. /.  WORLD TRADE  
ORGANIZATION   
G/ADP/Q1/IND/17 
G/SCM/Q1/IND/17 25 April 2012 
 
(12-2190) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Replies to Questions Posed by CHINA1  
Regarding the Notifications of INDIA2 
  
 The following communication, dated 23 April 2012 , is being circulated at the request of the 
Delegation of India. 
 
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1. Lesser Duty 
  China notices that India establishes the detailed rules governing the application of lesser 
duty.  Referring to the Annexure III concerning "Principles for determination of non-injurious 
price", China hopes that India could clarify the following:  
(1) What is the difference between "fair selling (notional) price" and non-injurious 
price in paragraph (2) of Annexure III?  Will the rules applicable to 
determination of non-injurious price be applicable to determining "fair selling 
(notional) price"? 
 
Reply 
 
 There is no difference between fair selling (notional price) and non-injurious price. 
 
(2) How is the non-injurious price established in concrete terms or in concrete 
calculations, as paragraph (3) of Annexure III simply provides for that the non-injurious price is determined "by considering the information or data 
relating to cost of production" and paragraph (4) is the detailed rules 
concerning how the cost information or data shall be examined. 
 
Reply 
 
 Paragraphs 3 and 4 of the A nnexure III provide detailed principles for the determination of 
non injurious price.  The actual calculation will be carried out in accordance with these principles as 
per the facts and circumstances of the specific case.  
                                                      
1 G/ADP/Q1/IND/14-G/SCM/Q1/IND/14. 
2 G/ADP/N/1/IND/3 and G/ADP/N/1/IND/4. G/ADP/Q1/IND/17 
G/SCM/Q1/IND/17 Page 2 
 
 
  2. Circumvention 
 
 In line with Article VI of GATT and the ADA, anti-dumping measures can be imposed 
only if dumping, injury and causation are estab lished.  There is no possibility provided by the 
Agreement to deviate from this principle.  Chin a hopes that India could clarify the following:  
 
(1) Will Indian investigating authority determine injury to domestic industry in the 
anti-circumvention investigations? 
 Reply 
 
 Indian investigating authority, during the circ umvention proceedings, will inter-alia determine 
the fact of any alleged circumvention of anti-dum ping duty levied under Section 9A of the Customs 
Act.  There is no obligation to make a fresh de termination of injury as anti-dumping duties have 
already been imposed on a product after determinatio n of injury and anti-circumvention investigation 
is only with respect to a product which is already subject to anti-dumping duty.     
(2) Concerning the Rule 26(1) on initiations of investigation to determine 
circumvention, what is the standard of determining 'by or on behalf of the domestic industry'?  In other words, will the Indian investigating authority 
apply the same rules in the initiation of anti-circumvention and the 
anti-dumping investigations? 
Reply 
 
 The definition of domestic industry is as per India's Anti-Dumping Rules which are modeled 
as per the Anti-Dumping Agreement. 
 
(3) In determining the undermining of remedial effects as regulated in 
Rule 25(3)(b), will the Indian investigating authority consider the situation of domestic industry?  If not, why?  If the situation of domestic industry gets better 
after the imposition of anti-dumping measures, will the Indian investigating 
authority determine that the remedial effects have been undermined? 
 
Reply 
  Rule 26 (2) provides that suffi cient evidence has to be furn ished as regards circumstances 
existing to justify initiation of an anti-circumve ntion investigation.  Explanation under Rule 25 
inter-alia, provides that evidence h as to furnished that remedial effects of the anti-dumping measures 
have been undermined.  There are sufficient provisi ons built into the Rules to examine the remedial 
effects of anti-dumping measures.  This may include  considering information relating to the situation 
of the domestic industry.  
(4) How will Indian investigating authority make sure the normal trade practice will 
not be treated as circumventing actions? 
 
Reply 
 
 There are sufficient provisions in the notified Rules to ensure that normal trade practices are 
not treated as circumvention actions.     
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