WORLD TRADE  
ORGANIZATION   
G/ADP/N/1/IND/3 
19 October 2011 
 (11-5169) 
Committee on Anti-Dumping Practices 
  Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 18.5 OF THE AGREEMENT 
 
INDIA 
 
  The following communication, dated 14 October 2011, is being circulated at the request of the Delegation of India.  
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Notification of Laws and Regulations under Arti cle 18.5 of the Agreement on Implementation 
of Article VI of the General Agreement on Tariffs and Trade 1994 
  Pursuant to Article 18.5 of the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994, India no tifies the amendment to the Customs Tariff 
(Identification, Assessment and Collection of An ti-dumping duty on Dumped Articles and for 
Determination of Injury) Rules, 1995.  The Cu stoms Tariff (Identification, Assessment and 
Collection of Anti-dumping duty on Dumped Articles and for Determination of Injury) Amendment 
Rules 2011 were notified vide Ministry of Fi nance, Department of Revenue Notification 
No. 15/2011 – Customs (N.T) dated 1 March 2011.   The amendments made in the aforesaid 
Amendment Rules relate, inter-alia , to the following:   
  
(i) Rule 4 (d) (i) – In so far as these relate  to the duties of the Designated Authority 
while recommending the amount of anti-dumping duty, a reference to the Annexure III 
containing 'Principles for determination of non-injurious price' has been added.   
 
(ii) Rule 17 (1) (b) – In the Rule relating to issue of final findings by the Designated Authority a reference to the Annexure III contai ning 'Principles for determination of non-
injurious price' has been added.   
 
(iii) Rule 23 (1) relating to Review of  anti-dumping duty has been amended.  
 
(iv) India follows lesser duty rule.  After the Annexure II a new Annexure III containing 
'Principles for determination of non-injurious price' has been added.   
  A copy of the notification containing the Cu stoms Tariff (Identification, Assessment and 
Collection of Anti-dumping duty on Dumped Articles and for Determination of Injury) Amendment 
Rules 2011 is annexed herewith.  G/ADP/N/1/IND/3 
Page 2  
 
  Annex 
 
The Customs Tariff (Identification, Assessment  and Collection of Anti-Dumping Duty on 
Dumped Articles and for Determination of Injury) Amendment Rules 2011 
 
Notification No. 15/2011-Customs (N.T) dated 1st March, 2011 
 
G.S.R. (E) -In exercise of the powers confe rred by sub-section (6) of section 9A and sub- section (2) 
of section 9B of the Customs Tariff Act, 1975 ( 51 of 1975), the Central Government hereby makes 
the following rules further to ame nd the Custom Tariff (Identification, Assessment and Collection of 
Anti-dumping Duty on Dumped Articles and for Dete rmination of Injury) Rules, 1995, namely:- 
 1.  (1) These rules may be called the Custom s Tariff (Identification, Assessment and 
Collection of Anti-dumping Duty on Dumped Ar ticles and for Determination of injury) 
Amendment Rules, 2011. 
 
(2) They shall come into force on the date of  their publication in the Official Gazette.  
 2. In the Customs Tariff (Identification, Asse ssment and Collection of Anti-dumping Duty on 
Dumped Articles and for Determination of Injury) Rules, 1995 (herein after referred to as the said 
rules), for rule 4, the following shall be substituted, namely:-   
 
"4. Duties of the designated authority. -It shall be the duty of the designated authority, in 
accordance with these rules,-  
(a) to investigate as to the existence, degree a nd effect of any alleged dumping in relation to 
import of any article;  
(b) to identify the article liable for anti-dumping duty;  (c) to submit its findings, provisional or othe rwise to the Central Government as to- 
 
(i)  normal value, export price and the margin of dumping in relation to the article 
under investigation;  and 
(ii) the injury or threat of injury to an industry established in India or material 
retardation to the establishment of an industry in India consequent upon the 
import of such article from the specified countries; 
 
(d) to recommend to the Central Government- 
 
(i) the amount of anti-dumping duty equal to the margin of dumping or less, which levied, would remove the injury to the domestic industry, after considering the 
principles laid down in the Annexure III to these rules;  and (ii) the date of commencement of such duty;  
 
(e) to review the need for continuance of anti-dumping duty.". 
 3. In the said rules, in rule 17, in sub-rule (1),  in clause (b), after the words "domestic industry", 
the words and figures "after considering the princi ples laid down in the Annexure III to these rules." 
shall be inserted.  
 
(4) In the said rules, in rule 23, for sub-rule  (1), following shall be substituted, namely:- 
  G/ADP/N/1/IND/3 
 Page 3 
 
 
  "(1) Any anti-dumping duty imposed under the provision of section 9A of the Act, shall 
remain in force, so long as and to the exte nt necessary, to counteract dumping, which is 
causing injury.  
 
(1 A) The designated authority shall review th e need for the continued imposition of any anti-
dumping duty, where warranted, on its own initia tive or upon request by any interested party 
who submits positive information substantiating the need for such review, and a reasonable 
period of time has elapsed since the imposition of the definitive anti-dumping duty and upon 
such review, the designated authority shall recommend to the Central Government for its 
withdrawal, where it comes to a conclusion that the injury to the domestic industry is not 
likely to continue or recur, if the said anti-dum ping duty is removed or varied and is therefore 
no longer warranted.  
 
