WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO 
WT/TPR/M/249/Add.1 
14 October 2011 
 (11-5057) 
Trade Policy Review Body 
14 and 16 September 2011 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
INDIA 
Record of the Meeting 
Addendum 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
 This document contains the advance writte n questions, and replies provided by India.1 
__________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 
14 et 16 septembre 2011  
EXAMEN DES POLITIQUES COMMERCIALES 
INDE 
Compte rendu de la réunion 
Addendum 
Président:  S.E. M. Mario Matus (Chili) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par l'Inde.1 
__________________________________________________________________________________  
Órgano de Examen de la s Políticas Comerciales 
14 y 16 de septiembre de 2011 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
INDIA 
Acta de la reunión 
Addendum 
Presidente:  Excmo. Sr. Mario Matus (Chile) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la India.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/249/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY INDIA 
ARGENTINA WT/TPR/S/249, Report of the WTO Secretariat II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
4) Investment Regime 
ii) Foreign Investment Regime 
Argentina 1:  
1.  In paragraph 35, the report refers to the legal framework for foreign direct investment, noting that 
certain FDI is subject to "automatic" approval. 
-  Which FDI is subject to the automatic route? 
-  Please indicate the criteria used to determin e which FDI is subject to the automatic route. 
-  Is there any other mechanism in addition to this one to regulate/approve FDI?  If so, which and to 
which FDI does it apply to? 
Reply:  The extant policy on FDI, including the lis t of automatic sectors, is covered in Chapter 5 
of "Circular 1 of 2011 - Consolidated FDI Policy" , which is available in the public domain at 
www.dipp.nic.in.  In general, FDI, up to 100%, under the automatic route, is permitted in all 
sectors, except those specifically  indicated as not being eligible for the same under Chapter 5 of 
the Circular, subject to applicable laws/sector al rules/regulations/security conditions.  The 
Foreign Investment Promotion Board (FIPB), Mi nistry of Finance, recommends proposals for 
investment in the capital of resident entiti es by non-resident entities, covered under the 
"Government route" (i.e. requiring the prior approval of Government). 
Argentina 2:  
2.  In paragraph 39, the report indicates that the number of sectors and activities in which FDI is 
prohibited increased during the period under review. 
- Why have prohibitions on FDI increa sed and which sectors does it affect? 
Reply:  The list of sectors prohibited under both the Foreign Exchange Management Act and 
FDI Policy as extant at the time of the earlie r review, was subsequently consolidated under the 
FDI policy, vide Press Note 7 (2008), which is available in the public domain at www.dipp.nic.in.  Only one additional sector i.e. "manufacturing of cigars, cheroots, cigarillos and cigarettes, of 
tobacco or of tobacco substitutes" has since be en added.  This has aligned the policy with 
Government's earlier decision of not granting i ndustrial licenses for fresh capacity in the sector. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
2) Measures directly affecting imports 
v) Other charges affecting exports 
Argentina 3:  
3.  In paragraph 42, the report indicates that India imposes an "additional customs duty" and a 
"special additional customs duty" on imports. 
- On which basis are these duties applied? WT/TPR/M/249/Add.1 
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  Reply:  The duties and charges as mentioned in  the aforementioned paragraphs are in the 
nature of charges equivalent to internal taxes ap plied at the border in order to provide level 
playing field for the domestic industry.  Under Article II:2 of the GATT 1994, Members are allowed to impose a charge on the imported produc ts equivalent to internal taxes levied on like 
domestic products . 
- Are these duties specific or ad valorem? Reply:  Additional customs duty is applied on the imported goods in lieu of the excise duty 
applicable on domestically produced goods, while special additional duty is levied in lieu of taxes such as state VAT, sales tax, levied or coll ected by state government or local taxes/charges.  
While additional customs duty is levied at rat es equal to the excise duty rates applicable to 
domestically manufactured goods, special additional duty is charged at 4% ad valorem . 
- Which products do they apply on? Reply:  Generally speaking, goods that are ex empt from excise duty or state VAT are also 
exempt from the levy of additional duty or SAD respectively.  
Argentina 4:  
4.  In paragraph 45, the Report indicates that, according to the Indian authorities, some of these 
charges are applied in lieu of the domestic taxes [( that domestically produced goods have to pay)]. 
- Please explain what are these charges and domes tic taxes and provide details on how they operate. 
Reply:  Please see reply to question 3 above. Argentina 5:  
5.  In paragraph 46, the report indicates that India imposes additional cesses on imports and 
domestic products for the development of specific industries, and these are not part of fiscal revenue. 
- Please describe these cesses. Reply:  The details of cesses are provided in Table AIII.2 of the Report by the Secretariat 
(WT/TPR/S/249).  These cesses are levied and collected as duty of excise on domestically produced goods. 
Argentina 6:  
6.  In paragraph 48, the report notes that India levi es a national calamity contingent duty (NCCD) on 
pan masala, some cigarettes and tobacco products, pe troleum oils, telephones for cellular network or 
for other wireless networks, vehicles and motor cycles.   The report clarifies that the NCCD is both 
specific and ad valorem, ranges from 1% to 45%, and is also levied on similar domestic products. 
- What do you mean by "calamity"? 
- Under which circumstances are the ad valorem and specific duties applied? 
- What is the amount of the specific duty? - Which criteria is used to determine the ad-valorem duty? 
Reply:  "Calamity" means natural disasters such as earthquakes, tsunami, floods, cyclones etc.  
Ad valorem  or specific rates are applied depending on  whether the excise duty rates applicable  WT/TPR/M/249/Add.1 
 Page 5 
 
 
  to the item produced domestically are specific or ad valorem .  Crude petroleum attracts NCCD 
at Rs 50 per tonne while the NCCD rates rang e from Rs 70 per thousand sticks to Rs 235 
per thousand sticks on cigarettes depending upon the length of the cigarettes.  Barring crude 
petroleum and tobacco products, this duty is levied at a uniform ad valorem  rate of 1%. 
ix) Standards and Technical Regulations 
Argentina 7:  
7.  In paragraph 105, the report notes that currently  some 81 products are subject to the mandatory 
BIS certification mark, while more than 1,000 products are subject to voluntary certification. 
- Please indicate the criteria for determining which product should carry the mandatory certification 
mark. 
- How often is the list of these products updated? 
Reply:  The Central Government based on an inte rnal assessment and in public interest notifies 
the products for mandatory BIS certification mark under a licence. 
The list is updated as soon as a new product is  notified for mandatory BIS certification by the 
Central Government. 
Argentina 8:  
8.  In paragraph 106, the report mentions that fo reign producers who wish to export products subject 
to mandatory certification must obtain a license from the BIS, paying application fees, processing and 
marking fees, a unit rate fee which varies accordi ng to the product, an annual fee, and a quarterly fee 
for units of production marked, which is fixed according to product. 
- Are locally manufactured products subj ect to the same rate as imports? 
- Please indicate where the list of fees for each product may be obtained. 
- What are the criteria for fixing these fees? 
Reply:  Yes, locally manufactured  products are subject to the sa me application fee, annual fee 
and unit rates, as imports. 
The information of marking fee unit rates (Slab Rates), Indian standard wise, is available on 
BIS website at http://www.bis.org.in. 
Fees are fixed based on the cost of operations. x) Sanitary and Phytosanitary (SPS) Argentina 9:  
9.  In paragraph 116, the Report notes that s anitary and phytosanitary matters continue to be 
governed through a number of laws and agencies. 
- Please indicate the legislation and regulations in place and which agencies are involved in the 
import and marketing of apples and pears. 
Reply:  The import of apples, pears and other horticultural plants and plant products into India 
is governed by the Plant Quarantine (Regulatio n of Import into India) Order, 2003.  This WT/TPR/M/249/Add.1 
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  regulation is administered by Plant Quarantine Division in the Department of Agriculture and 
Cooperation (DAC), Ministry of Agriculture Government of India. 
- If sub-federal or state regulations in this matt er exist, please indicate the sub-federal or state 
agencies concerned. 
Reply:  There are no state agencies and stat e regulation for imports of apples and pears. 
3) Measures directly affecting exports 
vi) State trading 
Argentina 10:  
10.  In paragraph 143, the report mentions that state trading enterprises are granted special 
privileges to export. 
- What are these privileges? 
Reply:  State trading enterprises granted special privileges in respect of goods, the import or 
export of which is governed through the provision s of the policy, shall make any such 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.  These enterprise(s) act in a non-discriminatory manner and as such these 
STEs comply with the provision of Article XVIII of GATT 1994. 
vii) Support to exports 
Argentina 11:  
11.  In paragraph 160, the report indicates that under the "all industry drawback rate", the amount 
refunded is usually a percentage of the f.o.b. value of  exports or a specific per-unit value.  For certain 
products, there is a cap or maximum amount that  may be refunded.  Drawback rates are based on 
different parameters including the prevailing price of  inputs, standard input-output norms published 
by the DGFT (Directorate General for International Trade), share of imports in total inputs, and the 
applied rates of duty. 
- Please provide details on the refunded amount s and the criteria for determining the refunded 
amounts. 
Reply:  The detail of refunded amount ( duty drawback grante d) is as follows: 
Year 2006-07 2007-08 2008-09 2009-10 2010-11 
Drawback amount (Rs in Crores) 5646 7595 12101 9218 8859 
The duty drawback amount is based on likely du ty suffered on the inputs and input services 
used in the manufacture of export goods or th e class of such export goods.  The "cap" or 
maximum amount for certain specified goods are provided to discourage over-valuation of the 
goods exported. 
Argentina 12:  
12.  From the afore mentioned paragraphs, it is  evident that India imposes a complex system of 
import duties, as there are many additional taxes, at varying rates and based on criteria which are somewhat complex.  WT/TPR/M/249/Add.1 
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  - Will the government of India to simplify this system? 
Reply:  The tariff structure has been simplified co nsiderably in recent years.  However, this is 
an on-going process. 
4) Measures Affecting Production and Trade 
i) Incentives 
Argentina 13:  
13.  In paragraph 177, the Report indicates that in 2009 a new section (35AD) was introduced in the 
Income Tax Act 1961, which provides investment-lin ked deduction of 100% of  capital expenditure to 
sectors such as cold-chain facilities, agricultura l warehousing, cross-country natural gas and oil 
pipeline networks, and hotels, hospita ls and slum rehabilitation sectors. 
- Please clarify whether foreign investment  also benefit from this incentive. 
Reply:  Companies registered in India are e ligible for exemption under Section 35AD of the 
Income Tax Act 1961.  Details of the FDI polic y of the Government are available at website 
www.dipp.nic.in. 
Argentina 14:  
14.  In paragraph 181, the report indicates that the Government of India allocates funds to subsidize 
interest rates, particularly for exporters. 
- Please provide information about these subsidi es, especially the amount and the sectors concerned. 
Reply:  The Benchmark Prime Lending Rate (B PLR) System was replaced by the Base Rate 
System with effect from 1 July 2010.  Banks may choose any benchmark/methodology to arrive 
at the base rate that may be disclosed transparently.  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 appropri ate.  Accordingly, under the Base Rate System 
interest rates applicable for all tenors of fresh /renewed rupee export credit advances are at or 
above base rate. 
Therefore, the interest rates on export credit based on the Base Rate System do not lead to 
subsidy as per ASCM. 
Argentina 15:  
15.  In paragraph 184, the Re port indicates that various products are reserved for exclusive 
manufacturing by micro, small and medium enterprises. 
- What are these products and which treatm ent is granted to similar imports? 
Reply:  The list is available on the web link http://www.dcmsme.gov.in/publications/ 
reserveditems/reserved2010.pdf.  Pr oducts reserved for exclus ive manufacture in MSE sector 
can be imported. 
Argentina 16:  
16.  In paragraph 185, states that, in addition to  the reserved products, micro, small and medium 
enterprises may benefit from a number of other assistance schemes managed by the Ministry of 
MSMEs and supporting institutions. WT/TPR/M/249/Add.1 
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  - What are these assistance schemes? 
Reply:  The information regarding various a ssistance schemes managed by the Ministry of 
MSMEs and supporting institutions are available at Ministry of MSME website (http://msme.gov.in). 
AUSTRALIA 
Australia 1: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  I ECONOMIC ENVIRONMENT:  
(7) DEVELOPMENTS IN FOREIGN DIRECT INVESTMENT 
Australia notes that India has con tinued gradually to open its economy to foreign direct investment. 
1. Could India explain what specific conditions a nd safeguards it is considering in relation to 
possible changes to foreign investment in retail trading? 
Reply:  The existing policy allows for 51% foreign  direct investment (FDI), only in single brand 
retail trade, subject to specified conditions.  FDI in multi brand retail trading is presently 
prohibited.  Government of India had released a Discussion Paper on the subject of "Foreign Direct Investment in Multi-Brand Retail Trading" , in order to obtain stakeholder comments, 
for informed policy making.  Comments were recei ved from a number of stakeholders.  The 
discussion papers, as well as the comments rece ived thereon, are in the public domain.  The 
Government has not taken a final decision in this regard. 
Australia 2: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING  IMPORTS:  (i) Customs Procedures 
(a) Registration and documentation: 
Australia notes in paragraph 12, page 37 of the S ecretariat report that India's Risk Management 
System (RMS) is operational in 48 customs offices (accounting for 85 per cent of India's imports). 
2. Could India's clarify the plans and timelines fo r further roll out of RMS to cover a greater 
percentage of India's imports? 
Reply:  RMS has been launched in 60 customs loca tions covering 99.6% of the total imports.  
Other customs stations will be covered shortly. 
Australia 3: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING  IMPORTS:  (i) Customs Procedures 
(a) Registration and documentation: 
The Secretariat report notes in paragraph 16, page 38  that Customs clearance times have fallen from 
41 days in 2007 to 20 days.  The introduction of EDI electronic data interchange and RMS are noted as two initiatives to make the system more efficient. 
3. Could India describe any other initiatives the Indian Government has introduced since 2007 
that may have also contributed to reducing Customs clearance times?  WT/TPR/M/249/Add.1 
 Page 9 
 
 
  Reply:  Apart from the introduction of EDI and Risk Management System, the following 
initiatives reduced the customs clearance time. 
(a) Accredited Clients Program (ACP):  this pr ogram was introduced along with the RMS.  
The objective is to identify the importers of  clean compliance track record and facilitate 
their consignments upfront.  Their consig nments are not subjected for any Customs 
control measures.  There are nearly 280 ACP  importers covering 13% of the total 
imports. 
(b) Direct delivery of containers at the port:  in  some of the Customs Houses the containers 
belonging to ACP importers are delivered at the port itself rather than clearing them 
after being brought to the container freight stations (CFS).  This greatly reduces the 
clearance time. 
(c) E-Payment:  the e-payment facility has been launched.  This has made the process of 
customs clearance convenient by reducing transaction time. 
(d) A provision of "self assessment", both for im ported goods and export goods, has been 
introduced, by amending the Customs Act 1962.  This has provided a basis for 
progressive reduction in the levels of Customs intervention in clearance of import/export 
cargo leading to significant enhancemen t in facilitation for compliant trade. 
Australia 4, 5, 6: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  (x) Sanitary and phytosanitary 
measures 
Australia notes in paragraph 116, pa ge 71 of the Secretariat report that  the main institutions involved 
in the establishment and implementation of SPS meas ures for food items are the Ministry of Health 
and Family Welfare, the Department of Animal Husbandry, Dairying and Fisheries;  the Directorate of Plant Protection, Quarantine and Storage;  the Bureau of Indian Standards;  and other state 
government agencies". 
Australia is of the view that the role of th e Food Safety and Standards Authority of India (FSSAI) 
should be acknowledged in this context given its significant role in establishing science-based 
standards for food and its role in inspecting im ported foods.  The Food Safety and Standards Act 
(2006) has consolidated various ac ts and orders on food-related issues from various Indian Ministries 
and Departments.  However, Australia notes that the regulatory changes have resulted in significant 
delays for the inspection of imported goods, whic h is a particular problem where inspection is 
time-dependent (e.g. shelf stable, fresh and chille d products).  Australia understands that there are 
different levels of testing for domestic and im ported product undertaken by the FSSAI. 
4. Could India advise what testing, including th e level of testing, is applied to domestic and 
imported product by the FSSAI? 
Reply:  The level of testing is same for import ed as well as domestic food products.  However 
for imported product the time frame is 5 workin g days where as for the domestic food product 
the time allotted to get a test report is 14 working days.  The process of testing has been 
expedited with notification of more NABL accredited private laboratories by FSSAI. 
5. Could India describe its testing protocol, incl uding any scientific risk based framework, used 
to develop its testing protocols? WT/TPR/M/249/Add.1 
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  Reply:  On the basis of the risk assessment prot ocol, only 5 to 20% of imported consignments 
are subjected to lab testing through FSSAI.  A ne w regulation for a safety system for imported 
food is at the draft stage and will help further ref ine the system.  It is expected to be published 
for consultations by the end of this year. 
6. Could India advise when the Food Safety and Stan dards Act 2006 likely will come into force?  
What will be its impact on processed food im ports?  Will this differ from current 
requirements? 
Reply:  Food Safety and Standards Rules 2011 an d Food Safety and Standards Regulation, 2011 
were notified vide Gazette  Notification dated on 5 May 2011 and 1 August 2011 respectively by 
the Government of India and are available on the FSSAI website:  fssai.gov.in.  The FSS Act 
came into effect from 5 August 2011.  
Australia 7, 8: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  (x) Sanitary and phytosanitary 
measures 
Australia also notes that the FSSAI's differential tr eatment for testing of imported and domestically 
produced products over the last 12 months applie s to all imported foods such as manufacturing 
ingredients, finished retail ready products, bulk co mmodities, wine, horticultural produce etc.  Since 
FSSAI took over sampling and testing at ports of entry in August 2010 testing has taken place on 
almost all products coming into the country at individual batch level at 100%, rather than on a 
consignment basis, that is, every batch within a cons ignment is tested.  FSSAI claims it will endeavour 
to move to a risk based approach to testing and has published a draft food import regulation for 
comment (with a 15 day comment period).  In the dr aft FSSAI has mentioned the Australia/NZ risk 
categorisation as the model fo r food risk categorisation. 
7. Could India advise when FSSAI will move to im plementation of this risk based framework? 
Reply:  The Australian observation, is factually in correct, and is based on old information.  The 
principles for drawing sample are rational and scientific.  Only in 5 to 20% of cases, FSSAI 
draws samples.  The present system is practically  the same as has been in existence for several 
years now except that the agency to test the samp les is FSSAI and its authorised accredited labs 
instead of the port health officers.  New draft regulations are expected to be published for 
consultations by year end. 
8. Could India explain why the same level of tes ting is not undertaken by FSSAI for domestically 
produced product as for imported product? 
Reply:  It is further clarified that no discrimination is done while testing domestic or imported 
food articles, instead shorter period is a llotted for imported products to get tested. 
Australia 9: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  (x) Sanitary and phytosanitary 
measures 
Australia notes considerable delays sometimes occu r in the inspection of imported product by the 
FSSAI, inconsistent with the inspection proce dures that are employed by the Indian Customs  WT/TPR/M/249/Add.1 
 Page 11 
 
 
  authority.  The delay between the two inspectio n procedures can compromise the integrity and 
wholesomeness of the imported product. 
9. Could India advise the steps it intends  to take to address this issue? 
Reply:  The question appears to be  based only one or two isolated cases of August 2011 (as 
mentioned in questions 7 and 8 above).  Further, it  will be helpful if any holdup of consignments 
for unreasonable period of time is brought to  the notice of FSSAI for timely and necessary 
corrective action. 
Australia 10: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2)  MEASURES DIRECTLY AFFECTING  IMPORTS:  (x) Sanitary and phytosanitary 
measures 
Australia notes that India seeks to apply uniform me asures to all trading partners in relation to the 
importation of animal and animal products.  Australia notes that this approach does not take into consideration differences in the pest  and disease status of individ ual trading partners, nor does it 
allow trading partners to offer alternative measu res to address the potential risk of imported product, 
and thus may not be the least trade restrictive me asure for trading partners which are free from pest 
and diseases of concern.  Australia notes that in  relation to the importation of plants and plant 
products, India does consider regional differences or alternative measures which facilitate trade in 
plants and plant products. 
10. Could India please describe how it will facilitate  the development of measures which will take 
into account alternative means of addressi ng sanitary measures for the importation of 
animals and animal products in the least trade  restrictive manner as is implemented for 
plants and plant products? 
Reply:  Sanitary import permit is issued on the basis of internationally recognised scientific 
principles of risk analysis.  The analysis is conducted with reference to the specific product and 
the disease situation prevailing in the exporting country vis-à-vis  the disease situation in India 
and is least trade restrictive. 
Australia 11, 12: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRO DUCTION AND TRADE:  (iv) Government 
Procurement (a) Overview 
The Secretariat report notes in par agraph 219, page 106 that Indi a became an observer to the WTO 
GPA in February 2010 and that Indian authorities ha ve indicated that "reforms have moved India 
towards a more transparent and competi tive procurement framework.  " 
11. Do these reforms contemplate the eliminati on of the reservations and price preferences, 
referred to paragraph 220, which are part of India's procurement framework? 
Reply:  Transparency and fairness in GP are val ues that have stand-alone significance for India 
purely in the domestic context.  We are en gaged in improving our procurement systems.  
However, carve outs and offsets are essential for the development of the sensitive sectors in a 
developing economy like India, and has been availed of even by other GPA signatories. WT/TPR/M/249/Add.1 
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  12. Does India envisage entering into legally-bin ding commitments to open its procurement 
market, either through FTA government proc urement chapters or joining the GPA? 
Reply:  Issue of India's accession to GPA is under examination.  At present, any commitment on 
this issue is not feasible. 
Australia 13: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRO DUCTION AND TRADE:  (iv) Government 
Procurement 
The report notes in paragraphs 219 and 224 that I ndia does not have a centralised government 
procurement policy. 
13. Could India provide an update on any plans to develop a national procurement policy? 
Reply:  Establishment of a legislative framew ork for public procurement is under consideration 
of the Government of India. 
Australia 14, 15, 16, 17: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (b) Patents 
Australia notes in paragraph 250, page 114 of the S ecretariat report that patent protection may be 
granted to any invention relating to either a product or  process that is new, involves an inventive step, 
and is capable of industrial application (Section 2( 1)(j) of the Patents Act 1970, as amended).  
Article 3(p) of the Act excludes 'an invention which, in effect, is traditional knowledge or which is an 
aggregation or duplication of known properties of traditionally known compone nt or components'. 
14. Could India advise whether this exclusion has  been applied in practice to reject patent 
applications? 
Reply:  Section 3 of the Patent Act lists out those that are not considered as inventions.  
Sub-section (p) of Section 3 includes traditional knowledge or an aggregation or duplication of 
known properties of traditional known componen t or components.  Traditional knowledge, 
therefore, is not patentable under the Act.  This  exclusion has to be applied in practice to 
evaluate patent applications. 
15. Could India explain the policy reason for this exclusion? 
Reply:  Only novel inventions having inventive step and industrial applicability are patentable.  
Traditional knowledge which is used by the communities for generations but have not been 
documented comes under prior use and it is n ecessary to protect the knowledge of such 
communities is the rationale for this enactment of this section. 
16. Could India explain which specific national el ements are included in India's definition of 
Traditional Knowledge?  Do India's criteria appl y to Traditional Knowle dge from a country 
other than India?  WT/TPR/M/249/Add.1 
 Page 13 
 
