 2000. 
vi. Protocol of 1996- Convention on Prevention  of Marine Pollution by Dumping Waste & 
other matter (London Convention 1972). 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/313) 
2. ECONOMIC ENVIRONMENT  
2.6 MAJOR CHALLENGES Page 10 (Para 4)  
The Government's "Make in India" initiative aims to promote the country as an investment 
destination, spur manufacturing and promote employment. It also envisages the development of infrastructure including i-ways besides highways, ports, optical fibre networks, gas grids and water 
grids. 
 Question 16: 
 
a. What are the specific goals, strategies and concrete measures of the "Make in India" 
initiative?   
b. Does the Government of India provide any investment or industrial cooperation 
opportunities for foreign countries to participate in the "Make in India" initiative? 
To compete with China, are there any investment incentives to attract foreign investors?  
Reply (a) & (b): India has a policy of attracting investments into the country. Details are available 
at http://www.makeinindia.com .  
 
III. The new reform agenda 
(3) Reforms in FDI Policy 
Page 12 (Para 3)  The Government has liberalized the FDI policy in the defence sector by raising the FDI cap from 26 
to 49%. Further, FDI above 49% has also been allowed subject to approval by the Cabinet 
Committee on Security, to allow access to modern and "state-of-art" technology. 100% FDI under the automatic route has been allowed in specified rail infrastructure projects. The Indian 
Parliament has recently passed the Insurance Laws (Amendment) Bill 2015 which, among others, 
raises the FDI cap in the insurance sector from 26 to 49%. It was announced in the Budget 2015-16 that in order to further simplify the procedures for Indian companies to attract foreign 
investments, there would no longer be any distinction between different types of foreign 
investments, especially between foreign portfolio investments and foreign direct investments; instead there would be a composite cap. The sectors which are already on a 100% automatic route would not be affected.  
 
Question 17: Would India please provide an update on its simplified procedures for attracting 
foreign investments?  
 
Reply: DIPP has recently issued a Consolidated FDI Policy Circular dated 12, May, 2015 giving 
details on policy and FDI caps across sectors. It can be accessed at the following link: 
http://dipp.nic.in/English/P olicies/FDI_Circular_2015.pdf  
 WT/TPR/M/313/Add.1 
 
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  THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 2. TRADE AND INVESTMENT REGIME 
 
Page 32 (paragraph 2.36)   
Question 1:  India's FDI Policy as launched in the Circular on Consolidated FDI Policy, has 
specified prohibited sectors and permitted sectors for FDI. In this connection, Chapter 6: Sector 
Specific Conditions on FDI, stipulated that in sectors/activities not listed under neither the prohibited sectors nor permitted sectors, "FDI is permitted up to 100% on the automatic route, 
subject to applicable laws/regulations; security and other conditionalities". Does this mean that 
foreign investors can invest in all other sectors up to 100%? Are there any other regulations concerning limitations on FDI that should be made aware to foreign investors?  
 
Reply:  Details of FDI policy and the related sector al conditions are available in the updated 
Consolidated FDI Policy Circular of 12th May, 2015 (that can be accessed at 
http://dipp.nic.in/English/P olicies/FDI_Circular_2015.pdf ) 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 47 (Table 3.8)  
 Question 2:  Please provide the rationale behind India' s import prohibitions on Telephone sets 
(HS 8517). Furthermore, please clarify the statistics  from the World Trade Atlas, where in contrast 
to the measure of import prohibition for Telephone sets, the statistics indicated that the products were indeed imported into India during 2012-2014. 
 
Reply:  Import of telephone sets under HS Code: 8517 is "free". However, import of "GSM mobile 
handsets" (classified under ITC (HS) code "8517") without International Mobile Equipment Identity 
(IMEI) No., with all zeroes IMEI, duplicate IMEI or  fake IMEI is "Prohibited". Further, import of 
"CDMA mobile handsets" (classified under ITC (HS) code "8517") without Elec tronic Serial Number 
(ESN)/Mobile Equipment Identifier (MEID), with all Zeroes as ESN/MEID, duplicate ESN/MEID or fake ESN/MEID is "'Prohibited". 
 
4. TRADE POLICIES BY SECTOR  
Page 102 (paragraph 4.16) 
 Question 3:  With regard to the price support scheme (PSS), Thailand understands that India sets 
a minimum support prices (MSP) for major commodities and have government-designated 
agencies (Food Corporation of India) intervene in the market to purchase at the MSP when prices 
of the relevant commodities fall below the MSP.  While under the market intervention scheme 
(MIS), other State-designated agencies purchase  perishables not covered under the MSPs at a 
market intervention price (MIP) when prices decline. Please elaborate on how the minimum 
support price, market intervention price, and export price are determined.  
Reply:   
 Minimum Support Price (MSP):  MSP for a particular commodity is decided and fixed taking into 
account various factors including the cost of production, overall demand- supply, prices in 
domestic and international markets, inter crop pric e parity, the likely effect of the price policy on 
the rest of the economy, terms of trade betw een agriculture and non-agriculture sectors and 
rational utilization of natural resources, namely, land and water.  
 
Market intervention price (MIP):  MIP is decided by a committee consisting of representatives of the 
Ministry of Agriculture, State Governments, Nation al Agricultural Cooperative Marketing Federation 
of India (NAFED), Ministry of Finance and the Dire ctorate of Economics & Statistics (under Ministry WT/TPR/M/313/Add.1 
 
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  of Agriculture) taking into account the cost details furnished by States/Union Territory 
Governments.  
 QUESTION REGARDING THE REPORT BY THE GOVERNMENT 
 
Page 12 (paragraph 3.3)   
Question 4:   To promote India as an investment destination and achieve trade policy goals, the 
government of India had established 352 Special Economic Zones by the end of 2014. The Government furthered its efforts with launching of the "Make in India" programme covering 25 industrial and service sectors. Please elaborat e the differences between incentives of the Make 
in India initiative and the Special Economic Zones. 
 Reply:  "Make in India" programme recently launched  by the Govt. of India is targeted towards 
making India an investment destination and global hub for manufacturing, design and innovation 
‘Make in India’ recognizes ‘Ease of doing busine ss’ as most important factor and in addition 
Government intends to develop industrial corridor and smart cities to provide infrastructure based 
on state of art technology. This programme has identified 25 sectors in manufacturing, 
infrastructure and service activities. A number of initiatives have been included in the budget 2015-16 to strengthen and improve investment environment. No specific incentives have been extended under the initiative.   
 
Incentives extended to SEZs are restricted to SEZ Developers/Co-develope rs/Units only. List of 
incentives under SEZ scheme may be seen at Annexure. 
 
Page 14 (paragraph 4.4)   
Question 5 : India has a policy of creating and exporting value-added agricultural and high 
technology products that are important to regional value chains; Complimentarily, Thailand has a policy to link value chains with other countries, including India. In this regard, please identify the particular processed agricultural products that are of India’s focus. Additionally, please provide 
more details on the Cold Storage Chain Logistics Policy. 
 Reply: India is manufacturing and exporting Me at products, Egg powder, Basmati Rice, Food 
preparations, Biscuits and Cereal based products, Sugar confectionery, Fruits and Vegetable 
products, Dehydrated Onion, Mushrooms, Orange and Pineapple juice, Guar gum, Soya products, 
Gherkins, Honey and Alcoholic Beverages, etc. 
 
To arrest post-harvest horti/non-horti losses, the Ministry of Food Processing Industries is implementing a Central Sector Scheme of Co ld Chain, Value Addition and Preservation 
Infrastructure since 2008-09 throughout the country. Under this scheme, assistance is provided 
for setting up integrated cold chain infrastructure in the country. 
 OTHER QUESTIONS 
 
Question 6:  Report from Kingsman on 19 February 2015 stated that the Government of India 
approved the subsidization of sugar for export. Please provide information related to this measure. 
 
Reply:  The model of the Indian sugar industry is qu ite different from the models in many other 
parts of the globe. The sugar mills in the country neither own the sugarcane fields nor undertake contractual cultivation. The raw material for the sugar industry viz sugarcane, is cultivated by an 
estimated 5 million farmer families who are low income and resource poor on individual land 
holdings which are extremely small and scattered and in general range from 0.5 to 2 hectares.  The interventions by the government is to facilit ate payment of arrears to farmers by the sugar 
mills. 
 Annexure 
 
Fiscal benefits and duty concession offered to SEZ Developers and units:    (I) THE INCENTIVES AND FACILITIES OFFERED TO THE UNITS IN SEZS FOR ATTRACTING 
INVESTMENTS INTO THE SEZS, INCLUDIN G FOREIGN INVESTMENT INCLUDE:-  WT/TPR/M/313/Add.1 
 
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 Duty free import/domestic procurement of goods for development, operation and 
maintenance of SEZ units 
 100% Income Tax exemption on export income for SEZ units under Section 10AA of the 
Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the 
ploughed back export profit for next 5 years. 
 External commercial borrowing by SEZ units upto US $ 500 million in a year without any 
maturity restriction through recognized banking channels. 
 Exemption from Central Sales Tax.  
 Exemption from Service Tax. 
 Single window clearance for Central and State level approvals.  
 Exemption from State sales tax and other levies as extended by the respective State 
Governments.    
(ii) The major incentives and facilities available to SEZ developers include:- 
 
 Exemption from customs/excise duties fo r development of SEZs for authorized 
operations approved by the BOA. 
 Income Tax exemption on income derived fr om the business of development of the SEZ 
in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. 
 Exemption from Central Sales Tax (CST).  
 Exemption from Service Tax (Section 7, 26 and Second Schedule) WT/TPR/M/313/Add.1 
 
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  TRINIDAD AND TOBAGO 
Report by the World Trade Organization (WTO) Secretariat (WT/TPR/S/313) 
 SECTION 3: Trade Policies and Practices by Measure 
(3.1) Measures Direct ly Affecting Imports 
(3.1.1) Customs procedures and requirements  
Paragraph 3.29 (page 35):  It is noted that India has undertaken several initiatives to improve 
customs procedures and as such facilitate trade. For example, India has begun self-assessment activities where importers/exporters are requir ed to declare the correct description, value, 
classification, etc. of goods and assess the custom s duty leviable on imports/exports. Additionally, 
several services have been made available online , for example, registration for importer/exporter 
codes and the online processing of bills on entry.   
 Can India indicate whether the Trade Facilitation Agreement was a reason for the 
upgrading of its processes? If no, what were the reasons for upgrading? 
Reply:  Over the years, India has been taking several initiatives autonomously to improve customs 
procedures and facilitate trade. For example, self-assessment in Customs had been introduced 
with an objective to curtail time of clearance and the associated costs by relying on the declarations filed by importers and exporters. Subjecting only those consignments that are 
perceived to be risky to re-assessment resulted in faster clearance of balance consignments.  
 
(3.1.10) State trading  
Question (Paragraph 3.55 (page 52):  The Report makes notes of the exclusive rights accorded 
to import 11 agricultural products. Will the rights of these products be given to another STE? If so, are there any intentions to not have these products controlled permanently by an STE in the 
future?  
 Reply: As per the current policy, the products which are under the STE category can be imported only by the concerned STEs or by other entities given NOC by these STEs. 
 
Over the years, India has been making necessary changes in the STE policy from time to time.  
(3.1.5) Other charges affecting imports 
 In this section, the Report highlights that Indi a imposes several charges other than customs duties 
on imports. These charges include anti-dumping duties, education cess charges, special additional 
duties (SADs), etc. In table 3.5 on page 43, it was revealed that these charges can cause the final import tax of a product to increase significantly. For example, for manufacturing products, the average applied customs duty is 12.1% howe ver, when other import charges are added, 
this increases the total charge to an average of 28.1%.  
 
 Does India intend to review its system of import changes in the near future? 
Reply:  India is in the process of introducing the Goods and Services tax, which will streamline a 
number of duties, both for domestic transactions and imports.  
(3.2) Measures Direct ly Affecting Exports 
(3.2.6) Export Support and Promotion (3.2.6.1) Special Economic Zones (SEZs)  
(a) Paragraph 3.136 (page 68):  It was noted that the benefits accorded to firms established 
in a SEZ have remained largely unchanged since India's previous Review with few exceptions. 
Are there any plans to introduce additional measures to improve benefits accorded to firms 
established in a SEZ? If yes, what are these measures? 
 WT/TPR/M/313/Add.1 
 
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  Reply:  Since 2012, Minimum Alternate Tax (MAT) has been introduced on the book value of the 
profit of the SEZ units, thereby nullifying the benefit of income tax exemption being availed by such units. So far as future benefits are concer ned, it would be difficult to predict the same. 
(3.2.6.3) Drawback Schemes 
Paragraph 3.146 (page 71):  Given that the framework of drawback schemes has been largely 
unchanged since India’s last Review, are there any intentions of completely removing the this system? 
 
Reply:  Drawback schemes rebates the central indirect taxes on inputs used the export product 
and is as per the WTO ASCM.  
(3.3) Measures Affectin g Production and Trade 
(3.3.5) Intellectual Property Rights (3.3.5.1) Introduction 
 
Paragraph 3.207 (page 84):  What are the reasons for the mentioned fall in the rank of the 
Global Innovation Index 2014? 
 
Reply:  The Global Innovation Index (GII) measures national innovation performance based on a 
set of variables related to both innovation input and output. The innovation input index is a function of institutions, human capital and research, infrastructure, market sophistication and 
business sophistication. The output index considers knowledge and technology outputs as well as 
creative outputs. GII which is calculated on above indices, may not be conclusive for comparing annual positions of any country over consecutive years as the methodology of evaluation gets 
modified every year. Scores and rankings from one year to the next are not directly comparable. 
Each ranking reflects the relative positioning of that particular country/economy on the basis of the conceptual framework, the data coverage, and th e sample of economies-elements that change 
from one year to another. Therefore, making infe rences about absolute or relative performance on 
the basis of year-on-year differences in rankings may not present a clear picture.   4: Trade Policies by Sector 
(4.3) Services 
(4.4.1) Financial Services (4.4.1.1) Banking 
(4.4.1.1.2) Commercial Banks  
 Paragraph 4.63 (page 112):  The Report states that domestic banks are mandated to specifically 
open branches anywhere annually, provided that 25% of the branches are open in rural India. 
Is there are parallel stipulation for foreign – owned banks?  Reply:  The general permission granted to domestic scheduled commercial banks for opening 
branches in India is not applicable to branches of foreign banks. 
 The guidelines on branch authorisation presently applicable to domestic scheduled commercial 
banks and as amended from time to time would generally be applicable to Wholly Owned 
Subsidiaries (WOSs) of foreign banks.  
However, WOS would require prior approval of RBI for opening branches at certain locations that 
are sensitive from the perspective of national se curity and the general permission would not be 
applicable to opening of branches in such centres.  
(4.4.3) Transport 
(4.4.3.2) Air Transport  
Paragraph 4.136 (page 128):  Trinidad and Tobago enquires why the decision was made for 
passengers who are embarking/disembarking from the north-eastern region to be exempted from the passenger service tax as opposed to passengers from other regions? 
 
Reply:  As has been indicated in the relevant notification itself, the Central Government had 
decided to exempt passenger service tax for passengers who are embarking/disembarking from the north-eastern region as opposed to passengers from other regions, mainly in the public 
interest. WT/TPR/M/313/Add.1 
 
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  TURKEY 
THE SECRETARIAT REPORT 
 2.2.2 Trade policy goals, 2.4.2.1 Policy an d 2.4.2.2 Incentives, pg. 26, 33 and 34, 
para. 2.13, 2.41 and 2.43 
 The Secretariat report mentions multiple times about the "make in India" campaign initiated by 
the Government. It is reflected in the report that the campaign aims to raise foreign investment, 
as the report maintains:  
2.13. Increasing India's share in global exports remains the main thrust of the 
Government's trade policy goals. The main goal of the FTP 2009-14 was to make India 
a global player in World trade by doubling its share of global trade by 2020.  (…) Its 
goal is to make India a significant participant in international trade and to raise India's 
share of global exports from 2% to 3.5% by 2020. This is expected to be achieved by 
providing a sustainable and stable policy  environment for foreign merchandise and 
services trade; linking rules, procedures and incentives for trade with other recent 
initiatives such as "make in India", "digit al India" and "skills India"; promoting the 
diversification of India's exports by assisting key sectors to become more competitive; and creating an architecture for India's engagement with key regions of the world. (…)  
2.41. Most recently (on 25 September 2014) as  part of the "Make In India" campaign, 
the Government raised the FDI limit in defence from 26% to 49% and permitted 
portfolio investment in defence up to 24% through the automatic route. In addition, up to 100% FDI will be permitted in defence industries for "modern state-of-the-art 
technology" on a case-by-case basis.  (…) and 
2.43. A number of investment incentives ar e provided both by the central and State 
Governments to encourage investment in certain regions or activities (Section 3.3.1). 
In September 2014, the Government launched the "Make in India" programme which 
encourages investment in industry and services." 
It is stated in the report that the target is to increase exports via increasing foreign investment. 
From examining the relevant webpage ( www.makeinindia.com ) it is seen that a total of 25 sectors 
including automobiles, aviation, chemicals, pharmaceuticals, construction, machinery and 
media entertainment is included among the target sectors.   
Could the Delegation of India detail the "make in India" project? Are there any requirements like 
using local content or sharing know-how in order to benefit from the said programme?    
Reply: Complete details about the "Make in India" initiative are available at : 
http://www.makeinindia.com . 
 
2.3.2.1 Regional Trade Agreements, pg.30, para.2.24 
 
It is stated in the Report that "There have been concerns expressed in recent years regarding the potentially negative impact of RTAs, notably on  Indian industry. The Department of Commerce 
recently conducted an internal analysis of variou s FTAs, and found that the utilization of several 
FTAs by India's FTA partners was not significant. Given the low impact of FTAs on Indian industry, 
it is not clear what the immediate benefits of existing FTAs are and what if any implications for 
India's policy there may be on its current RTA negotiations. According to the authorities each 
negotiation is driven by the overall balance of interests with the specific trading partner".  Could India kindly provide details about concerned negative impacts of RTAs mentioned above? 
Have the Indian authorities had an analysis in order to detect the problems leading to this 
negative impact?  
Reply:  The internal analysis has only covered countries in East Asian region which whom India has 
an FTA. It is for the trading partners to analyse the level of preferential imports vis a vis the total WT/TPR/M/313/Add.1 
 
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  imports into India. However, some of the possi ble reasons could be the low level of awareness 
among exporters of the FTA, administrative i ssues such as the procedure for obtaining the 
certificate of origin, tariff liberalization may not have been completed etc. The Government of India is engaged in the task of increasing the awaren ess of the FTAs for the domestic stakeholders. 
In this context, the Government of India has conducted FTA outreach programmes across the 
country, facilitated the development of a trade in formation portal and disseminated information on 
FTAs on its website. 
 
2.4.1.1. Compulsory Industrial Licensing, pp. 32, para. 2.33. 
 It is stated in the report that "In November 2011, the DIPP also notified the National 
Manufacturing Policy (NMP) whose overall goal is to raise the share of manufacturing in GDP to 
25% and create 100 million jobs over a decade or so. To implement the policy, national investment and manufacturing zones (NIMZs) have been created which provide infrastructure, 
land use on the basis of zoning, clean and energy-efficient technology and social infrastructure and 
skill development facilities. The NIMZs are to be declared industrial townships with their own planning and investment clearance facilities. According to the authorities these will be different 
from special economic zones (SEZs) in terms of si ze, infrastructure, governance structures related 
to regulatory procedures, exit policies and fiscal incentives. The NIMZ will be much larger – a minimum of 5,000 hectares, compared to 500 hectares for a SEZ – although sector-specific NIMZs can be as small as 50 hectares; incentives for the NIMZ will include assistance with water and 
environment audits, easing access to finance, rationalization and simplification of business 
regulations, as well as for acquiring technology, compared to tax incentives provided for SEZs."  
Could India provide a clarification regarding the effects of creating National Investment and 
Manufacturing Zones on raising the share of manufacturing in GDP as stated in the Report?  
Reply:  
 Government has granted "in-principle" approval to a total of 20 National Investment and Manufacturing Zones (NIMZs), out of which 12 NIMZs are located outside the Delhi-Mumbai 
Industrial Corridor (DMIC) region. These are: (i) Nagpur in Maharashtra (ii) Prakasam in Andhra 
Pradesh (iii) Chittoor in Andhra Pradesh (iv) Meda k in Telangana and (v) Tumkur in Karnataka (vi) 
Kolar in Karnataka (vii) Bidar in Karnataka (viii) Gulbarga in Karnataka (ix) Kalinganagar, Jajpur 
District in Odisha (x) Ramanathapuram District of Tamil Nadu (xi) Auraiya District in Uttar Pradesh 
and (xii) Jhansi District in Uttar Pradesh.  
Under phase-I of the DMIC project, 8 Investment Regions have also been accorded 'in-principle' 
approval of Government for setting up as NIMZs as per guidelines approved by the Government. 
These are (i) Ahmedabad-Dholera Investment Region, Gujarat; (ii) Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra; (iii) Mane sar-Bawal Investment Region, Haryana; (iv) 
Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan; (v) Pithampur-Dhar-Mhow 
Investment Region, Madhya Pradesh; (vi) Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh; (vii) Dighi Port Industrial Area, Maharashtra; and (viii)Jodhpur-Pali-Marwar Region in 
Rajasthan. 
 The effect of this policy on increasing the shar e of manufacturing in GDP and creation of jobs 
would be realised in due course. 
 3.1.4.1 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Tariffs - Applied Tariffs, pg. 38, para. 3.18 
 
It is highlighted in the Secretariat Report that "…However, the "effective" tariff rate at any given time of the year, can be considerably different from the statutory rate due to general and 
"end-user" based exemptions which lower the standard rate for certain users and adjustments 
made to the tariff through notifications issued in the Gazette of India which may lower or raise the standard rate. The effective tariff can therefore vary throughout the year due to these changes 
which add to the complexity of the tariff and uncertainty for traders." 
 Could India kindly explain whether there are any preparations for a plan/programme to eliminate this complexity in applied customs duties in terms of "effective" and "standard" rates? 
 WT/TPR/M/313/Add.1 
 
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  Reply:  The statutory rate of duty is the rate prescribed under the Customs Tariff Act, 1975. 
However, under Section 25 of the Customs Act, 1962, the Central Government is empowered to 
grant exemption from the tariff rate of duty [effect ive rate of duty]. Accordingly, keeping in view 
the interests of the industry and consumers and emergent conditions, the government specifies 
"effective" rates of duty. 
 3.1.4.1 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Tariffs - Applied Tariffs, pg. 40, para. 3.22 
 It is underlined in the Secretariat Report that:  
"The simple average applied MFN tariff in 2014-15 is 13%, up from 12% at the time 
of the last Review (2010-11). The overall increase is mainly due to a rise in tariffs in agriculture (WTO definition), whose overall average at 36.4% remains considerably 
higher than the average for non-agricultural products (9.5%). The increase in the 
average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% in 2014-15), oilseeds and fats 
(from 18.5% to 33.2%), and sugars and confectionary (from 33.4% to 41%). Above 
average tariff protection is also found in a number of other products such as beverages, spirits and tobacco (77.5%), and coffee and tea (74.8%)." 
Considering the abovementioned escalations in applied MFN tariffs, could India kindly state the 
main motive in getting relatively more protectionis t in "sensitive" products in the course of time? 
 Reply:  India has been unilaterally reducing its tariffs on both agricultural and non-agricultural 
goods. Applied MFN on non-agricultural goods is  less than 10%. For certain items the effective 
import tariffs are changed as a response to price volatility in the domestic market and a measure of balancing the interests of consumers and farmers. 
 