(1B) Notwithstanding anything contained in sub-rule (1) or (1A), any definitive antidumping duty levied under the Act, shall be effectiv e for a period not exceeding five years from the 
date of its imposition, unless the designated au thority 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, within a reasonable period of .time 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.".  
5. In the said rules, after the Annexure II, the following shall be added, namely:- 
  
"Annexure III 
[See rule 17(1)] 
Principles for determination of non-injurious price 
 
(1) The designated authority is required under s ub-rule (1) of rule 17 to recommend the amount 
of anti-dumping duty which, if levied, would remove  the injury where applicable to the domestic 
industry.  
 
(2) For the purpose of making recommendation un der clause (1), the designated authority shall 
determine the fair selling (notional) price or non- injurious price of the like domestic product taking 
into account the principles specified herein under.   (3) The non-injurious price is required to be dete rmined by considering the information or data 
relating to cost of production for the period of i nvestigation in respect of the producers constituting 
domestic industry. Detailed analysis or examinat ion and reconciliation of the financial and cost 
records maintained by the constituents of the domestic  industry are to be carried out for this purpose.  
 (4) The following elements of cost of production are required to be examined for working out the 
non-injurious price, namely:- 
 
(i) The best utilization of raw materials by the constituents of domestic industry, over the past 
three years period and the period of investigation,  and at period of investigation rates may be 
considered to nullify injury, if any, caused to  the domestic industry by inefficient utilization 
of raw materials.  
 
(ii) The best utilization of utilities by the constitu ents of domestic industry, over the past three 
years period and period of investigation, and at period of investigation rates may be 
considered to nullify injury, if any, caused to  the domestic industry by inefficient utilization 
of utilities.  G/ADP/N/1/IND/3 
Page 4  
 
  (iii) The best utilization of production capacities,  over the past ·three years period and period 
of investigation, and at period of investigation rates may be considered to nullify injury, if 
any, caused to the domestic industry by ine fficient utilization of production capacities.  
 
(iv) The Propriety of all expenses, grouped an d charged to the cost of production may be 
examined and any extra-ordinary or non-recurring expenses shall not be charged to the cost of 
production and salary and wages paid per employ ee and per month may also be reviewed and 
reconciled with the financial and cost records of the company.  
 
(v) To ensure the reasonableness of amount of depreciation charged to cost of production, it 
may be examined that no charge has been made  for facilities not deployed on the production 
of the subject goods, particularly in respect of multi-product companies and the depreciation of re-valued assets, if any, may be identified and excluded while arriving at reasonable cost of production.   
(vi) The expenses to the extent  identified to the product are to be directly allocated and 
common expenses or overheads classified under factory, administrative and selling overheads may be apportioned on reasonable and scientif ic basis such as m achine hours, vessel 
occupancy hours, direct labour hours, prod uction quantity, sales value, etc., as applied 
consistently by domestic producers and th e reasonableness and justification of various 
expenses claimed for the period of investiga tion may be examined and scrutinized by 
comparing with the corresponding amounts in the immediate preceding year.  
 
(vii) The expenses, which shall not to be considered while assessing non-injurious price 
include,- 
 
a) research and development Provisions (unless claimed and substantiated as related to the 
product specific research);  b) since non-injurious price is determined at ex-factory level, the post manufacturing expenses such as commission, discount, freight-outward etc. at ex-factory level;  c) excise duty, sales tax and other tax levies on sales;  d) expenses on job work done for other units;  
e) royalty, unless it is related to technical know-how for the product;  
f) trading activity of product under consideration; or  g) other non-cost items like bad debts, donations, loss on sale of assets, loss due to fire, flood, etc.  
 
(viii) A reasonable return (pre-tax) on aver age capital employed for the product may be 
allowed for recovery of interest, corporate tax and profit. The average capital employed is the 
sum of "net fixed assets and net working capital" which shall be taken on the basis of average 
of the same as on the beginning and at the e nd of period of investigation. For assessment of 
reasonable level of working capital requirement, all the elements of net working capital shall 
be scrutinized in detail. The impact of revalu ation of fixed assets shall not be considered in 
the calculation of capital employed. Interest is allowed as an item of cost of sales and after 
deducting the interest, the balance amount of return  is to be allowed as pre-tax profit to arrive 
at the non-injurious price.  
 
(ix) Reasonableness of interest cost may be ex amined to ensure that no abnormal expenditure 
on account of interest has been incurred. Details of term loans, cash credit limits, short term 
loans, deposits and other borrowings taken by th e company and interest paid thereon may be 
examined in detail along with the details of assets deployed.  
  G/ADP/N/1/IND/3 
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  (x) In case there is more than one domestic producer, the weighted averages of non-injurious 
price of individual domestic producers are to be considered. The respective share of domestic production of the subject goods may be taken as basis for computation of weighted average 
non-injurious price for the domestic industry as a whole."  
 
 
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