 
  Reply:  The Patents Act does not define the term traditional knowledge.  However, any 
knowledge existing traditionally either with any local or indigenous community or elsewhere is 
taken into account.  Therefore, it is not limited to the traditional knowledge existing in India. 
17. What is the policy reason for the exclusion of 'methods of agriculture' in Section 3(h) of the 
Patents Act 1970? 
Reply:  The policy behind the exclusion of methods of agriculture and Horticulture under 
section 3(h) is to promote the public interest in sectors of vital importance to India's socio-economic and technological development (Article 8. 1 of TRIPS). 
Australia 18, 19: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (b) Patents 
Australia notes in paragraph 251, page 114 of the Se cretariat Report that it is not necessary to obtain 
prior permission from the Patent Office to file a patent application abroad, unless, inter alia, the 
applicant is an Indian resident and th e invention originated in India. 
18. Could India explain whether the requirement to obtain permission from the Patent Office to 
file a patent application abroad al so apply to foreign nationals that are resident in India? 
Reply:  Section 39 of the Indian Patents Acts provides for requirement of prior permission for 
filing of the patent application outside India by Indian residents.  This includes any foreign national who is resident in India.  The prior permission from the Patent Office is required 
under the following circumstances: 
 In case applicant does not want to file any pa tent application in India relating to said 
invention. 
 In case he has filed the application in India but six weeks' period from the date of filing 
of the Indian application is not yet over. 
 In case secrecy direction under section 35 have  been imposed and such directions have 
not been revoked. 
 Invention is relevant for defence purpose or atomic energy. 
However, these provisions are not applicable in relation to an invention for which application 
for patent protection has been first filed in a country outside India by a person resident outside 
India. 
19. Does this requirement apply to all le gal persons including companies? 
Reply:  This requirement is applicable to both natural person as well as legal entity. 
Australia 20, 21, 22: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (b) Patents WT/TPR/M/249/Add.1 
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  Regarding the requirements for grant of a patent, the Indian Patent Manual describes the requirement 
for the applicant to disclose information on biological material in the application.  Section 25 of the Patents Act provides the ground of opposition that this information was not disclosed. 
20. Which provision of the Patents Act requires th e applicant to disclose this information? 
Reply:  Section 10(4)(d)(ii)(D) requires applican t to disclose the source and geographical origin 
of the biological material in the specification when used in an invention. 
21. Which provision of the Patents Act requires the Patent Office to check for disclosure of this 
information? 
Reply:  As above. 22. With regard to the English la nguage Patents Act accessed on line from the Indian IP office 
website (http://ipindia.nic.in/ipr/patent/patent_ 2005.pdf) – could India please explain the 
reason for the difference in wo rds used in Art. 25(1)(j) and 25(2)(j) (i.e. 'Source or 
geographical origin' compared with  'source and geographical origin')? 
Reply:  The provisions of section 25(1)(j) and 25(2)(j) are to be read with provisions of 
section 10(4)(d)(ii)(D) which requires the disclosure of the source and geographical origin of the 
biological material in the specification.  Hence, the word W "or" in section 25(1)(j) shall have to 
be read as "and".  There appears to be a typographical error in section 25(1)(j). 
Australia 23: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (b) Patents 
We note in paragraph 254, page 114 of the Secretar iat report that patent rights accrue from the date 
of publication of the patent application, which is within one month after completion of 18 months of 
its filing or earlier, if requested by the applicant. 
23. Could India clarify whether patent rights accrue from the filing/priority date or from the date 
of publication (paragraphs 254 and 255, page 114 of the Secretariat report refer)? 
Reply:  It may be noted that the term of patent st arts from the date of filing of the application.  
However, in case of application filed under Patent  Cooperation Treaty, the term of patent shall 
be reckoned from International filing date accorded under PCT. 
The priority date is to protect the novelty of the invention over the inventions for which 
application for the same subject matter is filed at later date. 
Section 11A(7) provides the provisional protection of the invention from the date of publication 
of the application, according to which, accordin gly, the patent right accrue from the date of 
publication of a patent application under section 11(A).  However, as per Section 11A(7), the patent right can be enforced only when patent is  granted i.e. the patentee can claim the damages 
from said date of publication only after the pate nt is granted and, also, the applicant is not 
entitled to institute any infringement proceeding until grant of patent.  WT/TPR/M/249/Add.1 
 Page 15 
 
 
  Australia 24, 25: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (b) Patents 
Australia notes in paragraph 256 that compulsory licensing is permitted under certain circumstances. 
24. Is export under compulsory licence permitted fo r export to any country or only to certain 
countries? 
Reply:  Under the provisions of section 84(7)(iii) the reasonable requirement of public for the 
purpose of grant of compulsory licence shall not be considered to have been satisfied if by 
reason of the refusal of the patentee to grant a license or licenses on reasonable terms, a market 
for export of the patented article manufactured in India is not being supplied or developed.  
Hence, the compulsory license will be available by virtue of this section to export of patent 
products to any country. 
However, as per provisions of section 92(A), the compulsory licence for export of patented 
pharmaceutical product is available to any coun try having insufficient or no manufacturing 
capacity in the pharmaceutical sector for th e concerned product to address public health 
problem. 
25. Could India provide the internet link to the Department of Industrial Policy and Promotions 
discussion paper on compulsory licensing, if th is is available online in English? 
Reply:  The website of DIPP is http://www.dipp.nic.in/English/default.aspx. 
Australia 26: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (c) Trade Marks 
Australia notes in paragraph 265, pages 116-117 of the Secretariat report that where registration of a 
trade mark is not completed within 12 months from  the date of the application, the Registrar after 
giving notice to the applicant, treats the application as abandoned. 
26. Could India clarify whether this process appli es where registration is not completed within 
twelve months from acceptance or from the e nd of the opposition period?  Does it refer to 
non-payment of registration fees? 
Reply:  The twelve months period could commence either from the date of conditional 
acceptance provided in section 18(4) of the Act or from the date of issuance of speaking order in 
an opposition proceedings where the application is  ordered to proceed to registration subject to 
the terms and conditions specified in the speaking order in terms of section 18(4) of the Act No., 
it does not refer to non-payment of registration fees  as India accepts one fee at the stage of filing 
and registration fee is not envisaged under the Trade Marks Rules.  
Australia 27: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (c) Trade Marks WT/TPR/M/249/Add.1 
Page 16  
 
  The last sentence of paragraph 269, page 117 of th e Secretariat report states that "If the offence is 
committed by a company, the company as well as every person in charge, and responsible to the 
company would be deemed guilty of the offence". 
27. Could India explain whether this means that  people responsible to a company could be 
deemed guilty of an offence of which they were not aware? 
Reply:  According to the provision of section 124, if the person committing an offence under the 
Patents Act is a company, then in such circums tances, the company as well as every person in 
charge of and responsible to the company for con duct of its business at the time of commission 
of the offence shall be guilty of the offence.  Therefore, not all persons of the company are liable 
except those who are in charge and responsible to  the company for the conduct of the business.  
However, no person is liable to any punishment if he proves that offence was committed without 
his knowledge or that he exercised all due diligen ce to prevent the commission of such offence. 
Australia 28, 29, 30, 31: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:(4) MEASURES AFFECTING PRODUCTION AND TRADE:  (vi) Intellectual Property 
Rights (e) Copyright 
We note in paragraph 278, page 119 of the Secretaria t report that the Copyright (Amendment) Bill 
2010 proposing amendments to the Co pyright Act 1957 is being discussed in Parliament.  We also 
note that the Copyright Act 1957 grants protection to:  original literary, dramatic, musical and 
artistic works;  cinematographic films;  and sound re cordings.  Registration is not mandatory. 
28. Could India provide details of the major am endments that are being proposed in the 
Copyright Amendment Bill?  In particular are there provisions to protect and facilitate the 
digital economy such as ISP safe harbou rs and technological protection measures? 
Reply:  The Copyright (Amendment) Bill, 2010 is pending in Rajya Sabha (the Upper House of 
Parliament) since it was introduced on 19  April, 2010.  The Bill is available at 
www.copyright.gov.in.  The details of amendments  to the Bill will only be made available after 
both the Houses of Parliament consider the same. 
29. Could India clarify how the Register operates for unpublished works?  Is a copy of the work 
deposited on registration? 
Reply:  Both published and unpublished works can be registered.  Copyright in works 
published before 21 January 1958, i.e. before the Co pyright Act, 1957 came in force, can also be 
registered, provided the works still enjoy copyri ght.  Three copies of published work may be 
sent along with the application.  If the work to be registered is unpublished, a copy of the 
manuscript has to be sent along with the applic ation for affixing the stamp of the Copyright 
Office in proof of the work having been registe red.  In case two copies of the manuscript are 
sent, one copy of the same duly stamped will be ret urned, while the other will be retained, as far 
as possible, in the Copyright Office for record a nd will be kept confidential.  It would also be 
open to the applicant to send only extracts from the unpublished work instead of the whole 
manuscript and ask for the return of the extracts after being stamped with the seal of the Copyright Office.  When a work has been re gistered as unpublished and subsequently it is 
published, the applicant may apply for changes in particulars entered in the Register of Copyright in Form V with prescribed fee.  The process of registration and fee for registration of 
copyright is same.  WT/TPR/M/249/Add.1 
 Page 17 
 
 
  30. Since registration provides prima facie evidence in case of a dispute, how critical is it for a 
foreign work to be registered?   What needs to be provided as evidence of copyright 
ownership and subsistence for a foreign work? 
Reply:  The applicant of the foreign work has to  provide a copy of assignment and the place of 
first publication by affidavit for registration. 
31. What are the main copyright collecting socie ties in India?  Do they operate in an open and 
transparent manner?  What safeguards are in pl ace to protect the interests of their members? 
Reply:  The following are the registe red copyright societies in India: 
(i) For cinematograph and television films:  So ciety for Copyright Regulation of Indian 
Producers for Film and Television (SCRIPT ) 135 Continental Building, Dr A.B. Road, 
Worli, Mumbai 400 018. 
(ii) For musical works:  The Indian Performing  Right Society Limited (IPRS), 208, Golden 
Chambers, 2nd Floor, New Andheri Link Road, Andheri (W), Mumbai 400 058 (website:  
http://www.ipRsorg/). 
(iii) For sound recording:  Phonographic Perfor mance Limited (PPL) Crescent Tower, 
7th Floor, Off New Link Road, Andheri (West), Mumbai 400 053 (website:  
http://www.pplindia.org/). 
(iv) For reprographic (photo copying) works:  Indian Reprographic Rights Organization 
(IRRO), 18/1-C, Institutional Area, Near  JNU Campus, New Delhi 110067 (website:  
http://www.irro.in/). 
Section 33(4) of the Copyright Act, 1957 provides that the Central Government may, if it is 
satisfied that a copyright society is being man aged in a manner detrimental to the interests of 
the owners of rights concerned, cancel the registration of such society after such inquiry as may be prescribed. 
Section 33(5) of the Act further, provides that if  the Central Government is of the opinion that 
in the interest of the owners of rights concerned, it is necessary so to do, it may, by order, 
suspend the registration of such society pending inquiry for such period not exceeding one year 
as may be specified in such order under sub-section (4) and that Government shall appoint an administrator to discharge the functions of the copyright society.  The above details are also 
available at www.copyright.gov.in. 
Australia 32, 33, 34: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights (e) Copyright and (j) Enforcement 
Paragraphs 282 and 300, pages 119  and 123 of the Secretariat report outline the penalties applicable 
to infringement of copyright an d the enforcement of these penalties. 
32. Are right holders satisfied with penalties applied by the courts? 
Reply:  If a right holder is not satisfied with the penalties then he can appeal. WT/TPR/M/249/Add.1 
Page 18  
 
  33. Are right holders satisfied that the courts have an adequate understanding of the economic 
harm caused by piracy and counterfeiting? 
Reply:  A perception survey is not required as th e courts have an adequate understanding of the 
economic harm caused by piracy and counterfeiting. 
34. Are there reported figures on the impact of copyright violations on the Indian economy and 
relevant industries (for example economic loss, bankruptcies, etc.)? 
Reply:  No such authentic figures are available. Australia 35, 36, 37, 38, 39, 40, 41, 42, 43, 44: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:(4) MEASURES AFFECTING PRODUCTION AND TRADE:  (vi) Intellectual Property 
Rights:  (f) Geographical Indications (GI) 
Paragraphs 284-287, pag es 120-121 of the Secretariat report set out India's regime for the protection 
of Geographical Indications (GIs). 
35. Could India explain whether prior rights are ta ken into account in considering whether to 
protect a later GI?  Will an application for a later GI be refused if there is a prior trade mark 
registration for the same or similar sign? 
Reply:  Yes.  Prior rights are taken into account  in considering whether to prevent the later GI.  
This is subsumed in section 26 of the GI Act.  Regarding whether the later GI application will 
be refused if there is prior registration of the same  or similar signs, it would all depends on facts 
of each case. 
36. Could India explain how the opposition process described in paragraph 285 works in 
practice?  For instance, what is the durati on of the opposition period?  Is it extendible? 
Reply:  The opposition procedure under the GI Act is similar to Trade Marks Act.  Any person 
may file an opposition within a maximum of fo ur months.  The Registrar will serve copy of the 
Notice of Opposition to the applicant who shall furnish his counterstatement within two months 
failing which the GI application shall be treated as abandoned.  Where the applicant sends such 
counterstatement the Registrar sends a copy of the same to the person giving Notice of 
Opposition.  Thereafter, both the opponents and th e applicants have three-months time each to 
file evidence in support of opposition and evid ence in support of application respectively.  The 
rebuttal evidence of the opponents should be filed within one month strictly in reply.  
Thereafter, the case becomes ripe for hearing be fore the Registrar of GI who gives speaking 
order after hearing the arguments on the meri t of the application either dismissing the 
opposition and allowing the GI application to pr oceed to registration or vice versa.  Since there 
are only a handful opposition pending in the GI  office such cases are normally disposed of in 
less than a year at present. 
In practice, if the GI applicant opposes the request  for extension of time by opponent then the 
Registrar may in his discretion refuse to exte nd the time for filing evidence beyond three 
months where it is so requested by the o pponents and fix the matter for main hearing. 
37. Can the Registrar of Geographical Indications ref use, ex officio, to register a term which is 
ordinarily and legitimately used by traders to d escribe or indicate their goods or products?  
Or can protection of such a term only be pr ohibited where a court has made a determination 
that the term is generic?  WT/TPR/M/249/Add.1 
 Page 19 
 
 
  Reply:  Yes.  The determination that a GI has b ecome generic or is an indication of the common 
name of such goods or serves as a designation for or indication of nature, type or other 
characteristic of goods can be raised ex-offici o by the Registrar even at the pre-publication 
stage.  The onus then shifts on the GI applicant to prove that the prima facie inference of such GI having become generic or the common na me of such goods is misconceived and such 
application qualifies for GI protection.  The gro unds for ex-officio refusal should be based on 
sound reasoning and preponderance of massive use of the purported  GI throughout the country 
as the common name of such product.  Where a potential GI applicant is confronted with 
ex-officio objection, the same is appealable before IPAB also. 
The law also permits the Registrar to make a determination under 9(f) whether the GI applied 
for has become the generic name of such product in opposition proceedings if so contested by 
the opponent. 
38. What is the period from the day when the Registrar first advertises a GI application to 
registration of the GI?  May an interested party seek an extension of that time for the purposes of lodging an objection? 
Reply:  The timetable for processing GI applicat ion from the date of publication is as follows: 
(a) Permitted time for filing opposition:  maximum four months. 
(b) Permitted time for filing counterstatement by applicant: two months. 
(c) Evidence in support of opposition: three months. 
(d) Evidence in support of application: three months. 
(e) Rebuttal evidence by opponents st rictly in reply: one month. 
(f) Notice of hearing: maximum one month. 
(g) Speaking order of the Registrar on conclusion of hearing (normally one month). 
Normally, very few GI applicat ions are opposed.  So registr ation certificate are issued 
immediately after the expiry of four months fr om the date of publication.  Even where a GI 
application has been opposed, the opposition is disposed of in a maximum of 15 months from 
the date of publication. 
39. Is ownership of a prior registered trade mark grounds for opposition to registration of a later 
GI? 
Reply:  Yes.  This is provided as Section 26 protects prior registered trade mark. 40. Can prior common law trade mark rights be asserted  to prevent later registration of the same 
or similar GI? 
Reply:  Yes it can be. 
41. Can a third party oppose registration of a term on the basis it is generic or a term customary 
in common language as the common na me for particular goods or services? 
Reply:  Yes.  This is provided under section 9(f) which prohibits registration of a GI that has 
become generic and can be raised as a ground of opposition. WT/TPR/M/249/Add.1 
Page 20  
 
  42. How would India treat an application for the protection of a compound term, which includes 
a generic component (e.g. "Camembert de No rmandie")?  Would the generic or common 
name portion of the compound term (e.g. "c amembert") remain available for use? 
Reply:  Section 11(6) empowers the Registrar to accept a GI application subject to such 
amendment, modification, conditions or limitations i f  a n y ,  a s  h e  t h i n k s  f i t  t o  i m p o s e .   I n  t h e  
event of a GI application consisting of a generic component, the common name of such 
compound terms will be disclaimed as a limitation to such registration and as a condition of 
registration of such GI and the common name  would remain available for use by others.   
43. How does India treat translations of geographical indications? 
Reply:  The translation of a geographical indication should ultimately convey the same meaning 
as the original GI with the same essential featu res of the label.  Subject to this the Registrar will 
make a determination on this issue on a case by case basis. 
We note that as at 19 July 2011, there were 157 GI s registered, of which only five were not from 
India. (http://www.ipindi a.nic.in/girindia/). 
44. Could India clarify whether any business, c ooperative or individual from any country may 
seek registration of a GI in India? 
Reply:  Section 11(1) of the GI Act provides as follows:  "Any association of persons or 
producers or any organization or authority established by or under any law for the time being in force representing the interest of the producer s of the concerned goods, who are desirous of 
registering a geographical indication in relation to such goods shall apply in writing to the Registrar in such form and in such manner a nd accompanied by such fees as may be prescribed 
for the registration of the geographical indication." 
"Business" is not a clear terminology.  "Co-opera tive" may qualify as "association of persons".  
"Individuals" cannot apply for registration of GIs.   Please note there must be more than one 
producer to come within ambit of "producers" stated above. 
Australia 45, 46: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:(4) MEASURES AFFECTING PRODUCTION AND TRADE:  (vi) Intellectual Property 
Rights:  (g) Plant Varieties 
Australia notes that India has notified its intention to  accede to an Act of the International Convention 
for the Protection of New Varieties of Plants (UPOV Convention). 
45. Can India indicate if the intention is to accede to the 1978 Act or the 1991 Act of the UPOV 
Convention? 
46. Can India provide an update of the progress of accession?  Are India's laws currently 
consistent with an Act of the UPOV Convention? 
Reply:  India has intention to accede to the 1978 Act of UPOV convention.  Currently, its 
application is pending with UPOV.  India believes that India's laws are in line with 1978 Act of 
UPOV.  WT/TPR/M/249/Add.1 
 Page 21 
 
 
  Australia 47, 48: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights:  (i) Trade Secrets 
Paragraph 297 pages 122-123 of the Secretariat repor t notes that India has no specific legislation 
regulating the protection of trade secrets;  hen ce enforcement measures/penalties for violations of 
trade secrets are available through common law.  Trade secrets are protected either through contract 
law or through the equitable doctr ine of breach of confidentiality. 
47. Could India explain whether violation of trade  secrets is a significant issue for businesses in 
India? 
Reply:  India is committed to handle violations of trade secrets since it affects businesses. 
48. Is there any consideration at the moment to pr ovide criminal penalties on violations of trade 
secrets? 
Reply:  In the existing legal framework criminal li ability is possible if specific crime like fraud, 
cheating etc. is established. 
Australia 49: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  III TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTIO N AND TRADE:  (vi) Intellectual Property 
Rights:  (j) Enforcement 
49. In relation to the design and implementation of  anti-piracy programmes, is it possible to 
provide examples of major programmes that have been highly effective/ successful? 
Reply:  Meetings of Copyright Enforcement  Advisory Council are regularly held which 
provides an interface between the industry and en forcement officials.  This platform not only 
generates awareness but also shares each other's problems. 
Australia 50: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  IV TRADE POLICIES BY SELECTED 
SECTOR:  (3) TRADE IN SERVICES:  General 
The Secretariat report page 138 that the repor t includes information on professional services, 
distribution services and postal services – sectors of key intere st to Australia. 
50. Could India provide an update on these sectors, particularly on efforts towards 
liberalisation? 
Reply:  The Post Office Amendment Bill to am end the Post Office Act is under consideration. 
51% FDI in single brand retail is already allowed.   Proposal to allow FDI in multi brand retail 
trading is under consideration.  Under professional services FDI is no t allowed in legal services 
and accountancy, auditing and b ookkeeping services.  The LLP Act has been enacted in 2008, 
which allows LLPs to be set up. WT/TPR/M/249/Add.1 
Page 22  
 