Moreover, these revisions in tariffs are well within India's WTO commitments.  3.1.5 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Other Charges Affecting Imports, pg. 43, para. 3.29 
 It is specified in the Secretariat Report that "T he addition of these duties and charges to the 
applied tariff raises the actual duty paid by the importer significantly above the effective applied 
tariff rate. All imports, unless exempt, must pay the effective rate of customs duty, plus the AD, plus any cess applicable, and the Education and Higher Education Cess; the 4% SAD is then 
calculated as a share of this final value. As a result, the overall average applied tariff including 
such charges rises from 13% to 28.3%, with the final duty charged for agricultural products (WTO definition) rising from 36.4% to 46.1% and for non-agricultural products from 9.5% to 25.6%." 
 
Bearing in mind that duties and charges mentioned above may constitute noteworthy barriers on imports, could India kindly express its perspectiv e about these duties and charges from aspects of 
trade liberalization and ease of doing business? 
 Reply:  Additional Duty of Customs (CVD) is levied at a rate equivalent to the rate of excise duty 
charged on the domestic production of a similar item. Similarly, Education Cess and Higher 
Education Cess charged as a percentage of the Excise Duty for domestic goods was also charged on similar imported goods. However, w.e.f 01.03.2015, Education Cess and Secondary & Higher Education Cess leviable on all excisable goods has been fully exempted. Simultaneously, the 
standard ad valorem rate of duty of excise (i.e . CENVAT) has been increased from 12% to 12.5%.  
 Similarly, Special Additional Duty (SAD) is charged on imported goods in lieu of sales tax/value 
added tax charged on the domestic sale of goods. 
 Both these taxes are in the nature of equalizing taxes and thus would apply to imported goods so 
as to provide a level playing field for domestic industry. Hence, there are no additional charges on 
the imports and completely in conformity of global practices.  WT/TPR/M/313/Add.1 
 
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  3.1.6 Tariff concessions, pp. 44, para. 3.31 
 It is mentioned in the report that: "Under Section 25 of the Customs Act, 1962, the central Government may, by notification in the Official Gazette, exempt generally or absolutely or subject 
to any stated conditions, imports from the whole or part of the customs duty leviable. The majority 
of such tariff concessions are announced with the Annual Budget through a notification by the Ministry of Finance (Department of Revenue) an d are provided under the various schemes to 
encourage exports and investment (Section 3.3.1). However, tariff concessions and exemptions 
may also be announced throughout the year through notifications issued in The Gazette of India. The concessions can be either product- and tariff- line-specific but many are also based on end-or 
industrial-use and therefore difficult to include in the overall analysis of the tariff." 
 
Given the difficulty of including tariff concessions applied by India in the overall analysis of the tariff, could India explain how it ensures that these concessions are not constituting non-tariff 
barriers to trade? 
 Reply:  Information regarding charges, taxes, levies and fees to be paid by importers/exporters 
are be accessed at http://cbec.gov.in  and at https://www.icegate.gov.in. A Tax Calculator is also 
available on both the websites. This makes Indi a's tariff regime transparent and predictable. 
 3.1.9.5 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Import Prohibitions, Restrictions and Lice nsing – Other Import Restrictions, pg. 51, 
para. 3.53  
It is indicated in the Secretariat Report that "Certain items, including new motor vehicles and 
second-hand cars (less than three years old) must be imported through specified ports (Chennai, Kolkata, and Mumbai for new vehicles and Mumbai for second-hand cars)." 
 
Could India kindly indicate the prevailing motives behind determining a limited number of designated ports for the import of a specific product that might be considered as a non-tariff barrier? 
 
Reply:  Most of the items are allowed to be imported from all Custom designated ports, port 
restriction criteria has been introduced for few items where parameters like assessment of value, 
duty, compliance to quality, and other parameters cannot be assessed in all ports. The designated 
ports ensure quick clearance of the goods for imports and exports purposes.  
4.4.1.2 Insurance, p. 115, para. 4.81 
 "In accordance with the 1938 Insurance Act, as amended, insurance services may only be carried out by an Indian insurance company, meaning any insurer formed and registered in India under 
the Companies Act 2013, whose sole purpose is to carry out life insurance business or general 
insurance business or re-insurance business."  
Regarding this paragraph, could the government of India explain what is meant by the term 
"Indian insurance company"? Is it possible to be registered as a joint stock company under Indian legislation, or are there other rules for registration? 
 
Reply:  Section 2(7A) of the Insurance Act, 1938, as amended, defines Indian Insurance Company 
and details are available at www.irda.gov.in . 
 
Indian Insurance Company can be a joint venture company but the aggregate holdings of equity 
shares by foreign investors, including portfolio investors, should  not exceed forty-nine per cent of the paid up equity capital of such Indian Insurance Company. 
 
4.4.1.2 Insurance, p. 115, para. 4.83  
"In accordance with the Insurance Regulatory and Development Authority (Obligations of Insurers 
to Rural and Social Sectors) Regulations 2002, insurers must place a certain percentage of their policies with the rural and social sectors. This restriction has remained unchanged since 2011. … Out of 23 private life insurance companies, 21 fulfilled their social sector obligations during 
2013-14, and the IRDA initiated penal action against the two non-compliant insurers…" WT/TPR/M/313/Add.1 
 
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  Could the government of India give more information about its insurance market policies and 
these penal actions targeting the private life insurance companies which did not correspond to percentage limitation while placing their policies?  
Reply:  In case an insurer fails to comply with the provisions of this Regulation, it shall be liable to 
a penalty not exceeding twenty-five crore rupees in terms of section 105B of the Insurance Act, 
1938 as amended. 
 
4.3. Manufacturing, pp. 110, para. 4.51.  As mentioned in the Report, "In December 2006, the Department of Heavy Industry issued an 
Automobile Mission Plan 2006-2016 as a road map for future development of the industry. 
The Plan has various suggestions for policy interventions. Automobile manufacturing is subject to various technical regulations." 
 
Could India elaborate on the specifics of the Automobile Mission Plan? Given that it has been almost ten years since its issuance; would it be possible to elaborate on its effects on the 
development of the automotive industry during this period? 
 Reply:  The Automotive Mission Plan has resulted in the following major initiatives taken by 
Government to support the Automotive industry development: 
 
a. NATRIP project  
b. Setting up of the Automotive Skills Development Council in partnership with Ministry of 
Heavy Industry for skilling people employed in the entire automotive value chain ranging 
from component manufacture to vehicle assembly, sales and marketing, servicing, finance, insurance, etc.  
c. Introducing of the FAME Scheme to enable fast er adoption of electric and hybrid vehicles 
on a pan-India level. 
THE GOVERNMENT REPORT 
 
2.4.5 Services Trade, pg. 8, para. 2.23 
 It is stated in the Government Report that, "India has a huge potential in exports of other business 
services like Management Consultancy, professional services such as Accountancy, Architectural 
and Engineering Services, Medical Value Tourism, Audio-Visual Services, R&D Services, Wellness Tourism Services, Recreational Services, Financial Services, Construction Services and Health 
Related professional services." 
 Could India kindly provide information whether it has any special programs implemented towards the development of professional services like medical value tourism and audio-visual services? 
 
Reply:  For development and promotion of international trade in services including those of 
professional services like medical value tourism and audio-visual services, the Government of India 
follows a multi-pronged strategy of negotiating commercially meaningful market access through 
multilateral, plurilateral and bilateral trade agreements, trade promotion through participation in and organization of  international fairs/exhibitions, focused strategies for specific markets and 
sectors, increasing competitiveness through dome stic regulatory reforms and provision of fiscal 
benefits through schemes like Service Exports from India Scheme (SEIS). The SEIS shall apply to many service sectors including professional services like medical value tourism and audio-visual services. The details of the SEIS are available at the website of the Department of Commerce 
(http://www.commerce.nic.in ). As far as domestic reforms are concerned, these are targeted at 
improving the competitiveness of the domestic service sectors so as to help us increase our 
engagement in international trade.  
 
2.6.1 Agriculture and Food Security pg. 10, para. 2.31  
It is stated in the Government Report that, "Given the limited scope to increase the area under 
production, future agricultural growth is contingent on increasing agricultural productivity. This is WT/TPR/M/313/Add.1 
 
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  necessary not only to ensure reasonable returns to farmers but also to bolster food 
security - including availability and affordable access. Measures are required to increase the 
irrigated area, improve the efficiency of existi ng irrigation systems and promote agro-based 
industry for value addition. Moreover, the agriculture and food sectors need huge investment in 
research, education, extension, fertilizers, and laboratories to test soil, water, and commodities, 
and warehousing, and cold storage."  
Could India kindly provide further information about the details of above mentioned agricultural 
approach? Are there any specific initiatives, projects, programs etc.?  Reply:  The 12th Five Year Plan (2012-17) aimed at  an average annual growth rate of 4% in 
agriculture and allied sectors. The Plan recomme nded improvements in agri-investment, income, 
product and productivity, promotion and extension of modern technologies, resource-use efficiency for sustainable agriculture. 
 
To achieve the objectives envisaged in the 12th Plan period, 51 schemes of the Department of Agriculture & Cooperation have been reviewed and restructured into 11 missions/Schemes.  
 
The five Missions are National Food Security Mission (NFSM), Mission for Integrated Development of Horticulture Mission (MIDH), National Mission on Oil Seeds and Oil Palm (NMOOP), National Mission for Sustainable Agriculture (NMSA), and National Mission on Agricultural Extension & 
Technology (NMAET).  
 Five central sector schemes which are being implemented are National Crop Insurance Programme 
(NCIP), Integrated Scheme on Agriculture Census  & Statistics (ISAC&S), Integrated Scheme of 
Agriculture Marketing (ISAM), Integrated Sc heme of Agriculture Cooperation (ISAC) and 
Secretariat Economic Service.   
 
Further, Rashtriya Krishi Vikas Yojana (RKVY) is being implemented as a State plan scheme to promote public investment in agriculture and allied sector.  
4.1 Trade Policy – Foreign Trade Policy – Overview, pg. 14, para. 4.5 and  
The Secretariat Report – 3.1.9.2 Trade Polic ies and Practices by Measure – Measures 
Directly Affecting Imports – Import Prohibit ions, Restrictions and Licensing – Import 
Licensing and Restrictions, pg. 50, para. 3.49 
 It is stated in the Government Report that "India has deliberately kept governmental intervention 
in trade policy to the minimum even during the pe ak of the global economic crisis. While several 
countries resorted to various forms of protectionist trade measures such as liberal doses of subsidies to their enterprises, restrictions on imports, fiscal incentives, and promoting the purchase of domestically produced goods and services, India, on the other hand, resorted to few 
trade restrictions during the crisis; and even these measures were temporary and quickly 
dismantled."  
It is expressed in the Secretariat Report that "Imports of certain goods such as cashew kernel (HS 
08013210 and 08013230)35, areca nuts (HS 0802 80)), and marbles (HS 25151100 and 25151210 – from 20 November 2014) 36 are subject to import restrictions depending on their 
import price (Table 3.9). These imports are restri cted (i.e. subject to a licence) when the c.i.f. 
price is lower than the minimum import price."  In this context, it is worth mentioning that the restriction implemented on marble import through 
import licensing (minimum price and quotas) has been in effect since 2009, meaning the onset of 
the global economic crisis. Could India kindly de clare whether the elimination of abovementioned 
restriction is considered in the near term? 
 
Reply:  India maintains import quota on Marble and similar stones on the ground of "Conserving 
exhaustible natural resources". These items have been notified to WTO in 1997 
(WT/BOP/N/24 dated 22.05.1997) by India under Article XX(g). 
 India has been liberalising the import quota over the last few years. WT/TPR/M/313/Add.1 
 
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  UNITED STATES OF AMERICA 
PART I:  QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/313) 
 1 ECONOMIC ENVIRONMENT 
1.3 Monetary and Exchange Rate Policy 
 Page 17, paragraph 1.9 
 
Question 1 The Secretariat’s Report states that the Export Credit Refinance (ECR) facility was 
replaced by "system-level liquidity".  Please explain the meaning of this phrase.  
Reply:  The RBI provides liquidity on a daily basis to the banking system under its Liquidity 
Adjustment facility (LAF) to meet the system wide demand for liquidity and thereby anchors the operating target of monetary policy – the weighted average call money rate – around its policy 
(repo) rate. Earlier banks had the option to access liquidity from the RBI either under the ECR 
(up to the eligible limit) at fixed repo rate or under the LAF (by participating in auctions, a progressively increasing part of which is available now at variable rates. For market based 
liquidity management and monetary policy, injection of liquidity at fixed repo rate has been 
progressively de-emphasized. Accordingly, afte r the ECR was merged with the LAF, the RBI 
continues to meet the system wide liquidity need s, but without any sector-specific preference, and 
through greater emphasis on auctions for its liquidity operations on a day to day basis. 
 
Furthermore, please reply to the following:  
Question 2: The Royal Bank of India's (RBI) Sixth Bi-Monthly Monetary Policy Statement, 
2014-2015, indicates that the ECR limit was gradually lowered since June 2014 based on a "recommendation to move away from sector-specific refinance." Was the ECF sector-specific?  
Was it used to target or benefit agricultural export financing? 
 Reply:  The Export Credit Refinance (ECR) facility was a sector-specific window allowing banks 
additional access to liquidity from the RBI at fixed repo rate. The Dr. Urjit Patel Committee had 
reviewed the ECR policy and was of the view that  sector-specific refinance policies may interfere 
with monetary policy transmission and also that liquidity should be provided to the system as a whole consistent with the monetary policy stance instead of linking access to liquidity from the RBI 
to performance of a bank on export credit (The Report is available at 
https://rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=743 ). After the introduction on the 
new liquidity management framework, a large part of banking system liquidity requirement is 
being met through variable rate auctions (instead of fixed repo rate), and the liquidity earlier 
provided under the ECR has been merged with normal liquidity operations of the RBI.  Question 3: The RBI's Master Circular on the ECR facility indicates that the interest rate under the 
facility was the repo rate under the Liquidity Adjustment Facility and the duration was up to 
180 days. How do these terms compare to the origin al export credit financing provided by the 
banks?  
 
Reply:  Access to liquidity under the ECR was available for eligible export credit in Indian rupees 
(i.e., not export credit in foreign currency), and banks could access liquidity ranging from one day 
to 180 days (with the option to rollover shorter term liquidity up to a maximum of 180 days 
against same export credit). As on March 31, 2015, out of the total outstanding (pre-shipment) rupee export credit, about 67 per cent was of less than 180 days, about 20 per cent of 180 to 270 days, and the remaining 13 per cent of above 270 days. The objective of ECR was to promote 
the export sector and not finance the export sector  matching the tenor of export credit extended 
by a bank.  ECR, by providing additional access to  liquidity from the RBI at fixed repo rate, was 
only incentivizing banks to extend more export credit. 
 
Question 4: Does India anticipate that the ECR facility will be made available again in the future?  
 
Reply:  As of now, there is no such proposal under consideration. 
 WT/TPR/M/313/Add.1 
 
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  2 TRADE AND INVESTMENT REGIME 
2.2 Trade Policy Formulation and Objectives 2.2.1 Trade Policy Formulation  
Page 25, paragraph 2.9 
 The Secretariat's Report references specific minist ries with which the Indian Ministry of Commerce 
and Industry coordinates the development of tr ade policy, including the Ministry of Steel. 
 Question 5: How does trade policy in India relate to the Ministry of Steel's Strategic Steel Plan for 
2011-2016, which calls for the development of increased steelmaking capacity in India and export 
capability?  What specific trade policies is India formulating for the steel sector?   
 Reply: There was no specific strategic steel industry plan formulated by the Ministry of Steel for 
the years 2011-16. However, the erstwhile Planning Commission had set up a Working Group on 
the Steel to forecast the demand and supply situation for the period of 12
th Five Year Plan and 
recommended appropriate measures to ensure that the forecast levels in steel and raw materials 
production are reached. The Working Group was composed of experts from both within and 
outside the government and the report is advisory in nature. There was no compulsion on the part 
of the government to accept any of the recommendations of the Group. As steel is a deregulated sector, investors and manufacturers take decision regarding augmenting steel capability or adding 
export capability based on their economic considerations. Similarly, India's trade policy may not 
have any direct relationship for the development of increased steelmaking capacity in India and export capability. The steel or general industry sp ecific trade policy measures are brought in time 
to time as per requirement.  
 2.2.2 Trade Policy Goals  
 
Page 26, paragraph 2.13: The Secretariat's Report mentions the "Make in India" initiative.  
 Question 6: Please summarize the specific policies of this initiative, focusing on the aspects that 
will support India's export competitiveness. 
 Reply:  A detailed note on "Make in India" initiative is at http://www.makeindia.com . 
 
Pages 26-27, paragraph 2.14: India's new Foreign Trade Policy for 2015-2020 does not address 
the need for fundamental structural reform, particularly with respect to the agricultural sector. 
In light of this, please explain the following:  
 Question 7: Given recent reports, such as the IMF's recent annual report on India and the Report 
of the High Level Committee on Reorienting the Role and Restructuring of Food Corporation of 
India (Jan. 2015), calling on the need for structural reforms, does India have a specific plan or 
timeline for introducing structural reforms pertaining to agriculture and agricultural trade policy?  
Reply:   Structural reforms in the agriculture sector is a constant process and India is making all 
efforts to enhance the efficiency of the available mechanisms through various policy initiatives.  
 
Question 8: Recognizing the constitutional authority of Indian state governments on matters 
of agriculture, what specific measures will India undertake to promote sustainable growth, while reducing the incidence of trade disruptions and improving India's integration into the world 
trading system? 
 
Reply:  India is deeply committed to honor its WTO obligations, and the federal system of 
governance ensure that international obligations are fulfilled while taking care of the requirements 
of the domestic agricultural sector. 
 Question 9:  Does India plan to continue using ad hoc  policy adjustments (i.e., import duties and 
export controls) to regulate the supply and demand of certain agricultural commodities? 
 Reply : India does not use ad hoc policy adjustments on Agriculture items. Export and import of 
most Agriculture items is free. Also duty on most  of Agriculture items is stable over the past WT/TPR/M/313/Add.1 
 
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  five years. Adjustments made keeping in view food  security requirements are few and are dictated 
by prevailing market and crop conditions.  Question 10: What specific tax and trade policy measures does India plan to introduce to 
encourage the development of a more predicta ble and sustainable agricultural business 
environment?  
Reply: The Foreign Trade Policy (FTP) Statement 2015 details the policy objectives and measures 
envisaged to encourage a more stable predictabl e environment for trade in general and also for 
specific sectors.   
Apart from this, the FTP for 2015-2020 announced on 1 April 2015 includes specific measures to 
achieve this objective. These documents are available on the DGFT website ( www.dgft.gov.in ). 
 
2.3 Trade Agreements and Arrangements 
2.3.2 Regional and Preferential Agreements 2.3.2.1 Regional Trade Agreements 
 
Page 30, paragraph 2.24 : The Secretariat's Report states that India "recently conducted an 
internal analysis of various FTAs, and found that the utilization of several FTAs by India's FTA partners was not significant." The Secretariat's Report goes on to state that "it is not clear what 
the immediate benefits of existing FTAs are and what if any implications for India's policy there 
may be on its current RTA negotiations."  
Question 11: Please explain whether India has identified specific structural bottlenecks that could 
help explain why FTA utilization rates among India’ s FTA partners are so low. Further, has India 
considered expanding the trade covered under its FTAs as a means to improve utilization of its 
FTAs? 
 Reply:  It is for the trading partners to analyze the reason for the level of import utilization rates in 
FTAs. However, some of the reasons could be th e low level of awareness among exporters of the 
FTA partner, administrative issues such as the procedure for obtaining the certificate of origin, 
tariff liberalization may not have been completed et c. We have a procedure for review of existing 
FTAs and the level of utilization, both imports and exports (if available) would be one of the issues 
that would be a subject of discussions in the review. 
 2.4 Investment Regime 
2.4.1 Legal Framework for Business 
 Page 31, paragraph 2.30: The Secretariat’s Report highlights India’s development of the e-biz 
platform.  
 
Question 12: Please explain what services and ministries  are currently integrated with the e-biz 
platform and identify the implementation schedule of future services.  
 
Reply:  Out of the 26 Central Services identified for integration with eBiz, 14 services have already 
gone live. Other 12 services are expected to be integrated in this financial year.  
 
eBiz project is expected to lead to savings in time, cost and efforts for the entrepreneurs. Concerned authorities are attempting a common application form and process for incorporation of a company, allotment of Permanent Account Nu mber (PAN) & Tax Deduction Account Number 
(TAN) and employer registration with Employees’ State Insurance Corporation (ESIC) & 
Employees’ Provident Fund Organization (EPFO).  
This portal also provides facility to track specific application and to monitor the performance of 
various government agencies.  
2.4.2 Foreign Investment 
2.4.2.1 Policy  Page 32, paragraph 2.38 :  The Secretariat’s Report mentions the two routes for foreign direct 
investment (FDI) in India. WT/TPR/M/313/Add.1 
 
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  Question 13: Please explain whether India has any plans to reduce the number of sectors in the 
non-automatic route for FDI.  Reply:  Review of FDI Policy is an ongoing process. Some of the recent changes in FDI policy are 
as under; 
 
Press Note 10 (2014), DIPP – GoI liberalized the conditionalities on foreign investment in the 
Construction Development Sector.  
 Press Note 2 (2015), DIPP – GoI allowed FDI upto 100% under the automatic route for manufacturing of medical devises. 
 
Press Note 3 (2015), DIPP – GoI increased the ceiling for foreign investment in insurance from 26% to 49%. 
 
Press Note 4 (2015), DIPP – GoI authorized fo reign investment in pension funds up to an 
ownership ceiling of 49% FDI in pension funds are allowed under the automatic route up to 
26%. 
 Page 33, paragraph 2.38:  The Secretariat’s Report states that "FDI remains prohibited in certain 
agricultural activities, gambling and lotteries and real estate." 
 
Question 14: Please explain why India has not liberalized investment in agricultural activities or 
real estate, and whether it has plans to liberalize investment in these sectors in the future. 
In particular, given the difficulties with grain storage in India, what measures does India plan to 
take to encourage FDI in grain storage and handing?  
Reply: FDI up to 100% is permitted under automatic route in specified activities of the agriculture 
and allied sectors. The details as per para 6.2. 1 of "Consolidated FDI Policy Circular of 2015". 
However FDI in real estate business is prohibited, since the sector is crucial with respect to national interest and is of sensitive nature with social and economic implications. 100% FDI is 
allowed under the automatic route in storage and warehousing including warehousing of 
agricultural productions with refrigeration (cold storage). The details of FDI in construction development sector are at Para 6.2.11 of "Consolidated FDI Policy Circular of 2015".  
 
Question 15: The Secretariat’s Report also states that brownfield investment in pharmaceuticals 
requires government approval, but greenfield investment does not. Please explain why India 
maintains a distinction between greenfield and brownfield pharmaceutical investment and when it 
plans to allow brownfield investment through the automatic route.  Reply: Foreign Direct Investment (FDI) in the pharma sector was allowed up to 100% on the 
automatic route, till the policy was amended with  the issuance of press note 3 of 2011. The policy 
amendment made a distinction between green field and brownfield investment whereby FDI up to 
100% in existing (brownfield) entities was allowed but under government route.  There was no 
change in the FDI policy on green field investment. 
 A spate of takeovers of frontline Indian pharma companies/facilities by multinational corporations 
between 2006 and 2011 necessitated a review of the FDI policy in the pharma sector in the 
context, primarily, of the imperatives of public health.  Government was witnessing extremely worrying trends of MNCs taking over Indian Ph armaceutical companies. This phenomenon was 
likely to affect very seriously Government’s efforts at making available general versions of drugs 
which were less priced but of equivalent quality, efficacy and safety as compared to the branded 
medicines.  Essential medicines were bound to become costlier thereby as the companies producing cheaper generic versions would be owned by the MNCs which may increase their costs. 
 