  Australia 51, 52, 53, 54, 55: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  IV TRADE POLICIES BY SELECTED 
SECTOR:  (3) TRADE IN SERVICES: 
India has signalled its intention to further integrate the Indian economy with the rest of the world, and 
to harness opportunities opened up by globalisa tion including throug h an emphasis on skill 
development and education.  Australia notes w ith interest the recent Parliamentary Standing 
Committee Report on the "The Foreign Educational In stitutions (Regulation of Entry and Operations) 
Bill 2010": 
51. Does India have any plans to relax the requirem ent which prohibits investment of profit for 
any purpose other than that of growth and development of the educational institution 
established by foreign institutions in India? 
52. How will India guarantee process and the ability for clear and transparent repatriation of 
funds for foreign institutions investing in India? 
53. How does India define a 'reputed institution' in  order to have conditions relaxed (i.e. corpus 
fund) for entry and operation in India? 
54. How will India guarantee clear and transparen t qualifications recognition and accreditation 
mechanisms for foreign institutions? 
55. How will India manage quality control of institutions (Indian and foreign) not meeting 
minimum quality and accredited standards? 
Reply:  The Foreign Educational Institutions (Regulation of Entry and Operations) Bill 2010 
was introduced in Rajya Sabha (th e Upper House of Parliament) on 3 May 2010.  The details of 
amendments may only be made available after both the Houses of Parliament consider the 
same. 
Australia 56: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  IV TRADE POLICIES BY SELECTED 
SECTOR:  (3) TRADE IN SERVICES:  (ii) Financial Services (a) Banking 
Australia notes in paragraph 78, pages 145-146 of the Secretariat report that the second phase of the 
Roadmap for Presence of Foreign Banks in India was delayed due to the financial crisis. 
56. Could India give an indication of what sort of deviations from the roadmap might be made, 
and whether the proposal to allow foreign banks to enter into mergers and acquisitions with 
any private bank in India (subject to an overa ll investment limit of 74%) would be effected? 
Reply:  The Discussion Paper on the pre sence of Foreign Banks was released on 
21 January 2011 and comments/suggestions from a ll stakeholders were invited.  At present, RBI 
is in the process of analyzing the var ious comments/suggestions received. 
Australia 57: REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  IV TRADE POLICIES BY SELECTED 
SECTOR:  (3) TRADE IN SERVICES:  ( ii) Financial Services (b) Insurance  WT/TPR/M/249/Add.1 
 Page 23 
 
 
  Australia notes in paragraph 101, page 151 of the Secretariat report that India previously indicated it 
would raise the foreign equity cap in the insurance sect or from 26 per cent to 49 per cent, but that this 
has not yet happened.  We also note recent media re ports of regulatory developments relating to this 
issue which appear not to increase the foreign equity cap beyond 26 per cent. 
57. Can India confirm it no longer plans to increase the foreign equity cap and if so, could India 
provide its rationale for this, particularly given  the rapid growth in the industry in recent 
years? 
Reply:  The Government of India has introdu ced the Insurance Laws (Amendment) Bill, 2008, 
in Parliament.  The Bill inter-alia  provides for enhancement of holding of equity shares by a 
foreign company, in Indian Insurance Companies, from 26% to 49%.  Presently, the Bill is 
under examination in Parliament. 
Australia 58, 59: 
REPORT BY WTO SECRETARIAT (WT/TPR/S/249):  IV TRADE POLICIES BY SELECTED 
SECTOR:  (3) TRADE IN SERVICES:  (iii) Telecommunications 
Australia notes in paragraph 120, page 157 of the S ecretariat report that India is in the process of 
drafting the New Telecom Policy 2011. 
58. Could India indicate whether discussion in India concerning possible increases to foreign 
equity limitations in cable networks, and sate llite uplinking in the telecommunications sector 
to 74 per cent, will be considered under the New Telecom Policy 2011? 
Reply:  Presently the consultation process with various stakeholders is in progress.  National 
Telecom Policy 2011 will be announced once it is duly approved. 
59. Could India also provide an indicative timefra me for the completion of the New Telecom 
Policy 2011? 
Reply:  Presently the consultation process with various stakeholders is in progress.  National 
Telecom Policy 2011 will be announced once it is duly approved.  
Australia 60: 
REPORT BY INDIA (WT/TPR/G/249):  VI REGIONAL AND BILATERAL ARRANGEMENTS 
(1) South Asia Region 
60. Australia would be interested in an update of India's trade negotiations with SAARC 
countries, including the negotiation of servic es schedules, and progress towards coverage of 
investment. 
Reply:  In the area of trade in goods, contra cting States are in the process of reducing their 
negative lists by 20% from the current levels under the SAFTA trade liberalisation programme.  
The SAARC Agreement on Trade in Services (SATIS) was signed on 29 April 2010.  The 
schedules of commitment under SATIS are being ne gotiated.  There are no negotiations in the 
area of investments. 
Australia 61: 
REPORT BY INDIA (WT/TPR/G/249):  VI REGIONAL AND BILATERAL ARRANGEMENTS 
(7) Other Agreements and Negotiations WT/TPR/M/249/Add.1 
Page 24  
 
  61. Australia would be interested in an update of  India's trade negotiations with BIMSTEC 
countries 
Reply:  The Trade in Goods agreement with BI MSTEC countries is likely to be concluded 
within this year so that the tariff concession can be implemented on 1 July 2012. 
REPORT BY WTO SECRETARIAT 
SUMMARY Australia 62: 62. Paragraph 25, page xiii of the Secretariat report suggests that specific market-access 
conditions and permits may be affecting opportunities for foreign investment in India's 
services industries. 
 Could India provide information on any plans  to consider changes to domestic regulations 
that would enhance the ability of foreign servi ces providers to invest and participate in 
India's markets? 
Reply:  The Government is in the process of implementing several rea l, financial sector and 
regulatory reforms to further improve the economic environment in the country.  The 
regulatory architecture is being made more am enable for sustainable growth.  The policy 
environment has been made more conducive for th e spread of public private partnership in the 
infrastructure sector. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)
  MEASURES DIRECTLY AFFECTING IMPORTS  
(ii)  Customs valuation and clearance 
Australia 63, 64, 65, 66, 67: 
Paragraph 21, page 40 of the Secretariat report notes that a landing charge of 1% of the c.i.f. value is 
added to the c.i.f. value to calculate a good's transaction value. 
63. Could India explain the relationship between the "landing charge" and the actual costs 
incurred in the Government's hand ling of freight at the port of importation?  Could India 
please explain what costs of the Governme nt the charge is intended to cover? 
Reply:  Article 8.2 of the Customs Valuation Agreement (CVA) states that, in framing its 
legislation, each Member shall provide for the inclusion in or the exclusion from the customs 
value, in whole or in part, the loading, unloading and handling charges associated with the transport of the imported goods to the port or pl ace of importation.  India has provided for the 
inclusion in the assessable value of landing ch arges which represent the cost of unloading and 
handling charges of the imported goods at the port of importation. 
The landing charges are not paid  to the Government, nor are th ey intended to cover the costs 
incurred by the Government.  The charges are included in the customs value of goods for 
levying duties. 
64. Is the landing charge applied at the same rate  of 1% of c.i.f. regardless of the mode of 
transport under which goods are imported (i.e. sea-carriage, rail, air, truck)?  WT/TPR/M/249/Add.1 
 Page 25 
 
 
  Reply:  The landing charges are applied at the same rate regardless of the mode of transport. 
65. Is the charge applied at the same rate of 1% of  c.i.f. regardless of the type of good imported, 
the amount of time those goods spend at the port of importation, the complexity in handling 
such goods, and the infrastructure required to handle such goods? 
Reply:  Yes. 
66. Is the charge added to the transaction value of the goods, even if the commercial cost of 
handling the goods at importation has already been captured in the "price actually paid or payable" by the importer? 
Reply:  Article 8.2 of the Customs Valuation Agreement (CVA) states that, in framing its 
legislation, each Member shall provide for the inclusion in or the exclusion from the customs 
value, in whole or in part, the loading, unloading and handling charges associated with the 
transport of the imported goods to the port or pl ace of importation.  India has provided for the 
inclusion in the assessable value of landing ch arges which represent the cost of unloading and 
handling charges of the imported goods at the port of importation. 
The landing charges are added to the customs value of goods for levying duties. 
67. Has India considered applying a landing charge based on a spec ific rate – i.e. Rupees per 
shipment - rather than the cu rrent ad valorem based rate? 
Reply:  No. (iv)  Tariffs 
(a)  Applied tariff structure 
Australia 68: 
Table III.5 at page 46 of the Secretariat report suggests that India maintains a high effective applied 
tariff rate on transport equipment, including automotive goods. 
68. Given the negative impact of this high rate  on trade development  and domestic industry 
efficiency, does India intend to  reduce these applied tariff rates? 
Reply:  India has been reducing its applied ta riff autonomously over the years.  Any further 
reduction has to be judged against the sensitivities  of the sector, its stage of development and the 
likely impact on employment and revenue.  Hen ce it would be difficult to predict the future 
action at this stage. 
(v)  Other charges affecting imports Australia 69, 70, 71: Paragraph 43, page 50 of the Secret ariat report states that a Special A dditional Duty (SAD) of 4% is 
applied on "imports, with few exceptions (14.8% of tariff lines)". 
69. Could India provide details of the types of goods which do not attract the SAD? 70. Why does India not apply the SAD on these goods? WT/TPR/M/249/Add.1 
Page 26  
 
  71. Is the list of imports subject to the SAD rou tinely amended by India?  If yes, are amendments 
made on a yearly basis, or at the discretion of authorities? 
Reply:  The list of goods exempt from Special Additional Duty is provided in notification 
No. 20/2006-Customs dated 1.3.2006 and notification No. 22/2011-Customs dated 1.3.2011.  Generally speaking, these are goods that are exempt from the payment of state VAT.  Since 
Special additional duty is a duty equivalent to internal taxes, it is not applied to these goods.  In 
addition to these listed exemptions, exempt ion is also available to goods imported for 
subsequent sale by way of a refund which can be  claimed if proof of payment of VAT on the 
imported goods is produced.  Further, those goods that are clearly intended for retail sale (such 
as pre-packaged goods intended for retail sale in relation to which, it is required under a statute 
to declare the retail sale price;  readymade garments;  mobile phones;  watches;  and 
medicaments have also been exempted from 4% special CVD, as a trade facilitation measure to 
obviate the process of collecting duty and refunding the same upon payment of state VAT. 
Although the Central Government is empowered to provide exemption for special additional 
duty at any time, the list of imports subject to special CV duty are generally reviewed at the 
time of annual budget exercise. 
Australia 72, 73, 74: The report states in footnote 56 to paragraph 43 that  "Some 12 lines in HS 71 (articles of jewellery) 
have SAD duty of 1%." 
72. Could India explain why these articles attrac t a lower SAD duty than other goods subject to 
the duty? 
73. Have these goods always attracted a lower SA D duty, or has the SAD rate for these goods 
been amended over time? 
74. Could India please provide details of oth er goods which have received a different SAD duty 
rate than the standard 4 % ad valorem rate. 
Reply:  Being a duty equivalent to internal taxes, special additional duty (SAD or special CVD) 
is levied in lieu of taxes such as state VAT, sales tax, levied or collected by state government or 
local taxes/charges.  Articles of jewellery are subject to 1% special CVD to provide national 
treatment to imported goods since like domestic  goods attract state VAT at the rate of 1%. 
These goods have attracted a lower special CVD rate ever since the introduction of this levy in 
March 2006. 
The lists of goods exempt from 4% special CVD are provided under notification 
No. 20/2006-Customs dated 1.3.2006 and notification No. 22/2011-Customs dated 1.3.2011. 
(ix)  Technical regulations and standards 
(e)  Labelling 
Australia 75: Paragraph 114, page71 of the Secretariat report outlines India's labelling requirements and costs 
associated with them.  WT/TPR/M/249/Add.1 
 Page 27 
 
 
  75. Could India explain whether it intends to rel ax food labelling requirem ents, in particular 
those that relate to sale price and la nguage that may differ across states? 
Reply:  The matter is not under consideration at present. Australia 76, 77, 78: Paragraph 115, page 71 states that while there is no mandatory labelling requirement for genetically 
modified (GM) products, "legis lation is in the pipeline". 
76. Could India provide information on whether it has conducted any regulatory impact 
assessments relating to busin ess costs associated with the mandating of new labelling 
requirements for GM food and if so, provid e the key findings of those assessments? 
Reply:  As the legislation is still in the pipe line, no details can be given at this stage. 
77. Does the Indian Government consider food made  or processed using GM or nanotechnology 
and which has passed the mandatory food safety  tests as posing a food safety risk? 
Reply:  Procedures and standards have been laid down to assess the safety aspects of food.  Any 
food item which follows the same is considered safe. 
78. Could India explain how the Indian Government intends to enforce the new GM labelling 
regime, e.g. audits, testing etc.? 
Reply:  As the legislation is still in the pipe line, no details can be given at this stage.  
(3)  MEASURES DIRECTLY AFFECTING EXPORTS 
(vii)  Export Support (b)  Drawback 
Australia 79, 80: 
Paragraph 161, page 86 of the Secretariat report refers to the "drawback system in India" and states 
that "all industry" drawback rates on a number of  products have decreased compared with those in 
force in 2009-10 and that "to disc ourage exports, and in line with measures taken by the authorities to 
contain increases in the domestic price of cotton, exports of cotton yarn (HS 5205, 5206, and 5207) 
have not been covered by the draw back schedule since April 2010." 
79. Could India clarify whether its drawback syst em provides a full refund of customs duties on 
the applicable imported goods and what other fa ctors are taken into account apart from 
changes in tariff rate duties in reviewin g and revising the amount of drawback? 
Reply:  Under the duty drawback scheme, the duty or tax chargeable on imported materials 
and used in manufacture of export goods is refunded to the exporters.  In reviewing and 
revising the rates of drawback, the factors taken into consideration, apart from the changes in 
duty rates include:  the average quantity of input materials and average of prices of input 
materials used in the manufacture of export goods, the average amount of duties paid on the input materials used in the production process including that paid on intermediate products 
and on materials wasted in the process of manuf acture.  The duties paid on packing materials 
are also taken into account. WT/TPR/M/249/Add.1 
Page 28  
 
  80. Could India explain the basis for altering the level  of the drawback, to the extent that it is not 
payable on some products (particularly inputs to further manufacture) for extended periods 
(as in the case of cotton yarn)? 
Reply:  As mentioned above, in reviewing and re vising the rates of drawback, the factors taken 
into consideration, apart from the changes in dut y rates include:  the average quantity of input 
materials and average of prices of input materials used in the manufacture of export goods, the 
average amount of duties paid on the input materials used in the production process including that paid on intermediate products and on mat erials wasted in the process of manufacture.  For 
this purpose, detailed cost and other data is collected from the trade and industry and the 
administrative ministries.  It is often noticed that the detailed cost and other data are not 
available for determining the duty drawback rates.  In the absence of complete information, the 
drawback rates are not notified.  It is relevant to mention here that the drawback rates are not 
notified in respect of several export goods. 
Refund of duty paid on inputs used in the manufacture of exported goods under the drawback 
scheme is not the sole route available to the expo rter for neutralization of duty incidence.  The 
duty incidence on cotton yarn can be neutralized under other schemes, such as, under advance 
authorization scheme.  
Australia 81: Australia notes that the extent to which duties and services taxes are not able to be refunded could be 
construed as a tax on exports, which would discourage exports and suppress domestic prices of the 
relevant goods. 
81. Does India consider that the reduction or elim ination of drawbacks provides a subsidy to 
further manufactured goods that use the relevant goods as an input (e.g . jeans made from the 
cotton yarn)? 
Reply:  Under the WTO rules, a subsidy shall be deemed to exist if there is a financial 
contribution by a government or any public body within the territory of a Member or there is 
any form of income or price support and a benefi t is conferred.  The reduction or elimination of 
duty drawback on a particular item  does not constitute a subsidy. 
Australia 82: The Secretariat report, paragraphs 165 and 166, page 88, refer to a number of export incentive 
schemes, including schemes aimed at providing duty and tax concessions, such as "(iii) reward 
schemes granting exporters duty credits;  and (iv) the Export Promotion Capital Goods Scheme, 
which allows exporters to impor t capital goods, at concessional or zero duty rates, subject to an 
export obligation."  The report notes that "special schemes are also in place for gems and jewellery, 
and for export and trading houses (Table AIII.6)". 
82. Does India consider that these schemes pr ovide a subsidy contingent upon export 
performance? 
Reply:  Several of the schemes detailed in th e Secretariat Report are in the nature of duty 
exemption/duty remissions and are not subsid ies within the meaning of ASCM.  The duty 
exemption/remission schemes are based on standa rd input output norms (SION), with specified 
inputs along with quantity allowed for import.  There is a clear co-relation between the items 
permitted for duty free import and their quantit y with the corresponding export product.  
There is no element of subsidy in these schemes as there is an appropriate verification  WT/TPR/M/249/Add.1 
 Page 29 
 
 
  mechanism to check whether any excess quantity of  duty exempt material has been allowed for 
import. 
Australia 83: Paragraph 168, page 88 of the Secretariat report no tes that duty concessions granted under the Duty 
Entitlement Passbook Scheme to exporters of cotton ya rn were suspended, for six months, to reduce 
exports in an attempt to control the domestic price of cotton. 
83. Does India consider that this suspension prov ided a subsidy to further manufactured goods 
that used the cotton as an input (e.g. jeans)? 
Reply:  The suspension of DEPB on cotton yar n does not provide a subsidy as there is no 
additional benefit of duty neutralisation schem e to the domestic industry manufacturing the 
value added goods. 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE 
(iv)  Government Procurement (a)  Overview 
Australia 84: 
Paragraph 220, page 106 of th e Secretariat report states that the authorities consider public 
procurement as an important instrument of governme nt policy, used to obtain certain socio-economic 
objectives such as developing indigenous industries and micro, small, and medium-scale industries. 
84. How does India define "micro industry" and what  are the criteria for being considered such 
an industry? 
Reply:  As per MSMED Act, 2006, an enterpri se engaged in the manufacture or production of 
goods, with an investment in plant and machin ery not exceeding twenty five lakh rupees, is 
defined as "micro enterprise". 
IV.  DEVELOPMENTS IN SELECTED SECTORS 
(1)  AGRICULTURE (i)  General Overview 
Australia 85: 
We note the comment in paragraph 8, page 127 of the Secretariat report that increasing agricultural 
production in India requires shifting away from a 's ubsidy-based, protected regime' for agriculture. 
85. How does India view the World Bank's priority areas for support in India, particularly the 
priority to enhance agricultu ral productivity by creating a more productive, competitive and 
diversified agricultural sector by shifting pub lic expenditures to productivity enhancing 
improvements? 
Reply:  India's priorities and agriculture deve lopment strategies are reflected in India's Five 
Year Plan documents.  India is currently implementing agriculture competitiveness projects in Maharastra and a few other States. WT/TPR/M/249/Add.1 
Page 30  
 
  (ii) Agricultural Policy Objectives 
(a) Measures affecting imports 
Australia 86, 87: Paragraph 17, page 129 of the Secretariat report states t hat India tends to frequently modify tariffs on 
food staples, such as wheat, pulses, rice, sugar, and vegetable oils.  This variability, as well as the 
complex process for the notification of tariff-ra te changes, creates uncertainty and acts as an 
impediment to trade. 
86. Could India explain why it modifies tariff rates on food staples? 
87. Would a more stable tariff regime provide greater certainty, not only for traders, but also 
commercial agricultural enterprises in the Indian market? 
Reply:  Production of wheat, rice and other cereals fall in certain years on account of drought 
and other natural calamities.  Th ere are, however, years of mu ch better rainfall resulting in 
surplus production in the economy.  India does mo dify tariffs to respond to these situations.  An 
inflexible tariff policy is not workable in  such a production and demand scenario. 
Australia 88: 
The Secretariat report notes in paragraph 23, page 131 that India operates a complex system of 
sanitary import permits, import licenses and restri cted ports for the import of certain animal 
products.  We note in particular the Department of Animal Husbandry, Dairy and Fisheries position 
of setting general import policies for animals and ani mal products which operate on the basis of the 
lowest common denominator rather than undertaki ng a specific country risk assessment for such 
products.  The Department's policies on lamb, goat an d pig meat are a good example of this policy in 
practice. 
88. Could India explain whether there are plans to simplify this regime? 
Reply:  Import restrictions are maintained on live animals, meat and other animal products 
primarily in terms of quarantine certificates.  Th e sanitary import permits (SIP) in no way act 
as non-tariff barrier to trade and in the cur rent regime, application for SIP in case of 
fish/fishery products are processed on fast track and SIPs are issued within the reasonable time 
lines. 
(b)  Measures affecting Exports Australia 89: The report notes in paragraph 25, page 131 of the Secretariat report that the 11
th Five Year Plan 
places 'special emphasis on promoting production and exports of commercial crops and agri-based 
processed products'. 
89. In order to achieve an increase in agricultural exports, does India consider that agricultural 
producers require stable trade policy in addition to  initiatives such as the revitalization of 
plantations, and the provision of tax incentives? 
Reply:  India trade policy with respect to fruits, vegetables and other commercial crops has 
been quite stable.  WT/TPR/M/249/Add.1 
 Page 31 
 