Keeping in mind the above, with a view to exercise oversight on takeovers of existing 
pharmaceutical manufacturing firms, FDI up to 100% in existing (brownfield) entities was allowed 
under government route.  
 Page 33, paragraph 2.40 : The Secretariat’s Report states that "for single- and multi-brand 
retailing other conditions also apply including local sourcing of up to 30% from Indian 'small 
industries' and establishment only in cities  with a population of above 1 million." WT/TPR/M/313/Add.1 
 
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  Question 16: Please explain why India maintains local content requirements in the retail sector 
and whether there are plans to remove such requ irements.  Please also explain whether these 
provisions disincentivize investment and limit the development of internal supply chains.  
Reply: The requirement pertaining to a minimum of 30% procurement from Indian small 
industries has been included as safeguard for small manufacturers. This has been incorporated to provide the necessary scales for these entities to expand capacities in manufacturing, thereby 
creating more employment and also strengthening the manufacturing base of the country. 
They will also derive the benefits of technolo gy up-gradation, which will provide a fillip to 
productivity and local value-addition, thereby raising the profitability and earnings of the small manufacturer. The sourcing condition will also enab le the small enterprises to get integrated with 
global retail chains, thereby enhancing their capacity to export products from India. In order to 
boost small-scale industry in the country, 30% sourcing has been made mandatory. The sourcing condition will also enable the small enterprises to get integrated with global retail chains. This in 
turn will enhance their capacity to export products from India. 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 
3.1.1 Customs Procedures and Requirements  Page 35, paragraph 3.6:  The Secretariat's Report states that to "import specific goods, in certain 
instances, certificates of registration and import permits issued by different agencies are required." 
 Question 17: Please explain how India determines which goods in which instances require 
certificates and permits. 
 Reply : Export and import of most of the items is free. However, the items that require certificates 
and permits are the items considered sensitive predominantly on account of security, 
Public Health, Public Morals, environment ground s etc. Requirement of certificate and permit, 
if any, are well documented and available in the public domain.  
3.1.1.1 Preshipment Inspection 
 Page 36, paragraph 3.10:  The Secretariat’s Report states that India requires preshipment 
inspection for "shredded and unshredded metallic waste and scrap, second-hand and defective 
steel products, and certain textile and clothing articles."  
Question 18: Please explain for what purpose or information India requires a preshipment 
inspection requirement for these goods.  Reply: Presently Pre–Shipment Inspection (PSI) is prescribed for metallic waste and scrap. 
The purpose  behind Pre-shipment Inspection is to confirm that the consignment does not contain 
any type of arms, ammunition, mines, shells, cartridges, or any other explosive material in any form either used or otherwise. It also checks and ensures that it does not contain radiation level 
(gamma and neutron) in excess of natural background.  For import of seconds/defectives of steel, 
pre-shipment certificate seeks to ensure complia nce to appropriate material quality, chemical 
analysis of the material, visual inspection, thickne ss and width of the material. For import of textile 
and textile articles, pre-shipment certificate ensures that the consignment is permitted subject to 
the condition that they shall not contain any of the hazardous dyes whose handling, production, carriage or use is prohibited by the Government of India under the provisions of Environment (Protection) Act, 1986. 
 
3.1.2 Customs Valuation  
Page 36, paragraph 3.12:  The Secretariat’s Report states that India's "Central Board of Excise 
and Customs is authorized by notification in the Gazette of India to fix reference prices for any type of imported (exported) goods, in accordance with Section 14(2) of the Customs Act 1962."  
 
Question 19:  Please explain in what situations reference prices are applied to imported goods, 
and how this practice relates to the valuation procedures outlined in the WTO Agreement on Customs Valuation. 
 WT/TPR/M/313/Add.1 
 
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  Reply: Tariff values have been notified for certain goods that are prone to undervaluation. Tariff 
values are fixed on the basis of prevailing international prices of these goods as observed from various reputed journals and other publications. These values are floating values and are frequently reviewed and revised. As the tariff values on identified goods are computed based on 
prevailing international prices, that is to say the prices at which these goods are sold or are offered 
for slae in the ordinary course of international trade under fully competitive conditions, such values are not inconsistent with Article VII of the GA TT 1994 read with Customs Valuation Agreement. 
 
3.1.5 Other Changes Affecting Imports  Page 43, paragraph 3.28 :  The Secretariat’s Report states that "India charges an Education 
Cess of 2% as well as a Higher Education Cess of 1% on the aggregate of customs duty on all 
imports."  
Question 20: Please explain why India is taxing education imports while at the same time trying 
to extend educational opportunities across the economy.  
Reply: Education Cess and Higher Education Cess charged as a percentage of the Excise Duty for 
domestic goods was also charged on similar imported goods. However, w.e.f 01.03.2015, Education Cess and Secondary & Higher Education Cess leviable on all excisable goods has been 
fully exempted. Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) has 
been increased from 12% to 12.5%. 
 It may be noted that Education Cess and Secondary & Higher Education Cess were charged so as 
to create a fund for enhancing the quality of Secondary & Higher Education system, and not to tax 
the education sector.   
3.1.7 Tariff Rate Quotas 
 Page 46, paragraph 3.35:  The Secretariat’s Report states that India last notified its imports 
under TRQs to the WTO in 2011 for the marketing years 2003-2004 to 2009-2010.   
 
Question 21: Please identify when India plans to provide an updated notification on its TRQs.    
 
Reply:  India will be submitting its notifications shortly. 
 3.1.9 Import prohibitions, restrictions, and licensing 
3.1.9.1 Import Prohibitions 
 Pages 47-49, paragraphs 3.40-3.41, and Table 3.8:   The Secretariat’s Report clarifies which 
import prohibitions were in place and for what reasons import prohibitions exist.   
 
Question 22: Please clarify whether any import prohibitions exist for products falling under 
HS0201, HS0202, HS0210120, and HS160250, which are generally classified as meat of bovine 
animals?  If not, does an import protocol and la nguage for a sanitary import permit exist for the 
import of bovine products into India or into spec ific Indian states e.g., Kerala, where there are no 
restrictions on cow slaughter or beef consumption? If the above-mentioned products are 
prohibited, please indicate the basis or risk assessments as to why the import prohibition exists.  
Further, please clarify whether the HS line items listed in Table 8 are restricted for health or moral reasons.  In regards to rennet, which are listed as prohibited items in Table 8, are products made from or with rennet, both microbial or animal (e.g ., cheeses) prohibited from being produced in or 
imported into India? 
 Reply : Items covered under HS0201, HS0202,HS 1602 50 00  are Restricted for Imports, which 
means an authorisation would be required for imports. Items covered under HS0210120 can be 
imported freely. None of the products mentione d in the question are prohibited for Imports. 
However, products made from items that are prohib ited from being imported into India will also be 
prohibited. 
 WT/TPR/M/313/Add.1 
 
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  3.1.9.2 Import Licensing and Restrictions  
 Page 49, paragraph 3.43:  The Secretariat’s Report states that "[r]estricted items subject to 
conditions require import permits in addition to the specific import licence." 
 
Question 23: Please explain why India requires import permits in addition to the specific import 
license. 
 
Reply : Import of most of the items is free which means no import permit or authorisation is 
required. However, in few cases both import permits and specific import authorisations may be required to be obtained. DGFT issues import author isation for products under restricted category of 
imports.  An importer may also be simultaneously required to obtain  import permit in few cases to 
comply with the requirement of different Acts  primarily on grounds of preservation of environment, public health etc. 
 
The Secretariat’s Report also notes that India applies import licensing requirements on several imported products.  The United States has the following questions for India with regard to the 
import licensing regime applied to boric acid:  
 Question 24: Does India regulate the actual end use of all boric acid within its domestic market, 
for both imported boric acid, as well as boric acid products manufactured in India? 
 
Reply : Boric Acid is an insecticide and regulated in India. Registration is required to be obtained 
as per Section 9 of the Insecticides Act, 1968 for use for insecticidal purposes, whereas an import 
permit is required to be obtained from the Regi stration Committee, constituted under Section 5 of 
the said Act, for non-insecticidal purposes. Domestic manufacturers, who wish to manufacture and sell Boric Acid for non-insecticidal purposes are required to submit production and sale particulars 
to the Registration Committee in the prescribed prof orma which is available on the official websites 
http://www.cibrc.nic.in  and http://agricoop.nic.in/welcome.html  
 
Question 25: Can an interested trader go to the Ministry of Commerce and Industry for any 
non-agricultural request for an end use/no-objection certificate? 
 Reply: It is not the Ministry of Commerce, but th e User Ministry/Department and the Industry 
Department/District Industry Centres under the State Governments who have been authorized to 
process and   issue end-use certificates depend ing on the end use. A list of authorized nodal 
agencies for issuance of End-Use certificate is available at http://www.cibrc.nic.in  and 
http://agricoop.nic.in/welcome.html   
 
Question 26: Can sub-central entities submit recommendations on end use/no objection 
certificates directly to the Registration Commi ttee, or must they submit their recommendation 
through another Ministry for that Ministry’s addition al review and approval before it is sent to the 
Registration Committee?  
Reply:  The Registration Committee accepts the end use certificate, issued by the identified 
authorities. The said certificate is attached by the applicant directly with the application for issuance of import permits along with other necessary documents. The application so submitted in 
the prescribed proforma is considered for issu ance of import permit by the Registration 
Committee.   Question 27: If the Ministry of Agriculture receives a recommendation from a District Industries 
Center to grant an end use certificate, and the Ministry of Agriculture agrees with the 
recommendation – does the Ministry of Agricu lture then submit the recommendation to the 
Registration Committee?  f so – this would then appear to be a three step process. How long does 
this process take? 
 Reply:  As replied in Q.26 above  
 
Question 28: If additional boric acid is required by the same importer within the calendar year, 
do they have to start the process from the beginning, and request a new end use/no-objection certificate? WT/TPR/M/313/Add.1 
 
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  Reply: In case of requirement of addi tional quantities of boric acid, a fresh end use certificate is 
required which is granted on request.  Question 29: What is the purpose of maintaining importer-specific quantitative limits on the 
importation of boric acid?  Are similar quantitative limits placed on domestic producers of boric 
acid that sell only domestically-made boric acid on the domestic Indian market?  
Reply: No quantitative limits are imposed on imports, subject to requisite certification of end use. 
 Question 30: If an importer wants to use imported boric acid for another purpose, other than the 
purpose for which the end use/no-objection certificate was issued, and the importer is already in 
possession of the imported boric acid, are there any regulatory requirements that the importer 
must comply with to change the end use?  
Reply: The consumption of an insecticide, including Boric Acid, imported against an import permit 
is monitored by the concerned Government Authority, which issues a consumption certificate and it is auditable against the end use certificate. 
 
3.1.11 Anti-dumping, Countervailin g, and Safeguard Measures 
3.1.11.1 Anti-dumping an d Countervailing Measures 
 
Page 53, paragraph 3.59: The Secretariat's Report notes that, during the period of review, India 
made significant changes to its antidumping legislation including (ii) changes to the definition of domestic industry to bring in flexibility" as provided for in Customs notification no. 86/2011. 
 
Question 31: Please clarify when India will notify Customs notification 86/2011 to the appropriate 
WTO committees.  In addition, please describe the circumstances that India faced where it was not 
able to address this issue within its existing trade remedies legislation. 
 Reply:  Vide Notification No.86/2011 - Customs (N.T.) dated 1
st December, 2011, Rule 2(b) of the 
Anti-dumping Rules was amended as follows: 
 
2(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 such 
case the term 'domestic industry' may be construed as referring to the rest of the 
producers. 
The provisions laid down under Rule 2(b) of the Anti-dumping Rules makes ineligible the domestic producers for the status of "domestic industry" when such domestic 
producers are related to the exporters or importers of the alleged dumped article or 
are themselves importers thereof. However, there may be situations when one or more of the domestic producers might have imported the product under consideration 
or their related company might have imported or exported the product under 
consideration for one or more bona-fide reasons as listed below: 
Imports made under advance license in order to compete in the international market 
in the downstream product; 
Imports made at the time of temporary susp ension of production (due to variety of 
bona-fide reasons, such as fire, strike, natural calamities, etc.); 
Imports made to supplement the product line by importing a particular type which the 
applicant may not be producing and which migh t constitute a very small portion of its 
total business operations; 
Imports made for testing, research & development, seed-marketing purposes (imports 
of the product to test the quality and other parameters when faced with low priced 
imports); WT/TPR/M/313/Add.1 
 
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  Imports of the part of the product which does not form the core activity in the 
manufacturing of the product. 
In order to meet such situations and to provide flexibility to the Designated Authority whether to 
include or exclude a domestic producer as do mestic industry, the above amendments were 
brought in to the provisions laid down under Rule 2(b) of Anti-dumping Rules. 
 This is also available in the Public domain and can be seen at http://www.cbec.gov.in . This 
amendment will be notified to the WTO shortly. 
 Page 56, paragraph 3.67 : It is unclear from the Secretariat's Report and India's published 
"trade notices" whether sunset (expiry) reviews must be conducted in every case prior to the 
expiration of an antidumping duty measure. 
 With this in mind, please reply to the following: 
 
Question 32: Please clarify the review process India undertakes if no interested parties request a 
review of the anti-dumping duty measure prior to its expiry.  Does the anti-dumping duty measure 
automatically expire if there is no participation from interested parties? 
 Reply:  I n te rms  of R u le  2 3  (1 B) of A nti-d ump ing  R u les, a definitive antidumping duty shall be 
effective for a period not exceeding five years from the date of its imposition, unless the 
designated authority comes to a conclusion on a review initiated before that period on its own 
initiative or upon a duly substantiated request made by or on behalf of the domestic industry, prior to the expiry of that period, that the expiry of the said anti-dumping duty is likely to lead to 
continuation or recurrence of dumping and injury  to the domestic industry. Sunset review of 
anti-dumping duties is not mandatory. Unless a duly substantiated application is filed by the domestic industry, the anti-dumping duties expire on completion of their validity. 
 
Question 33: Once India’s Directorate General of Antidumping and Allied Duties makes a 
recommendation not to continue the measure, does Customs issue a notification that terminates the measure and halts collection of additional anti-dumping duties? 
 
Reply:  In terms of Rule 18 of the Anti-dumping Rules, the Central Government is required to act 
upon the recommendation of DGAD within three months from the date of publication of the final 
findings. If the anti-dumping duty, recommended to be withdrawn, still continues to be valid at the 
time of taking a decision on the recommendation of the DGAD, the Central Government may issue a notification terminating the duty. 
 
Question 34: Please clarify whether sunset reviews only determine whether or not the 
antidumping duty measure may be continued, or whether the antidumping duty measure may be adjusted (either increased or decreased) as a result of a sunset review. 
 
Reply:  In sunset reviews, the recommended anti-dumpi ng duties may be continued or modified or 
discontinued subject to the determination of the dumping margin or injury margin, whichever is 
less, and likelihood of dumping and injury. 
 3.1.11.2 Safeguards 
 
Page 58, paragraph 3.83:  The Secretariat’s Report notes India’s notifications to the WTO 
Committee on Safeguards under Article 12 of the Agreement on Safeguards.    
Question 35: With regards to India’s notifications, for investigations taking place during the 
review period, please identify the periods of time between the date of notification and each of the 
following events related to the investigation:  date of initiation, determination to impose 
provisional measures, effective date of provisional measures, determination to impose final 
measures, application date of final measures, termination of investigation, and date of termination of application of measures. 
 
Reply:  The review proceedings are governed by Rule 18 of Customs Tariff (Identification and 
Assessment of Safeguard Duty) Rules, 1997. In ca ses where period of imposition of Safeguard 
duty exceed three years, review has to be done  not later than mid-term of such imposition. WT/TPR/M/313/Add.1 
 
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  A review initiated under sub rule (1) has to be concluded with issuance of final findings either 
recommending the continued imposition of safeguard duty or termination of investigation within a 
period of 8 months from date of initiation of such review or within such extended period as the 
Central Government may allow.  
 
However, duty must be levied post review for continued imposition of safeguard duty before the 
expiry of duty based on which the review is initiated.  
Under safeguard rules, Review proceedings do not contemplate Provisional measures and hence, 
time periods do not apply for the same. However, under Rule 10 of the Safeguard Rules, 
provisional duty applied under sub-section (2) of section 8B of the Custom Tariff Act, shall remain 
in force for a period not exceeding 200 days from the date on which it was imposed. 
 Safeguard duty or provisional safeguard duty levied shall take effect from the date of Publication of 
the Customs notification in the Official Gazette im posing such duty as provided under Rule 14 of 
Safeguard Rules.  
3.1.12 Standards and Other Technical Requirements 
3.1.12.1 Standards  Page 59, paragraph 3.88 : The Secretariat’s Report notes that, as of December 25, 2014, there 
were approximately 19,313 Indian standards.  According to Indian authorities, 5,238 of these 
standards are harmonized (i.e. aligned or identical) with corresponding international standards. Please provide an update on plans to harmonize the remaining 14,075 standards.   
 
Reply: The harmonization process is a continuous process in BIS and constant efforts are made 
for harmonization depending upon feasibility. There are 5,862 Indian standards that have 
corresponding International Standards. Out of these standards, 5,238 Indian Standards have been 
harmonized (i.e. aligned or identical) with the International Standards.   Question 36: In regard to SPS-related measures, are the referenced "international standards" 
limited to the three WTO-recognized international standard setting bodies; the Codex Alimentarius, 
International Plant Protection Convention (IPPC), and World Organization for Animal Health (OIE)? 
Do "international standards" include standards developed by private international standard setting 
bodies such as the International Organization for Standardization (ISO)? 
 Reply:  As per WTO SPS Agreement, three bodies namely Codex, OIE and IPPC are recognized as 
international standard setting bodies by India.  
 3.1.12.2 Technical Regulations  
Page 59, paragraphs 3.90 and 3.92:  The Secretariat’s Report notes that for standards and 
technical regulations, government entities post dr aft standards and technical regulations for public 
comment for 60 days, and that the draft documents may be published on government websites or 
in the Official Gazette.  Draft technical regulations are also notified to WTO Members for 
comments.  Related to these transparency proced ures, please reply to the following questions: 
 
Question 37: On February 5
th, 2014 India’s Ministry of Law and Justice issued a memorandum 
stating that it had, in consultation with other government entities, "formulated a policy on pre-legislative consultation which should invariab ly be followed by every Ministry/Department of 
the Central Government before any legislative proposal is submitted to the Cabinet for tis 
consideration and approval". The policy goes on to explain that "the Department/Ministry 
concerned should publish/place in public domain the draft legislation or at least the information that may inter alia include brief justification for such legislation, essential elements of the 
proposed legislation, its broad financial implicatio ns, and an estimated assessment of the impact of 
such legislation on environment, fundamental rights, lives and livelihoods of the concerned/affected people, etc. Such details may be kept in the public domain for a minimum 
period of thirty days for being proactively shared with the public in such a manner as may be 
specified by the Department/Ministry concerned." Issuance through electronic media is also encouraged in the policy, as are public consultations. Has this policy been implemented across all Ministries and Departments and their subordinate enti ties to provide for pre-legislative consultation 
with stakeholders on draft policies? If it is no t fully implemented, when is full implementation WT/TPR/M/313/Add.1 
 
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  across all government entities expected, and what steps is the central government taking to 
ensure implementation?  Reply:  The policy is for Law/Act, and not for the technical regulations to be adopted. 
 
Question 38: Is there a centralized website hosted by the Government of India where all draft 
standards, technical regulations and other proposed rule changes are posted for public information 
and comment? If not, is India considering consolidating its public notice process, to make it easier 
for the public to find and comment on draft rules?  Reply : As of now, there are no such plans. 
 
Question 39: India has made fewer than ten notifications to the WTO TBT Committee since 
January 2013.  Can India confirm that it has notified all draft technical regulations to the WTO for 
Member review and comment?  If some technical regulations have not been submitted, what 
technical regulations are they, and when will they be submitted? 
 
Reply: Since few products have been brought under technical regulation, the notification to WTO 
TBT Committee has also been few.  It is a conti nuous process and as and when TRs are adopted, 
it will be notified to WTO Secretariat.  
3.1.12.3 Certification and Conformity Assessment 
Page 60, paragraph 3.95  
Question 40 : The Secretariat’s Report highlights that "[c]onformity assessment procedures in 
India have largely remained unchanged since its previous Review; a major exception is the adoption of a new set of rules stipulating a compulsory registration scheme under the BIS for 
various electronic and information technology goods. "Given India's agreement to use common 
criteria in this area, please explain why India continues to require this registration scheme? Also, why did India expand the list of products covered in November 2014?   
Reply:  The Indian Standards covered under the registra tion scheme are either in to adoption of 
IEC Standards or in some cases the most of th e requirements are derived from IEC Standards. 
As the compulsory registration order is notified by Department of Electronic and Information 
Technology, Govt. of India, the same has to be mandatorily followed and complied with as national 
law.  However, the registration scheme is simple , less time consuming and less costly conformity 
assessment scheme being operated by BIS in India. 
 
Question 41: We also understand that batteries are to be included in the expanded list of 
products.  Are batteries that are part of a larger product included in this testing?   
Reply:  Sealed Secondary Cells/Batteries containing al kaline or other non-acid electrolytes for use 
in portable applications are covered under compulsory registration. These cells/batteries need to b e  s e p a r a t e l y  r e g i s t e r e d  e v e n  i f  u s e d  i n  o t h e r  p r o d u c t s .  I f  b a t t e r y  i s  a n  i n t e g r a l  p a r t  o f  h o s t  
product and non-detachable would be tested as part of host product and separate registration for 
battery in such case is not required.   
Page 61, paragraph 3.99 
 Question 42:  The Secretariat’s Report clarifies that the Bureau of Indian Standards conducts 
conformity testing through its central laboratory  in Sahibabad and in four regional and three 
branch laboratories. Does India recognize test result s from accredited labs outside of India? If not, 
what steps is India implementing to recognize test results from internationally accredited labs, and when does India expect to be able to recognize such results?  
 
Reply: BIS can recognize test results from accredited labs outside of India only in case of where 
BIS has entered into a Mutual Recognition Agreement with the concerned National Standards Body 
of the country in which the laboratory is located. Alternatively, the foreign laboratory needs to be 
recognized under the Laboratory Recognition Scheme of BIS.  WT/TPR/M/313/Add.1 
 
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  3.1.12.5 Labelling 
 Page 62, paragraph 3.103 : The Secretariat’s Report indicates that the Food Safety and 
Standards (Packaging and Labelling) Regulations 2011 regulate labelling requirements in India. 
These regulations stipulate that domestic manufac turers are obliged to display the license number 
and the FSSI logo on the label from 1 January 2015. The Secretariat’s Report states that these 
"Regulations are not notified to the WTO since they are not intended to be applied to India's 
trading partners."  
 Question 43: Please confirm whether it is indeed the sole responsibility of Indian importers to 
affix the required labels with respect to the lic ense number and FSSAI logo on imported products 
sold in India.   
 Reply:  It is between the exporting manufacturer and th e importing Indian FBO if they agree to do 
the needful at the export end itself. The requirem ent of the regulation is that before the food 
product is cleared from the customs area, it should have this information in form of an original label or an additional sticker affixed by the importer. 
 
Question 44: The United States previously requested that India provide assurances, as per the 
proviso given in Rule 24 of PCR (Legal Metrolog y Packaged Commodities Rules, 2011), that these 
rules shall not be applicable in the case of food products if similar Rules are available in the FSS 
Act. India confirmed this understanding to the United States twice in writing during 2014. 
Our trade continues to report that inspectors at certain ports continue to enforce the superseded definitions. We therefore respectfully inquire as to the status of a notification, or amendment of 
the Department of Commerce and Department of Legal Metrology regulations.  
 Reply: Rule 24 of the Legal Metrology (Packaged Commodities) Rules 2011 is clear in that it shall 
not be applicable if a similar declaration is to be made in any other law for the time being in force. 
The US may provide us specific cases and we would be happy to examine these. 
 Question 45: Furthermore, India's Legal Metrology Rules require foreign manufacturers to declare 
the maximum retail price (MRP) of foods on the label.  We understand that there may be a 
proposal to amend these rules to permit the application of MRP stickers on imported foods. Please provide a status update on the Legal Metr ology Rules and the anticipated timeline for their 
implementation. 
 Reply: The amendment to the Legal Metrology Rules on  14.5.2015 permit the affixation of labels 
on imported packages for making the declarations required under Rule 6. 
 India’s Ministry of Consumer Affairs has proposed establishing mandatory requirements for metric size packaging. Providing metric unit information serves a clear purpose. 
 
Question 46: Please explain when India plans to notify the WTO and consult with trading partners 
on these proposed requirements.   
 
Reply : India has a due process wherein we consult with all stakeholders before amending the 
Legal Metrology Rules. 
 
3.1.13 Sanitary and Phytosanitary Requirements  Pages 62 and 63, paragraphs 3.106-3.109:  The Secretariat’s Report discusses India’s SPS 
requirements.  In this regard, please reply to the following: 
 Question 47: In efforts to increase transparency, are the opinions and reports regarding proposed 
SPS measures drafted by India's scientific pa nels and the scientific committee available to 
Members for review?  
Reply : Existing legislation governing import of anim al and animal products does not provide for 
publication of technical opinion/report of scien tific panel and scientific committee for review. 
 WT/TPR/M/313/Add.1 
 
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  Question 48: In addition to Codex, will India also aim to align India's SPS-related standards with 
the International Plant Protection Convention (IPPC) and World Organization for Animal Health (OIE)?  
Reply:  Yes, India has already decided to align its standard with OIE to the extent possible. 
 Question 49: How are India’s import protocols for animal products linked to the standards 
developed by the OIE (World Organization for Animal Health)?  
 Reply:  India’s standards for import of animal products are based on OIE guidelines.  India has 
decided to align its standards with OIE to that extent which may satisfy India’s ALOP. 
 
Question 50: How does India make use of country animal health assessments from the OIE? 
 
Reply: While permitting import of animal and animal products, India follows the disease notified to 
OIE by the respective countries.  
Question 51: In regard to import restrictions on pork and pork products, and noting the recent 
WTO notification on the draft veterinary certificate and subsequent comments from the United States, will India’s finalized certificate conform to the relevant OIE and CODEX standards?  
Reply :  India will consider the comments of members countries including USA, wherever 
applicable.  
Question 52: Of India's three national enquiry points , how is the enquiry point decided for 
SPS-measures involving multiple commodity sectors?  
Reply:  For SPS measures the enquiry points involving multiple commodity sectors are decided as 
per the requirements laid down in the respective acts and are interlinked. For animal and animal product the relevant act is Livestock Importation Act., 1898.  
Question 53: In addition to India's three national enquiry points, the United States has noted that 
the Food Safety and Standards Authority of Indi a (FSSAI) is listed as the SPS enquiry point for 
India’s recently submitted WTO notifications.  Is FSSAI the apex national enquiry point?  
 
Reply:  India has following three SPS enquiry points: 
 
Food safety related issues- Food Safety and Standards Authority of India (FSSAI) 
 Animal health and related issues - Department of Animal Husbandry, Dairy & Fisheries 
 
Plant health or phytosanitary issues : Director, Plant Protection, Dept. of Agriculture & 
Ministry of Agriculture  
Question 54: In regard to SPS-related WTO Notifications, how does India review and evaluate 
diverging comments and viewpoints received from different stakeholders, including the private sector and WTO Members? 
 
Reply:  Comments of member countries are reviewed by the Technical Expert Committee. 
 Question 55: Once stakeholder comments are submitted on a draft notification, when should the 
submitting party expect a response? 
 Reply:  Following stake holders comments on the draft notification the responses to the member 
countries will be communicated soon after reviewing the comments and issues raised therein. 
 Question 56: What are the parameters that India typically uses to conduct import risk analysis? 
How does India determine the prevalence of a diseas e or pest domestically to ensure consistency? 
Is India’s risk analysis framework aligned with the relevant WTO, OIE and NPPC standards for a scientific risk assessment?   WT/TPR/M/313/Add.1 
 
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  Reply : Import Risk Analysis is carried out as per parameters laid in OIE risk analysis procedure. 
The animal disease situation of any country is a scertained based on the disease situation notified 
to OIE by the member countries. Since India’s sanitary requirement are based on OIE standards, therefore, the risk analysis frame work is aligned with OIE standards.  
 
Question 57: Do India’s risk assessments cover a country or a region? 
 
Reply : The risk assessments cover both country and the region. 
 Question 58: What is the typical time frame for a risk analysis? 
 
Reply : It depends upon the product and sanitary situ ation of the exporting country. Generally, the 
risk analysis is completed within 45 days.  
Question 59: Once the risk analysis is complete, how long does it generally take to issue an 
import license?    
Reply : Sanitary Import Permit for animal products are issued within seven days after completion 
of risk analysis.  Question 60: Does a risk analysis have to be comple ted before an import license is issued? 
 
Reply : Yes, Risk Analysis has to be completed before Sanitary Import Permit is issued. 
 
Question 61: Does the Government of India plan to introduce measures to improve the efficiency 
of risk analysis and the process for issuing import licenses?  
Reply:  Yes 
 Question 62: Please explain in detail the meaning of the phrase in paragraph 3.109 that permits 
"may be used for multiple consignments." Would an importer require only a single permit to cover 
multiple shipments? Could the importer use the same import permit to cover multiple suppliers 
from the same exporting country?  
Reply : The permit is valid for multiple consignments restricted up to the quantity and validity. 
One permit can be used for multiple consignments for single supplier till the exhaustion of the quantity or date of validity whichever is ea rlier. The producers may be more than one.  
 
Question 63: Please clarify the process and contact point by which trading partners may submit 
proposals requesting India to recognize the equivalence of its trading partners’ SPS measures that are based on Codex Guidelines, as indicated in paragraph 3.116. 
 
Reply:  This can be taken up with the following Inquiry point: 
 
Food Safety and Standards Authority of India (FSSAI) 
FDA Bhawan, Kotla Road, New Delhi-110002, India Tel: +911123237419  
Fax:  +911123220994 
Website: http://www.fssai.gov.in  
 
3.2 Measures Directly Affecting Exports 
3.2.2. Export Taxes, Charges and Levies 
 Pages 65-66, paragraphs 3.122-3. 123, Table 3.11 and Table 3.12: The Secretariat’s Report 
details a number of export taxes and export cesses  in place in 2014, including measures on certain 
raw materials used in steelmaking: bauxite, iron ore, chrome, manganese, and ferrous scrap.   
 
Question 64: Please explain the rationale for maintaining export restraints on these products.   
Also, please confirm that there are no export bans or quotas currently in place on these steelmaking raw material products at either the national or state level.     WT/TPR/M/313/Add.1 
 
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  Reply: Export taxes on various minerals, as mentioned, have been maintained to ensure that the 
domestic end user industries have sufficient access to them. Excess mining has adverse consequences on the environment and lead to substantial addition of costs to the economy and the people. There is no bar on export of iron ore. However production of iron ore is done as per mining 
plan within statutory framework.  
 3.2.5 State Trading Enterprises 
 
Page 67, paragraph 3.130:  The Secretariat’s Report notes that state-trading export privileges 
exist for certain agriculture products (as noted in G/STR/N14/IND, dated 30 November 2012) with 
a view of preventing wide domestic price fluctuations.  
 
In that regard, please explain the following:   
Question 65: How do state trading export privileges prevent upswings and downswings in prices? 
 Reply: State Trading Enterprises do not function with an objective to prevent upswings and 
downswings in prices as they make purchases or sales involving imports or exports solely in 
accordance with commercial considerations.  Question 66: How does India ensure that state trading export privileges are compliant with WTO 
obligations, including the prohibition on export subsidies, when selling Indian commodities 
purchased in the domestic market at high prices on world markets?  
Reply:  STEs work purely on commercial considerations.  Para 2.11 of FTP 2015-20 prescribes that 
STE(s) will make any purchases or sales involving imports or exports solely in accordance with 
commercial considerations, including price, quality, availability, marketability, transportation and 
other conditions of purchase or sale in a non-discriminatory manner and shall afford enterprises of 
other countries adequate opportunity, in accordance with customary business practices, to compete for participation in such purchases or sales. This and other practices makes STEs compliant with India’s WTO obligations. 
 
The United States notes that the Secretariat Report does not reference wheat among the agricultural commodities for which state trading enterprises (STEs) have export privileges. The 
Project and Equipment Corporation of India (PEC), State Trading Corporation of India Limited 
(STC), and Minerals and Metals Trading Company (MMTC), all notified STEs by India, have all 
published tenders for the export of wheat.  For example, between November 15, 2013 and 
January 23, 2014 approximately 2 million metric tons were tendered for export from government 
stocks. Please explain on what basis these STEs have export privileges for wheat.  Moreover, based on data compiled from Indian government sour ces, the cost to port for wheat tendered from 
Indian government stocks was approximately $310 per metric ton, indicating below cost export 
sales by the Indian government.   
 Question 67: Recognizing that India cannot share the deta ils on individual bids, please provide 
the average acquisition cost and incidental charges for wheat tendered during the 
November 15, 2013 to January 23, 2014 period.  Also, please also provide average pooled cost of grains to FCI, handling charges, gunny costs, administrative charges, statutory taxes, and storage 
charges for a period of six months. 
 Reply:  FCI pays acquisition cost of foodgrains to various procurement agencies based on the costs 
approved by the Government. Government approves varying costs for various States based on 
rates of taxes, labour charges, transportation etc. Acquisition cost sheets of wheat for various 
States for 2013-14 are available on the website of the Department. 
 
3.2.6 Export Support and Promotion 
 Page 68, paragraph 3.132: The Secretariat’s Report notes that India provided export subsidies 
for sugar, tea, processed fruits and vegetables, fresh fruits and vegetables, plants and flowers, 
and animal products in 2009.   
 Question 68: Noting that India did not schedule the right to export subsidies, on what basis does 
India provide export subsidies after the Urugua y Round implementation period? Please provide WT/TPR/M/313/Add.1 
 
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  figures for the level of export subsidies, by commo dity, provided by India during the period under 
review in this report.  Reply:  India takes its WTO commitments seriously and the provision of export subsidies is WTO 
compliant. Details of export subsidy schemes are available in the Foreign Trade Policy, which is in 
the public domain and can be seen at http://www.dgft.gov.in . 
 
Page 68, paragraph 3.133 : The Secretariat’s Report states that India’s latest notification to the 
WTO Committee on Subsidies and Countervailing Measures included fishery programmes at the state, union territories and central government levels. The United States notes that India previously notified that it maintained only three industrial subsidy programs, despite evidence to the 
contrary, as detailed throughout the Secretariat’s report.  
 Question 69: When will India submit its next new and full subsidy notification that includes all 
programs at the central and sub-central levels of government? 
 Reply:  India has already submitted to the WTO, the latest notifications on fisheries subsidies, 
involving a number of State Governments and the Union Territories, fulfilling India’s commitments 
to that extent. India has also fulfilled its commitment of Notification on Preferential Tax programmes. This is an indication of our commitment and serious efforts towards meeting our obligations under Article 25.2 of ASCM. For the remaining other programmes, India is collecting 
the information from all the stakeholders concerne d and is examining them both from the angle of 
facts to be provided and the need for notifying them to WTO at all under the requirements of 
Article 25.2 of ASCM. 
 
3.2.6.1 Special Economic Zones (SEZs)  
Pages 68-71, paragraphs 3.135-3.145 : The Secretariat’s Report notes that firms, including 
those within the textiles and garment industries that are established within a Special Economic Zones (SEZ) and/or designated as an Export Oriented Unit (EOUs), benefit from various tax exemptions. Specifically, the Secretariat's Report  notes that SEZ and EOU units are exempt from 
various taxes, such as income tax, central sales tax, and minimum alternate tax, as well as from a 
series of state taxes (i.e., sales taxes, stamp duty, central sales tax and electricity duty). The United States recalls that the previous Secretariat's Report noted that both SEZs and EOUs were 
exempt from various taxes, including income tax, until March 31, 2011. 
 Question 70: Please confirm whether some or all of these incentives have continued past that 
date. If they have continued, please provide the expected date of termination, if any. 
 Reply: Tax incentives as envisaged under the original SEZ Policy are available to various entities 
in SEZ. However the Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) was made 
applicable to SEZ entities vide the Finance Bill, 2011 w.e.f 01.04.2012.  
 The Secretariat’s Report does not mention export processing zones, which were originally 
established by the Industrial Development and Regulation Act of 1951, but does reference new 
national investment and manufacturing zones in paragraph 4.47.  
Question 71: D o e s  I n d i a  s t i l l  m a i n t a i n  e x p o r t  p r o c e s s i n g  z o n e s  a t  t h i s  t i m e  o r  w e r e  t h e y  
subsumed into other programs? Please explain th e current status of the program and whether the 
original beneficiaries of the program continue to enjoy benefits in some manner.  
Reply: Export Processing Zone scheme has been subsumed in Special Economic Zone scheme. 
The original beneficiaries of the program continue to enjoy benefits under the SEZ policy.   
3.2.7 Export Finance, In surance and Guarantees 
 Page 72, paragraph 3.152:  The Secretariat’s Report states that "[e]xport credit is under the 
overall regulation and supervision of the RBI." 
 Question 72: Please describe the role of the government in the provision of export financing by 
commercial banks.   
 WT/TPR/M/313/Add.1 
 
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  Reply: RBI first introduced the Export Financing program in 1967. The program was intended to 
make short-term working capital finance available to exporters at internationally comparable interest rates.  Export Credit is available in rupee as well as in foreign currency.  
 
Rupee Export Credit: 
 Under the earlier scheme in force up to June 30, 20 10 RBI fixed only the ceiling rate of interest for 
export credit while banks were free to decide the rates of interest within the ceiling rates keeping 
in view the Benchmark Prime Lending Rate (BPLR) and spread guidelines and taking into account 
track record of the borrowers and the risk perception.   
With effect from July 1, 2010 the Base Rate was introduced for enhancing transparency in lending 
rates of banks and enabling better assessment of tr ansmission of monetary policy. Under the Base 
Rate System, interest rates applicable for all tenors of rupee export credit advances are at or 
above Base Rate.   
 Banks grant export credit to eligible exporters as per their well-defined loan policy approved by 
their Board of Directors which should lay down exposure limits to individual/group borrowers, 
documentation standards, margin, security, sect oral exposure limits, delegation of powers, 
maturity and pricing policies, factors taken into consideration for deciding interest rates, etc. Accordingly, interest rates on export credit is de regulated and is determined by banks as per their 
Board approved policy, 
 Export credit in rupees is available for a maximum period of 360 days.  
 
Export credit in foreign currency:  
In respect of export credit in foreign currency, banks have been allowed to finance to exporters at 
internationally competitive rates under the programs of 'Pre-shipment Credit in Foreign Currency' (PCFC) and 'Rediscounting of Export Bills Abroad' (EBR). Up to May 4, 2012 banks were allowed to decide the interest rate on export credit within the ceiling rate, linked to LIBOR as prescribed by 
RBI. However, with effect from May 5, 2012 banks are free to determine the interest rates on 
export credit in foreign currency. Accordingly, the interest rates are completely determined by banks themselves. Export credit in foreign currenc y is available for a maximum period of 360 days.  
 
More specifically:  
Question 73: Does India provide interest rate support to commercial banks so that these banks 
can provide financing at "internationally-competitive rates?"  Reply:  Under rupee export credit interest subvention scheme, GoI used to provide subsidy to 
commercial banks at 3% which is to be passed on to the exporters upfront. The rupee export 
credit interest subvention was in vogue till March 31, 2014.  However, Govt. of India has not extended the scheme beyond March 31, 2014. 
 
Question 74: Does India provide any type of guarantee to the commercial banks to cover losses 
in case of defaults under export fina ncing provided by the commercial banks? 
 
Reply:  In terms of Para 2.6 of RBI’s Master Circular DBOD No.DIR.BC.19/ 04.02.002/ 2014-15 
dated July 1, 2014 on 'Rupee / Foreign Currency Export Credit and Customer Service To Exporters', the Whole Turnover Post-shipment Guar antee Scheme of the Export Credit Guarantee 
Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of 
post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. Further, banks have also been advised that as the 
post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect 
of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the 
banks and not passed on to the exporters.  
 
Question 75: Do state-owned banks provide export financ ing to support exports of agricultural 
products?  
Reply:  Yes. WT/TPR/M/313/Add.1 
 
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  Question 76: Does the Royal Bank of India determine the base rate applicable to interest rates 
for export credits?  How is the base rate determined?  Reply:  The Reserve Bank of India does not determine th e base rate applicable to interest rates on 
rupee export credit. Banks are free to determine their own base rates. Banks are, however, not 
permitted to resort to any lending (including rupee export credit) below their base rates (base rate effectively working as the minimum lending rate for all rupee loans). The base rate, which varies 
from bank to bank, is determined by a bank’s cost of deposits/funds, its negative carry on cash 
reserve ratio (CRR) and statutory liquidity ratio (S LR), overhead costs and average return on net 
worth.  
In terms of circular DBOD.No.Dir.BC.88/13.03.00/2009-2010 dated April 9, 2010 on "Guidelines 
on Base Rate", RBI has introduced the Base Rate system. Base Rate shall include all those elements of the lending rates that are common ac ross all categories of borrowers. Banks may, 
however, choose any benchmark to arrive at the Base Rate for a specific tenor that may be 
disclosed transparently. Banks are free to use any other methodology, as is considered appropriate, provided it is consistent and are made available for supervisory review/scrutiny as 
and when required. Banks may determine their actual lending rates on loans and advances with 
reference to the Base Rate and by including such other customer specific charges as considered appropriate. Further, in terms of para 2(x) of th e aforesaid circular, banks are required to review 
Base Rate at least once in a quarter with the approval of the Board or the Asset Liability 
Management Committees (ALCOs) as per the bank's practice. 
 Interest Rates on all export credit advances, on both pre-shipment and post-shipment will be 
changed as per base rate guidelines. 
 Question 77: With respect to any state-owned banks that provide export financing to support 
exports of agricultural products, and any private se ctor banks that receive any type of government 
support in the provision of export financing to support exports of agricultural products, please 
provide the following information for the most recent two years:  specific agricultural commodities supported; value and destination of these commodities; average interest rate or premium 
charged; maximum tenor; average tenor of the transactions per year. 
 Reply:  Information, as requested above, is not available with authorities. It is also to be noted 
that the export credit interest subvention sch eme has not been extended beyond March 31, 2014 
by the Government.  
Pages 72-73, paragraph 3.153:  The Secretariat’s Report identifi es the types of export credit 
and financing provided by the Export-Import Bank of India (Exim Bank), with further information provided on the Exim Bank’s website at h ttp://www.eximbankindia.in/sites/default/files/ 
AR202013-14%20English%20for%20web%20New.pdf.  
 
With this in mind, please reply to the following:  
Question 78: According to page 23 of the Exim Bank’s 2013-2014 report, the Exim Bank helped 
exporters to secure contracts for the sale of "agr icultural processed foods." What type of support 
was provided by the Exim Bank to ensure that the exporter(s) secured the contract(s)? What was 
the value and destination(s) of these agricultural products?  
 Reply:  The total disbursements for agricultural processed foods under the Bank's Buyers Credit 
program during 2013-14 amounted to US$ 9.07 million. Countries wherein contracts were secured 
are USA, Canada, Netherlands, Germany, Pola nd, Finland, UK, UAE, Saudi Arabia, Turkey, 
Morocco, Egypt, Ecuador, and Benin. The contracts were secured by the exporters on their own.  
Question 79: According to page 24 of the Exim Bank’s 2013-2014 report, the Exim Bank provided 
Buyer’s Credit to support the export of "fruits an d vegetables, rice, other agro-based products and 
commodities." What were the specific commodities  and destinations supported by the Bank under 
this program? What is the maximum tenor, average tenor, and average premium rate for 
agricultural products under the Buyer’s Credit program?  Reply: The Buyer’s Credit quoted above is for short term in nature. These are with maximum and 
average tenor of 180 days. Fruits & Vegetables and Agro Commodities including Cumin Seed, WT/TPR/M/313/Add.1 
 
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  Black Seed, Basmati Rice, Onion, Peanut, White Refined Sugar, Parboiled Rice, Mango Puree were 
exported to countries like Singapore, Brazil, U. A.E, Bangladesh, Turkey, Benin, and Kuwait, under 
this programme. The premium rates are based on the prevailing market, credit rating of the 
customer, country risk and also based on the Tenor of the Loan. 
 
Question 80: Does the Exim Bank provide export  credits to support agricultural 
commodity/product exports under any of its other programs? If so, what are the commodities, 
destinations, and terms (average premium rates, maximum and average tenors) of these 
programs?   Reply:  Yes.  Agricultural commodity/products towards which disbursements has been made are 
pulses, puri, vegetables, mango pulp, spices, rubber, amongst others. Destinations of such exports 
were U.K., Kuwait, Canada, Saudi Arabia, Yemen,  Japan, Germany, UAE, USA, and Singapore. 
 
Export credit is mainly extended in foreign currency at floating interest rates linked to Libor. The 
tenors are short term, and generally for the period of 6 months.  
Page 73, paragraph 3.156:  The Secretariat’s Report notes how export credit is counted in India.   
 Question 81: Does India have a requirement that a certain portion (or total amount) of 
government-supported export credits be provided to agriculture because of its designation as a 
"Priority Sector?" If so, what is that portion/amount? 
 Reply:  There is no requirement that a specific portion of government supported export credit be 
provided to agriculture, because of its designation as "Priority Sector". 
 Page 73, paragraph 3.157 :  The Secretariat's Report discusses the Export Credit Guarantee 
Corporation (ECGC), with further informat ion provided on the ECGC’s website at: 
http://www.ecgcindia.in/en/FinancialRep orts/2013-2014/Annual% 20Report%202013-14.pdf .  
 
According to the ECGC’s 2013-2014 Annual Report, in 2013-2014, 9 percent of ECGC’s short-term 
policies covered "Agriculture products (including Dairy Products and Processed Foods)" and 
9 percent of the short-term policies covered "C otton (Fibre, Yarn, Fabrics Made-ups) including 
Handloom."  
 
With this in mind, please reply to the following:  
Question 82: Under which specific short-term programs did ECGC provide support for agricultural 
products?  Please provide a brief description of these programs.  Reply:  There is no specific identified policy to cover exports of agriculture products or any specific 
commodity. The exports of a product can be covere d under any of the policies depending upon the 
suitability to the exporter and features of the product.  
Question 83: What were the specific agricultural products covered under these short-term 
policies? What was the total value covered by product and the destinations of these exports?  
Reply:  The question is not relevant. ECGC does not have any specific short term policy for 
agriculture products.  Question 84: What is the maximum tenor, average tenor, and average premium rate for 
agricultural products covered under these policies? 
 Reply:  The question is not relevant. ECGC does not have any specific short term policy for 
agriculture products. 
 3.3 Measures Affecting Production and Trade 
3.3.1 Incentives 
3.3.1.3 Credit Policies  WT/TPR/M/313/Add.1 
 
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  Page 75, paragraph 3.164:  The Secretariat’s Report mentions that India sets targets for 
priority-sector lending. India has modified its priority-sector lending program at various times in the past.  
Question.85: Please explain whether India has any plans to reduce or modify the requirements 
for this program and, if so, when will details of such plans be available. Furthermore, please explain why India has extended priority-sector lending requirements to banks with less than 
20 branches.  
 Reply:  The revised priority sector guidelines were issued on April 23, 2015 based on the 
recommendations of an Internal Working Group (IWG) which was set up in July 2014 to revisit the 
existing priority sector lending guidelines. The report of the Group is available in the public domain 
at: https://www.rbi.org.in/scripts/Publicat ionReportDetails.aspx?UrlPage=&ID=810 . 
 