 
  Australia 90: 
Paragraph 26, page 131 states that since 2007, some  agricultural products have been subject to 
export restrictions and prohibitions, including non- basmati rice, wheat, pulses, edible oils, milk 
powder, casein and casein derivatives and onions.  However, India is increasingly a significant 
exporter of commodities such as rice, o ilcakes, bovine meat, tobacco and cotton. 
90. Given this, can India indicate how its export prohibition and restri ctions comply with Article 
12.2 of the Agreement on Agriculture? 
Reply:  The various measures by India to, inter alia , ensure domestic supply, are taken in terms 
of relevant GATT/WTO provisions. 
Australia 91, 92: 
We note that paragraph 29, page 132 of the Secretariat report refers to India's last export subsidy 
notification in 2002.  Paragraph 30, page 132 also refers to  additional export incentives.  We 
acknowledge that India has made an additional export subsidies notification in 2011, concerning 
export subsidy commitments for the marketing years 1995-96 and 2001-02 to 2003-04. 
91. Can India advice when it intends to notify any export subsidies provided in the years since 
marketing year 2003-04? 
Reply:  India's notification to the WTO, G/AG /N/IND/8 dated 15 July 2011, related to export 
subsidy commitments for the marketing years 1995-96 and 2001-02 to 2003-04.  Work is underway on India's notifications for the subsequent years. 
92. According to India's export subsidy notificati ons, there were significant fluctuations in the 
value of export subsidies provid ed in each year notified.  Can India please advise the reasons 
behind the fluctuations in the value of export subsidies? 
Reply:  Export subsidies provided to agricul tural products in 1995-96 and 2001-02 to 2003-04 
were covered by Article 9.4 of the Agreement on Agriculture.  
(c)  Internal Measures 
Australia 93: 
The Secretariat report notes in paragraph 33, page 133 that direct or explicit subsidies to agriculture 
as reported in the Central Government's annual  Budget amounted to Rs 1,413.5 billion (2.2% of 
GDP) in 2009/10, up from Rs 571.3 billion (1.3% of GDP) in 2006/07. 
In contrast, total agricultural support in OECD  countries averaged 0.89 % of GDP for 2007-2009, 
representing a decline from an average of 2.25 % of GDP in 1986-88. 
93. Does India consider the level of Indian government  expenditure on subsidies to agriculture to 
be sustainable into the future? 
Reply:  There is no separate classification of subsidies to agriculture in the central government 
Budget.  The figure of Rs 1413.5 billion is the total subsidies outgo in 2009-10 and not the 
explicit subsidies to agriculture alone as in correctly indicated in the Secretariat's Report. WT/TPR/M/249/Add.1 
Page 32  
 
  REPORT BY INDIA 
II.  ECONOMIC ENVIRONMENT 
(6)  Challenges (ii)  Agricultural growth and food security 
Australia 94: 
94. Given the Indian Government's concerns about food security and supply, and policy objective 
to ensure food security, what steps are being taken to liberalise the import of processed foods 
into India? 
Reply:  Indian Government is concerned about th e issue of food security, and plans to tackle the 
problem by enhancing agriculture production and productivity. 
BRAZIL 
Brazil 1: Report by the Secretariat II. Trade Policy Regime:  Framework and Objectives 
(3) Trade Agreements and Arrangements 
(ii) Regional Trade Agreements 
Paragraph 20.  "However, despite this generally pos itive view of regional agreements, India has some 
reservations regarding regionalism because of its complexity and possible trade diversion" 
Could you India please indicate whether concret e examples of trade diversion caused by regional 
trade agreements have already been identified? 
Reply:  India believes that RTAs complement the multilateral rule-based trading regime.  
India's concerns on regionalism stem not from possible trade diversion but from the multiple 
tariff differentials, complicated rules of origin and the duty inversion effect of RTAs and how 
these could act as a disincentive for local manufacturing. 
India has not yet identified any concrete exam ples of trade diversion caused by RTAs. 
Brazil 2: 
Report by the Secretariat 
III. Trade Policies and Practices by Measure 
(4) Measures Affecting Production and Trade (i) Incentives Micro and small enterprises 
Paragraph 189 
Could India please provide more details on the age nda of actions in order to provide relief and 
stability to MSMEs?  Is there an assessm ent of the results achieved so far? 
Reply:  The Government of India's Task Force on Micro, Small and Medium Enterprises 
(MSME) finalized its report in January, 2010 an d made 85 recommendations in major thematic  WT/TPR/M/249/Add.1 
 Page 33 
 
 
  areas of (1) credit, (2) marketing, (3) la bour, (4) rehabilitation and exit policy, 
(5) infrastructure, technology and skill developm ent, (6) taxation and (7) issues of MSMEs in 
North-Eastern India and State of Jammu and Kashmir.  The implementation of the recommendations is being monitored by a high level steering group to oversee the implementation and follow up action.  Further details are available on website 
http://msme.gov.in/.  Action has been comple ted on a substantial number of recommendations 
while other recommendations are at different stages of implementation. 
I.  ECONOMIC ENVIRONMENT Brazil 3: According to the WT/TPR/G/249, pages 14 and 15, §§  34 and 37, inflation and fiscal deficit in India 
during 2010-11 were 9.5% and 4.7% of GDP, respectively.   Which is the highest priority to India:  
inflation control or GDP growth?  Can the control of  the public deficit be the determinant of this 
choice? 
Reply:  GDP growth is the major economic objectiv e in the long run.  The inter se prioritization 
in the short run is to strike a balance between higher growth and acceptable levels of inflation, 
which in inevitable in a growing economy.  Fi scal policy and consequently consolidation is a 
major instrument for achievin g macroeconomic dividends of growth and stability in prices. 
II. TRADE POLICY REGIME Brazil 4: According to the WT/TPR/S/249, page 29, § 28, "[…] Industries, other than micro and small 
enterprises, established in a free-trade zones are exempt from the licensing obligation."  What are the 
other exemptions/incentives related to the indus tries established in a free-trade zone? 
Reply:  Facilities available to industries establis hed in a special economic zone are given in SEZ 
Act, 2005 and SEZ Rules, 2006.  SEZ Ac t and Rules are available on website 
www.sezindia.nic.in. 
Brazil 5: 
According to the WT/TPR/S/249, page 33, § 39, "[ …] In sectors where FDI is capped, prior approval 
from the FIPB is required. […]" In this respect, w hat are the requirements that the foreign investor 
have to comply with in each sector? 
Reply:  The requirement for Government a pproval, through FIPB, is not necessarily linked 
with the FDI cap, if any.  For example, there is  an FDI cap of 49% in respect of "scheduled air 
transport services" and 26% for insurance.  FD I in these sectors/activities, however, does not 
require Government approval, through the FIPB.   
The extant policy on FDI is available as a cons olidated document, in the public domain at 
www.dipp.nic.in.   
Brazil 6: According to document WT/TPR/S/249, pages 32-33, § 36, "The three main institutions that handle 
FDI related issues in India are the Foreign Investment Promotion Board (FIPB), the Foreign 
Investment Implementation Authority (FIIA), and the S ecretariat for Industrial Assistance (SIA).  The WT/TPR/M/249/Add.1 
Page 34  
 
  FIPB, under the Ministry of Finance, chaired by the Secretary of Economic Affairs and consisting of 
senior secretaries, is in charge of examining an d approving foreign investment proposals in sectors 
w[h]ere investment is not allowed through the autom atic route.  Investment above a specific threshold 
requires additional approval from the Cabinet Co mmittee on Economic Affairs." and § 39, "Most 
sectors are at least partially open to FDI, subject to  a cap and specific conditions [...].  There are two 
entry routes for FDI in India.  In sectors where FDI is allowed up to 100%, FDI enters under the 
automatic route, subject to sectorial regulations and  other conditions [...].  In sectors where FDI is 
capped, prior approval from the FIPB is required. [...]" 
Could India provide details on the criteria that th e Foreign Investment Promotion Board (FIPB) uses 
to screen foreign investment? 
Reply:  FIPB examines the proposal within th e framework of FDI policy, including compliance 
with specified sectoral conditions based on the inputs provided by the concerned administrative 
Ministries.  Details are available at the website www.dipp.nic.in. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)
 MEASURES DIRECTLY AFFECTING IMPORTS  
Customs procedures 
Registration and documentation 
Brazil 7: Paragraph 17 of page 39 of the Report by the Secre tariat states that "if an importer is not satisfied 
with the assessment (i.e. the classification, rate of  duty or valuation) by the customs officer, the 
importer may appeal against the 'assessment order' (i .e. a decision made in writing by an officer)". 
Could India explain in more detail how its appeal system for customs matters  works, especially the 
procedural steps involved and the expecte d timelines for issuing appeal decisions? 
Reply:  The procedure of appeals is dealt wi th under Chapter XV of the Customs Act, 1962.  
Section 128 of the said Act provides for filing an  appeal with the Comm issioner (Appeals) where 
the importer is not satisfied with the assessment order passed by an officer of customs lower in 
rank than the Commissioner (Appeals).  The appeal is to be filed within a period of sixty days 
and extendable by a further period of thirty days on sufficient cause being shown. 
Section 128A of the Customs Act, 1962 enjoins the Commissioner (Appeals) to give an 
opportunity to the appellant to be heard if he so desires.  The section further provides that the 
Commissioner (Appeals) shall pass such order, as  he thinks just and proper, confirming, 
modifying or annulling the decision or order appealed against.  The order shall be in writing and shall state the points for determination,  the decision thereon and the reasons for the 
decision.  The appeals are required to be heard and decided within a period of six months from the date on which it is filed where it is possible to do so.  The details may be viewed at 
www.cbec.gov.in. 
Further appeals lie to the Customs, Excise and Service Tax Appellate Tribunal. 
Customs valuation and clearance 
Brazil 8: 
Paragraph 22 of page 40 of the Report by the Secretariat indica tes that the reference prices for 
customs valuation of imported edible oil remai n unchanged since 2006, despite Indian authorities'  WT/TPR/M/249/Add.1 
 Page 35 
 
 
  claim that reference prices are revised every two we eks and are adjusted to align with international 
market prices. 
Brazil would like to ask India if it intends to review those reference prices in light of the changes that 
may have occurred in international prices for those products since 2006. 
Reply:  Tariff values are currently being fixed only in respect of palm group of oils, crude 
soybean oil, poppy seeds and brass scrap.  Thes e values are frequently reviewed and revised on 
the basis of prevailing international prices of these goods as observed from the various reputed 
international journals and other publications.  Th e tariff value of edible oils is reviewed along 
with other goods that are subject to tariff values. 
Rules of origin 
Brazil 9: 
According to document WT/TPR/S/24 9, page 42, § 26, the Secretariat reports that India does not 
apply non-preferential rules of origin.  In contrast, the Secretariat reports that "India is one of the 
most active users of anti-dumping measures among WT O Members.  Since its last Review in 2007, 
India has also imposed several safeguard measures". (page 25, § 3).  How does the Indian government implement anti-dumping duties and sa feguard measures without a non-preferential rules 
of origin regime? 
Reply:  Article 2 of Anti-dumping Agreement co ntains clear rules regarding determination of 
dumping.  Article 2.1 and 2.5 provide guidance regarding determination of dumping margin 
having regard to the country of origin.  As  per Article 2.2 of the Safeguard Agreement, 
safeguard measures are to be applied to a product being imported irrespective of its source. 
Tariffs 
Brazil 10: 
According to document WT/TPR/S/249, page 49, § 41, India has 3 PTAs – limited in scope – signed 
with Mercosur, Thailand and Chile.  Does India intend to discuss widening the product coverage and 
deepening preferences of these PTAs? 
Reply:  Negotiations with MERCOSUR, Thaila nd and Chile for widening and deepening the 
tariff concessions are underway. 
Import prohibitions, restri ctions, and licensing 
Brazil 11: According to paragraph 53 of  page 53 of the Report by the Secretariat, "import prohibitions [in 
India] are generally for health and safety reasons".   However, the Report also points out that certain 
mobile handsets and mobile phones have been included in the list of prohibited goods. 
Could India clarify the reasons for prohibiti ng the importation of those specific products? 
Reply:  Import of mobile handsets withou t IMEI No. and CDMA mobile phones without 
ESN/MEID is prohibited due to security risk involved in such imported mobiles. WT/TPR/M/249/Add.1 
Page 36  
 
  Technical regulations and standards 
Brazil 12: According to Article 6.1 of the TBT Agreement, "Members shall ensure, whenever possible, that 
results of conformity assessment procedures in other Members are accepted, even when those 
procedures differ from their own, provided they a re satisfied that those procedures offer an assurance 
of conformity with applicable t echnical regulations or standards equi valent to their own procedures". 
Could India provide information on its initiatives, if any, to recognize equivalence to other Members' 
technical regulations or standards? 
Reply:  In pursuance of Article 6.1 of the TBT Agreement, the national standards body viz the 
Bureau of Indian Standards has entered in to memorandum of understanding (MoU) for 
conformity assessment with their co unterpart bodies from other members. 
Sanitary and phytosanitary measures (SPS) Brazil 13: According to document WT/TPR/S/249, page 73, §121, the import of animal products into India 
require sanitary import permits issued by the Departm ent of Animal Husbandry, Dairy and Fisheries.  
The Department approves or rejects the applicatio n after an import risk analysis on a case-by-case 
basis.  Permits are valid for six months.  The p ermit is not a licence, but a certificate verifying that 
India's sanitary requirements are fulfilled.  What is  the reason for introducing an expiration date (six 
months) for the permit, i.e., the sanitary certificate? 
Reply:  Six months is considered to be a reaso nable time for the importer to make necessary 
arrangements for import of the commodit y after obtaining the sanitary permit. 
Is it necessary to apply for a new permit after six mo nths if the sanitary status of the exporter remains 
the same? 
Reply:  Yes. Brazil 14: According to document WT/TPR/S/249, page 74, §1 25, "[…] All consignmen ts containing products 
subject to genetic modification must carry a decl aration stating that the product is genetically 
modified.  If it does not, the importer is liable to pe nal action […]" Is this declaration mandatory even 
if a consignment contains only residue s of genetically modified products  or a low percentage of these 
products (e.g. residues of genetica lly modified grains in a container)?  Is there any applicable 
maximum residue level in such cases? 
Reply:  The entry of GM food at various ports is governed by the Directorate General of 
Foreign Trade (DGFT).  On 7 April 2006, th e Ministry of Commerce and Industry through 
Director General of Foreign Trade (DGFT) has notified new regulation for import of GM 
products by amending Schedule I (Imports) of the ITC (HS) Classifications of Export and 
Import Items, 2004-09 under the Foreign Trad e Policy (2004-09) to be effective from 
1 April 2006.  As a result of the new import policy, (i) all applications for import of 
GMOs/LMOs for research, bulk import of GM food, feed, raw or processed or any ingredient of 
food, food additives or any food  product that contains GM materials will require prior approval 
by GEAC;  (ii) at the time of import, all cons ignments containing products which have been  WT/TPR/M/249/Add.1 
 Page 37 
 
 
  subjected to genetic modification will carry a decl aration stating that the product is "genetically 
modified";  (iii) in case a consignment does not carry such a declaration and is later found to 
contain genetically modified material, the impo rter is liable to penal action under the Foreign 
Trade (Development and Regulation) Act, 1992.  In accordance with the above regulation the 
mandate of the customs and the DGFT is to en sure that the importer has obtained proper 
approvals of GM food imports, the shipments are accompanied with proper documentation;  
verify that contents of shipment match acco mpanying documentation;  detect illegal LMO 
imports and take appropriate measures.  Curren tly, there is no threshold prescribed under the 
Indian regulation to allow residues of GM products or a low percentage of these products and therefore, this Declaration prescribed under FTP is mandatory for all products containing 
GMOs or derived from GMOs. 
(3)
 MEASURES  DIRECTLY  AFFECTING  EXPORTS 
Export support 
Brazil 15: Paragraph 149 of page 82 of the Report by the Secr etariat states that "Firms established in an SEZ 
benefit from several incentives subject to generatin g net foreign exchange earnings within five years 
of operation (Table III.18)."  SEZ units are exempt fr om various taxes, including income tax, central 
sales tax, minimum alternate tax, dividend distri bution tax, service tax, and from a series of state 
taxes (i.e. sales tax, stamp duty, and electricity duty) (Table III.18).  SEZ units may import all types of goods (including new and second ha nd capital goods) duty free bot h from abroad and from the 
domestic tariff area (DTA).  Imports and exports into /from the SEZ are not subject to routine customs 
examination;  for instance, "let export" orders a re granted on the basis of self-certification by the 
SEZ."  Furthermore, paragraph 151 (page 82) inform s that "As at end 2010, India had 374 SEZs 
(…)" 
- What are the requirements for the set-up of an EPZ / SEZ? 
- Apart from "generating net foreign exchange earnings  within five years of operation", what are the 
requirements to the establishment of a firm in a SEZ? 
Reply:  As per Section 3 of the SEZ Act, a SEZ may be set up either jointly or severally by the 
Central Government, State Govt. or any person for manufacture of goods or rendering services or for both or as a free trade warehousing zone.  Such proposals duly recommended by the concerned state Government are considered by the Board of Approval for SEZs.  Any person 
who intends to set up a SEZ may after identifying the area make a proposal to the state 
Government for the purpose of setting up of SEZ. 
Following requirements, inter-alia , have been prescribed by the Central Government for 
establishment of a special economic zone: 
(i) Minimum area of the land and other terms and conditions subject to which Board of 
Approval shall approve or modify or reject any proposal. 
(ii) Terms and condition subject to which the developer shall undertake the authorized 
operations and his obligations and entitlements. 
For setting up a unit in the SEZ, an application is required in terms of Rules 17 of the SEZ 
Rules.  Final decision is taken by an Approval Committee. 
Setting of SEZ unit and its functioning is regul ated as per the provisions of SEZ Act 2005 and 
rules framed there under.  This may be viewed on www.sezindia.nic.in. WT/TPR/M/249/Add.1 
Page 38  
 
  Brazil 16: 
According to paragraph 154 (page 83) of the Repor t by the Secretariat, "E OUs are similar to EPZs 
but may be located anywhere in the country.  Initially, EOUs were concentrated mainly in 
manufacturing (e.g. textiles, food processing, and electronics) but currently agri businesses and firms 
supplying services also operate under the EOU Scheme."   Paragraph 158 (page 85) informs that "In 
2009/10, India had 2,553 EOUs (…)". 
- Could India provide further information re garding the differences between an EOU and an EPZ? 
- What are the requirements for the set-up of an EOU? 
Reply:  The EOU Scheme, introduced in 1981, is complementary to the erstwhile EPZ scheme.  
It adopts the same production regime but offers a wider option in location with reference to 
factors like source of raw material s, port of exports, hinterland facilities, and availability of 
technological skills, existence of industrial base, and the need for a larger area of land for the 
project.  Under this scheme, the units undertakin g to export their entire production of goods, 
except permissible sales in domestic tariff area (DTA) as per Exim Policy/Foreign Trade Policy, 
are allowed to be set up.  These units may be engaged in the manufacture, services, development 
of software, agriculture including agro-processing, aquaculture, animal husbandry, 
bio-technology, floriculture, horticulture, pisicu lture, viticulture, poultry and sericulture.  
Trading units are not permitted under the EOU Scheme. 
The main aims and objectives of EOU Scheme are: (i) Promoting exports and enhancing foreign exchange earnings. 
(ii) Attracting investment for export production. 
(iii) Generating employment. 
(iv) Attracting modern technology. 
(v) Backward and forward linkage by way of sou rcing of raw material from and supply of 
finished goods. 
(vi) Upgrading skill creating source of skilled man power. 
Projects with a minimum investment of Rs 1 cr ore in plant and machinery are considered for 
setting up of an EOU.  In case of certain specified sectors, units can be set up with lower investment.  Approvals for setting up a unit are given by the Unit Approval Committee, headed by the concerned Development Commissioner. 
Brazil 17: In paragraph 165 (page 88), the Report by the Secret ariat states that " In addition to the SEZs and 
EOUs regimes and the duty drawback system, India has  a number of export incentive schemes, some 
of which are contingent on valu e addition and export ob ligations."  In the same page, paragraph 166 
mentions that "The product coverage and the l evel of concession under these schemes changed during 
the period under review and new schemes were implem ented.  Amendments included:  (…)(iv) the 
introduction of a 15% minimum value added requirem ent under the Advance Authorization Scheme." 
- Could the Indian Government provide further in formation regarding the " Advance Authorization 
Scheme"?  WT/TPR/M/249/Add.1 
 Page 39 
 
 
  - Could the Indian Government provide further in formation regarding the export incentive schemes 
that are contingent on value addition? - Do the firms located in the EOU or in  the EPZ also benefit from those schemes? 
Reply:  Advance authorization scheme allows  duty free import of inputs required to 
manufacture the export product.  Details of the scheme are available in chapter 4 of the Foreign 
Trade Policy (2009-2014) which has been notified to WTO and is available at http://dgft.gov.in.  
None of the existing export incentive schemes is  contingent on value addition.  Since the inputs 
required by the units located in the SEZ or opera ting as 100% EOU, are exempted from duty, 
these units can not avail duty neutralization schemes like advance authorization etc. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
Government procurement 
Brazil 18: 
According to the WT/TPR/S/249, p age 106, § 219, "India became  an observer to th e WTO Agreement 
on Government Procurement in February 2010.[…]" N evertheless, at § 220 of the same document, it 
is said that "[…] the Central Government has set  reservations and price preferences as part of the 
procurement system. […]" If India becomes a memb er of the GPA or other bilateral or multilateral 
government procurement agreement, how In dia will harmonize its reservations and price 
preferences?  Will they be excluded from the scope  of these agreements?  Will these reservations and 
price preferences be extended to all signatori es countries?  Or such reservations and price 
preferences will no longer be applicable to  both domestic and foreigners suppliers? 
Reply:  Issue of India commencing accession to GPA is under examination.  At present, any 
comments on these issues is not feasible, excep t that GPA provides for negotiated flexibilities 
and carve outs. 
Intellectual property rights 
Brazil 19: 
In paragraph 245 (page112)  of the Secretariat Report (WT/TPR/S/249) it is stated that "India has 
signed bilateral cooperation MOUs on IPRs with  Australia, France, Japan and Switzerland;  and 
with the European Patent Office, the German Patent  Office, the US Patent and Trademarks Office;  
and WIPO." 
- Do these agreements provide fo r the obligation to consult the Indian Library of Traditional 
Knowledge when analyzing patent applications? 
Reply:  There is no obligation to mandatorily search the database of the Traditional Knowledge 
Digital Library when analyzing patent applicatio n.  However, the access is provided to facilitate 
prior art search where Indian TK is used. 
Brazil 20: 
In paragraph 247 (page 113) of the Secretariat Re port (WT/TPR/S/249) it is stated that "an 
Intellectual Property Appellate Board (IPAB) was constituted in 2003 to he ar appeals against the 
decisions of the registrar of trade marks and ge ographical indications.  However, as of 2007 the 
IPAB has also heard appe als regarding patents." WT/TPR/M/249/Add.1 
Page 40  
 