The licence issued to Indian banks and foreign ba nks operating in India enables banks to carry out 
all banking activities. These extensive activities  range from retail banking, wholesale banking, 
investment banking, credit card business, custod ial services, foreign exchange business, clearing 
house membership, etc., on par. Thus, under their omnibus dispensation of the licence to carry out 
banking business, permission to carry out all types of commercial activities in India is available without differentiation between the types of entities, i.e., public sector banks/private sector banks/foreign banks. Therefore, there is no reas on to keep foreign banks out of the purview of 
priority sector. 
 Page 75, table 3.19 : This table identifies the interest rates available to various sectors. 
 
Question.86: Please explain the current status of interest rates for textile exporters.  
 
Reply:  RBI has deregulated the interest rates on advances sanctioned by Scheduled Commercial 
Banks, with effect from October 18, 1994 and these interest rates are determined by banks themselves with the approval of their Boards. The Base Rate system is applicable with effect from July 1, 2010. Accordingly, interest rate is applicable for all tenors of rupee export credit advances 
are at or above base rate. 
 Under the rupee export credit interest rate su bvention scheme formulated by Govt. of India, 
Ministry of Finance, interest subvention of 2% was extended to the Textile sector with effect from 
May 2013. Further, with effect from August 1, 2013, and till March 31, 2014, Govt. of India, Ministry of Finance, has increased interest subv ention from 2% to 3%. However, the scheme has 
not been extended beyond March 31, 2014 by Govt. of India. 
 We also note that table 3.19 shows preferential interest rates to exporters in 2014 (3 percentage 
points). 
 
Question 87: Please identify the specific processed agricultural products receiving the subsidized 
interest rate and the quantity of exports (by pr oduct) receiving the subsidized interest rate.  
 
Reply:  The sectors/sub-sectors including processed agricultural product are decided by 
Government of India. In the year 2007 (up to March 31, 2008) under the rupee export credit 
interest subvention scheme, Government of Indi a have specified to include processed cashew, 
coffee and tea as specific agricultural products under the processed agriculture product sector for subsidy. However, in the subsequent years, Govt. of India have not specified the products to be included in the processed agriculture product sect or. However, the rupee export credit interest 
subvention scheme has not been extended beyond  March 31, 2014 by the Government of India. 
3.3.2 Competition Policy  and Price Controls 
3.3.2.2 Price Controls 
 
Page 79, paragraph 3.184 : The Secretariat’s Report notes the introduction of the Drugs 
(Price Control) Order in 2013.  
 
Question 88:  Please clarify the intention of Section 32 of the Order with respect to how the Order 
applies to new drugs developed and produced domest ically versus new drug imports.  Also, please 
clarify how many applications for exemption from the order under Section 32 have been made, by 
whom (foreign or domestic), and whether th ose applications were approved or denied. WT/TPR/M/313/Add.1 
 
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Reply:  T h e  o b j e c t i v e  o f  p a r a  3 2  o f  t h e  D r u g s  ( P r i c e  C o n t r o l )  O r d e r ,  2 0 1 3  i s  t o  p r o v i d e  a n d  
incentivize indigenous Research & Development (R&D) of medicines in the country whether undertaken by Indian or MNC company.  The said clause is equally applicable for both domestic as 
well as for MNC’s for R&D effort in the country and not outside the country. Under Section 32 (iii), 
National Pharmaceutical Pricing Authority (NPPA) has received three applications from Indian companies out of which only one was rejected. 
 
3.3.4 Government Procurement 3.3.4.2 Regulatory Framework  
Page 81, paragraph 3.191 : The Secretariat’s Report notes that India is an observer to the WTO 
Agreement on Government Procurement (GPA), and that India is in the process of comprehensive government procurement reform that is in part intended to accommodate requirements of the 
GPA. We applaud India's efforts to bring its procurement system in line with GPA obligations. 
 Question.89: When does India plan to accede to the GPA? 
 
Reply : India is in the process of formulating a comprehensive government procurement 
legislation. It is yet to be considered and passed by the Indian parliament. Once it is passed and implemented, issue of India acceding to GPA of the WTO would be examined. 
 
3.3.5 Intellectual Property Rights 3.3.5.1 Introduction 
 
Page 84, paragraph 3.207 : The Secretariat’s Report states that "India has an important 
economic interest in protecting the intellectual property rights (IPRs) of its creators and inventors, 
particularly in the creative and knowledge-based industries."   
 Question 90: Please provide updated data regarding civi l and criminal copyright, trademark, and 
patent infringement actions during this TPR review  period.  Despite the absence of a unitary law on 
trade secrets, please also provide data and information on civil and criminal court cases involving 
this important IPR during this TPR review period.  
Page 84, paragraph 3.209:  The Secretariat’s Report notes that while "India has laws covering 
different aspects of IPRs that have  been amended from time to time, including in order to take into 
account its TRIPS obligations [citation omitted], only the Copyright Act, 1957 has been amended 
since 2011." 
 Reply:  India has federal set up with civil and criminal cases filed in various courts- at the district 
level in case of criminal enforcement and trad e secret violations and in the high courts. 
The information on civil cases is not maintained centrally. Information on criminal enforcement is 
compiled by the National Crime Record Bureau and it is available on the web site (http://www.ncrb.gov.in )  
 
Question.91: Please provide further details on the scope and application of Section 52(1)(a) of 
the Copyright Act (as amended) - a provision which deals with "private or personal use" 
exceptions.  
 Reply:  Section 52(1)(a) provides fair use exceptions for any work, not being a computer 
programme. The exception covers private or personal use including research, criticism or review of 
that work or of any other work; the reporting of current events and current affairs, including the 
reporting of a lecture delivered in public.   
The provision also explains that the storing of any work in any electronic medium for purposes 
mentioned above including incidental storage of any computer programme which is itself not an infringing copy shall not constitute infringement.  
  
3.3.5.2 Patents  Page 85, paragraph 3.213 : The Secretariat's Report indicates that while the number of patent 
applications in India has been growing, the numbe r of patents granted has decreased. The Report WT/TPR/M/313/Add.1 
 
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  also notes that this may indicate a backlog is gr owing. Another possibility would seem to be that 
an increasing percentage of applications are being rejected, as opposed to granted.  Question.92: Please provide information which would discern the actual cause(s) of the decrease 
in grants. 
 
Reply:  The grant of Patents  has increased over the past 3 years  
 
Year Granted 
2012-13 4126 
2013-14 4225 
2014-15  5978 
 
Page 85, paragraph 3.214 : The Secretariat's Report discusses e-enablement and modernization 
of the Indian Intellectual Property Office. The efforts undertaken by India in this regard are 
commendable. However, some have observed difficulty in using the inPASS system, for example, 
to retrieve patent application information online.   
Question 93: Are efforts being made or considered to improve the utility of such tools for the 
public? If so, please describe those efforts in detail.  Reply:  The InPass System for retrieval of patent application information online  is now functioning 
properly. 
 The present search system, InPASS allows a search to be conducted in all the Indian Patents and 
Patent Applications. This is a new tool developed by this office which allows a full-text search to be 
conducted in all the Indian Patents as well as Patent Applications. The search utility at present allows use of wild-cards, truncation as well as Boolean operators in all the fields of the ST.36 
compliant data available with the Patent Office, thereby enabling the stakeholders to conduct an 
advanced search in the Indian Patent Database. This search tool also allows access to E-register of Patents giving the legal status details of all grante d patents. There is also a tool that provides the 
status of a patent application. 
 
Further improvements planned/undertaken are as follows:  
 Advance search option, wherein users will be able to Search with Command line search, 
thus giving total control over syntax of database used. Command line search gives 
option to write queries with full range of operators and parentheses. 
 The InPASS tool will be improved further to include Keyboard shortcuts which will be 
available to ease of work. 
 The result detail page will present the following information in separate tabs to the user. 
Users would be able to easily add/remove or  configure the positioning of these tabs on 
the screen.  
 Entire front page – provides front page details for the application 
 Claims – Displays claims of the application 
 Description – Displays description of the application 
 Patent Citation – Displays the patent citations of the application 
 Non-patent citation –Displays the non-patent citations for the application 
 Images – Displays the drawings of the application 
 Application status – Displays the current application’s status. 
 E-register – Displays the patent e-register for the current application WT/TPR/M/313/Add.1 
 
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 Default Search fields option : If no fields are specified, the default search will be  
performed in basic index (Title and abstract).  
 Index Lookup : Command line search will also have an index lookup facility which gives 
field specific index terms suggestion as the user types any keywords.  
 Query History Window: Command line search window will also provide a query history 
window where users can view their curre nt session query history. InPASS will 
automatically provide a query id to each searched query.  
 Advance search interface : This feature will provide users a facility to search in pre-set 
search fields that can be combined according to their needs.  
Page 86, paragraphs 3.216-3.217 : The Secretariat’s Report discusses a Supreme Court of India 
judgment relating to Section 3(d) of the Patents Act. 
 Question 94: In consideration of this decision and the new pharmaceutical patent examination 
guidelines which recite the language of the judgment, please provide information on applications 
which have been granted following a rejection under Section 3(d). For example: how many there are and what sort of evidence and/or argument examiners may consider persuasive as to 
significant enhancement of therapeutic efficacy over the closest prior art compounds so as to 
remove a 3(d) rejection after it is made.  Reply:  The cummulative data on examination and gran t based on section 3(d) along with the the 
reasons/evidences etc. in respect thereof  has not been compiled by the Office, as  the details for 
each individual case is available in the IPO webs ite. The examination, grant and rejections all are 
done strictly as per provisions of the Patents Act and the Guidelines ( which has also taken into 
consideration the Supreme Court decision in this regard) without any discrimination. 
 Question 95: More generally, please provide information relating to the number of patent 
applications rejected under Section 3(d) by IPO examiners that concern patent applications outside 
of the pharmaceutical and biologics technology sect ors.  Please identify which sectors outside of 
pharmaceuticals, biologics, and chemicals, if an y, have received rejections and how many have 
rejections have been made in each sector. 
 
Reply:  The Cummulative data on examination and grant based on section 3(d) along with the the 
reasons/evidences etc. in respect thereof  has not been compiled by the Office, as  the details for 
each individual case is available in the IPO website  
 Page 87, paragraph 3.219 : The Secretariat's Report indicates that it is not entirely clear how 
India intends to address the issue of safeguards  against diversion that are part of both the 
August 2003 General Council decision and the subsequent protocol amending the TRIPS Agreement.  
Question 96: Given that India has already implemented this type of compulsory licensing of 
pharmaceuticals, has India undertaken efforts or given consideration to anti-diversion measures, in light of the General Council decision and protocol for amending the TRIPS Agreement? 
 
Reply:  Section 92A of the Indian Patent Act prescribes clearly that the Compulsory licence for 
export of patented pharmaceutical products shall be available for manufacture and export of such 
products  to any country having insufficient or no manufacturing capacity in the pharmaceutical 
sector for the concerned production to address public health problems, only when  the country under reference has already  granted a compulsory licence or has, by notification or otherwise 
allowed importation of the patented pharmaceutical products from India.   
 
The controller shall on receipt of an application in the prescribed manner, grant a compulsory license solely for manufacture and export of the concerned pharmaceutical product to such country 
under such terms and conditions as specified and published by him.  
 Application for compulsory license can be made under Form 17 of the Patents Act and Rules.  
 WT/TPR/M/313/Add.1 
 
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  However, no such compulsory licence has been granted in India so far. 
 Page 88, paragraph 3.225 : The Secretariat’s Report discusses issues of intellectual property and 
climate change by referencing India’s National Ma nufacturing Policy of 2012. Under Section 4.4 of 
the National Manufacturing Policy, India contempl ates two methods for assisting companies with 
obtaining access to the latest patented green technologies: 1) establishing a Technology Acquisition and Development Fund to purchase relevant patents from rights holders for use in 
patent pools to license to interested companies; and 2) allowing the Technology Acquisition and 
Development Fund to "approach the Government for issue of a Compulsory License for the technology which is not being provided by the patent holder at reasonable rates or is not being worked in India to meet the domestic demand in a satisfactory manner". Although this section 
deals with two distinct methods for facilitating access to patented technologies, it is entitled 
"Compulsory licensing" which suggests that comp ulsory license is favored by the Government. 
Please confirm that India will not favor the comp ulsory licensing method over more market-driven 
methods, such as licensing agreements among pr ivate parties or between private parties and the 
Technology Acquisition and Development Fund, and that if the compulsory licensing method is used, it would be done only in a way that is fully compliant with TRIPS. In Section 4.4.3 of the 
National Manufacturing Policy, criteria such as "not being provided by the patent holder at 
reasonable rates" and "not being worked in India to meet the domestic demand in a satisfactory 
manner" may be used by the Technology Acquisition and Development Fund to approach the Indian Government for a compulsory license. 
 
Question 97: Are these terms broader than the criteria contained in Article 31 of TRIPS 
(e.g., "reasonable commercial terms and conditions")? Please provide more detail on the terms 
cited in the National Manufacturing Policy. 
 Reply : The terms would be interpreted in accordance with the Indian Patent Act which is 
consistent and compliant with TRIPS. 
 3.3.5.4 Industrial Designs  
Page 92, paragraph 3.238:  The Secretariat’s Report expresses a concern that copyright 
protection may be lost for three-dimensional forms of artistic works that are created via industrial processes pursuant to Section 15(2) of the Copyright Act.  Please explain the following: 
 
Question 98: Whether such three-dimensional forms of artistic works, if created via industrial 
processes, would be protectable under the Designs Act? 
 
Reply:  Section 2(d) of the Designs Act, 2000 which defines the term "design" mentions that a 
design does not include any artistic work as define d in clause (c) of section 2 of the Copyright Act, 
1957.  
 
Question 99 : If they are so protected, would failure to register the work under the Designs Act 
affect copyright protection for such three-dimensional forms of artistic works once more than 
50 copies have been created via industrial processes? 
 Reply:  Section 15(1) of the Copyright Act, 1957 states that "Copyright shall not subsist under this 
Act in any design which is registered under the Designs Act, 2000". However, Section 15 (2) of the 
Act provides that "Copyright in any design, which is capable of being registered under the Designs 
Act, 1911, but which has not been so registered, shall cease as soon as any article to which the design has been applied has been reproduced more than fifty times by an industrial process by the 
owner of the copyright or, with his license, by any other person".  
 Question 100: If failure to register does not affect su ch copyright protection, would Section 15(2) 
nonetheless serve to affect copyright protection fo r the three-dimensional form of artistic work if 
more than 50 copies were created via industrial processes?  
Reply:  Design Act is meant for protecting industrial designs which are created by industrial 
process. It gives a term of protection for 15 years. Artistic work as defined under Section 2(c) read with section 14 of the Copyright Act, 1957 does provid e protection to artistic work in any material 
form with two or three dimensional form. But here section 15 insists that such artistic work has to 
be created by human hand not by industrial process. By not registering a design a person cannot WT/TPR/M/313/Add.1 
 
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  be rewarded with a registration of artistic work produced more than fifty times by industrial 
process with life plus 60 years under copyright. Therefore, only handmade artistic works/designs are protected under copyright if not registered under the Design Act.  
3.3.5.5 Copyright 
 Page 93, paragraph 3.242: 
 
Question 101: Please describe what impact the 2012 amendments to India’s Copyright Act have 
had on the rate or results of copyright infringement actions.  
Reply:  There is no such data available which show  the exact impact of copyright amendment on 
copyright infringement action. However, different  amendments have been made to deal with 
infringement in more strict sense: Three new Sections — 2(xa), 65A and 65B — deal with DRM and 
TPM have been inserted. Section 53 (importation of infringing goods)has been completely 
restructured, and it now enables owners of any works or performance embedded in works to request -- by written notice to the Commissioner of Customs (or other authorized officer) -- that 
infringing copies be treated as prohibited g oods for not more than one year under certain 
circumstances, by following the procedure laid  down in the Section. Section 11 has been 
substantially amended — the Copyright Board is to comprise a Chairman and two other members (as opposed to ‘not less than two or more than fourteen other members’ as was earlier the case). 
 
Page 93, paragraphs 3.242/3.243:  
Question 102: With regard to the 2012 amendments to India’s Copyright Act, please describe 
how circumvention of technological safeguards is currently addressed under the Act, as amended.   
Reply:  Section 65 A of the copyright Act, 1957 as am ended in the 2012 r/w Rule 80 of Copyright 
Rules, 2013, criminalize the circumvention of effective technologies measures , punishable with imprisonment which may extend to two years and fine. Sub section 2 of Section 65A defines certain circumstances where this section cannot be invoked. 
 
Page 93, paragraph 3.244:  The Secretariat's Report notes that India’s Copyright Act provides 
for "exclusive rights in reproduction, circulation,  communication to the public and rental rights." 
Regarding the scope of such rights with respect to the compulsory translation license provisions 
under Section 32 of the Copyright Act, please respond to the following:  
Question 103: Indian works are excluded from the works for which a compulsory license may be 
issued three years after publication for the purposes of teaching, scholarship or research. Please comment on the relationship between this provision and national treatment provisions of the Berne Convention. 
 
Reply:  The Berne Appendix to the Berne Convention (1979 Revised) provides for compulsory 
licenses in respect of translation and reproduction for developing and least developing countries. 
India being a member of the Berne Convention and a developing country is entitled to exercise the 
above provision. This is the discretion of the Copyright Board within the ambit of applicable laws and facts and circumstances of case to case basis .  
 
Question 104 : What standard is used to determine whether granting a hearing to the copyright 
owner before the Copyright Board is "practicable"?  
Reply:  The Copyright Board being a quasi-judicial body is legally obliged to grant an equal 
opportunity of hearing to all the concerned parties in a particular case matter filed before it. There is no question of any "practicability". The compulsory licence provisions dealt in the Copyright 
Rules, 2013 facilitate granting of hearing to any interested person. 
 Question 105: What standard is employed by the Copyright Board to determine whether to grant 
such a compulsory translation license?  Please comment on the relationship to Berne Article 9(2). 
 Reply:  The clause (2) of Article 11 of the Berne Convention provides that it shall be matter of 
legislation in the countries of the Union to determine the ‘conditions’ under which the exclusive 
rights of authors authorizing their works for broadcasting. The word ‘conditions’ here means WT/TPR/M/313/Add.1 
 
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  non-voluntary licence or compulsory licence. The compulsory licence provisions in the Copyright 
Act and the Rules framed thereunder provide compulso ry licence which  is one of the limitations to 
the exclusive right of copyright of the right owner relate to a number of important considerations 
such as "market failure" or "abuse of the monopoly rights" on the following grounds:  
 
i. Refusing to grant licences to copyrighted works;  
ii. Imposing unreasonable terms on licences thereby discouraging voluntary licensing;  
iii. Imposing restrictive conditions on the use, sale or lease of the copyrighted works 
thereby prolonging the monopoly rights even after the copyright has expired.  
Since all the provisions of Compulsory licens e under the Act provide compensation by way 
of royalties to the right holder these provisions are in compliance with Article 9(2) of the 
Berne Convention. 
 Question 106: Section 32B states that such compulsory licenses can be terminated if the 
copyright owner, or its authorized representative , "publishes a translation of such work in the 
same language and which is substantially the same in content at a price reasonably related to the price normally charged in India for the translation of works of the same standard on the same or 
similar subject." What standard is applied for making the determinations required under this 
Section, and what entity makes the final decision?  Reply:  This is the sole discretion of Copyright Board to decide the issue as per the conditions 
provided under Section 32B of the Act.  
 Question 107: Could India please provide further details on the compulsory license process, 
including the means and manner in which remuneration is set, as well as collected for and 
distributed to foreign (and domestic) copyright owners?  
Reply:  The details of on the compulsory license proc ess are provided in the Copyright Act and the 
Rules framed thereunder. The manner of determining royalties is also provided under the licenses chapter in the Copyright Rules.  
Page 93, paragraph 3.245:  The Secretariat’s Report notes that the Copyright Board may issue a 
compulsory license for reproduction of any published work withheld from the public and we understand that the 2012 Copyright Rules may address some of these issues as well. Please 
explain the following: 
 Question 108: How many applications for such compulsory licenses have been received? 
 
Reply:  After enactment of the amended Copyright Act in the year 2012, no application for 
compulsory license in respect of published work withheld from public has been received.  
Question 109: Have any such compulsory licenses been issued to date? If yes, how many, and 
upon what terms?  
Reply:  No such license is issued. 
 Question 110: What standard is employed by the Copyright Board to determine whether to grant 
such a compulsory license?  Please comment on the relationship to Berne Article 9(2).  
 Reply:  Same as in reply no. 105 
 
Question 111: What standard does the Copyright Board use to determine whether (a) the terms 
offered by a copyright owner to grant a license to perform the work in public or communicate work 
are reasonable, or (b) the copyright owner’s refu sal to grant a license to republish the work, 
perform the work in public or communicate the work is reasonable? 
 Reply:  Same as in reply no. 105 
 WT/TPR/M/313/Add.1 
 
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  Question 112: Are there any grounds upon which the Copyright Board may refuse, or the 
copyright owner may oppose, the granting of such a compulsory license?  Reply:  It is sole discretion of the Copyright Board to decide the issue of granting a compulsory 
translation license based on the facts and circumstances of the concerned case and within the 
ambit of the Copyright Act/Rules. 
 Question 113: Could India please provide further details on the compulsory license process, 
including the means and manner in which remuneration is set, as well as collected for and 
distributed to foreign (and domestic) copyright owners?  Reply:  Same as in reply 105 and 107 
 
Page 93, paragraph 3.245 : The Secretariat’s Report also notes that the Copyright Board may 
issue a compulsory license to broadcasting organizations for the broadcast or public performance 
of previously published literary or musical works and sound recordings under Section 31D of the 
Copyright Act, and we understand that the 2012 Copyright Rules may address some of these issues as well.  Please explain the following: 
 
Question 114: Have any such compulsory licenses been issued to date? If yes, how many, and 
upon what terms?  
Reply:  After enactment of the Copyright amendment Act in the year 2012 no compulsory licenses 
have been issued so far.  
Question 115: Do such compulsory licenses apply to pay television programming? 
 Reply:  Section 31 of the Act and Rule 6 of the Copy right Rules are applicable to pay television 
programming.  
 Question 116: What standard is employed by the Copyright Board to determine whether to grant 
such a compulsory license?  Please comment on the relationship to Berne Article 9(2). 
 
Reply:  Same as in reply 105. Again this is the discretion of the Copyright Board within the ambit 
of applicable laws and facts and circumstances of case to case basis. 
 
Question 117: Are there any grounds upon which the Copyright Board may refuse, or the 
copyright owner may oppose, the granting of such a compulsory license?  
 
Reply:  This is the discretion of the Copyright Board within the ambit of applicable laws and facts 
and circumstances of case to case basis as per the provisions of the Act/Rules.  
Question 118: May the copyright owner require any restrictions (such as temporal or geographic 
restrictions) upon such compulsory licenses (i.e., could a film studio, as the copyright rights holder, require that such a license not be granted while a movie is still in its first run in movie 
theaters)? 
 Reply:  This is the discretion of the Copyright Board within the ambit of applicable laws and facts 
and circumstances of case to case basis as per the provisions of the Act/Rules. 
 Question 119: Could India please provide further details on this compulsory license process, 
including the means and manner in which remuneration is set, as well as collected for and 
distributed to foreign (and domestic) copyright owners?  
 Reply:  Same as in reply no. 105 and 107 
 
Question 120: Finally, we understand that currently there are two lawsuits challenging the 
statutory licensing provisions; one case challenges Sections 17, 18, 19, 31, and 33 and the second 
challenges Section 31D.  Please provide an update  on the procedural posture of both cases.   
 Reply:  These cases are still sub-judice before concerned High Courts and as arguments before the 
court have not been finalized there is no final verdict. 
 WT/TPR/M/313/Add.1 
 
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  Page 93, paragraph 3.246 
Question 121:  The Secretariat's Report notes that registration of copyright collecting societies 
has been made mandatory. Please provide an update on the process to register these organizations. How many applications have been received? Which societies have been registered? 
What is the timeline for handling of such applications? 
 Reply:  The process to register the copyright societie s by the Central Government is provided in 
detail vide Rule 44 to 49 under chapter XI of the Copyright Rules, 2013. A few no of applications 
have been received by the Central Government thro ugh the Registrar of Copyrights for registration 
of Copyright Societies after enactment of the amen ded Act. However, two societies are registered 
– (i) Indian Singers Right Association (ISRA), (ii) Indian Reprographic Rights Organization (IRRO). 
Normally, 60 days time period is required to  take a final decision on such applications. 
 Page 93, 3.247 : The Secretariat’s Report notes that "[n]otice and take-down procedures have 
been introduced to make internet service providers otherwise liable." Please describe the notice 
and take-down procedures to be followed by a copyright owner seeking removal of copyrighted 
material. Also, we note that Section 52(1)(c) states that the "person responsible for the storage 
s hal l re fra in from fac il itat ing  s uc h ac c e s s  for a p e riod  of twe nt y-one  d ays  or ti l l he  re c e ive s  an 
order from the competent court refraining from facilitating access and in case no such order is r e c e i v e d  b e f o r e  t h e  e x p i r y  o f  s u c h  p e r i o d  o f  t w e n t y - o n e  d a y s ,  h e  m a y  c o n t i n u e  t o  p r o v i d e  t h e  facility of such access." 
 