  - What is the competence of IPAB?  Is it intended to become a specialized court of appeals to all 
matter involving IPRs or should it only deal with matter involving the registry of IPRs? 
Reply:  Section 83 of the Trade Marks Act pr ovides for establishment of an Appellate Board 
known as Intellectual Property Appellate Boar d to exercise the jurisdiction, powers and 
authority conferred on it by or under the Trade Marks Act, 1999.  The main object of providing 
for an IPAB is speedy disposal of appeals and rectification application that were lying in 
different High Courts of the country.  In terms of section 91 of the Trade Marks Act, 1999 any orders or decisions of the Registrar of Trade Marks are appealable to IPAB.  The Appellate Board consists of a Chairman, Vice Chairman  and other members appointed by the Central 
Government.  The Appellate Board exercises its function through benches constituted by the 
Chairman.  The Bench consists of one judicial member and one technical member and sits at 
such places as notified by the government .  The Appellate Board does not deal with 
infringement or passing off matters.  Only appe als from the orders of the Registrar of Trade 
Marks and GI will lie before the IPAB.  An appe al also lies against the order of Controller of 
Patents to IPAB under section 116 of the Patents Act.  Like in trade marks infringement 
matters relating to patents have to be agitated only at the appropriate court. 
Brazil 21: 
In paragraph 256 (page 115) of the Secretariat Re port (WT/TPR/S/249) it is stated that compulsory 
licensing is permitted if a patent is not worked in I ndia.  It is also men tioned that "compulsory 
licenses are also permitted for exports of patente d pharmaceutical products in certain exceptional 
circumstances, when the Government declares an emergency". 
- How the term "work a patent" is defined in Indian Law and jurisprudence? 
- Under which circumstances are compulsory licenses permitted for exports of patented 
pharmaceuticals?  Which Government should decla re it an emergency, the Indian Government or the 
importing country Government?  Is this provision in any sense connected with the Paragraph 6 
system of the Doha Declaration on TRIPS and Public Health? 
Reply:  Section 83 of the Patents Act defines th e general principle applicable to working of 
patented inventions.  These are as follows: 
 that patents are granted to encourage invent ions and 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 pate nt rights contribute to the promotion of 
technological innovation and to the transf er 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, a nd 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 prohib it Central Government in taking measures 
to protect public health;  WT/TPR/M/249/Add.1 
 Page 41 
 
 
   that the patent right is not abused by the pa tentee 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 bene fit of the patented invention available at 
reasonably affordable prices to the public. 
Section 92(A) of the Patents Act gives details of  circumstances when compulsory license can be 
issued for export of patented pharmaceutical products.  Compulsory licence shall be available 
for manufacture and export of patented pharm aceutical products to any country having 
insufficient or no manufacturing capacity in  the pharmaceutical sector for the concerned 
product to address public health problems, provi ded compulsory licence has been granted by 
such country or such country has, by notifica tion or otherwise, allowed importation of the 
patented pharmaceutical products from India. 
The Controller shall on receipt of an applicatio n in the prescribed manner, grant a compulsory 
licence solely for manufacture and export of the concerned pharmaceutical product to such 
country under such terms and conditions as may be specified and published by him. 
Application for compulsory licence can be made  under Form 17 of the Patents Act and Rules. 
Brazil 22: 
In paragraph 257 (page 115) of the Secretariat Re port (WT/TPR/S/249) it is stated that "parallel 
import are allowed when authorized under the law.   The authorities noted that:  "under the law" 
should be interpreted as the law of the country where the item is being produced". 
- What is India's exhaustion regime?  Would it be al lowed to import from country A if in this country 
parallel imports where not allowed to that market? 
Reply:  India follows international exhaustion of  rights for Patents.  Under section 107A of the 
Act, importation of patented products by any person from a person who is duly authorized under the law to produce and sell or distribute the product is not considered an infringement of 
patent rights.  Therefore import from country  A will be allowed from a person who is duly 
authorized to produce/sell or distribute the product. 
Brazil 23: 
In paragraph 298 (page 123) of the Secretariat Repor t (WT/TPR/S/249) it is stated that "India has 
taken several initiatives to m odernize its IPR administration".  Also, in paragraph 300 it is stated that 
"in addition to Government's efforts to enforce IPR,  industries in India have become more proactive". 
- Given that IPRs are private rights, how is the Indian Government cooperation with the private 
sector to enforce IPR legislation?  Is there a specific body in charge of this cooperation? 
Reply:  In India there are industry specific a ssociations and chambers of commerce which 
conduct awareness programmes.  Th ey also coordinate with the enforcement agencies work to 
conduct raids with a view to reduce trad emark counterfeit and copyright piracy. 
Brazil 24: 
In paragraph 85 of the Government Report (WT/TPR/G/249) it is stated that "India is currently 
negotiating a Broad Based Trade and Investment Agreement (BTIA) with the European Union WT/TPR/M/249/Add.1 
Page 42  
 
  (27 countries) and the EFTA countries (Iceland, Norway, Liechtenstein and Switzerland).  The 
negotiations cover goods, services, investment, sanitary and phytosanitary measures and technical 
barriers to trade, trade facilitation and customs co-operation, etc." 
- Are IPRs covered by the negotiations?  Which provis ions related to access to medicines are covered 
by this Agreement? 
Reply:  IPRs are covered by the negotiations.  Since the agreement has not been concluded it is 
not possible to state its provisions which are re lated to access to medicines.  However, the 
negotiations will be circumscribed by the TRI PS agreement and the existing national laws. 
III.  TRADE POLICIES BY SELECTED SECTORS 
Services 
Brazil 25: 
According to document WT/TPR/S/249, p. 161, §130, "[…] All service provid ers, except providers of 
value added services (e.g. internet, voice-mail, and e-mail services), are subject to a universal service 
levy of 5% of the adjusted gross revenue.  Funds fr om the USOF are allocate d to "eligible operators" 
from the public and the private sectors, th rough a bidding process, for telecom and broadband 
infrastructure development proj ects in rural areas […]" 
- Could India provide further de tail on the bidding process and on the criteria of selection of the 
Universal Service Provider? 
Reply:  The "eligible operators" means the basic service operators, cellular mobile service 
providers and unified access services licencees, infrastructure providers and internet service 
providers or any other entities as may be specified in this behalf by the Central Government 
from time to time.  All the details about USOF activities are given on www.uso.gov.in. 
Brazil 26: According to document WT/TPR/S/249, pages 162-163, § 136.  "[…] The Draft Policy [for the 
Maritime Sector] was thereafter reshaped into the India Maritime Agenda 2010 20 issued by the 
Ministry of Shipping in 2011. […]" 
- Could India provide further details on the 'n ecessary policy interventions' to increase Indian 
tonnage in maritime transport, mentioned in Chapt er 20 (item VI – Shipping Policy) of the Maritime 
Agenda?  Will these policies include restrictions to foreign-flag vessels? 
Reply:  Details of the policy initiatives in the proposed Shipping Policy for the 12
th Five Year 
Plan for augmenting Indian tonnage are availa ble at the website http://shipping.nic.in . 
- Could India provide further details on the propos ed shipbuilding subsidy scheme?  How will the 
government assess the necessary subs idy values to establish a level playing field for the Indian 
shipbuilding industry? 
Reply:  The new shipbuilding subsidy scheme is under consideration of the Government of 
India.  Inter-ministerial consultations are being held and details of the proposed schemes are yet 
to be finalised.  WT/TPR/M/249/Add.1 
 Page 43 
 
 
  Brazil 27: 
According to document WT/TPR/S/249, p. 163, § 137.   "[…] The [Shipping Trade Practices] Bill, if 
enacted, would regulate the provision of maritime transport services.  Providers would be required to 
register with the Directorate General of Shipping (DGS) and notify their tariffs." 
- Could India provide further details on the ne w obligations to foreign-flag vessels concerning the 
maritime transport of Indian  export and import cargo? 
Reply:  For the purpose of this Act, the shippi ng service providers are required to register as 
per Section 5 of the Act, the other sections of the Act are applicable in toto thereafter.  This 
implies that there is no discrimination between  a foreign service provider and Indian service 
provider as far as obligation under the Act is co ncerned.  The entry for foreign ship companies 
or foreign maritime agencies is regulated as per th e national laws.  FDI in this sector is 100%.  
The foreign shipping service providers in India are obligated to register as per section 5 of the proposed Shipping Trade Practices Bill.  
Brazil 28: With regard to paragraph 254, page 114, of document WT/TPR/S/249, India states that the average 
period for the concession of a patent is between 10 to 60 months.  Is this period counted from the 
filing date or from the publication date?  Does the In dian Patent Office implements a first action with 
regard to patent filings?  How is it done? 
Reply:  This period is counted from the date of filing.  The first action is the issuance of the 
examination report which contains formalit y objections and technical objections. 
Brazil 29: 
Regarding the reform of the Indian Patent Law, pl ease explain the benefits and challenges of the use 
of exceptions and limitations to the patent rights. 
Reply:  Exceptions and limitations as introduced in the Patents Act are to  ensure that monopoly 
rights are not abused and these have been introduc ed in public interest.  These provisions of law 
have not been used so far, but the same may be  used as and when the situation so warrants. 
Brazil 30: 
Regarding the use of the Traditional Knowledge Library, please explain the main challenges 
encountered in other countries in order to avoid the misappropriation of the traditional knowledge 
created in India. 
Reply:  Traditional Knowledge Digital Libr ary has been shared with large number of 
prominent intellectual property offices in the world through an access agreement.  The resource 
is in the International Patent Classification format and can be easily  accessed and used for 
conducting prior art search by the patent examin ers.  Considering that it is a fairly new 
database, there could be practical problems fa ced by patent examiners who are unaware of the 
Indian traditional knowledge.  In order to facilitate access, the TKDL unit of CSIR also 
provides training as and when requested by patent  offices.  Such a training was provided to the 
U.S. patent examiners last year. WT/TPR/M/249/Add.1 
Page 44  
 
  Brazil 31: 
With regard to competition policy, please provide information of its interface with Intellectual 
Property Rights.  Has any case of restriction of  IPR in mergers and acquisitions ever occurred? 
Reply:  The rights which are conferred under various IPR Acts are exempted under the 
anti-competitive agreements under Section 3 of the Competition Act.  As on date no issue on 
restriction of IPR is mergers and acquisition has arisen. 
CANADA Canada 1: Report by India (WT/TPR/G/249):  Part VI.  Regio nal and Bilateral Arrangements:  paragraph 79, 
page 23: 
Paragraph 79 of India's Report indicates that "India has concluded 10 free trade agreements, 
5 limited scope preferential trade agreements and is  in the process of negotiating/expanding 17 more 
agreements".  The Report then lists a number of  agreements and negotiatio ns, notably with Japan, 
Canada, Australia and New Zealand, and the Euro pean Union, covering areas such as economic 
cooperation, trade in goods, services and investments. 
1. The recent Japan-India Comprehensive Economic  Partnership Agreement, unlike previous 
Indian free trade agreements, includes a num ber of key commitments relating to the 
environment and sustainable development.  Can I ndia please inform as to whether it has the 
intention to extend the scope of its current f ree trade agreement model to include environment 
and sustainable development provisions, and if so , what kind of provisions does it envision 
including? 
Reply:  India does not intend to extend the sco pe of its RTAs to include environment and 
sustainable development provisions. 
Canada 2: Report by the Secretariat (WT/TPR/S/249): Part II.  Trade Policy Regime:  Framework and 
Objectives:  (3) Trade Agreements and Arrangements;   (i) World Trade Organization:  paragraph 17, 
page 26: 
Paragraph 17 of the Secretariat's Report notes that  India's notifications to the WTO are lagging 
behind in certain areas. 
2. Given the lack of coverage and detail provided  in India's notifications to the WTO Committee 
on Subsidies and Countervailing Measures relative to other WTO Members, when does India 
expect to provide a complete and accura te subsidy notification to the WTO? 
Reply:  India is taking steps to notify such  schemes which are in the nature of subsidies.  
Canada 3: Report by the Secretariat (WT/TPR/S/249):  Part  II.  Trade Policy Regime:  Framework and 
Objectives:  (4) Investment Regimes (i) Business En vironment;  (b) Industrial licensing and zoning:  
paragraph 30, page 30:  WT/TPR/M/249/Add.1 
 Page 45 
 
 
  The Secretariat's Report indicates that, "the establishm ent of an industry remains subject to zoning, to 
land use regulations at the state level, and to envir onmental regulations at the central level".  The 
Report also mentions that "Prior environmental clearance is required for all domestic or foreign 
companies planning a project in an area listed in  the Schedule to the 2006 Environmental Impact 
Assessment (EIA) Notification". 
3. Can India please explain the domestic pro cess for conducting environmental impact 
assessments of domestic and foreign companies' projects? 
Reply:  The environmental appraisal of deve lopmental projects is undertaken as per the 
provisions of the Environmental Impact Assessment  (EIA) Notification, 2006.  This Notification 
provides for screening, scoping for terms of ref erence (TOR), public consultation and final 
appraisal for consideration of the environmental clearance.  The Notification is applicable 
uniformly to the developmental projects and activities of the Central Government, state 
Government, private entrepreneurs, joint ventu re companies as well as foreign companies. 
As a first step, the project proponents have to apply in the prescribed format for seeking terms 
of reference for preparation of the EIA Reports and Environmental Management Plans 
(EMPs).  The EIA Reports are required to be prepared by accredited Consultants.  After 
preparation of the draft EIA Report, the public hearing is organized by the respective State Pollution Control Boards after following due pr ocedure, as detailed in the EIA Notification, 
2006.  The issues raised in the public consultation process have to be reflected in the final EIA 
Report with a detailed clarification on  how they are going to be addressed. 
After public consultation, final EIA Report is subm itted by the project proponent for appraisal.  
The EIA and EMP Reports are examined by the sector specific expert appraisal committees 
(EACs) in which the project proponents are given an opportunity to present their case.  Based on the recommendations of the EAC, the project is  processed in the Ministry for final decision 
on environmental clearance. 
Canada 4: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (ii) Customs Valuation and clearance:  paragraph 25, 
page 41: 
The Secretariat's Report notes that in March 2011, 143 items were subject to a maximum retail price 
(MRP)-based excise duty payment and the abatement ranges from 20% to 40% of the retail price. 
4. Could India please provide a list of items p ertaining to agriculture and food products and the 
value of excise duty attributed to each  item for the five most recent years? 
Reply:  The list of items and the rate of abatement applicable is as under: 
S. No.  Item  Abatement as a percentage 
of retail sale price 
1. Preparations of other sugars falling under chapter 17 or 21  35 
2 Sugar syrups not containing added flavouring or colouring matter;  artificial honey, 
whether or not mixed with natural honey;  caramel [1702]  35 
3 Gums, whether or not sugar coated (including chewing gum, bubblegum and the like) 
[1704]  35 
4 Chewing gum, jelly confectionary, boiled sw eets, toffees, caramels and similar sweets 
and other sugar confectionery but excluding white chocolate [1704]  30 
(cont'd) WT/TPR/M/249/Add.1 
Page 46  
 
  S. No.  Item  Abatement as a percentage 
of retail sale price 
5 White chocolate [170490]  35 
6 Cocoa powder, whether or not containing  added sugar or other sweetening matter 
[1805 00 00 or 1806 10 00]  30 
7 Chocolates in any form, whether or not co ntaining nuts, fruit kernels or fruits, 
including drinking chocolates [1806]  30 
8 Other food preparations containing cocoa [1806]  30 
9 All goods, other than Dough for preparation of bakers' ware of heading No. 1905 
[1901 20 00 or 1901 90]  30 
10 Cornflakes, bulgur wheat but excluding p repared food obtained from unroasted cereal 
flakes or from mixtures of unroasted cereal flakes and roasted cereal flakes or swelled 
cereals [1904]  30 
11 Prepared foods obtained from unroasted cereal flakes or from mixtures of unroasted 
cereal flakes and roasted cereal flakes or swelled cereals [1904 20 00]  30 
12 Biscuits [1905 31 00 or 1905 90 20]  30 
13 Waffles and wafers, coated with chocolat e or containing chocolate [1905 32 11 or 
1905 32 90]  30 
14 All goods, other than wafer biscuits [1905 32 90]  35 
15 Wafer biscuits [1905 32 19 or 1905 32 90]  30 
16 Extracts, essences and concentrates, of coff ee, and preparations with a basis of these 
extracts, essences or concentrates or with a basis of coffee [210111 or 2101 12 00]  30 
17 Yeasts [2102]  30 
18 Sharbat [2106 90 11]  25 
19 All goods, other than pan masala containing not more than 15% betel nut [2106 90 20]  40 
20 Pan masala containing not more than 15% betel nut [2106 90 20]  20 
21 Pan masala containing tobacco [2403]  55 
22 Betel nut product known as supari [2106 90 30]  30 
23 Protein concentrates and textured protein s ubstances, food flavouring material, churna 
for pan, custard powder, diabetic food [2106 10 00, 2106 90 50, 2106 90 70, 2106 90 80, 
2106 90 91, 2106 90 99]  35 
24 Mineral waters[2201 or 2202]  45 
25 Aerated waters [2201 or 2202]  40 
26 Vinegar and substitutes for vinegar  obtained from acetic acid[2209]  35 
27 Chewing tobacco, preparations containing tobacco, Jarda scented tobacco [2403 99 10, 
2403 99 20, 2403 99 30]  55 
Canada 5: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (iv) Tar iffs:  (a) Applied tariff structure:  paragraph 27, 
page 43: 
The Secretariat's Report states that "India's tariff is announced in the annual Budget at the end of 
February each year;  however, additional changes to individual tariff rates may be made during the 
year by the Ministry of Finance's Central Board of Excise and Customs, through notifications 
published in the Gazette of India". 
5. Can India please provide more information on de lays between the notification or publication 
into the Gazette of India and the actual tariff modification?  Could India elaborate as to how 
it determines which tariffs are subject to add itional changes and if the change is an increase 
or lowering of the tariff rate?  Also, could I ndia elaborate on the operation of the Gazette of 
India, for example when a tariff modification is  published in the Gazette of India do interested 
parties have an opportunity to provide comments and views? 
Reply:  The notifications are published in the Official Gazette  of India on the date of issue.  
Changes in tariff rates normally co me into effect on the date of publication of the notification.   WT/TPR/M/249/Add.1 
 Page 47 
 
 
  Where the intention is to give them effect on a subsequent date, a clause is incorporated in the 
notification to prescribe this.  Changes in ta riff rates are carried out based on representations 
received from trade and industry or inputs receive d from other departments/ministries after 
taking into account relevant factors such as tr ends in international prices, domestic prices, 
demand supply etc of the item.  Tariff notifications are legislations issued by the Government in 
exercise of delegated powers and become part of law from the date of issue.  Hence comments 
and views cannot be given at the time of publication. 
Canada 6: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (v ) Other charges affecti ng imports:  paragraph 43, 
page 50: 
The Secretariat's Report states that an Additional Duty  and a Special Additional Duty are applied on 
imports and are aimed at removing or reducing what  is considered to be a pro-import bias resulting 
from the application of central excise duties to domestically manufactured goods. 
6. Could India please provide more details and information on its process of managing and 
setting the additional and special additional duties? 
Reply:  Additional duty, also known as CVD, is applied on the goods at the time of import in 
lieu of the excise duty applicable on domestically produced goods, while special additional duty 
(SAD or special CVD) is levied in lieu of taxes such as state VAT, sales tax, levied or collected by state government or local taxes/charges.  While CVD is levied at rates equal to the excise duty 
rates applicable to domestically manufactu red goods, special CVD is charged at 4% ad valorem .  
Thus CVD and SAD aim to provide level playing field for the domestic industry vis-à-vis  
imported goods. 
Canada 7: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (vi)  Import prohibitions, restrictions, and licensing, (a) 
Import prohibitions:  T able III.9, pages 53-54: 
The Secretariat's Report includes a table show ing the different import prohibitions imposed. 
7. Could India please explain the rationale for maintaining import prohibitions on a number of 
animal, poultry and fish fats? 
Reply:  Import restrictions are imposed if there is  a risk of the specific product bringing in one 
or more specific diseases which could adversely a ffect the health and safety of the human and 
animal population. 
Canada 8: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (vi)  Import prohibitions, restrictions, and licensing, 
(c) Import quotas:  paragraph 64, page 57: 
According to the Secretariat's Repor t, since the removal of most quantitative restrictions on imports 
in 2001, a mechanism has been set up to monito r imports of items considered to be sensitive. WT/TPR/M/249/Add.1 
Page 48  
 