Question 122: Has India adopted expedited procedures to allow a copyright owner to obtain a 
court order barring continued access within 21 days? If not, what is the average time it takes to 
obtain such an order through normal court processes?  
 Reply:  Depending of the facts and circumstances of  each case, the court will expedite the 
procedures to allow a copyright owner to obtain a court order within 21 days. 
 3.3.5.7 Protection of New Plant Varieties  
Page 94, paragraph 3.251 : The Secretariat’s Report discusses India’s Protection of Plant 
Varieties and Farmers' Rights Act.  It indicates that the Act conforms to the International Union for the Protection of New Varieties of Plants (UPOV) 1978 Convention. 
 
Question 123: Does India plan to become a party to that Convention in order to obtain the 
supportive and cooperative benefits of UPOV membership? 
 
Reply: The Govt of India has applied for its membership to the UPOV as per UPOV Convention 
1978 in 2000.  
3.3.5.8 Trade Secrets and Test Data Protection 
 Page 95, paragraph 3.258 : The Secretariat's Report discusses India’s trade secret protection on 
the basis of principles of equity and common law. 
 Question 124: Please identify how many cases were prosecuted in the last year and provide the 
identified cases. Also, under what principles of law does India protect against disclosure of trade 
secrets by third parties not party to any formal or informal contracts or confidence, and can examples of such cases be provided? What types of information may be protected as trade secrets 
under Indian law? What, if any, responsibility do enterprises have for protecting trade secrets from 
unauthorized disclosure? 
 Reply:  India has federal set up with civil and criminal cases filed in various courts - at the district 
level in case of criminal enforcement and trad e secret violations and in the high courts. 
The information on these cases is not maintained centrally.   
India does not have a separate legislation governing trade secret protection. It relies on principles 
of contract law, and common law, to regulate pr otection of trade secrets. Indian courts have 
upheld trade secret protection on basis of principles of equity, upon a common law action of breach of confidence, as well as breach of contractual obligation. The remedies available to the 
owner of trade secrets is to obtain an injunction preventing the licensee from disclosing the trade WT/TPR/M/313/Add.1 
 
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  secret, return of all confidential and proprietary information and compensation for any losses 
suffered due to disclosure of trade secrets.  Indian courts have relied on the principles laid out in the Saltman Engineering  case to uphold the 
existence of an equitable doctrine of confidence, independent of contract to assess whether breach 
of confidence could have occurred. The case of John Richard Brady, where the defendant who had 
allegedly misused the confidential information entrus ted to them by the plaintiff, tried to escape 
liability by pleading that the contract was neither concluded nor was it acted upon by the parties. 
The High Court of Delhi ruled that it must enforce the general rules of equity and restrain the breach of confidence . Thus, the Court invoked a wider equitable jurisdiction and awarded 
injunction even in the absence of a contract.  
 
The Delhi High Court ruling in John Brady and the Saltman rationale have recently been applied by the Karnataka High Court in the case of Homag India.   
 
Confidentiality and non-competition covenants are enforceable under Indian law and offer another line of defense in enabling protection of trade secrets and confidential information in India. 
Business contracts therefore typically provide for co ntracts that require the Indian service provider 
to (i) maintain the customer’s trade secrets and confidential information in strict confidence not only during the term of the contract but also after termination, (ii) permit controlled access on a "need to know" basis only, including the customer's right to enforce such obligations directly 
against service provider personnel having access to the customer’s information, and 
(iii) be contractually responsible and liable for any breach of confidentiality obligation or misuse of such information by itself, its subcontractors, empl oyees or former employees. Effective clauses in 
a contract provide that a service provider’s failure to comply with the confidentiality obligations 
would result in the service consumer to immediately terminate the contract and also claim damages. 
 
Confidentiality and non-compete clauses in employment contracts are also common.   India's Information Technology Act has also been ra pidly evolving in order to grant protection for 
theft or misappropriation of electronic data. The Act provides for compensation, fine and 
imprisonment. Recently, the Department of Information Technology in Maharashtra ordered compensation of Rs. 60 lakhs for misappropriation of electronic data by an ex-employee of the 
complainant company and his new employer. Dealing with electronic crimes is an evolving area, 
and cases such as this indicate the ability of th e legal and administrative machinery to deal with 
the same.  
 
Penal action may be considered under the Indian Penal Code (IPC) for criminal breach of trust by an employee, when such employee misappropriates or dishonestly disposes of property entrusted 
to him, or which is under his control. Such a person can also be held liable for cheating, when he 
acts with the knowledge that he is likely to cause wrongful loss to a person whose interest he was 
legally bound (by contract or law) to protect. In both cases, the offence can be punished with fine or with three years of imprisonment or both. 
 
Pages 95-96, paragraph 3.259 : The Secretariat’s Report discusses compensation and damages 
ordered by Indian courts for the disclosure of trade secrets. 
 
Question 125: Please identify the guidelines used by the courts to determine the quantum of 
compensation.  
Reply:  The quantum of compensation depends on the facts of the case as placed before the courts 
 Page 96, paragraphs 3.261-3.262 : The Secretariat’s Report discusses legislation for 
pharmaceutical test data protection and the TRIP S provisions on protection of such data from 
unfair commercial use.   
Question 126: Please indicate India's plans to implem ent unfair commercial use protection for 
undisclosed information relating to pharmaceutical products utilizing new chemical entities. Please also explain India's plans to implement such  protection for undisclosed information relating 
to agricultural chemical products utilizing new chemical entities. 
 WT/TPR/M/313/Add.1 
 
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  Reply:  Article 39.3 relates to the specific case when data pertinent for seeking approval of the 
authority is shared with the marketing regulator. The text of this Article does not specifically state that member countries would need to comply with the requirement of data exclusivity. It only states that the regulator will need to protect it from unfair commercial use. Therefore, 
no additional obligations which are not present in text can be interpreted. The obligation on the 
authorities is to keep the test data secret and no t allow it to be accessed by third parties through 
unfair means. India complies completely with its obligations under Article 39.3 of TRIPS. 
 
There is no decision yet on this issue  3.3.5.9 Enforcement 
 
Page 98, paragraph 3.269 : The Secretariat’s Report notes that the state Governments of 
Andhra Pradesh, Kerala, Maharashtra, and Tamil Nadu introduced legislation addressing video 
piracy. 
 Question 127: While we understand that these states are enhancing enforcement against video 
piracy, can India confirm it is considering a national provision to prohibit the copying of film from 
a cinema screen, also known as camcording?  If so, please provide updated information for passage of such a provision.  
Reply : Enforcement of copyright rest with State Police therefore the states have devised new 
mechanisms to deal with video piracy. Section 52A of the Act provides protection against video piracy. Combined reading of the above section 52A along with section 14, 51, 55 and 63 provide 
adequate legal protection against unauthorized camcording in cinema halls. 
 4 TRADE POLICIES BY SECTOR 
4.1 Agriculture 
4.1.1 General Policy Framework 4.1.1.2 Measures Affecting Exports  
Page 101, paragraph 4.14 : The Secretariat's Report states that "export prohibitions and export 
quotas are notified annually." The United States notes that India has never notified an export restriction to the WTO. 
 
Question 128: Therefore, please indicate where the noti fications referred to by the Secretariat 
can be found. 
 
Reply : Such measures are notified by the Directorate General of Foreign Trade. India has been 
filing its WTO notifications as per the requirements of the relevant rules and is in the process of collecting information for others that are due. 
 
Page 101, paragraph 4.15 : The Secretariat’s Report notes that minimum export prices are 
applied to edible oils, onions, Bangalore roses, and Krishnapuram onions and potatoes. However, 
the United States notes that these are not the only commodities for which India maintains 
minimum export prices. For example, on Octo ber 30, 2013, the Cabinet Committee of Economic 
Affairs reduced the minimum export price of wheat from $300 per metric ton to $260 per 
metric ton. 
 Question 129: Please clarify whether minimum export prices exist for other commodities than 
those listed in the Secretariat’s Report.  If so, for what commodities and at what price? 
 
Reply: As of now, MEP exists for edible oils in consumer packs, onions, Bangalore roses and 
Krishnapuram onions only.   
 
4.1.1.3 Internal Measures  
Page 102, paragraph 4.17-4.18:   he Secretariat’s Report states that "[a] key objective of 
India's domestic agricultural policy is to ensure stability of food supply and income support for the 
nearly 60 percent of the population that is depe ndent on agriculture." The stated purpose of the 
Minimum Support Price (MSP) system is to protect the "small and marginal" farmers growing WT/TPR/M/313/Add.1 
 
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  "essentially staple" food crops from market volati lity. With this in mind, please reply to the 
following:  Question 130: How does India officially define "small and marginal" farmer? 
 
Reply:  Details can be seen in Agri culture Census of India (http ://www.agcensus.nic.in/agcen2010-
11.html)  
 
Question 131: Does this definition distinguish contracted agricultural labor from small and 
mid-sized land holders or owners?  
Reply:  The basic unit of information in Agriculture Census is the operational holding which is 
distinct from ownership holding. The operational holder may or may not the land owner. The concept of operational holding adopted in agriculture census does not include those holding 
which are not operating any agriculture land and engaged exclusively in livestock, fishing, labor 
activities etc. Thus, definition does not distinguish contracted agriculture labor from small and mid-sized land holder or owners.  
 
Question 132 : Please provide evidence to show that India's subsidy programs are indeed 
reaching the intended target of "small and marginal farmers".  
Reply:  The subsidy programs are reaching the targeted farmers because of the effective design 
and delivery mechanism put in place by the Government.  
Question 133: Please provide data to show that, with increases in MSPs, income levels among 
"small and marginal" farmers are also increasing.  
Reply:  The Minimum Sport Price (MSP) is fixed to protect farmers including "small and marginal" 
from distress sale of their crops. Thus, the prime objective of MSP is to prevent exploitation of 
farmers and not to incentivize production.  
Question 134 : Please provide data to show that Indian subsidy programs are reducing price 
volatility in the market.  
Reply:  Various support programmes for agriculture prevent distress sales and provide some 
returns over costs, build stocks for food securi ty programmes, improve agricultural productivity, 
build capacity for better agricultural practices. All these measures contribute to not only reducing 
vulnerability to price volatility but also keep prices stable. 
 Question 135: Please explain how India makes decisions to sell from stock through open market 
sales, including for export. 
 
Reply:  Sale of stocks through open market operations is undertaken with the objective of price 
stabilization. 
 
Question 136: Will the Government of India reaffirm its commitment to refrain from subsidizing 
exports? 
 
Reply:  India is committed to elimination of all kinds of export subsidies as per the Doha mandate 
and Hong Kong Ministerial Decision.   
Question 137 : For each covered commodity referenced in Table 4.3, please provide the volume 
of production in 2010-11 through 2014-15 and the fixed external reference price for each commodity from India’s AGST document. 
 
Reply:  The information about production of different crops from 2010-11 to 2014-15 is given in 
Annex-I.   
 
For almost 30 years (since the 1986-88 base period), India has notified MSPs for more than 20 commodities. According to the Secretariat’s Report , the objective of notifying the MSP for all of 
these commodities is to protect farmers from market volatility. However, India does not notify the 
price supports for most of these commodities to the WTO Committee on Agriculture (Committee). WT/TPR/M/313/Add.1 
 
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  In the Committee, India has claimed that there is no benefit to farmers for those commodities not 
notified.  Question 138: Therefore, please explain the rationale for continuing to announce MSPs for those 
commodities where no notified benefit has accrued to farmers, in some circumstance, since 1995. 
 Reply:  Market support prices are for providing mi nimum remunerative price to the farmers to 
prevent them from resorting to distress sale. For most of the commodities under MSP, generally 
market prices rule above MSP and, therefore, Government is not required to make any procurement in respect of these commodities.  
Page 102, paragraphs 4.18-4.19 : The Secretariat's Report notes that the Indian Government 
authorized the export of 4.5 million metric tons  of wheat 2012-13 and 2 million metric tons in 
2014-15. These quantities are large enough to ma ke India one of the largest wheat exporters in 
the world. However, the stated objective of the program is to "protect the small and marginal 
farmers." With this in mind, please reply to the following: 
 
Question 139: Can India explain how a program targeted to the "small and marginal farmer 
population" results in such large quantities of production that India must turn to the international market, becoming a major exporter?  
Reply:  There is no linkage of MSP with the exports and an overwhelmingly large number of Indian 
farmers are low income resource poor. The production pattern in India is dependent predominantly on the weather and as such there are times when production exceeds domestic consumption, at 
the same time there are times when the production hardly covers domestic demand. It would be 
seen that during the past 5 – 6 years there has been  almost no export of Rice from the stocks of 
Food Corporation of India. As far as exports of Wh eat from FCI stocks are concerned, this is done 
through an open and transparent bidding process.  
 Question 140 : Can India explain how it ensures that exports, which result from increasing MSPs 
and open market sales, do not negatively impact the livelihood of farmers of those commodities in 
least-developed countries? 
 Reply:  The purpose of MSP is to prove minimum re munerative price to the farmers to prevent 
them from resorting to distress sale. Open market sales are also targeted towards domestic 
markets with restriction on exports; hence there is no adverse impact on the farmers in the least developed countries. 
 
Question 141: The Secretariat's Report is unclear on how prices are set for domestic open market 
sales, and to whom grains are sold. Could India pl ease clarify? Is the Government of India taking 
measures to ensure that open market sales of wheat and rice do not enter export markets? 
 
Reply:  For sale in domestic market, the Government sets reserve price which serves as a bench 
mark price and the sale is conducted through open  tenders in auction mode to the higher bidders. 
Any bulk buyer (buyers of above 100 MT) can ma ke purchase in these auctions. There is 
restriction on export of wheat purchased by th e buyers under the domestic open market sale 
scheme. 
 
Page 102-103, paragraph 4.20 : The Secretariat's Report notes that according to India law, 
sugar mills are required to purchase sugar at a set minimum price. In addition, several Indian 
state governments augment the support price by 35- 40 percent, which sugar mills are required to 
pay sugarcane farmers regardless of market prices. The program has encouraged sugarcane 
production and has resulted in large stock accumulations in India. With growing stocks, the government has announced export incentives to reduce domestic supply. Notwithstanding this 
policy, India does not notify its price support for sugar to the WTO Committee on Agriculture.  
 Question 142: Please explain the basis for not notifying to the WTO any form of sugar support in 
India’s domestic support notification. 
 Reply:  The support (if any) will be notified in the notifications as per the requirements of the WTO 
Agreement on Agriculture in due course.  WT/TPR/M/313/Add.1 
 
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  Page 103, Table 4.3 : The table in the Secretariat’s Report lists published MSP support prices for 
a number of commodities in 2010-11 and 2014-15.  The listed "Cotton (medium staple)" minimum 
support price, though accurate for one variety, does not reflect the cotton production, utilization, and international trade situation occurring in India which generally includes longer-staple cotton 
varieties like Shankar-6 which has a higher MSP of 4000 Rs per quintal. 
 Question 143: Please explain why India selected the medium staple cotton MSP for reference in 
the Secretariat's Report. 
 Reply: The Government announces MSP for both medium and long staple cotton. 
 
Page 103, paragraph 4.21 : The Secretariat's Report notes that agencies of the Indian 
government purchase perishable products, including horticultural crops, not covered by the MSP at a market intervention price (MIP) when prices decline. 
 
Question 144: Please identify and provide a detailed description of all MIPs in the period covered 
by this report, noting the specific quantities procured by government agencies. Also, please 
provide the appropriate reference describing where exactly these programs are reported in India’s 
domestic support notifications. If they were not reported, please provide the basis for their 
exclusion.  
Reply:  The information is available in the annual repo rt of Ministry of Agriculture and Cooperation 
and can be accessed at http://agricoop.nic.in/documentreport.html . The Market Intervention 
Scheme (MIS) is implemented in order to protec t the growers of these commodities from making 
distress sale in the event of bumper crop when ther e is glut in the market and the prices tend to 
fall below economic levels/cost of production.  
Any support provided through MSP/MIP is notified to the WTO in case there is any procurement by 
the government agencies.  Page 103, paragraph 4.22 : The Secretariat's Report mentions the National Food Security Act 
that was passed by Parliament in 2013. Please explain the following: 
 Question 145: What central government agency oversees the national food security program, 
including the disbursement of funds and otherwise management of implementation of the 
program?   
Reply:  The Department of Food and Public Distribution directly monitors the food security 
programmes with the help of State Governments and food subsidy is released by the Department directly to the FCI and State Governments (only Decentralized Procurement States). 
 
Question 146: Does that agency publish a regular consolidated report describing disbursement 
for all states?  
Reply:  Details of subsidy released to FCI and Stat e Governments are updated from time to time 
on the website of the Department of Food & Public Distribution.  
Question 147:  How is implementation of the National Food Security Act progressing? 
 Reply: So far, implementation of the National Food Security Act, 2013 has started in 
12 States/Union Territories (UTs) viz., Bihar, Chandigarh, Chhattisgarh, Delhi, Haryana, Himachal 
Pradesh, Karnataka, Madhya Pradesh, Mahara shtra, Punjab, Rajasthan and West Bengal. 
Remaining 24 States/Uts are at different levels of preparedness to implement the Act and they are 
being persuaded for its early implementation. In the meanwhile, allocation of subsidized food 
grains under existing Targeted Public Distribution System (TPDS) is continuing to these States/Uts. 
 Question 148: Has the program been more or less expensive than initially envisioned? 
 
Reply: The expenditure on food subsidy for implemen tation of National Food Security Act, 2013 
was estimated on the basis of 2014-15 costs. As these costs change, financial implication of the Act may also change. The Act is however yet to be implemented in all States/Uts. Final financial 
implication of the Act will be known only after it is implemented throughout the country. WT/TPR/M/313/Add.1 
 
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  Page 104, paragraph 4.22 : The Secretariat's Report notes that the cost of the food subsidy will 
be 1.1 percent of Indian GDP in 2013/14 or a pproximately Rs. 0.9 trillion and increasing to 
Rs. 1.15 trillion in 2014/15 under the new National Food Security Act. The food subsidy is composed of several components, including (but not limited to) the acquisition cost of rice, wheat, 
and coarse grains, storage, and the distribution of these commodities to targeted consumers. 
With this in mind, please reply to the following:  
Question 149 : Please specify the portion of the f ood subsidy budget represented by the 
acquisition of commodities at the MSP. What are the specific individual values for wheat and rice individually?  
Reply: Food subsidy is provided to FCI and State Governments for undertaking procurement of 
food grains, their storage and movement and finally their distribution to the beneficiaries of food security programmes. Food subsidy is calculated accordingly after taking all the costs into account 
and deducting the sales realization. 
 Question 150: Please specify the portion of the food subsidy budget represented by storage and 
distribution of the commodities.  What are the specific individual values for wheat and rice? 
 Reply:  Food subsidy is provided to FCI and State Governments for undertaking procurement of 
foodgrains, their storage and movement and finally their distribution to the beneficiaries of food 
security programmes. Food subsidy is calculated accordingly after taking all the costs into account 
and deducting the sales realization.   
Question 151: Please specify the portion of the food subsidy budget represented by selling these 
commodities at subsidized rates or for free to targeted beneficiaries as compared to the price the government would have otherwise received from selling commodities on the open market. 
 
Reply:  Only a limited quantity of food grains, based on market demand is sold in the open market 
by FCI through auction and the rate fetched in every auction varies. Therefore, no accurate 
apportionment of subsidy between the two mode s of sale of food grains is possible. 
 
Page 104, paragraph 4.23 : The Secretariat's Report notes a change in the delivery of food 
grains for food security. According to the High Level Committee (HLC) set up by India, 
"the storage and logistical infrastructure requ ired to procure and distribute food will be 
considerable." The HLC has suggested that with leakages of between 40% and 50% in the Public 
Distribution System and up to 70% in some States, implementation of the food security program 
should be deferred unless such provisions on identifi cation and grievances have been put in place.  
The HLC report also indicates that: (i) not more than 6% of the total agricultural households in India (90.2 million) directly benefitted from th e procurement of wheat and rice under MSP; and 
(ii) stocks have been hugely excessive, even though India has a shortage of storage capacity.   
 
Question 152: With this in mind, has India officially accepted the findings of the High Level 
Committee’s report? Does India intend to follow the recommendations of the HLC's report to 
restructure the Food Corporation of India, ou tsource warehousing, and leave procurement and 
stocking to the states? Furthermore, has India considered the HLC recommendation to introduce cash transfers in the PDS as a way to more effectively help the poor, avoid market distortions, and 
come into line with international practices? 
 Reply: Government has decided to implement some of the recommendations of HLC which will 
bring in cost efficiency in operations of FCI and will improve its functioning. The status of 
implementation of the recommendations will be available in due course. 
 Page 105, paragraph 4.26 : The Secretariat's Report states that the central government provides 
a subsidy to the Food Corporation of India "to keep buffer stocks of wheat and rice as a food 
security measure."  
Question 153: Please provide the current volume of buffer stock, as well as the normal volume, 
for wheat and rice, for this purpose.  Reply:  Details are available on the website of the Department of Food and Public Distribution of 
the Government of India. WT/TPR/M/313/Add.1 
 
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  Page 105, paragraph 4.27 : The Secretariat's Report notes that India's subsidization of fertilizer 
has resulted in excessive use of fertilizers and resulted in soil degradation. In 2010/11, the United States notes that fertilizer subsidies totaled more than $12 billion. With this in mind, please reply to the following: 
 
Question 154: Please provide the annual total value of fertilizer subsidies for the period covered 
by this report. 
 
Reply: Details of subsidy payments for different fertilizers for the last three years are available in 
relevant Budget documents of the Government of India ( www.indiabudget.gov.in ). These will also 
be notified to the WTO in due course.  
 
Question 155: What steps is India taking to remedy the excessive use of fertilizers? 
 
Reply:  Government is advocating soil test based balanced use of fertilizers in conjunction with 
organic sources of plant nutrients like Farm Yard Manure (FYM), compost, biofertilizers and green manuring. 
 
Soil Health Management (SHM) programme under National Mission for Sustainable Agriculture-(NMSA) assists in promoting soil test based balanced and judicious use of fertilizers.  
Soil Health Card scheme is introduced to issue soil health cards to all farmers in the country. 
Soil Health Card will provide information to farmers on nutrients status of their soil along with recommendation on appropriate dosage on nutrients to be applied for improving soil health and' its 
fertility. 
 The Secretariat Report notes that irrigation, electricity, diesel, and seed subsidies are provided. 
 
Question 156: Please provide the annual total value for each of these subsidies for the period 
covered by this report.  
Reply:  Details of the subsidies are available in India’s budget documents for the relevant years at 
(www.indiabudget.nic.in ). 
 
Page 105, paragraph 4.28 : The Secretariat's Report indicates that India sets targets for 
priority-sector lending to ensure that banks provide credit.  
Question 157: Please provide more details on how this program is implemented, what the priority 
sectors are, and how they are determined.  Reply:  Priority sector refers to those sectors of the economy which, though viable and 
creditworthy, may not get timely and adequate credit in the absence of this special dispensation. 
Typically, these are small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups 
and weaker sections. Those sectors which are able to get timely and adequate credit would not 
qualify for priority sector status.   
Priority sector activities have to be carried out by banks as a part of their normal business 
operations. On the part of the Reserve Bank, one impo rtant facilitation in this regard has been that 
pricing of all credit has been made free.  
The revised guidelines are issued based on the recommendations of an Internal Working Group 
(IWG) which was set up in July 2014 to revisit the existing priority sector lending guidelines. The report of the IWG was placed in the public  domain inviting comments. The recommendations 
of the IWG were examined in the light of the comments/suggestions received from Government of 
India, banks, and other stakeholders and revised guidelines were issued on April 23, 2015.  
The details of the eligible priority sector are available in our circular on Priority Sector Lending-
Targets and Classification FIDD.CO.Plan.BC.54/04.09.01/2014-15 dated April 23, 2015. (Available at https://rbi.org.in/Scripts/NotificationUser.aspx?Id=9688&Mode=0 ) 
 
 WT/TPR/M/313/Add.1 
 
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  Page 109, footnote 42: The Secretariat's Report references the "Make in India" campaign and 
includes a web link to more information. Under the "Summary" sub-section of the "Policies" section of the website, it states that the "Make in In dia" program will include "major new initiatives 
designed to facilitate investment, foster innovation, [and] protect intellectual property", among 
others.   
 Q.158 What specific new initiatives have been designed and contemplated in these areas? 
 
Reply:  These initiatives are listed in the web site www.makeinindia.com  under headings "New 
Processes", "new Infrastructure", "New Sectors" and "New Mindset". 
 
Initiatives taken to improve Ease of Doing Busi ness (updated as on 20.5.2015) are available at 
http://dipp.nic.in/English/Investor/EoDB_Intiatives_20May2015.pdf  
 
4.3 Manufacturing 
 Page 110, paragraph 4.51: The Secretariat’s Report discusses India’s Automotive Mission 
Plan 2006 – 2016 (Plan). 
 Question 159: Please identify what policy intervention s have been implemented under the Plan. 
How have they been applied? What are examples of technical regulations that the automotive 
industry is subject to and are these applicable to both domestically produced products and any 
automotive imports?   
Reply: The Automotive Mission Plan 2006-16 has resulted in the following major initiatives taken 
by Government to support the Automotive industry development:-  
 NATRIP project  
 Setting up of the Automotive Skills Development Council in partnership with Ministry of 
Heavy Industry for skilling people employed in the entire automotive value chain ranging 
from component manufacture to vehicle assembly, sales and marketing, servicing, 
finance, insurance, etc.  
 Introducing of the FAME Scheme to enable fast er adoption of electric and hybrid vehicles 
on a pan-India level. 
There are no prescriptions for Technical Regulations in the AMP. AMP only suggests that technical 
regulation to be introduced in the country sh ould be based on a clearly defined long term 
roadmap. 
 
4.4 Services 4.4.4 Professional Services  
Page 129, paragraph 4.145 : The Secretariat's Report states that "FDI is not permitted in the 
legal services sector. Foreign law firms are not permitted to open offices in India and are prohibited from giving legal advice." 
 
Question 160: Please identify when India intends to liberalize investment in legal services and 
allow foreign lawyers to practice in India. 
 
Reply:  The matter regarding opening up of legal services in India to foreign lawyers/law firms is 
currently under consideration. Any decision in this regard will be taken by the Government of India in consultation with the Regulator, the Bar Council of India, and other stakeholders. Any decision 
on this matter will however be subject to, inter-alia, the principle of reciprocity, which is provided 
for in the Advocates Act, 1961.  
Page 130, paragraph 4.147: 
 Question 160 : The Secretariat’s Report states that "only of the ICAI can be a chartered 
accountant in practice by taking a Certificate of Practice in accordance with the Act. Under the Act, 
foreign qualifications may be recognized based on mutual-recognition agreements." In practice, WT/TPR/M/313/Add.1 
 
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  few foreigners are accepted as ICAI members. Additionally, foreign-licensed accountants may not 
be equity partners in an Indian accounting firm.   Question 161: Does India intend to liberalize investment in equity partnership by foreign-licensed 
accountants? Are there any plans to expand mutual recognition agreements to other countries? 
 Reply : The Institute of Chartered Accountants of India (ICAI), the regulator for chartered 
accountancy profession in India, accords high priority to achieving mutual recognition of 
qualification as the fundamental step for achieving commercially meaningful reciprocal access. With regard to liberalization of accountancy sect or, decision will be taken by the Government of 
India in consultation with the ICAI and other stakeholders. 
 
5 APPENDIX TABLES  
Page 141, Table A2.1:  The table in the Secretariat’s Report states that FDI is limited in FM radio 
stations to 26% with approval through the government route.   
Question162: Please identify when India intends to liberalize and allow greater investment in 
FM radio.  Reply:  No such proposal to review the FDI Policy in FM Radio is under consideration of the 
Government. 
 Also, the FDI table does not discuss restrictions on FDI in e-commerce. 
 
Question 163: Please explain why India continues to restrict FDI in the growing industry of 
e-commerce and identify when India plans to liberalize and allow foreign companies access to this 
sector. 
 Reply: As per extant FDI Policy, FDI is restricted on ly for B2C e-commerce sector. However, FDI is 
allowed for B2B e-commerce as elaborated in the Question above. Further, the FDI policy is 
reviewed on an ongoing basis, with a view  to making it more investor-friendly. 
 PART II:  QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/313) 
 
1 INTRODUCTION  
Page 4, paragraph 1.2:  The Government's Report claims that India intends to create a 
predictable and clean tax policy environment.   Question 164:  Please explain how India plans on accomplishing this, given ongoing tax disputes 
involving transfer pricing, retrospective taxation, and the minimum alternate tax. 
 Reply: As outlined in the Budget Speech, 2014 and 2015, the Government policy in respect of 
direct taxes is to provide a stable and non-adversarial tax regime with a focus on widening of tax 
base while moderating the tax rates coupled with gradual phasing out of profit linked deductions 
and replacing them with investment linked deductions in critical sectors only. Thus the policy 
objective is to make tax laws clear, stable and equitable. Some measures in this regard are as 
follows:   
 APA regime has been put into place with Roll back provisions. Safe Harbour Rules have 
also been prescribed for certain sectors. These measures will reduce uncertainty and 
litigation in the area of transfer pricing. 
 Transfer pricing disputes are also being co nsidered for resolution under the Mutual 
Agreement Procedure (MAP) between the two competent authorities in terms of Double 
Taxation Avoidance Agreement (DTAA). 
 The Government will not ordinarily bring ab out any change retrospectively which creates 
a fresh liability. Further, it was decided that all fresh cases arising out of the 
retrospective amendments of 2012 in respect of indirect transfers and coming to the 
notice of the Assessing Officers will be scrutinized by a High Level Committee which has WT/TPR/M/313/Add.1 
 
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  been constituted by the CBDT before any acti on is initiated in such cases. Besides, a 
Committee has also been set up to look into the issue of liability of MAT on FIIs for the period prior to 1.4.2015. 
 The necessary clarity and predictability in the prospective application of the provisions 
relating to indirect transfer has been in corporated through amendments made by the 
Finance Act, 2015 by providing reasonable restrictions on its applicability. Its applicability has been narrowed and linked with the percentage voting power of 
shareholder, management and control and the quantum of Indian assets. 
2 ECONOMIC ENVIRONMENT 
2.6 Major Challenges 2.6.1 Agriculture and Food Security 
 
Page 10, paragraph 2.31 : The Government's Report states that "future agricultural growth is 
contingent on increasing agricultural productivity" and that the agriculture and food sectors "need 
huge investment in research, education, extension, fertilizers, and laboratories to test soil, water, 
and commodities, and warehousing, and cold storage."  
Question 165: First, please explain India’s plans to expe dite and expand nationwide field trials 
and approvals on genetically engineered crops such  as rice, chickpeas, maize, brinjal (eggplant), 
and cotton.   
Reply:  With the objective to increase agricultural productivity, government is exploring all 
avenues including genetically engineered crops that  would help in meeting the food security needs 
of the country. 
 
Question 166: Second, does India recognize the potential beneficial interlinkages between foreign 
direct investment and trade, as outlined in numerous studies, including the 1996 WTO report on 
"Trade and Foreign Direct Investment"  
(https://www.wto.org/english/news_e/pres96_e/pr057_e.htm )? 
 
Reply: Yes In this direction, India has been liberalizing FDI norms across sectors. 
 
3 THE NEW REFORM AGENDA 3.1 Ease of Doing Business 
 
Page 11, paragraph 3.2:  The Government’s Report discusses measures taken to improve the 
ease of doing business.  
 
Question 167: Please explain the Government’s role in the proposed "e-Biz" platform, how it will 
ease doing business in India, and when it will be fully implemented and operational.  
Reply: The eBiz portal provides a facility to obtain information on a number of 
permissions/approvals required from Central, State and para-statal Governments for starting a business. The portal is currently operational with 14 Central Government services and is expected 
to be fully operational along with state Government  services during the year. Only when the portal 
is fully operational along with state Government services, it will be possible to gauge the impact of the portal in terms of transaction costs and time.  
 
3.3 Reforms in FDI Policy  Page 12, paragraph 3.5:  The Government's Report states that India has liberalized the FDI 
policy in the defence and insurance sectors by raising the FDI cap from 26 to 49%. 
 Question 168: Please explain why investment in these sectors is restricted to only allow for 
majority Indian ownership. Please also explain if there are further restrictions on non-India 
management and control in these sectors.  
Reply: Since these sectors are crucial with respect to national interest & security and are of 
sensitive nature with its social and economic impact of wide nature, FDI is allowed in these sectors with certain restrictions in terms of control in these sectors. Recently FDI limit has been raised in WT/TPR/M/313/Add.1 
 
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  the Defence sector from 26% to 49%. As per para 6.2.6 of Consolidated FDI Policy (12th May, 
2015), FDI up to 49% under Government route is permitted in Defence Industry subject to Industrial license under the Industries (Devel opment & Regulation) Act, 1951. Above 49% to 
Cabinet Committee on Security (CCS) on case to case basis, wherever it is likely to result in access 
to modern and ‘state-of-art’ technology in the country. 
 As per para 6.2.18.7 of Consolidated FDI Policy (12
th May, 2015), FDI under automatic route up to 
26% and Government route beyond 26% and up to 49% is allowed in Insurance Sector. 
 F u r t h e r ,  t h e  F D I  p o l i c y  i s  r e v i e w e d  o n  a n  o n g o i n g  b a s i s ,  w i t h  a  v i e w  t o  m a k i n g  i t  m o r e  investor-friendly. 
 
3.4 Introduction of Goods And Services Tax  
Page 12, paragraph 3.6:  The Government’s Report highlights efforts to implement a goods and 
services tax (GST).  
Question 169: Please identify what existing taxes will comprise the GST. 
 Reply : As already stated in Para 5, Page 12, paragraph 3.6 of the Indian Government report: 
 
"A major game changing reform in the near future would be the introduction of the 
Goods and Services Tax (GST) effective from 1 April 2016. The implementation of the GST would lead to the elimination of other taxes such as Central Excise duty, Service 
tax, State Value-Added tax, octroi, Central Sales Tax, State-level sales tax, entry tax, 
stamp duty, turnover tax, tax on consumption or sale of electricity and taxes on transportation of goods and services, thus removing the multiple layers of taxation 
that currently exist in India."  
3.5 Skill Development 
 Page 12, paragraph 3.8:  
 
Question 170: Please explain how skills development will fit into India's overall education 
curriculum. Will states take the lead in implementing skills development? Also, given India’s 
imperative for developing a skilled workforce, please explain why India only grants higher 
education licenses to Indian universities.  
 
Reply:  The Preamble to the National Policy for Skills Development, 2009 cites one of the 
challenges as creating effective convergence between school education and skill development.  The new National Policy on Skills Development and Entrepreneurship 2015 which seeks to have a fresh look at the 2009 Policy will deliberate on all issues  including the linkage with the school curriculum. 
Moreover, there is a centrally sponsored scheme of vocationalization of school education 
administered by the National Skills Development Council (NSDC). NSDC has also worked towards vocationalization of higher education and developed a unique model to integrate skill based 
trainings into the academic cycle of the Universities.  
 3.8 Rationalizing Subsidies 
 
Page 13, paragraph 3.11 : The Government's Report mentions the provision of subsidies through 
direct cash transfers.  
Question 171: Has India expanded or is India planning on expanding direct cash subsidy 
payments beyond the cooking gas subsidy referenced in the Government's Report? Does India have the technological reach to replace fertilizer an d food subsidies with direct cash transfers, as 
several of these recipients are in rural areas? 
 Reply:  Direct Benefit Transfer (DBT) is an attemp t to reform the Government delivery processes 
where cash/benefit is transferred directly to ba nk account of beneficiaries preferably Aadhaar 
seeded, cutting down several intermediary layers, thus ensuring timely and more frequent payment to intended beneficiaries. DBT will infuse  efficiency, transparency and accountability in WT/TPR/M/313/Add.1 
 
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  the system and by removing fake, ghost and duplicat es it will enhance the outreach of the welfare 
programmes besides substantial saving to the Government.  Direct Benefit Transfer in LPG (DBTL) was launched w.e.f. 1.6.2013 in 20 districts and was 
expanded to 291 districts in phased manner. Now, Modified DBTL (PAHAL) has been relaunched in 
54 districts w.e.f. 15.11.2014 and has now been rolled out across the entire country w.e.f. 1.1.2015 covering 12.87 Cr. consumers and transferred Rs. 12,243 Cr. as subsidy in bank 
accounts of beneficiaries as on 25.5.2015. 
 So far DBT has not been started in PDS and Fertilizer sector but Government is planning to introduce DBT in PDS and Fertilizer sector in ph ased manner. Digitization of PDS beneficiary 
database and putting it on PDS portals, openin g bank account and Aadhaar seeding is going on. 
Under the Fertilizer framework, the use of IT tool s for disbursement of subsidy in supply chain is 
being planned. 
 
Page 13, paragraph 3.12 : The Government's Report mentions that the MSP scheme has been an 
important policy instrument used to support farmers. 
 
Question 172: What research has India conducted to determine whether MSP prices upset market 
signals which are vital for rational economic decision-making by agricultural producers?  
Reply:  The Minimum Support Price (MSP) is fixed to protect farmers from distress sale of their 
produce and to protect them from exploitation. The Commission for Agricultural Costs and Prices 
(CACP) recommends MSP considering various factors; including the cost of cultivation/production, 
changes in input prices, input/output price parity, inter-crop price parity, effects on the cost of 
living, effects on general price level, parity between  prices paid and prices received by farmers etc. 
The Government of India considers all the relevant facts before accepting the recommendation. 
 
4 TRADE POLICY 4.1 Foreign Trade Policy  
Page 14, paragraph 4.1 : India's foreign trade policy does not appear to provide for the 
withdrawal of subsidies currently given to Indian  textile and apparel products that are export 
competitive. 
 
Question 173: Please identify what specific programs currently benefitting the textile and apparel 
sector will be terminated, given that the sector is export competitive. 
 
Reply:  A number of schemes for various sectors including textiles and apparel sector are in the 
nature of remission or refund of duties on inputs used in exported goods and thus are not export subsidy schemes. Some of the other schemes have also been discontinued since October 2011 and 
a number of them have been removed in the Fore ign Trade Policy (FTP) 2015-2020, announced on 
1 April 2015. Schemes have been rationalized in the FTP, 2015-20. All these schemes are available in the public domain and can be seen at http://www.dgft.gov.in . 
 
India believes that the eight-year phase out peri od for export subsidies to textile and apparel 
sector will be over on 31 December, 2018. India is fully committed to meeting its obligations under 
the ASCM and will certainly fulfil its commitment in time. 
 Page 14, paragraph 4.4 : The Secretariat's Report notes India's desire to achieve growth through 
a focus on exports of value-added agricultural products.  
 
Question 174: Please identify the specific products that India intends to benefit from these 
efforts. 
 
Reply: The specific markets and products are indica ted in the FTP documents available on the 
DGFT website ( www.dgft.gov.in ). These include agricultural and processed food products. 
 
Page 14, paragraph 4.5 : The Government's Report states that "[w]hile several countries 
resorted to various forms of protectionist trade measures such as liberal doses of subsidies to their enterprises, restrictions on imports, fiscal incentives, and promoting the purchase of domestically WT/TPR/M/313/Add.1 
 
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  produced goods and services, India, on the other hand, resorted to few trade restrictions during 
the crisis; and even these measures were temporary and quickly dismantled."  Question 175: Please explain why India imposed non- temporary requirements promoting the 
purchase of domestically produced goods and services in the information technology, solar, single 
brand retail, and multi-brand retail sectors.  
Reply:  Preference for domestically manufactured g oods and services under the Electronics and 
telecom policies limited to Government procurements, which is well within the exemptions allowed under WTO.   
5 INDIA AND THE WTO 
5.1 WTO Negotiations  
Page 16, paragraph 5.6:  T h e  G o v e r n m e n t ' s  R e p o r t  s t a t e s  t h a t  " I n d i a  i s  i n  t h e  p r o c e s s  o f  
finalizing its categorization of commitments under the [Trade Facilitation Agreement (TFA)] and would be filing the notification in keeping with the provisions of [the TFA]." 
 
Question 176: In light of this, where is India in its process for notification of acceptance of the 
TFA and when is India likely to submit its Category A notifications?  
Reply:  The preparation for notification of category A commitments and ratification of TFA are 
currently underway. No specific date s have been fixed  for the same. 
 
Page 16, paragraph 5.8 : The Government Report indicates that "[t]he historically high domestic 
support and export subsidies available to farmers in the rich countries are a matter of grave concern to the developing countries." 
 
Question 177: What does India consider a high-level of  domestic support given that publicly 
available Indian official data indicates that Indian  federal and state fiscal support for agriculture in 
2013/14 represented 29.8 percent of the nation’s gross agricultural product? 
 
Reply:  The total domestic support given by India is very little as compared to the US or EU. 
The per capita subsidy given by India is not significant as compared with the developed countries. 
The high subsidization and entitlements owing to Uruguay Round Agreement have created 
imbalance in the global agricultural trade.   
ADDITIONAL QUESTIONS  
 Question 178: The United States notes that despite the fact that India is providing officially 
supported export credits for agriculture, India did not report this support in either the 2013 or 
2014 WTO Committee on Agriculture Export Competition questionnaires (TN/AG/S/27/Rev.1 and 
G/AG/W/125/Add.2, respectively). Does India intend to report this support in the 2015 Questionnaire on Export Competition (dated 26/11/2014) and, if so, when will this be submitted? 
 
Reply: India is in the process of gathering data from various sources which would be notified as 
per rules of the WTO. 
 
Question 179: The United States understands that India requires foreign education providers to 
register as nonprofit entities under Section 25 of the Companies Act of 1956. Under Section 25, nonprofit entities may receive FDI but are restricted from profit distribution, meaning that foreign 
universities cannot repatriate any money earned. Is  this understanding correct? Do you foresee 
any changes to this restriction?  
Reply : India requires foreign education providers to register as non-profit entities under 
Section 25 of the Companies Act of 1956 (Now Section 8 under Companies Act, 2013). No profit can be generated. Moreover, any surplus that is generated cannot be repatriated and also cannot 
be used for any purpose other than for investing in that educational institution. Any change to 
these regulations will be taken in consultation with all concerned stakeholders.  Question 180: The United States could not find any information in the Secretariat's Report 
indicating whether any restrictions exist on the use of other countries providing export credit WT/TPR/M/313/Add.1 
 
- 265 - 
 
  financing to support Indian enterprises importing pr oducts into India.  Please provide information 
on whether any restrictions exist on the use of credit to support the import of products into India.   Reply:  Authorised Dealers (i.e., Scheduled Commercial Banks authorised to deal in forex in India) 
are authorised to allow credit for imports of value up to US$ 20 million under automatic route, 
subject to the following conditions:  
 All-in-cost of such credit should not be more than 6-month USD LIBOR plus 350 basis 
points spread; and 
 Maturity of such credit cannot be more than one year in case of imports of raw material; 
and five years in case of imports of capital goods. 
It may be noted that the trade credits as allowed above do not constitute External Commercial 
Borrowings.  
Indian importers are allowed to borrow from abroad, on support of guarantees from domestic 
banks, subject to the condition that the tenor of  such borrowings does not exceed three years. 
 
Select borrowers such as (i) corporates registered under the Companies Act 1956, operating in 
manufacturing and infrastructure sectors; (ii) special purpose vehicles, etc., are allowed to avail External Commercial Borrowings (ECB) from recognised lenders for the purpose of importing capital goods subject to the following conditions: 
 
 Minimum average maturity of three years; and 
 Maximum all-in-cost of 6-month USD LIBOR plus a spread of 350 to 500 basis points. 
The details on extant guidelines on Trade Credit and ECB are attached as Annex II. 
 Annexure-1 
India’s crop production from 2010-11 to 2014-15 
 in million tons 
S.N. Crop 2010-11 2011-12 2012-13 2013-14 2014-15 
(3rd Advance 
Estimates) 
1 Rice 95.98  105.3  105.24  106.65 102.54  
2 Wheat 86.87  94.88  93.51  95.85 90.78  
3 Jowar 7  5.98 5.28 5.54 4.79  
4 Bajra 10.37  10.28  8.74 9.25 9 
5 Maize 21.73  21.76  22.26  24.26 22.74  
6 Ragi 2.19 1.93 1.57 1.98 1.9 
7 Barley 1.66  1.62 1.75 1.83 1.63  
8 Tur 2.86 2.65 3.02 3.17 2.71 
9 Gram 8.22  7.7 8.83 9.53 7.59  
10 Urad 1.76 1.77 1.9 1.7 1.7 
11 Moong 1.8  1.63 1.19 1.61 1.39  
12 Groundnut 8.27 6.96 4.70 9.71 6.65 
13 Sesamum 0.89  0.81 0.69 0.72 0.77  
14 Nigerseed 0.11 0.10 0.10 0.10 0.09 
15 Rapeseed & Mustard 8.18  6.60 8.03 7.88 6.76  
16 Safflower 0.15 0.15 0.11 0.11 0.06 WT/TPR/M/313/Add.1 
 
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  17 Sunflower 0.65  0.52 0.54 0.50 0.38  
18 Soyabean 12.74  12.21  14.67  11.86 10.71  
19 Cotton # 330.00  352.00  342.20  359.02 353.28  
20 Jute # # 100.09  107.36  103.40  110.83 109.74  
21 Sugarcane (Cane) 342.38  361.04  341.20  352.14 356.56  
 
Source: Dte of Economics and Statistics #  in lakh bales ( 1 bale = 170 kgs) # # in lakh bales ( 1 bale= 180 kgs) WT/TPR/M/313/Add.1 
 
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  UNITED STATES 
FOLLOW-UP QUESTIONS 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 
3.1.9 Import prohibitions, restrictions, and licensing 
3.1.9.2 Import Licensing and Restrictions   
Page 49, paragraph 3.43: The Secretariat's Report states that "[r]estricted items subject to 
conditions require import permits … in addition to the specific import licence."   
 
Q.23 Please explain why India requires import permits in addition to the specific import 
license. 
 Reply: Import of most of the items is free which means no import permit or authorisation is 
required. However, in few cases both import permits and specific import authorisations may 
be required to be obtained. DGFT issues import authorisation for products under restricted category of imports.  An importer may also be  simultaneously required to obtain  import 
permit in few cases to comply with the requirem ent of different Acts  primarily on grounds of 
preservation of environment, public health etc. 
 U.S. Follow-Up Question:   Please clarify whether there are any restricted items not subject to 
conditions that require both DGFT import authorization and an additional import permit.  
 Reply: For most items that are restricted for imports, only DGFT import authorization is required. 
 