  8. Could India please provide more details regarding (i) How India classifies a product as being 
sensitive;  (ii) the process used in determ ining the applied rates for sensitive products and 
(iii) how sensitive products are eith er added or removed from the list? 
Reply:  Monitoring of imports of sensitive item s is being done on monthly basis.  Any item 
included in the list is need based where it is felt  that import of such item should be monitored. 
Canada 9: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (v ii) State trading:  paragraph 68, page 58: 
According to the Secretariat's Report, India ma intains state trading for certain agricultural goods 
(i.e. some cereals, copra, and coconut oil). 
9. Could India please provide more information on  its policies and practices for both national 
and sub-national bodies governing alcoholic beverages? 
Reply:  Section 12(1) of the Customs Act requires the collection of customs duties as specified 
under any Indian law on goods imported into India.  This requires the collection of both the basic customs duty and the additional customs duty, both of which are specified under the 
Customs Tariff Act.  The additional customs duty is collected at the time of import, which is 
equivalent to the excise duty applicable on the like product produced in India. 
As per the Constitution of India, levy of ex cise duties on alcoholic liquor manufactured or 
produced in the State is a State subject which is  covered under entry 51 of List II (State list) of 
the Seventh schedule of the Constitution of India.  Therefore, excise duty on alcoholic beverages manufactured or produced in the State is charged as per the rates determined by the State 
governments.  Additional customs duty is not coll ected on alcoholic beverages at the time of 
import from outside India.  State governments levy fees or taxes on alcoholic beverages, 
imported from outside India or produced in other States when these enter the State.  Such fees or taxes are in lieu of the excise duty payable on like domestic product produced in the State. 
Special additional duty (SAD or special CVD) is levied on the goods at the time of import in lieu 
of taxes such as state VAT, sales tax, levied or collected by State/Government or local 
taxes/charges.  Special CVD is charged at 4% ad valorem .  Goods/items that are exempt from 
excise duty or state VAT are also exempt from additional duty or special additional duty respectively. 
In some of the state governments such as Ta mil Nadu, Andhra Pradesh and National capital 
Territory of Delhi (NCT Delhi) the wholesale or retail trade of procurement or sale of alcoholic 
beverages is done by state owned corporations. 
Canada 10: The Secretariat's Report also mentions that und er the Foreign Trade Policy 2009-14, the Directorate 
General Foreign Trade (DGFT) may authorize other companies to import any goods subject to state 
trading, when state trading enterprises (STEs) are not able to supply the market. 
10. Do Indian authorities notify this in advance?  If yes, can you explain the notification process 
and where this information can be obtained?  WT/TPR/M/249/Add.1 
 Page 49 
 
 
  Reply:  Paragraph 2.11 of the FTP prescribes that the DGFT may grant an authorisation to any 
person to import and export any of these goods.  To get such authorisations a person has to 
apply to DGFT. 
Canada 11: Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 73, page 60: 
The Secretariat's Report describes the process by  which anti-dumping investigations (and it is 
assumed countervailing duty investigations) are initiated by the Department of Commerce's 
Directorate General of Anti-Dumping and Allied Duties (DGAD). 
11. Could India please provide examples of the criteria and other factors that the DGAD 
considers in deciding whether to initiate an an ti-dumping investigation on its own accord.  
Please also provide details on any assistance t hat the Department may make available, either 
formally or informally, to potential complainants for trade remedy action. 
Reply:  Ex officio initiation is consistent with  Article 5.6 of Anti-Dumping Agreement.  As per 
Rule 5 (4) of India's Anti-dumping Rules, an investigation can be initiated by the DGAD 
(Investigating Authority) on its own accord or suo moto  basis.  There has been no ex officio 
initiation of anti-dumping investigation und er this provision during the review period. 
Information is provided on the website of the Department of Commerce regarding guidelines 
and frequently asked questions (FAQs) on anti -dumping to guide domestic industry and DGAD 
may provide assistance to the interested part ies as per Article 6.13 of the Agreement on 
Anti-Dumping. 
Canada 12: Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 74, page 61: 
The Secretariat's Report refers to th e possibility that the duration of investigations may be extended 
due to "judicial interventions by courts". 
12. Could India please provide details as to the circumstances in which courts may intervene in 
trade remedy investigations, particularly before the final determination is made, and, if 
possible, provide specific examples of cases in which courts have intervened. 
Reply:  Various high courts of India and th e Supreme Court of India (the Apex Court) may 
intervene in trade remedy investigations, particul arly before the final determination is made, as 
per the provisions of Article 226 and Article 32 of the Constitution of India.  This writ 
jurisdiction is generally invoked whenever the ci urts find that the matter is in larger public 
interest or there is want of jurisdiction or when  issues relate to allegations of errors in the 
investigations for which there may not be legal remedy before the Appellate Tribunal 
(CESTAT).  Some of the cases where such writ  has been invoked include soda ash from 
Pakistan and others, melamine from EU and others and certain coated papers from EU and 
others. WT/TPR/M/249/Add.1 
Page 50  
 
  Canada 13: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 75, page 61: 
The Secretariat's Report states that the "Government is obliged to restrict the anti-dumping duty to 
the lower of the margin of dumpi ng or the margin of injury." 
13. Could India please describe the procedural pr ocess and standards by which determinations 
regarding the "margin of injury" are made.  A re such standards applied in all investigations 
or are they subject to consideration only th rough petitions by an interested party?  How often 
is the "margin of injury" applied in investigati ons?  Is the concept also applied during expiry 
reviews? 
Reply:  The margin of injury is determined as the difference between landed value of subject 
goods from subject country and the non-injurious price of domestic like product determined for 
the domestic industry during the same period (period of investigation). 
The margin of injury is determined in all inv estigations as India follows lesser duty rule.  
Anti-dumping duty is imposed after taking into  account lesser of dumping margin and injury 
margin and thus margin of injury is relevant in  all situations whenever this is lesser than 
dumping margin.  This concept is also applied in reviews. 
Canada 14: Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 77, page 61: 
The Secretariat's Report indicates that an anti-dump ing investigation may be terminated at any stage 
in the process, inter alia, upon a writte n request by the domestic industry. 
14. Could India please elaborate on the process by whic h this type of termination is affected. 
Reply:  Rule 14 of India's Anti-Dumping Rule s contain provisions regarding termination of 
anti-dumping investigations.  A copy of th e Rules can be downloaded from the website 
www.commerce.nic.in.  For termination of invest igations, a notification is issued by the 
Authority which is Gazette d and published for information to all concerned. 
Canada 15, 16, 17: Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 79, page 62: 
The Secretariat's Report outlines the process by which "changed circumstances" reviews may be 
conducted. 
15. Could India please describe the evidentiary standards under which DGAD may initiate or 
self-initiate a "changed circumstances" review  and the standards by which affirmative 
determinations of "changed circumstances" may be made?  WT/TPR/M/249/Add.1 
 Page 51 
 
 
  16. How often have "changed circumstances" reviews been undertaken and how often have such 
reviews resulted in the modification or termination of a measure? 
Further, it is assumed that DGAD can either m odify or terminate anti-dumping/countervailing duty 
measures following such a review. 
17. Can India please confirm the above? 
Reply:  A changed circumstances or mid-te rm review is conducted by the Authority under 
Section 9A of the Customs Tariff Act read with Rule 23 of the Anti-dumping rules.  The evidentiary standards are provided in detail on  the website www.commerce.nic.in .  There are 
cases where such reviews have resulted in mo dification or termination of measures. 
Canada 18: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 84, page 63: 
The Secretariat's Report specifies that between 2006 and October 2010, 40 appeals were made to the 
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), but only 7 cases were settled. 
18. Could India please provide additional informati on, including directives and time lines on the 
process, by which such appeals are heard.  Does India plan to implement any further 
directives to improve, if necessary , the efficacy of this process? 
Reply:  Section 129B (2A) of the Customs Act, 1962 (CA 62) provides that the Customs, Excise 
and Service Tax Appellate Tribunal (CESTAT) shall dispose of the appeals, as far as possible, 
within a period of three years from the date of filing of appeal.  The procedures for filing and 
handling of appeals are prescribed in  the CESTAT Procedure Rules, 1982 .  The CESTAT is 
settling a large number of cases every year incl usive of cases relating to antidumping measures.  
Canada 19: Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraph 85, page 63: 
The Secretariat's Report states that India is one of the most active users of anti-dumping measures 
among WTO Members.  In fact, India is the most active user of anti-dumping measures, having initiated 613 anti-dumping duty investigations in  the January 1, 1995 - June 30, 2010 period, 
outranking second place United States (442) and third place European Union (414) by a fairly wide 
margin. 
19. Could India provide more insight into the reas ons (e.g. size, ownership and sensitivity of 
certain markets - chemical products make up 36.8  per cent of the investigations) for the high 
frequency of use of anti-dumping duty measures by India, particularly in relation to other 
WTO Members? 
Reply:  During the period under review, anti-dumping investigations were initiated under 
Rule 5 of India's Anti-Dumping Rules only on th e basis of applications filed by the concerned 
domestic industries as per the provisions of the Anti-Dumping Agreement. WT/TPR/M/249/Add.1 
Page 52  
 
  Canada 20, 21: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (v iii) Contingency Measures:  (a) Anti-dumping and 
countervailing measures:  paragraphs 85-86, page 63: 
The Secretariat's Report discusses the products a nd trading partners subject to anti-dumping duty 
investigations.  The Report indicates that imports from China are the most frequently investigated, 
accounting for 137 out of 613 anti-dumping duty inves tigations during the January 1, 1995-June 30, 
2010 period (22.3%). 
20. In this context, please provide details as to  the approach that India takes with respect to 
imports from China in its anti-dumping investi gations, particularly with respect to the 
question of whether China is treated as a market or non-market economy for purposes of 
these investigations. 
Reply :  In terms of Para 8 (2) of the Annexure 1 of India's Anti-Dumping Rules, China PR has 
been treated as a non-market economy country su bject to rebuttal of the above presumption by 
the exporting country or individual exporters in terms of the above Rules.  Further, as per 
Paragraph 8 of the Annexure I to the Anti-Dumpi ng Rules as amended, the presumption of a 
non-market economy can be rebutted if the expo rter(s) from China PR provide information and 
sufficient evidence on the basis of the criteria sp ecified in sub paragraph (3) in Paragraph 8 and 
establish that to the contrary.  The cooperating  exporters/producers of the subject goods from 
China are required to furnish necessary informat ion/sufficient evidence as mentioned in the 
criteria under sub-paragraph (3) of paragraph 8 in response to the Market Economy Treatment 
questionnaire to enable the Designated Authority to make its determination. 
India's Anti-dumping Rules are available on the website www.commerce.nic.in. It is noted that India has conducted only one c ountervailing duty investigation against any imports (in 
this case, imports from China) in the January 1, 1995 - June 30, 2010 period, when 250 such investigations were conducted by all WTO members. 
21. Can Indian authorities provide an explanation as  to reasons why India has conducted only 
one such countervailing duty investigation dur ing the period between January 1, 1995 and 
June 30, 2010? 
Reply:  Countervailing duty investigations are initiated under Rule 6 of the Customs Tariff 
(Identification, Assessment and Collection of  Countervailing Duty on Subsidized and for 
Determination of Injury) Rules, 1995 which is ba sed on SCM Agreement.  As per the above, the 
investigation is initiated only after an applicatio n to this effect is submitted before the Authority 
and the Authority finds prima facie evidence of subsidy, injury and a causal link between such subsidized imports and alleged injury to the Dom estic Industry.  During the review period, not 
many applications were received by the Author ity which could fulfil the conditions as per 
Rule 6. 
Canada 22: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (viii) C ontingency Measures:  (b) Safeguards:  paragraphs 
91-98, pages 65-67:  WT/TPR/M/249/Add.1 
 Page 53 
 
 
  The Secretariat's Report discusses th e procedures and application of sa feguard measures by India.  
India is the most active user of this particular me asure, having initiated 26 such investigations during 
the January 1, 1995 - October 31, 2010 period, a period during which 216 such investigations were 
initiated by all WTO Members. 
22. Similar to anti-dumping duty investigations, can Indian authorities provide an explanation as 
to the reasons for the comparatively high frequency of the initiation of safeguard 
investigations? 
Reply:  Safeguard investigations are initiate d based on the applications received in a given 
period as per the provisions of the safeguards agreement. 
Canada 23: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (viii) Co ntingency Measures:  (b) Safeguards:  paragraph 
92, page 65: 
The Secretariat's Report indicates that the advice of  the Standing Board on Safeguards is presented to 
the Finance Minister (in cases regarding the imposition of safeguard duties) and to the Commerce 
Minister (in cases regarding the impositi on of quantitative restrictions). 
23. Are the Board's recommendations publicly disclo sed?  When safeguard duties or quantitative 
restrictions are imposed, is a statement of rea sons released to the public to explain the 
rationale for employing the measure?  Is Indi a planning to implement any changes to improve 
transparency within the safeguard adoption process? 
Reply:  The recommendations of the Standing Boar d on Safeguards are not disclosed publicly.  
The Board functions as an intervening stage of  decision making aft er the recommendation of 
the DG Safeguards, the Investigating Authority and the final consideration by the Central Government to decide whether to impose safeguar d measures.  India makes notifications to the 
WTO Committee on Safeguards as per the requi rements of the Safeguard Agreement with a 
view to ensure transparency of the safeguard measures imposition. 
Canada 24: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (viii) Co ntingency Measures:  (b) Safeguards:  paragraph 
95, page 66: 
The Secretariat's Report states that India's safeguar d legislation was amended in 2010 to allow for 
the use of quantitative restric tions as remedy measures. 
24. As India was already the most active user of  safeguard measures, why was it decided that 
India needed even greater flexibility to impose safeguard measures, and what additional 
objectives are achieved through the use of quantitative restrictions? 
Reply :  The amendment to the Foreign Trade (Dev elopment and Regulation) Act (FTDR Act) 
was made through an Amendment Act of 2010 in August 2010 to make the enabling provisions 
for imposition of quantitative restrictions as  safeguard measures in accordance with the 
Safeguards Agreement.  The existing Safeguard Ru les permit imposition of safeguard measures 
through tariff increase. WT/TPR/M/249/Add.1 
Page 54  
 
  Canada 25: 
Report by the Secretariat (WT/TPR/S/249): Part III.   Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (viii) Co ntingency Measures:  (b) Safeguards:  paragraph 
97, page 66: 
The Secretariat's Report indicates that only two sa feguard investigations were initiated in 2008, but 
that thirteen were initiated during 2009.  This increase in safeguard investigations is particularly 
troublesome given that global trade vo lumes reduced significantly in 2009. 
25. Could India provide more explanation for th is increase in safeguard investigations, 
particularly in the context of its pledge to reject protectionism and promote an open global 
economy? 
Reply:  Even though thirteen cases were initiated during 2009, sa feguard measures were 
imposed in only four cases for a brief period a fter detailed investigations and due consideration 
of evidence on record, which clearly shows India' s resolve to promote an open global economy.  
At present only one safeguard measure is in force. 
Canada 26: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (ix) T echnical regulations and standards:  (b) Technical 
regulations:  paragraph 104, page 68: 
The Secretariat's Report describes the process for the development of technical regulations, including 
notification processes, assessmen ts and public comment periods. 
26. Can India please provide an update regarding the status of the medical device regulation? 
a. Specifically, are there plans to reintroduce legisl ation to consolidate laws related to medical 
devices and to establish a medical device regulatory authority? 
Reply:  The proposal to reintroduce the Dr ugs and Cosmetics (Amendment) Bill 2007 is under 
active consideration of the Ministry of Health and Family Welfare.  There is no proposal under 
consideration to establish separate Me dical Device Regulatory Authority. 
b. If so, what is the expected timeline for enactment of the legislation? 
Reply:  No timeline in this regard can be suggested. 
c. Does the legislation differ (and in what way) from the previously proposed Medical Devices 
Regulation Bill? 
Reply:  As the provisions of the Bill are still under consideration, no comments could be offered. 
d. Will India provide appropriate notification of any such new legislation to the WTO, in order 
to enable WTO Members to consult and comment on it? 
Reply:  India will adhere to the transparency provisions of the TBT Agreement.  
Canada 27: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (ix) T echnical regulations and standards:  (b) Technical 
regulations:  WT/TPR/M/249/Add.1 
 Page 55 
 
 
  27. Can India provide an update on the implementati on status of its E-Waste (Management and 
Handling) Rules? 
a. Can India provide clarification as  to the scope of these rules and whether medical devices are 
included in its E-Waste rules and if so, how they will be treated? 
b. If medical devices are include d in the scope, does India intend to harmonize its approach with 
the timelines and exclusions set out in the EU 's Directive on the Restriction of Certain 
Hazardous Substances in Electronic and Electrical Equipment (RoHS Directive)? 
Reply:  The Ministry of Environment and Fo rests has notified the E-Waste (Management and 
Handling) Rules, 2011 on 12 May 2011, which shall come in to force from 1 May 2012. 
The medical devices, which were covered earli er in the draft notification of E-Waste 
(Management and Handling) Rules, 2010, are not included in final notified E-Waste 
(Management and Handling) Rules, 2011. 
These Rules lay down responsibilities of pr oducers, collection centers, dismantlers and 
recyclers. 
The concept of extended producer responsibility (E PR) has been enshrined in these Rules.  As 
per these Rules, producers of the electrical and el ectronic equipment listed in Schedule I, i.e. IT 
and telecommunication equipment and consumer electrical and electronics (television sets, 
refrigerator, washing machine, air-conditioners), are required to finance, and organize a system 
to meet the costs involved in the environmenta lly sound management of e-waste generated from 
the "end of life" of their own products and the hi storical waste available on the date from which 
these rules come in to force.  Producers are also  required to set up collection centres/effective 
take back system for their "end of life" electrical and electronic equipment covered in these 
Rules. 
The threshold limits prescribed in EU RoHS Direct ive, which is globally accepted standard for 
the hazardous substance used in manufacture of  electrical and electronics components have 
been adopted. 
Producers are expected to achieve reduction in use of six hazardous substances to the 
prescribed limit within a period of two years from the date of commencement of these Rules. 
Canada 28, 29: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (xi) Tec hnical regulations and standards;  (c) Certification 
and conformity assessment:  paragraph 105, page 69: 
The Secretariat's Report indicates that the Bureau of Indian Standards (BIS) "also grants licences to 
environment-friendly products under a special sch eme and awards the ECO mark to such products." 
28. Can India please indicate which products have b een licensed as being "environment-friendly" 
to date?  What are the key criteria for a product to be granted such licenses? 
29. Can India please explain the "special scheme" referred to above? 
Reply:  The products that have been licenced as  being "environment-friendly" are given in the 
table below: WT/TPR/M/249/Add.1 
Page 56  
 
  Table 
Details of products covered under ECO Mark 
Sl.No.  IS No.  Product  
1 1848:1991  Writing and printing paper (third revision)  
2 2202 (Part 1):1999  Wooden flush door shutters (solid co re type);  part 1 plywood face panels  
3 3087:1985  Wood particle board (medium density)  for general purpose (first revision)  
4 6234:2003  Portable fire extinguishers, water type (stored pressure)  
5 6956:2001  Cover paper  
6 11833:1986  Dry powder fire extinguishers for metal fires  
7 12406:2003  Medium density fibre boards for general purpose  
8 12823:1990  Wood product – prelaminated particle board  
9 14490:1997  Plain copier papers  
10 14587:1998  Pre-laminated medium density fibre board  
11 14898:2001  Eco criteria for finished leather  
12 303:1989  Plywood for general purposes 
The key criteria for a product to be granted such licences are given in the special scheme (see 
below). 
"Special scheme" refers to the "Scheme on  labelling of environment friendly products" 
instituted by the Ministry of Environment and Forests, details of which are available on their 
website at http://moef.nic.in. 
Canada 30, 31, 32, 33: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (ix) Tec hnical regulations and standards:  (c) Certification 
and conformity assessment:  paragraph 106, page 69: 
The Secretariat's Report indicates that "Foreign manufacturers must set up a liaison/branch office in 
India to obtain a licence if the BIS has not signed a MOU with the country where the manufactured goods originate".  The Report also outlines th e applicable fees under the Foreign Manufacturers 
Certification Scheme. 
30. Could India please indicate the standard pr ocessing period for licence applications to the 
BIS, assuming that all required fees and docum entation are included with the application? 
Reply:  Once the application is received with req uisite fee and all relevant documents, they are 
scrutinized and further required actions are inti mated to the applicant normally within two 
weeks. 
31. Could India please provide a list of the countri es with which it has negotiated MOUs?  Could 
India please provide details on the provis ions typically included in such MOUs? 
Reply:  The list of the countries with which MoUs have been signed are Afghanistan, 
Bangladesh, Bhutan, Brazil, France, Germany, Isra el, Mauritius, Nepal, Nigeria, South Africa, 
Slovenia, Thailand, UAE, United States and Uzbekistan.  The provisions typically included in 
such MoUs are the cooperation in the fields of standardization and conformity assessment. 
32. Could India please confirm whether the app licable fees under the Foreign Manufacturers 
Certification Scheme are the same as those applicable to domestic manufacturers?  If not, 
could India explain the differences?  WT/TPR/M/249/Add.1 
 Page 57 
 
 
  Reply:  The applicable fees under the Foreign Manufacturers Certification Scheme are 
equitable with those applicable  to domestic manufacturers. 
33. Could India please confirm whether the app licable fees under the Foreign Manufacturers 
Certification Scheme are the same for forei gn manufacturers established in members of the 
South Asian Association for Regional Cooperation (SAARC) as for other foreign manufacturers?  If not, could India explain the differences? 
Reply:  The applicable fees under the Foreign Manufacturers Certification Scheme are not the 
same for foreign manufacturers established in me mbers of the South Asian Association for 
Regional Cooperation (SAARC) as for other forei gn manufacturers.  However, in line with 
WTO-TBT Agreement, these are equitable. 
Canada 34, 35, 36: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (ix) Tec hnical regulations and standards:  (c) Certification 
and conformity assessment:  paragraph 108, page 70: 
The Secretariat's Report indicates that, "In ord er to implement its certification schemes, the BIS 
conducts conformity testing through its central laboratory at Sahibabad (near Delhi), and four 
regional and three branch laboratories".  BIS labora tories have test facilities for most products under 
the Certification Marks Scheme.  In addition to th e BIS laboratories, services are provided by 
115 national laboratories recognized under th e BIS Laboratory Recognition Scheme. 
34. Could India please confirm whether the laboratories recognized under the BIS Laboratory 
Recognition Scheme could be authorized to conduc t the same scope of conformity testing as 
the central laboratory and seven regional/branc h laboratories?  If not, could India explain 
any restrictions on the scope of conformity testing that the former laboratories can 
undertake? 
Reply:  Yes.  The labs are recognized under BI S Lab Recognition Scheme for specific Indian 
standards and for such standards these recognized  laboratories could be authorized to conduct 
the same scope of conformity testing as central laboratory and other seven labs.  
35. In addition to the 115 national laboratories,  are there any foreign laboratories recognized 
under the BIS Laboratory Recognition Scheme?  Do the same recognition procedures apply 
to foreign laboratories as to national laborat ories or are there any restrictions on the 
recognition of foreign laboratories? 
Reply:  There are presently 121 la boratories recognized by BIS in India and no foreign lab has 
applied for recognition to foreign labs as that applicable to national labs. 
36. Is the Certification Marks Scheme the same as  the Product Certification Scheme of BIS?  If 
not, could India explain the operati on of the Certification Marks Scheme? 
Reply:  Yes, the Certification Marks Scheme is the same as the Product Certification Scheme of 
BIS. 
Canada 37, 38: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (i x) Technical regulations and standards:  (d) 
Accreditation:  paragraph 109, page 70: WT/TPR/M/249/Add.1 
Page 58  
 