3.1.11 Anti-dumping, Countervailing, and Safeguard Measures 3.1.11.2 Safeguards 
Page 58, paragraph 3.83:  The Secretariat’s Report notes India’s notifications to the WTO 
Committee on Safeguards under Article 12 of the Agreement on Safeguards.   
 Q.35 With regards to India’s notifications, for investigations taking place during the review 
period, please identify the periods of time betw een the date of notification and each of the 
following events related to the investigation:  date of initiation, determination to impose provisional measures, effective date of provisional measures, determination to impose final 
measures, application date of final measures, termination of investigation, and date of 
termination of application of measures.  
Reply: The review proceedings are governed by  Rule 18 of Customs Tariff (Identification and 
Assessment of Safeguard Duty) Rules, 1997. In cases where period of imposition of 
Safeguard duty exceed three years, review has to be done not later than mid term of such 
imposition. 
 
A review initiated under sub rule (1) has to be concluded with issuance of final findings either recommending the continued imposition  of safeguard duty or termination of 
investigation within a period of 8 months from date of initiation of such review or within 
such extended period as the Ce ntral Government may allow.  
 
However, duty must be levied post review for continued imposition of safeguard duty before 
the expiry of duty based on which the review is initiated.  Under safeguard rules, Review proceedings do not contemplate Provisional measures and 
hence, time periods do not apply for the same. However, under Rule 10 of the Safeguard 
Rules, provisional duty applied under sub-sectio n (2) of section 8B of the Custom Tariff Act, 
shall remain in force for a period not exceeding 200 days from the date on which it was 
imposed. 
 WT/TPR/M/313/Add.1 
 
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  Safeguard duty or provisional safeguard duty levied shall take effect from the date of 
Publication of the Customs notification in the O fficial Gazette imposing such duty as provided 
under Rule 14 of Safeguard Rules.  
 
U.S. Follow-Up Question: In response to the United States’ questions regarding periods of time 
between notification and various events of safeguard investigations, India seems to have replied regarding the time periods of safeguard review pr oceedings.  The original question was requesting 
different information.  To clarify, please identify, during an original safeguard investigation, the 
periods of time between the date of WTO notificati on and each of the following events related to 
the investigation:  date of initiation, determination to impose provisional measures, effective date of provisional measures, determination to impose final measures, application date of final 
measures, termination of investigation, and date of termination of application of measures. 
In other words, please identify the time lapse between each event and date of WTO notification.  
Reply : There is no specific time lapse between each of the event mentioned in the follow up 
question and the date of WTO notification as prov ided except in rare cases wherein there has been 
a minor delay in notification to WTO. . As per the Safeguard Rules, The safeguard investigation has 
to be completed within 8 months from the date of Initiation or within such extended period as the 
Central Government may allow.  The various stages of Safeguard investigation and the notifications follow in the following 
chronological order: 
 
i. Whenever an investigation under the Safeguard Agreement is initiated, the 
information is immediately notified to WTO. 
ii. Normally, recommendation to impose provisional measure is given immediately after 
the notice of Initiation in the form of Preliminary Findings if the critical circumstances 
exist. The same is notified to WTO. The preliminary findings is thereafter placed 
before the standing Board of Safeguards in the Department of Commerce and thereafter on the recommendation of the Board and approval of Finance Minister, 
Notification for provisional measure is issued. Generally, the effective date for 
provisional measure is the date of issue of Notification, as indicated in the notification 
itself. 
iii. Final findings have to be issued within 8 months from the date of Initiation or within 
such extended period as the Central Government may allow. This is notified to WTO 
immediately. Once the Safeguard duty is imposed through a Custom’s Notification, 
the same is notified to WTO immediately thereafter. 
iv. If the investigation concludes that no injury or threat of injury exists, final findings 
terminating the investigation is also issued and notified to WTO as well.  
v. In case the termination measure is issued after the provisional measure is imposed or 
final measure is terminated after the midterm review, the date of termination of 
application of measure shall be the date as mentioned in the notification issued in the 
matter. This is also notified to WTO.  
All these documents are also available in the public domain and can be seen at 
http://dgsafeguards.gov.in .  
 
3.1.12 Standards and Other Technical Requirements 
3.1.12.2 Technical Regulations 
 Page 59, paragraphs 3.90 and 3.92: The Secretariat’s Report notes that for standards and 
technical regulations, government entities post draft standards and technical regulations for 
public comment for 60 days, and that the draft documents may be published on government 
websites or in the Official Gazette.  Draft technical regulations are also notified to WTO Members for comments.  Related to these transparency procedures, please reply to the 
following questions: 
 WT/TPR/M/313/Add.1 
 
- 269 - 
 
  Q.37: On February 5th, 2014 India’s Ministry of Law and Justice issued a memorandum 
stating that it had, in consultation with other government entities, "formulated a policy on pre-legislative consultation which should invariably be followed by every Ministry/Department of the Central Government before any legislative proposal is submitted 
to the Cabinet for tis consideration and approval ".  The policy goes on to explain that "the 
Department/Ministry concerned should publish/place in public domain the draft legislation or at least the information that may inter alia include brief justification for such legislation, 
essential elements of the proposed legislation, its broad financial implications, and an 
estimated assessment of the impact of such le gislation on environment, fundamental rights, 
lives and livelihoods of the concerned/affected pe ople, etc.  Such details may be kept in the 
public domain for a minimum period of thirty days for being proactively shared with the 
public in such a manner as may be specified by the Department/Ministry concerned."  
Issuance through electronic media is also encouraged in the policy, as are public consultations.  Has this policy been implemented across all Ministries and Departments and 
their subordinate entities to provide for pre-le gislative consultation with stakeholders on 
draft policies?  If it is not fully implemen ted, when is full implementation across all 
government entities expected, and what steps is the central government taking to ensure 
implementation?   
 Reply: The policy is for Law/Act, and not for the technical regulations to be adopted.  
 
U.S. Follow-Up Question: Please explain if this policy has been implemented across all Ministries 
and Departments and their subordinate entities to  provide for pre-legislative consultations with 
stakeholders on draft Laws/Acts. If it is not fully implemented for Laws/Acts, when is full 
implementation across all government entities expected, and what steps is the central government 
taking to ensure implementation?   
Reply: The said memorandum dated February 5
th, 2014 issued by Ministry of Law and Justice to 
all departments/ministries of the government is primarily advisory in nature. It has been issued with the intention of ensuring uniformity across ministries/ departments in the matter.   
3.3 Measures Affecting Production and Trade 
3.3.5 Intellectual Property Rights 3.3.5.2 Patents 
 
Page 85, paragraph 3.213:  The Secretariat’ s Report indicates that while the number of 
patent applications in India has been growing, the number of patents granted has 
decreased.  The Report also notes that this may indicate a backlog is growing.  Another 
possibility would seem to be that an increa sing percentage of applications are being 
rejected, as opposed to granted.    
Q.92 Please provide information which would discern the actual cause(s) of the decrease in 
grants.  
Reply: The grant of Patents  has increased over the past 3 years  
 
Year Granted 
2012-13 4126 
2013-14 4225 
2014-15 5978 
 U.S. Follow-Up Question:   Thank you for the more current information on patent grants in 
India.  It appears there is indeed an increase in patent grants, although minimal, from 2012-13 to 
2013-14, and a more significant increase from 2013-14 to 2014-15.  However, the rate of patent grant versus rejection cannot be discerned without corresponding information on patent filings.  
Please provide additional and corresponding informat ion on overall patent filings so that this could 
be done.  WT/TPR/M/313/Add.1 
 
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  Reply: 
Patent statistics for 2012-13 to 2014-14 is as under : 
Year Applications 
Filed Patents 
Granted Rejections 
 
(Refusal of 
grant) Other 
Disposals 
(Applications 
Abandoned + 
Withdrawn ) Total 
Disposal of 
Patent 
Applications 
1 2 3 4 5 6 (=3+4+5) 
2012-13 43,674 4126 353 8674 9027 
2013-14 42,951 4225  774 10898 11672  
2014-15 42774 5978 1380 13152 14532  
 
 
Page 86, paragraphs 3.216-3.217:  The Secretariat’s Report discusses a Supreme Court of 
India judgment relating to Section 3(d) of the Patents Act.    Q.94 In consideration of this decision and the new pharmaceutical patent examination 
guidelines which recite the language of the judgment, please provide information on 
applications which have been granted following a rejection under Section 3(d). For example: how many there are and what sort of evidence and/or argument examiners may consider persuasive as to significant enhancement of therapeutic efficacy over the closest prior art 
compounds so as to remove a 3( d) rejection after it is made. 
 Reply: The cummulative data on examination and grant based on section 3 (d) along with 
the reasons/evidences etc. in respect thereof has not been compiled by the Office, as  the 
details for each individual case is available in  the IPO website.  The examination, grant and 
rejections all are done strictly as per provisions of the Patents Act and the Guidelines ( which 
has also taken into consideration the Supreme Court decision in this regard) without any 
discrimination.  Q.95 More generally, please provide inform ation relating to the number of patent 
applications rejected under Section 3(d) by IPO examiners that concern patent applications 
outside of the pharmaceutical and biologics te chnology sectors.  Please identify which 
sectors outside of pharmaceuticals, biologics, an d chemicals, if any, have received rejections 
and how many have rejections have been made in each sector. 
 Reply: The Cummulative data on examination and grant based on section 3 (d) along with 
the reasons/evidences etc. in respect thereof has not been compiled by the Office, as  the 
details for each individual case is available in the IPO website 
 U.S. Follow-Up Question:   Thank you for your reply.  Please explain how information might be 
found in India’s patent and patent application search systems (e.g., what databases and field of 
search may be used to search) showing trends related to bases for application and removal of 3(d) rejections, and trends in application of 3(d) rejections across technological fields.  Has the IPO 
considered providing guidance which would reduce confusion as to what is needed to overcome a 
3(d) rejection on the basis of therapeutic efficacy, and thereby promote innovation in affected fields and reduce waste of resources on patent filings which cannot be granted? 
 
Reply: There should not be any  confusion as to the rejection by applying the provision under 
section 3 (d) . First, the provision in Section 3 (d) along with the Explanation of the Indian Patents 
Act is clear enough to be easily understood for its contents. Second, the Indian courts at number 
of occasions , particularly the Supreme Court of India in its decision in Novartis case, have 
elaborated in detail on the issue. These decisions can be easily accessed online.  
Recently on 27-2-2015, India has launched a new search facility 
"Indian Patent Advanced Se arch System (InPASS)", ( http://ipindiaservices.gov.in/publicsearch ) 
having Full Text Search Capability which facilitates login-free patent search for Published patent 
applications and Granted patents, Application stat us and  E-Patent Register for the particular 
period selected. The search can be conducted utilising various search fields, either alone or in 
combination, namely, Title, Abstract, claims, Description, Application No., Patent Number, WT/TPR/M/313/Add.1 
 
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  Applicant Name, Inventor name, Inventor country, In ventor address, Filing Office, PCT Application 
Number and International Patent Classification.  Further, the office of Controller General of Patents, Designs and Trademarks has published the 
Guidelines For Examination of Patent Applications. In in the Field Of Pharmaceuticals (October 
2014) and Guidelines For Examination of Biotechn ology Applications For Patents ( March 2013), 
which are available in IPO website. Besides, The decisions issued by the Controllers of Patents in 
various contested matters are also available in the official website. 
 It may be noted that there is no practice to spec ifically prepare and publish special type of data 
like trends related to bases for application and removal of 3(d) rejections, and trends in application 
of 3(d) rejections across technological fields,  as mentioned. All types of applications are 
examined/granted/refused by uniformly applying th e provisions of the Patents Act and Rules made 
thereunder and, no special or discriminative consideration is applied for the processing of certain 
type of cases, including for example, cases pertaini ng to section 3 (d) for grant/refusal. The details 
in respect of specific application/patent can be searched in the Search Portal available in the website.  
 
Page 87, paragraph 3.219:  The Secretariat’s Report indicates that it is not entirely clear 
how India intends to address the issue of safeguards against diversion that are part of both the August 2003 General Council decision and th e subsequent protocol amending the TRIPS 
Agreement.   
 Q.96 Given that India has already implemented this type of compulsory licensing of 
pharmaceuticals, has India undertaken efforts or given consideration to anti-diversion 
measures, in light of the General Council decision and protocol for amending the TRIPS Agreement? 
 
Reply: Section 92 A of the Indian Patent Act prescribes clearly that the Compulsory licence for export of patented pharmaceutical products shall be available for manufacture and export of such products  to any country having insufficient or no manufacturing capacity in 
the pharmaceutical sector for the concerned production to address public health problems, 
only when  the country under reference has al ready  granted a compulsory licence or has, 
by notification or otherwise allowed importation of the patented pharmaceutical products 
from India.   
 The controller shall on receipt of an application in the prescribed manner, grant a 
compulsory license solely for manufacture and export of the concerned pharmaceutical 
product to such country under such terms and conditions as specified and published by him.   Application for compulsory license can be made under Form 17 of the Patents Act and Rules.  
 
However, no such compulsory licence has been granted in India so far. 
 
U.S. Follow-Up Question:  Thank you for the information provided related to India’s Section 92A 
compulsory licensing regime.  Please clarify whether India is not considering the implementation of anti-diversion measures as described in the General Council’s statement and protocol for amending 
the TRIPS Agreement. 
 Reply: This would be considered as and when required. The controller shall on receipt of an 
application in the prescribed manner, grant a compulsory license solely for manufacture and 
export of the concerned pharmaceutical product to such country under such terms and conditions 
as specified and published by him.  
 
3.3.5.5 Copyright 
 Page 93, 3.247:  The Secretariat’s Report notes that "[n]otice and take-down procedures 
have been introduced to make internet service providers otherwise liable."  Please describe the notice and take-down procedures to be followed by a copyright owner seeking removal of copyrighted material.  Also, we note that Section 52(1)(c) states that the "person responsible for the storage shall refrain from facilitating such access for a period of twenty-
one days or till he receives an order from the competent court refraining from facilitating WT/TPR/M/313/Add.1 
 
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  access and in case no such order is received be fore the expiry of such period of twenty-one 
days, he may continue to provide the facility of such access."   Q.122 Has India adopted expedited procedures to allow a copyright owner to obtain a court 
order barring continued access within 21 days?  If not, what is the average time it takes to 
obtain such an order through normal court processes?   
Reply: Depending of the facts and circumstance s of each case, the court will expedite the 
procedures to allow a copyright owner to obtain a court order within 21 days. 
 U.S. Follow-Up Question:  Please describe the notice and take-down procedures to be followed 
by a copyright owner seeking removal of copyrighted material.  This was asked in the original 
question, but may have been inadvert ently overlooked in the response. 
 
Reply: Rule No. 75 of Chapter XIV in Copyright Rule 1958 as amended in 2013, deals in Storage 
of Transient of Incidental copies of works. The Ru les states that any owner of copyright may give a 
complaint in writing under clause (c) of sub-section (1) of section 52, to a person who has 
facilitated transient or incidental storage of work for providing electronic links, access or 
integration to restrain from such storage of work.   2. The written complaint shall contain the following particulars, namely: 
 
a. The description of the work with adequate information to identify the work;  
b. Details establishing that the complainant is the owner or exclusive licensee of copyright 
in the work;  
c. Details establishing that the copy of the work which is the subject- matter of transient or 
incidental storage is an infringing copy of the work owned by the complainant and that 
the allegedly infringing act is not covered under section 52 or any other act that is 
permitted under the act; 
d. Details of the location where transient or incidental storage of the work is taken place; 
e. Details of the person, if known, who is responsible for uploading work infringing the 
copyright of the complainant; and 
f. Undertaking that the complainant shall file and infringement suit in the competent court 
against the person responsible for uploading the infringing copy and produce the orders 
of the competent court having jurisdiction, with in a period of 21 days from the date of 
receipt of the notice.  
3. On receipt of the written complaint, the person responsible for the storage of the copy, if 
satisfied from the details provided in the complaint that the copy of the work is an infringed 
copy, within thirty-six hour, take measures to refrain from facilitating such access for period of twenty-one days from the date of receipt of the complaint or till he receives an order from 
the competent court restraint him from facilitating access, whichever is earlier.  
 
4. The person responsible for storage shall display a notice giving reasons for restraining such 
access to persons requesting for access to the alleged infringing copy.  
 
5. The person responsible for storage may re store the storage of the work in case the 
complainant failed to produce the orders of the competent court having jurisdiction, 
restraining him from facilitating access.  
 6.  In case the complainant fails to produce the orders of the competent court having 
jurisdiction within the stipulated period, the person responsible for storage shall not be 
obliged to respond to any further notice sent by the same complainant on the same work in 
the same location. 
  WT/TPR/M/313/Add.1 
 
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  3.3.5.8 Trade Secrets and Test Data Protection 
 Page 95, paragraph 3.258:  The Secretariat’s Report discusses India’s trade secret 
protection on the basis of principles of equity and common law.   
 
Q.124 Please identify how many cases were prosecuted in the last year and provide the identified cases.  Also, under what principles of law does India protect against disclosure of 
trade secrets by third parties not party to any formal or informal contracts or confidence, 
and can examples of such cases be provided?  What types of information may be protected as trade secrets under Indian law?  What, if any, responsibility do enterprises have for 
protecting trade secrets from unauthorized disclosure? 
 
Reply: India has federal set up with civil and criminal cases filed in various courts- at the district level in case of criminal enforcement and trade secret violations and in the high 
courts. The information on these cases is not maintained centrally.  
 India does not have a separate legislation governing trade secret protection. It relies on 
principles of contract law, and common law, to regulate protection of trade secrets. Indian 
courts have upheld trade secret protection on basis of principles of equity, upon a common law action of breach of confidence, as well as breach of contractual obligation. The remedies available to the owner of trade secrets is to obtain an injunction preventing the licensee 
from disclosing the trade secret, return of all confidential and proprietary information and 
compensation for any losses suffered due to disclosure of trade secrets.  
Indian courts have relied on the principles laid out in the Saltman Engineering case to 
uphold the existence of an equitable doctrine  of confidence, independent of contract to 
assess whether breach of confidence could have occurred. The case of John Richard Brady, 
where the defendant who had allegedly misused the confidential information entrusted to 
them by the plaintiff, tried to escape liabili ty by pleading that the contract was neither 
concluded nor was it acted upon by the parties.  The High Court of Delhi ruled that it must 
enforce the general rules of equity and restra in the breach of confidence. Thus, the Court 
invoked a wider equitable jurisdiction and awarded injunction even in the absence of a 
contract.   
The Delhi High Court ruling in John Brady and the Saltman rationale have recently been 
applied by the Karnataka High Court in the case of Homag India.   
Confidentiality and non-competition covenants are enforceable under Indian law and offer 
another line of defense in enabling protection of trade secrets and confidential information in India. Business contracts therefore typically pr ovide for contracts that require the Indian 
service provider to (i) maintain the customer’s  trade secrets and confidential information in 
strict confidence not only during the term of the contract but also after termination, 
(ii) permit controlled access on a "need to know" basis only, including the customer’s right to enforce such obligations directly against service provider personnel having access to the 
customer’s information, and (iii) be contractually responsible and liable for any breach of 
confidentiality obligation or misuse of such information by itself, its subcontractors, employees or former employees. Effective clau ses in a contract provide that a service 
provider’s failure to comply with the confiden tiality obligations would result in the service 
consumer to immediately terminate the contract and also claim damages.  Confidentiality and non-compete clauses in employment contracts are also common.  
India’s Information Technology Act has also been rapidly evolving in order to grant 
protection for theft or misappropriation of electronic data. The Act provides for compensation, fine and imprisonment. Recently , the Department of Information Technology 
in Maharashtra ordered compensation of Rs. 60 lakhs for misappropriation of electronic data 
by an ex-employee of the complainant company and his new employer. Dealing with electronic crimes is an evolving area, and cases such as this indicate the ability of the legal 
and administrative machinery to deal with the same.  
 Penal action may be considered under the Indian Penal Code (IPC) for criminal breach of trust by an employee, when such employee mi sappropriates or dishonestly disposes of 
property entrusted to him, or which is under his control. Such a person can also be held WT/TPR/M/313/Add.1 
 
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  liable for cheating, when he acts with the knowledge that he is likely to cause wrongful loss 
to a person whose interest he was legally bound (by contract or law) to protect. In both cases, the offence can be punished with fine or with three years of imprisonment or both.  
 
U.S. Follow-Up Question:  The case of John Richard Brady  appears to have been provided in 
response to the question of the principles of la w India protects against disclosure of trade secrets 
by third parties not party to any formal or informal contacts or confidence.  However, the facts 
provided in this case involve a defendant who had allegedly misused confidential information 
entrusted to the defendant by the plaintiff.  Ac cordingly, this case does not pertain to the 
disclosure or use of trade secrets by third parties not party to any formal or informal contract or confidence since in this case the defendant was entrusted with confidential information and was 
thus not a third party.  Please provide an example of a case wherein trade secret protection was 
provided for on the basis of principles of equity.  
It is also noted that information of trade secret cases is not maintained centrally.  However, please 
provide a representative sample of cases that demonstrate the type of information that is protected as trade secrets under Indian law, including those showing a breach of contract, a 
breach of some other non-contractual duty, and those where there is no relationship between the 
parties.    Reply: India has federal set up with civil and criminal cases filed in various courts- at the district 
level in case of criminal enforcement and trade secret violations and in the high courts. The 
information on these cases is not maintained centrally.   
Government of India does not maintain a compilation of the cases. 
 Pages 95-96, paragraph 3.259:  The Secretariat’s Report discusses compensation and 
damages ordered by Indian courts for the disclosure of trade secrets.    Q.125 Please identify the guidelines used by  the courts to determine the quantum of 
compensation. 
 
Reply: The quantum of compensation depends on the facts of the case as placed before the courts.  
 
U.S. Follow-Up Question:  It is noted that the quantum of compensation depends on the facts of 
the case as placed before the courts.  However, what is the general range of compensation and 
damages ordered by Indian courts?  Please prov ide examples of compensation.  Please also 
provide a representative sample of cases where courts have discussed the basis of awarding specific compensation amounts.    
Reply: The Government does not maintain this centrally.  
 
Page 96, paragraphs 3.261-3.262: The Secretariat’s Report discusses legislation for 
pharmaceutical test data protection and the TRIPS provisions on protection of such data from unfair commercial use.   
Q.126 Please indicate India’s plans to implement unfair commercial use protection for 
undisclosed information relating to pharmaceutical products utilizing new chemical entities.  Please also explain India’s plans to implement such protection for undisclosed information relating to agricultural chemical products utilizing new chemical entities. 
 
Reply: Article 39.3 relates to the specific case  when data pertinent for seeking approval of 
the authority is shared with the marketing re gulator. The text of this Article does not 
specifically state that member countries would need to comply with the requirement of data 
exclusivity. It only states that the regulato r will need to protect it from unfair commercial 
use. Therefore, no additional obligations which are not present in text can be interpreted.  
The obligation on the authorities is to keep the test data secret and not allow it to be 
accessed by third parties through unfair means. India complies completely with its obligations under Article 39.3 of TRIPS.  
There is no decision yet on this issue.  WT/TPR/M/313/Add.1 
 
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  U.S. Follow-Up Question:  Thank you for your reply.  Article 39.3 of the TRIPS Agreement states 
in part: "the obligation on the authorities is to keep the test data secret and not allow it to be accessed by third parties through unfair means." The language of Article 39.3, however, also 
includes an obligation to protect relevant information from unfair commercial use. If India 
considers that it is in compliance with all Article 39.3 obligations, please explain how relevant 
information is protected from unfair commercial use in the marketplace.  
Reply: The obligation on the authorities is to keep the test data secret and not allow it to be 
accessed by third parties through unfair means.  
 
__________