  The Secretariat's Report indicates that "NABL is  a partner of the Asia Pacific Laboratory 
Accreditation Cooperation (APLAC) Mutual Recogn ition Arrangement and is signatory to the 
International Laboratory Accreditation Cooperation (ILAC)". 
37. Can India please indicate whether the BIS recognizes laboratories accredited by signatories 
to APLAC and ILAC under the L aboratory Recognition Scheme? 
Reply:  Accreditation is one of the requirements of the BIS Lab Recognition Scheme.  
Accreditation by signatories to APLAC/ILAC is acceptable. 
38. Do Indian regulatory authorities recognize l aboratories or certification bodies accredited by 
signatories to APLAC, ILAC and/or the International Accreditation Forum (IAF)? 
Reply:  Yes, we accept certificates from accredit ed laboratories and certification bodies of the 
countries with whom we have MRA. 
Canada 39: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (x) Sanitary and Phytosanitary Measures:  paragraph 118, 
page 72: 
The Secretariat's Report notes that, "India has  not notified the WTO regarding the recognition of 
equivalence of other countries' SPS measures". 
39. Could India please provide more information on its equivalency agreements with other 
countries and the process that India uses to re cognize the equivalence of other countries' SPS 
measures? 
Reply:  India has not signed any equivalence agreement with any country. 
Canada 40: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (x) Sanitary and Phytosanitary Measures:  paragraph 119, 
pages 72-73: 
The Secretariat's Report notes that, "Once the F ood Safety and Standards  Regulations, 2010 and 
Rules 2011 are notified, the Food Safety and Standa rds Act 2006 will be fully implemented and will 
repeal some of the separate laws". 
40. Given India's WTO notification of August 1, 2011 of the Food Safety and Standards 
Regulations, 2011, what does India consider to be the major challenges and opportunities for 
trading countries as these new / consolidated regulatory regimes become implemented?  How 
will the implementation of this new regulatory regime affect the respective responsibilities of 
the FSSAI, the Department of Animal Husbandry, Dairying and Fisheries, and the 
Department of Agriculture and Cooperation? 
Reply:  The Food Safety and Standards Act, Ru les and Regulation intend to consolidate food 
laws in the country from multi-level, multi licensi ng regime to single regulatory point.  It will 
facilitate the trade.  All food safety issues will be handled by FSSAI, ho wever quarantine/import 
of live animals/feed will continue to be dealt with by the concerned ministries.  WT/TPR/M/249/Add.1 
 Page 59 
 
 
  Canada 41, 42: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (x) Sanitary and Phytosanitary Measures:  paragraph 121, 
page 73: 
The Secretariat's Report notes that "Imports of animal products into India require sanitary import 
permits issued by the Department of Animal Husbandry, Dairying and Fisheries" and that "Some 
imports of animal products also require an import licence issued by the Director General of Foreign 
Trade".  Issuance of these documents for some commodities can be dependent upon the receipt by 
India of appropriate documentation from the country of origin. 
In 2010, Indian officials determined that Cana dian certificates of origin and hygiene for fish and 
seafood products exported to India were not comp liant with its import requirements for certain 
microbial contaminants.  The pr oposed usage of a Codex Alimentarius model certificate was also 
determined to be insufficient.  Furthermore, I ndia is requesting that Canadian documentation for 
certain products indicates the absence of specific OI E-listed diseases which are not associated with 
those products. 
41. Could India please explain the scien tific rationale for these decisions? 
Reply:  India has different sanitary standards fo r different categories of fish/fishery products, 
and without clarity on which categories of fish products should be considered by India to be 
agreed for Codex Model Certificate, it is difficult  to prescribe a generic certificate.  Exporters 
are required to certify microbiological parameters to  meet India's requirements.  Canada is in 
contact with concerned Indian authorities bilaterally on this issue. 
42. In broader terms, can India please provide a ssurances that sanitary import permits will not 
act as a non-tariff barrier to trade and that approvals / rejections of permit applications 
which are carried out on a case by case basis c an be completed in a timely manner?  Is India 
able to share its import risk analysis with the country / company in question upon request? 
Reply:  The sanitary import permits (SIP) do no t act as non-tariff barrier to trade.  At present, 
application for SIP in case of fish/fishery prod ucts are processed on fast track.  However, 
presently, it will not be possible for us to share import risk analysis reports etc. with other 
parties. 
Canada 43: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports;  (x) Sanitary and Phytosanitary Measures:  paragraph 122, 
page 73: 
The Secretariat's Report notes that "Imports of plants and plant materials are regulated under the 
Destructive Insects and Pests Act 1914, the Plant Quar antine (Regulation of Im port into India) Order 
(PQO) 2003". 
For some wood exports from North America it is not ed that the only treatment recognized for import 
is methyl bromide, while in other listings both me thyl bromide and kiln drying are recognized.  It is 
further noted that PQO Section 9(1) accepts heat treatment for wood commodities, but this 
acceptance is not reflected in listings of species in Appendix VI of the PQO. WT/TPR/M/249/Add.1 
Page 60  
 
  In most cases, heat treatment is as effective in managing pest risks as is methyl bromide treatment.  
For example, the IPPC has noted
1 that both methyl bromide and he at treatment are effective in 
managing the broad pest risks associated with wo od packaging moving in international trade. 
43. Under what circumstances would India recogni ze heat treatment in listings where these are 
not currently prescribed for wood commodities? 
Reply :  India may consider requests from exportin g countries/regions, currently not included 
for heat treatment, for inclusion of heat treatm ent as an alternative to fumigation with methyl 
bromide for wood commodities under Schedule VI of the PQO. 
Canada 44: Report by the Secretariat (WT/TPR/S/249):  Part III.   Trade Policies and Practises by Measure:  
(3) Measures Directly Affecting Exports;  (iii) Exports taxes, charges, and levies:  paragraph 131, 
page 76: 
The Secretariat's Report notes that export taxes are used  as a policy instrument to, inter alia, ensure 
domestic supply of raw materials for higher-valu e-added industries, promote further processing of 
natural resources, ensure an "adequate" domestic price, and preserve natural resources". 
44. Is there any export tax, charge or levy that applies to forest products (logs, lumber, pulp, 
paper, etc.)?  If so, please specify and explain the objective of this tax, charge or levy. 
Reply:  There is no export duty on forest products (logs, lumber, pulp, paper, etc.). Canada 45: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (a) Overview:  
paragraph 219, page 106: 
The Secretariat's Report states that, "According to the authorities, reforms to date have moved India 
towards a more transparent and compet itive procurement framework." 
45. Could India please indicate which specific  reforms the Secretariat is referring to? 
Reply:  Transparency and fairness in GP are val ues that have stand-alone significance for India 
purely in the domestic context.  We are engaged in improving our procurement systems.  A 
number of steps have been taken in the dir ection of transparency and the substantive 
procedural requirements to achieve them, public ation of contract awards, tendering through 
effective advertisement for open tenders;  no n-discriminatory tender conditions and technical 
specifications, public tender opening, bid eval uation based on pre-disclosed criteria and 
methodology;  post-award contract execution, e-pr ocurement etc.  In addition, establishment of 
legislative framework for public procurement is under consideration of the Government. 
Canada 46: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (a) Overview:  
paragraph 220, page 106: 
                                                      
1 In International Standard for Phytosanitary Measures (2009) 15.  WT/TPR/M/249/Add.1 
 Page 61 
 
 
  The Secretariat's Report states that, "the Ce ntral Government has set reservations and price 
preferences as part of the procurement system." 
46. Could India please specify the reservations and the price preferences that it applies as part of 
its procurement system? 
Reply:  Transparency and fairness in GP are val ues that have stand-alone significance for India 
purely in the domestic context.  We are en gaged in improving our procurement systems.  
However, carve outs and offsets are essential for the development of the sensitive sectors in a 
developing economy like India, and has been availed of even by other GPA signatories.  The Central Government, through administrative in structions, has reserved certain products for 
procurement from specific sectors such as MSMEs, KVIC etc. and have been allowed price 
preference to a specified level.  For exampl e, 358 products belonging to respective industry 
sectors are reserved for procurements from Mi cro and Small Enterprises (MSEs) by State/ 
Central Ministries/Departments/PSUs.  Instructio ns relating to price preference/reservation for 
procurement of certain items/categorie s of suppliers are issued by certain 
Ministries/Departments such are D/o Public Enterprises and M/o Micro, Small and Medium 
Enterprises. 
Canada 47: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (a) Overview:  
paragraph 221, page 106: 
The Secretariat's Report states that, "Some states (Tamil Nadu and Karnataka) have also passed laws 
to regulate public procurement." 
47. Could India please provide electronic links to these laws? 
Reply:  The corresponding websites are indicated below: (1) Karnataka Transparency in public procurement Act of 1999:  http://www.kar.nic.in/ 
finance/trans/Trans-Act.pdf. 
(2) TN transparency in tender Act 1998:  http://www.tn.gov.in/acts-rules/finance/ 
tender_act.pdf. 
(3) TN transparency in tender rules 2000:  http://www.tn.gov.in/acts-rules/finance/ 
tender_rules.pdf. 
Canada 48, 49: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (b) Regulatory 
Framework:  paragraph 224, page 107: 
The Secretariat's Report states that, "India does not have a unified piece of legislation regulating 
government procurement."  The Report also states that there are sectoral laws which also regulate 
public procurement in addition to various government  instruments and agencies including ministries 
and departments with their own public procurement systems. WT/TPR/M/249/Add.1 
Page 62  
 
  48. Given the many policies and regulations app lying to procurement, how do suppliers 
determine which rules are relev ant for a given procurement? 
Reply:  Rule 137, 160 and 161 of the General Fi nancial Rules contain the basic principles of 
public buying.  Chapter 6 of the General Financia l Rules, 2005 contains general rules applicable 
to all Ministries or Departments regarding procurement of goods, engagement of consultants 
and outsourcing of services.  Detailed instructio ns relating to the procurement of goods can be 
issued by the procuring ministries/departments in  conformity with the general rules contained 
in this chapter. 
49. Could India please provide electronic links to the principle components of its regulatory 
framework for public procurement? 
Reply:  General Financial Rules, 2005, which cont ain the basic principles of public buying, is 
available at the website:  http://finmin. nic.in/the_ministry/dept_expenditure/GFRS/ 
GFR2005.pdf.  Establishment of a legislativ e framework for public procurement is under 
consideration of the Government of India. 
Canada 50: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (b) Regulatory 
Framework:  paragraph 227, page 107: 
The Secretariat's Report states that, "Only the wi nning bidder is informed of the result of the bid 
evaluation." 
50. How is the winning bidder informed that it has won the bid evaluation?  Do the other bidders 
find out whether a decision has been made, and if so, how? 
Reply:  In DGSandD rate contract system, when  contract is awarded to the bidder same is 
uploaded in its website on real time basis and th e contract can be viewed by any person logging 
in to the website www.dgsnd.gov.in.  Most tend ers are opened publicly and the participating 
suppliers are present at the bid opening. 
Canada 51, 52, 53: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (b) Regulatory 
Framework:  Table III.27, page 108: 
51. Can India please clarify whether the requirement to publish tenders valued above 
Rs 2.5 million in the Indian Trade J ournal applies to only central entities? 
Reply:  Yes. 
52. Do state level entities have similar publication requirements? 
Reply:  Most  State Governments have modelled their financial Rules on the basis of GFR 2005, 
and the principle of adequate publicity is followed.  
53. Does a supplier have to be a subscriber to the I ndian Trade Journal in order to see all of the 
tender opportunities published in the journal?  WT/TPR/M/249/Add.1 
 Page 63 
 
 
  Reply:  It is the choice of a supplier as the tender information is also available on the website of 
the purchasing entity. 
Canada 54: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v) Government Procurement:  (b) Regulatory 
Framework:  paragraph 229, page 108: 
54.  Could India please explain if ministries or departments are subject to any minimum or 
maximum monetary values of procurements in or der to procure goods directly under a "rate 
contract"? 
Reply:  No, there are no such limits for purchases under rate contracts.  
Canada 55: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v ) Government Procurem ent:  (c) Preferential 
policies at the central government  level:  paragraph 232, page 109: 
Regarding preferential treatment for micro and sma ll enterprises (MSEs), the Secretariat's Report 
states that, "preferences could be granted on a case by case basis after an assessment of the ministry 
concerned." 
55. Could India please explain what specific preferen ces ministries can grant on a case by case 
basis?   
Reply:  Government Purchase and Price Pref erence Policy for MSMEs has no provision of 
specific preferences that ministries ca n grant on a case to case basis. 
Canada 56:  
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v ) Government Procurem ent:  (c) Preferential 
policies at the central government  level:  paragraph 233, page 109: 
The Secretariat's Report states that "Under the purchase preference system, 358 items have been 
reserved for exclusive procurement from MSEs  (Table AIII.9) and 21 items for exclusive 
manufacturing in the micro and small sectors (section (4)(i)(b))." 
56. Could India please provide a list of these ite ms reserved for procurement and manufacturing 
from MSEs? 
Reply:  List of 358 items reserved for exclusiv e purchase from MSEs is available at DC, MSME 
official website link:  http://www.dcmsme.gov.in /schemes/List of 358 Items Reserved.pdf.  The 
list of 20 items reserved for exclusive manufactu re by micro and small enterprises sector is 
available on website link:  http://www.dcms me.gov.in/publications/reserveditems/reserved 
2010.pdf. 
Canada 57: 
Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production and Trade;  (v ) Government Procurem ent:  (c) Preferential 
policies at the central government  level:  paragraph 233, page 109: WT/TPR/M/249/Add.1 
Page 64  
 
  The Secretariat's Report states that "MSEs are also a ssisted through the:  (i) issue of tender sets free 
of cost;  (ii) exemption from payment of "earnest  money" (deposits);  and ( iii) waiver of security 
deposits up to the monetary limit for which the unit is  eligible, based on certain "transparent" criteria 
(Table AIII.9)." 
57. Could India please provide information on the normal cost suppliers are charged for the 
issue of tender sets, and the process governi ng the payment of "earnest money" from 
suppliers? 
Reply:  The cost of Tender sets is related to the estimated cost of purchase, drawings, 
specifications etc. and it may vary from couple of  hundred to few thousand rupees.  The earnest 
money deposit for each tender is normally stipul ated in the notice inviting tenders.  Different 
agencies of the Government have come out with  guidelines to calculate the earnest money 
deposits relating to their tenders which may var y from 2% to 5% of the value quoted by the 
bidder against the tender. 
Under Government Purchase and Price Preference Policy, micro and small enterprises (MSEs) 
registered with NSIC are provided facilities for tender sets free of cost and exempted from 
payment of earnest money. 
Canada 58, 59: Report by the Secretariat (WT/TPR/S/249):  Part I II.  Trade Policies and Practices by Measure:  
(4) Measures Affecting Production a nd Trade;  (v) Government Procurement:  (f) Procurement at the 
state level:  paragraph 242, page 111: 
The Secretariat's Report states that, "in most states the general financial rules (GFRs) govern 
procurement and are based on the Central Go vernment GFRs, which were updated in 2005." 
58. Could India please indicate which states use these GFRs to govern procurement? 
Reply:  Financial powers are decentralised and it is for each State government to establish its 
own rules and regulations keeping in mind the requirements of transparency, non-discrimination and accountability.  Some of  the states like Tamil Nadu and Karnataka have 
passed laws to regulate public procurement, on the lines of provisions of GFR. 
59. Can India please clarify which government sectors fall under the authority of the state level of 
government?  
Reply:  Powers of Central Government and state Governments have been stated in the 
Article 246 of the Indian Constitution.  List I is the Union list, List II is the state list and List III 
is the concurrent list. 
Canada 60, 61: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (i) General Overview:  paragraph 8, page 127: 
The Secretariat's Report states that "India places high  priority on raising agricultural productivity as 
a means of reducing poverty.  However, raising pr oductivity would require a policy shift away from 
the existing subsidy-based protected regime that no longer appears to be sustainable".  WT/TPR/M/249/Add.1 
 Page 65 
 
 
  60. Could India please provide more information on the types of policies or programs that would 
be used to achieve the referen ced policy shift aimed at increasing agricultural productivity in 
the years to come? 
Also, according to the Secretariat's Report, to m eet production, as well as other agricultural policy 
objectives, India plans to increase public expenditu re, while also encouraging private investment. 
61. Can India please elaborate on the types of program s or policies it intends to use to encourage 
private investment, and which sectors would be targeted by that policy? 
Reply:  India's agriculture policy is articulated in the Five Year Plan documents;  and the 
policies and programmes taken up by concerned Departments and States.  The Twelfth Five Year Plan of India, to be applicable for the period 2012-2017 is under formulation.  
The entire inputs manufacturing and outputs processing and marketing industry for 
agricultural produce in India is in the privat e sector.  India also permits 100% FDI in seed 
production, horticulture, animal husbandry and certain other sectors of protected agriculture.  
Canada 62: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (a) Measures affecti ng imports:  paragraph 17, 
page 129: 
As noted by the Secretariat's Report, India's applie d tariff variability as well as the complex process 
for the notification of tariff-rate changes, creates unc ertainty and acts as an impediment to trade. 
62. Can India please elaborate further on how it is intending to improve transparency and 
predictability in its tariff management system? 
Reply:  India's import duty regime is quite simple , fair and transparent.  All changes in effective 
rates are put in the public domain/ we bsite as soon as they are issued. 
Canada 63: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (a) Measures affecti ng imports:  paragraph 18, 
pages 129-130: 
The Secretariat's Report mentions that India in troduced a tariff rate quota (TRQ) for sugar of 
1 million tonnes with an in-quota tariff rate of 0%. 
63. Can India please explain the rationale for introducing a TRQ for sugar and could India 
elaborate on how it ensures that the TRQ a llocation process is fair and transparent? 
Reply:  Details of the TRQ allocation for sugar (as a short term measure), has been stated in the 
Customs Notification No. 84 dated 31 July 2009.  It is available at the website link:  http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k9/cs84-2k9.htm. 
Canada 64: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (a) Measures affecti ng imports:  paragraph 19, 
page 130: WT/TPR/M/249/Add.1 
Page 66  
 
  According to the Secretariat's Report, tariff rate quot as (TRQ) continue to be allocated on a pro rata 
basis by the Directorate General Foreign Trade and the authorities noted that the fill ratio of these 
quotas is low, apparently for a lack of demand due to high international prices of these commodities. 
64. Could India please explain why it maintains and administers TRQs for which the fill ratio 
remains low? 
Reply:  These TRQs have emanated due to ren egotiations on bound rate of duty of certain 
items.  India has to maintain these TRQs even if the fill rate is low;  otherwise the items which 
can be imported under TRQ with less duty will have to be imported at "out of quota rate", which is high. 
Canada 65: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (a) Measures affecti ng imports:  paragraph 20, 
page 130: 
The Secretariat's Report mentions that Indi an "authorities may impose import (and export) 
restrictions on security, self-sufficiency, and balan ce-of-payments reasons, and on health and moral 
grounds". 
65. Can India please provide more information on wh ether import restrictions are imposed on 
animal products, i.e. live animals or meat products? 
Reply:  Import restrictions are imposed if there is  a risk of the specific product bringing in one 
or more specific diseases which could adversely a ffect the health and safety of the human and 
animal populations of this country.  Accordingl y import restrictions are maintained on live 
animals as well as meat products in terms of quarantine certificates. 
Canada 66, 67: Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (a) Measures affecti ng imports:  paragraph 21, 
page 130: 
According to the Secretariat's Report, "the numb er of sensitive items increased since 2007, from 300 
to some 415 items". 
66. Can India please elaborate on when and at which frequency it notifies these changes, on what 
grounds an item is determined as sen sitive and on the process for notification? 
Reply:  Monitoring of imports of sensitive items is being done on a monthly basis.  Any item is 
included in the list on a need based basis where it  is felt that import should be monitored. 
67. Also, can India please clarify if there are some items that can be considered sensitive while 
having an applied rate equal to 0%? 
Reply:  The sensitive item category is only for monitoring imports on those items irrespective of 
applied duties which can change subsequently.  WT/TPR/M/249/Add.1 
 Page 67 
 
 
  Canada 68: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:   (b) Measures affec ting exports:  paragraph 27, 
page 132: 
The Secretariat's Report states that "India imposes ex port taxes which are used to, inter alia, ensure 
domestic supply of raw materials for higher-valu e-added;  promote further processing of natural 
resources, ensure an "adequate" domestic  price, and preserve natural resources". 
68. Can India please elaborate on what agriculture and food items are affected by export taxes 
and how it notifies them? 
Reply:  No agricultural product or food it em is currently subjected to export tax. 
Canada 69: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:  (c) Internal measures:  paragraph 33,  page 133: 
The Secretariat's Report indicates that direct or explicit subsidies to agriculture as reported in the 
Central Government's annual Budget amounted to Rs 1,413.5 billion in 2009/2010 (2.2% of GDP), up 
from Rs 571.3 billion (1.3% of GDP) in 2006/2007. 
69. Can India please indicate if there are specific  sub-sectors in agriculture benefiting in greater 
proportion from direct or explicit subsidies, or if t hose subsidies are directed at the sector as 
a whole?  Are the amounts of these subsidies, reported by the central government, additional 
to the amounts of subsidies financed by the st ate governments, as descri bed in paragraphs 41 
and 42 (such as subsidies for water, electricity, and seeds)? 
Reply:  There is no separate classification of subsidies to agriculture in the central government 
Budget.  The figure of Rs 1413.5 billion is the total subsidies outgo in 2009-10 and not the 
explicit subsidies to agriculture alone as in correctly indicated in the Secretariat's Report. 
Canada 70: Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:  (c) Internal measures:  paragraph 36,  page 134: 
According to the Secretariat's Report, "there is an additional scheme (the Ma rket Intervention Scheme 
(MIS)) that covers perishables not under the minimum support prices (MSPs).  Under the MIS, the National Agricultural Cooperative Marketing Fede ration of India Ltd. (NAFED) and other State 
designated agencies purchase perishables at a ma rket intervention price (MIP) when the prices 
decline because of a bumper crop, and distribute the product".  Footnote 29, at the end of this 
sentence, mentions that there have been few in terventions since the inception of the program. 
70. Can India please elaborate on how it determines the market intervention prices, which 
commodities have led India to implement a pr ogram outside the MSPs, and why it maintains 
this program if there has been few interventions? 
Reply:  Market intervention prices (MIPs) of perishables are determined taking into 
consideration estimated cost of production a nd a bare minimum margin.  Perishables for which 
MIS operations have been carried out during the la st five years are:  potatoes, arecanut, apples, WT/TPR/M/249/Add.1 
Page 68  
 
  palm oil, fresh fruit bunches, orange, chillies, ginger, passion fruit, malta and chow-chow.  
These operations have been carried out only in  some states based on emergent conditions. 
MIS operations, though taken up exceptionally, are necessary to prevent distress sale by 
farmers. 
Canada 71: 
Report by the Secretariat (WT/TPR/S/249):  Part IV.  Trade Policies by Selected Sector:  
(2) Agriculture;  (ii) Agricultural policy objectives:  (c) Internal measures:  paragraph 38,  page 135: 
The Secretariat's Report indicates that, due to a rise in market prices for wheat and rice, the amount 
spent on subsidizing food has increased substantially. 
71. Can India say if it is planning to reform its f ood subsidizing programs in order to face the 
rising prices of these commodities? 
Reply:  In light of rising food subsidy bills and other related factors, the need for efficient 
management of food stocks;  the requirement to  address the welfare needs of both producers 
and consumers;  creation of adequate infrastruc ture for transport, storage and distribution of 
agricultural produce etc. are all issues that  are engaging the attention of the government. 
CHILE 
Chile 1: In Paragraph 40 of the Government's report, I ndia has stated that larger capacity added on a 
sustained basis would be required to meet growing energy demand, b ecause a deficit in power supply, 
both in terms of peak availability and total en ergy availability, can limit the performance of the 
industrial as well as the agricultural sector.  In this sense, considering the high demand and the 
commitments made in international agreements, it w ould be interesting to learn how Indian energy 
grid is settling today and how India expects to build  an efficient energy grid for the future and what 
would be the impact on that grid of thermal power, nuclear power and renewable energies. 
Reply:  Over the decades a robust inter-state an d inter-regional transmission grid has evolved 
in India.  Transmission infrastructure of th e country is very well maintained and modern 
devices are being installed to improve reliability, grid security and to move towards the creation 
of a smart grid.  By the year 2015 all regions of the country would be synchronously interconnected and would be operating  at a common electrical frequency. 
Massive expansion of the inter-state transmission  and intra-state transmission system is under 
way matching with the planned expansion of ge neration capacity and for transmitting power 
form the upcoming generation clusters in the country.  By March 2012 the total length of 
transmission lines of 220 kV and above in the coun try would be of the order of 2,70,000 ckt kms 
and the substation capacity (220 kV and above) would be of the order of 3,86,000 MVA. 
A total of 1,22,801 MW thermal project have already been identified, main plant orders have 
already been placed for 76,000 MW  and all clearances area also in  place.  In addition there are 
plans for retiring inefficient units.  There ar e also plans to renovate and modernize some 
generating stations in order to reduce emission s and fuel consumption.  Special emphasis is 
being laid on addition of renewable capacity.  WT/TPR/M/249/Add.1 
 Page 69 
 
 
  The Government of India is encouraging the development of new and renewable energy for 
supplementing the energy requirements of the count ry.  The objective of the Government is to 
increase the contribution of renewable energy in th e total energy mix of the country to 6% by 
2022 with about 10% contribution in total electrici ty mix.  These projec ts are grid connected 
projects.  The focus is also on development of solar energy technologies.  The potential of solar 
energy is estimated for most parts of the country at around 30 MW–50 MW per sq.k.m. 
Chile 2: In paragraph 16 of the Government report, it is men tioned that in spite of the robust growth of 
exports, India's trade deficit continues to be large as  the growth of imports has  consistently outpaced 
the growth of export.  In this sense, do you consider that the trade deficit which presents India could 
generate a problem for its economy?  If yes, what  kind of measures India would take to solve this? 
Reply:  Even though India's exports have grown at reasonably high rates in recent years, 
imports have been growing at faster rates, with the result that trade deficit has remained high.  
The surpluses on invisibles have not been able to  cover the trade deficit.  Foreign investment 
flows have helped.  However, a reasonably bala nced trade is the most sustainable scenario on 
the external economic front.  Persistent trade de ficits could result in macro-economic instability 
and over dependence on foreign investment inflows.  Investment inflows themselves may not be sustainable in the face of persistent trade deficits. 
India is addressing the issue through creation of  an environment more conducive to expansion 
of production and exports.  Certain constraint s to production and exports in the form of 
infrastructural bottlenecks, high transaction costs, skill development of the work force, 
technology upgradation, trade facilitation etc. are being addressed. 
Efforts are also being made to identify new produc ts and markets in various parts of the world.  
Strategic market access initiatives, including free trade agreements, are also being pursued. 
Questions to India in Regards to Intellectual Property Chile 3: 
In terms of patents and that established in pa ragraph 251(WTO Secretaria t Report) regarding the 
necessary prior permission to patent when the applic ant does not wish to file a patent application in 
India prior to filling abroad, does this apply to bo th residents and non-residents.  In other words, in 
the case of an invention developed in India by a fo reign company would this company have to request 
permission to be able to file a patent in the US before it files for a patent in India? 
Reply:  If the inventor for the invention develo ped in India by the foreign company is a resident 
in India, the company is required to seek pe rmission under Section 39 of the Patents Act, 1970 
for foreign filing before filing in India. 
Chile 4: In regards to pharmaceutical patents, and the requirem ent of proof of efficiency in order to prove 
inventive step that appears in paragraph 250, we would like to inquire in the case of a 
pharmaceutical product, is a sanitary permit for its commercialization or circulation within the 
Indian market required, and if so:  (i) Does this permit require evidence of efficiency and how would this differ from that required by the patent authority ;  and (ii) what is the link between the sanitary 
permit and that patent, in other words would the existence of a patent impede the granting of a sanitary permit on a generic product and to what extent. WT/TPR/M/249/Add.1 
Page 70  
 
  Reply:  The Member should elaborate what it me ans by sanitary permits in the case of patents. 
Chile 5: Regarding to that expressed in paragraph 283 in relation to the creation of Copyright Enforcement 
Cells within the crime section of the police, Chile  would like to receive more information on the inner 
workings of these cells as well as if patent infractions fall under their jurisdiction. 
Reply:  Copyright protection has both civil and criminal enforcement.  Patent infringement on 
the other hand is covered by civil proceedings. 
Chile 6: In regards to geographical indicati ons, paragraph 286 establishes that GI protection is granted for a 
period of 10 years renewable for further periods of 10 years, in this sense is there a limit on the 
further periods or could these be renewed indefinably. 
Reply:  Yes.  This can be renewed indefinitely . 
Chile 7: 
Additionally in the same paragraph, India mentions that wine and spirits are the only class of goods 
that receive higher protection in India.  Could India please clarify what is understood by higher 
protection? 
Reply:  Higher protection is as defined by Article 23.1 of TRIPS. Chile 8: Finally, on the issue of enforcement, paragraph 299 establishes that Customs may seize and hold 
goods for a reasonable period and then refers to six mont hs, could this mean that a right holder could 
impede the circulation of so called infracting goods  for competitive reasons up to six months, and if 
so what measures are in place so as to impe de unfair competition or abuses on behalf of right 
holders, also who must burden the cost of storage of the seized goods. 
Reply:  Primarily, the determination of infringe ment and suspension of clearance of goods, if 
any, is effected on the basis of information provided by the right holders at the time of registration of notice filed under the Intellectual Property Rights (Imported Goods) 
Enforcement Rules, 2007.  The goods are sei zed under the provisions of the Intellectual 
Property Rights (Imported Goods) Enforcement Rules, 2007 if there are reasons to believe that the goods are liable to confiscation in terms of section 111 of the Customs Act, 1962.  Thus, the 
goods suspected to be infringing goods are seized,  if the Customs officer has a reasonable belief 
of the infringement, which in turn would be based on the facts of the specific case. 
The matter is finally decided after giving an o pportunity to the right holder and the importer to 
represent their case. 
The Right Holder is required to furnish a Bond under Rule 5(a) of the Intellectual Property 
Rights (Imported Goods) Enforcement Rules,  2007 undertaking to protect the importer, 
consignee and the owner of the goods and the competent authorities against all liabilities that are incidental and ancillary to the act of suspensi on of clearance of allegedly infringing goods, in 
case it is established that the suspension is vexatious.  WT/TPR/M/249/Add.1 
 Page 71 
 
 
  The costs toward destruction, demurrage and detention charges incurred till the time of 
destruction or disposal of the goods, as the case may be, is borne by the right holder. 
For trade defense measures: Chile 9: In paragraph 84, Section III) Trade policies by meas ure – 2) Measures directly affecting imports –
viii) Contingency measures, a) Antidumping and countervailing measures, the Report of the 
Secretariat gives background on the Court of Appe al concerning Customs Duties, Excise and Tax 
Services (CESTAT).  It is noted that between 2006 and October 2010 seven (7) of the forty (40) appeals before the CESTAT regarding applied an tidumping and countervailing duties were solved. 
Can India point out the reasons for this apparently lo w rate of resolution in the indicated period.  Can 
India indicate if the CESTAT has set time limits within which it should solve these issues, and what 
are these timelines?  
Reply:  Section 129B (2A) of the Customs Act, 1962 (CA 62) provides that the Customs, Excise 
and Service Tax Appellate Tribunal (CESTAT) shall dispose off the appeals, as far as possible, 
within a period of three years from the date of filing of appeal.  The procedures for filing and 
handling of appeals are prescribed in  the CESTAT Procedure Rules, 1982 .  The CESTAT is 
settling a large number of cases every year in clusive of cases relating to antidumping and 
countervailing measures.  
Chile 10: 
In paragraph 71, section IV) Trade Policy, paragraph 4) trade policy issues facing India, the 
Government report, noted that India's participation in  world trade is small (1.3% of exports in 2009).  
In addition, it mentions that notwithstanding this, India has been affected by a disproportionate 
number of trade defense measures (90 anti-dumping  measures were imposed against India in the 
period from January 1995 to June 2010). 
In paragraphs 85, 86 and 87, secti on III) Trade policies by measure – 2) measures directly affecting 
imports – viii) Contingency measures, a) Anti dumping and Countervailing Measures;  the Report of 
the Secretariat, gives background on anti-dumping measu res taken by India.  Inter alia it mentions 
that (1) India is one of the main users of antidumpi ng measures, (2) the application of such measures 
has increased in recent years (207 in force until December 2010) and (3) their average length is 
greater to 4.5 years.  More over it states that India's share in worl d imports of goods amounted to 2% 
(in 2009). 
Considering that the government report itself acknow ledges the prejudicial effects of such excessive 
use of anti-dumping measures on trade competitiveness of India, could India explain if it expects to 
review or thinks it is necessary to revise its inter nal laws on anti-dumping in the light of statistics 
derived from its implementation/report. 
Reply:  The purpose of anti-dumping duties, in ge neral, is to address the injury caused to the 
domestic industry by the unfair trade practices of dumping.  Anti-dumping investigations are 
carried out strictly as per India's Customs Tari ff (identification, Assessment and collection of 
anti-dumping duty on dumped articles and for de termination of injury) Rules, 1995 as amended 
and in conformity with the provisions of the WT O Agreement on Implementation of Article VI 
of the GATT 1994. WT/TPR/M/249/Add.1 
Page 72  
 
  Chile 11: 
WT/TPR/S/249:  (ix) Standards and technical regul ations:  (b) Technical regulations:  Para 104: 
Responsibility for the formulation of technical regul ations is with the agency in charge of the 
respective area.  The formulation of a technica l regulation follows a similar process to the 
formulation of a standard.  A draft technical regulation is sent out for comments prior to its adoption 
by the concerned ministry/department/organizati on and publication in the Official Gazette.  
Comments must be provided within 60 days of th e publication of the notice.  The draft technical 
regulations are also notified to WTO Members fo r comments.  Comments received on the draft are 
examined by the ministry concerned.  If divergen t comments are received, an expert group examines 
and considers the comments and their incorporation in  the final version.  The process of finalization 
of draft regulations takes 6 to 12 months, includi ng approval of the competent authority, vetting, and 
translation into Hindi.  The final regulation (via a notification) is published in the Official Gazette 
giving its date of implementation;  it is simultaneously notified to the WTO.   Amendments to technical 
regulations are made through a similar process, from  time to time, based on industry needs or due to 
new scientific developments, new sanitary and enviro nmental circumstances, and harmonization with 
international standards. 
Question: a. In India is the formulation of technical re gulations only the responsibility of the Central 
Government?  In case local governments also fo rmulate technical regulations, are these also 
notified to the WTO? 
b. Is there a level of coordination among agenc ies responsible for formulating technical 
regulations? 
Reply (a):  As of now the technical regulations have been formulated by Central Government. 
Reply (b):  There is complete co-ordination among agencies responsible for formulating 
technical regulations. 
Import VI Prohibitions, rest rictions, and licensing 
(A) Import Prohibitions 
Chile 12: 
Paragraph 53 states that "Imports of beef and beef  products in containing beef in any form remain 
prohibited."  The footnote number 4 explains that "Under the current Import Policy Schedule 
(Foreign Trade Policy 2009 14), Imports of beef and beef products in Containing Any form are listed 
as prohibitive (under the General Notes Regarding Import Policy)". 
Question:  According to this policy is it possible to assume that in 2014 this restriction will be lifted 
on bovine meat products in particular? 
Reply:  The import of beef and beef produc ts has been prohibited under the flexibilities 
provided by Article XX of GATT. 
Chile 13: 
Paragraph 55 states that "It is not clear to the Secretariat which products require an automatic 
license and which require a non-automatic license"  WT/TPR/M/249/Add.1 
 Page 73 
 
 
  Question:  Chile would appreciate more in formation about the Import Policy Schedule. 
Reply:  Import Policy Schedule will be notified shortly. 
Sanitary and Phytosanitary Measures X (SPS) Chile 14: 
Paragraph 119 states that "However, the Rules and Regulations to operationalize this Act have not 
been notified yet." 
Question:  Chile would appreciate if India clarifi es when this information will be available. 
Reply:  Food Safety and Standard Regulations, 2011 were notified vide Gazette  Notification 
dated 01.08.2011 by the Government of India and are available on FSSAI website http://fssai.gov.in.  The Regulations came into force with effect from 5.08.2011. 
Chile 15: 
120 states that "The Mandate of the FSSAI is to en sure the availability of safe and wholesome food for 
human Consumption, through establishing and enfo rcing science based food safety standards for 
domestically produced and impor ted foods, licensing and registering businesses selling food for 
human consumption, and regulating food  manufacturing practices and labelling". 
Question:  Chile would be grateful for further clarification as to when this process would be 
completed?  Chile would also appreciate further cl arification on whether it will be regulated under 
some FSSAI guideline.? 
Reply:  Food Safety and Standards Act, Rul es and Regulations have been fully implemented 
with effect from 5 August 2011.  The details are available on www.fssai.gov.in. 
Chile 16: 
Paragraph 121 states that "Permits are valid fo r six months and may be used for multiple 
consignments." 
Question:  Does this mean that the permits must be  renewed constantly?  Is the renewal automatic? 
Reply:  The Sanitary Import Permit is valid for six months and it expires after six months.  
Renewal is not automatic.  Fresh application for issue of permit has to be applied for. 
Chile 17: 
In the same paragraph 121 it adds that "Impor ts of animal products are only allowed through 
designated ports where animal quarantine and certification services are available (Amritsar, 
Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mu mbai).  Imports of fish products are allowed 
through the port of Vishakhapatnam (in the State of Andhra Pradesh) and the land custom station at 
Petrapole (for Imports from Bangladesh only) ". 
Question:  Chile would appreciate clarification as  to whether all the ports mentioned above and 
which are used to receiving animals have the same facilities for quarantine, wh enever it is necessary. WT/TPR/M/249/Add.1 
Page 74  
 
  Reply:  Quarantine facilities are available at the quarantine stations in Delhi, Kolkata, Chennai 
and Mumbai ports.  However a few activities a re also undertaken in Hyderabad, Bangalore and 
Amritsar as these stations do not have the facility to quarantine live animals. 
Chile 18: 
In paragraph 122 it is stated that "As in the case of Imports of animal produc ts, imports of plant and 
plant products may only enter the Indian  Territory through designated ports." 
Question:  Chile would appreciate more informati on on the criteria used the designation of these 
ports. 
Reply:  For import of plant and plant products, entry points are notified keeping in view the 
demand from traders (exporters/importers), expe cted trade volume and availability of trained 
manpower. 
CHINA China 1: REPORT BY THE SECRETARIAT SECTION I:  ECONOMIC ENVIRONMENT:  (2) RECENT ECONOMIC DEVELOPMENTS:  
Paragraph 5 
"The IMF estimates India's GDP growth potential to be some 8.5% per year;  the authorities consider 
the post-global-crisis growth potenti al to be of some 8%.  Achievi ng this in a context of a lesser 
reliance on public consumption and investment w ill imply boosting private investment, which, over 
the medium run will require a simplification of the business and regulatory environment, as well as 
facing the challenges of improving infrastruc ture to overcome the current shortcomings." 
Does India agree with the conclusion contained in th e latter part of this paragraph?  If yes, how does 
India plan to boost private investment  and to improve infrastructure? 
Reply:  The Indian economy was among the first economies to recover from the 2008-09 global 
economic and financial crisis.  After recovering to a growth rate of 8.0% in 2009-10, it has 
registered a growth of 8.5% in 2010-11.  Prior to the global crisis the Indian economy had 
averaged growth in real GDP close to 9.0%.  The OECD's Second Economic Survey of India 
(June 2011) places India's growth potential cl ose to 9%.  Long run GDP growth would be 
around that and accordingly, the Twelfth Five Year Plan is likely to target 9% plus growth. 
The Government is in the process of implemen ting several real and financial sector reforms and 
this will further improve the economic environmen t in the country.  The regulatory architecture 
is being made more amenable for sustainable gr owth.  The policy environment has been made 
more conducive for the spread of public private partnership in the infrastructure sector. 
China 2: REPORT BY THE SECRETARIAT SECTION II:  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES:  (2) TRADE POLICY 
FORMULATION AND IMPLEMEN TATION:  Paragraph 14  WT/TPR/M/249/Add.1 
 Page 75 
 
 
  "India considers trade policy as an instrument to attain its overall economic policy objectives of 
growth, industrialization, development, and self- sufficiency.  In its 2004-09 Foreign Trade Policy 
(FTP), India highlighted the need to expand trade, se tting two objectives:  (i) to double India's share 
of global merchandise trade within five years;  and (ii) to use trade expansion as a policy to promote economic growth and employment ge neration.  In the context and aftermath of the global economic 
and financial crisis, India has sought to arrest and reverse the declining trend of exports, and to 
provide additional support especially to sectors h it badly by the global recession, as asserted in the 
2009-14 FTP.  India's short-term objective, in acco rdance with the latest FTP, is to achieve annual 
export growth of 15%;  the long-term objective is to accelerate the export growth rate to 25% per 
annum and double India's share in gl obal trade by 2020.  In order to meet these objectives, India 
implements a mix of policies including tax incen tives, export promotion (Chapter III(3)(vii), (viii), and 
(ix)), and credit facilitation (Chapter IV(3)(ii)).  The Government is attempting to improve the 
infrastructure to enhance exports, bringing down transaction costs, and providing full refunds of all 
indirect taxes and levies.  In the latest Budget, the authorities have furth er expressed the need for 
supporting wider export market and product diversification." 
Has India done any assessment regarding how it has  achieved the two objectives set in the 2004-2009 
FTP?  In order to further achieve the 2009-2014 FT P objectives, are there any useful experiences to 
draw from the implementation of the 2004-2009 FTP? 
Reply:  Despite being hit by the global econo mic recession, India's exports witnessed robust 
growth to reach a level of US$168 billion in 2008-09 from US$63 billion in 2003-04.  India's 
share of global merchandise trade was 0.83% in 2003;  it rose to 1.45% in 2008 as per WTO 
estimates.  The share of global commercial services export was 1.4% in 2003 which rose to 2.8% 
in 2008.  On the employment front, studies ha ve suggested that nearly 14 million jobs were 
created directly or indirectly as a result of augmente d exports in the last five years.  It is on the 
basis of these experiences that  India has decided that for the FTP (2009-2014), the Government 
would provide a policy environment through a mix of policy measures including fiscal 
incentives, institutional changes, procedural rati onalization, enhanced market access across the 
world and diversification of export markets. 
China 3: REPORT BY THE SECRETARIAT SECTION II:  TRADE POLICY REGIME:  FRA MEWORK AND OBJECTIVES:  (4) BUSINESS 
ENVIRONMENT:  Paragraph 26 
"At least 12 procedures are required to set up a bus iness in India (Table II.6).  These apply in most of 
India but may vary due to differences in rules at th e state level.  The World Bank estimates that it 
takes 29 days at a cost of some 56.54% of GNI per capita to start a business in India.  In 2010, India ranked 165 out of 183 economies for ease of starting a business, up from 168 in 2009." 
Will the Indian government further simplify the proce dure for setting up a business in India?  If yes, 
what kind of specific measures are under consideration? 
Reply:  The report of the World Bank is not rep resentative of the business environment across 
the country.  The sample size and the statistical un iverse are very limited in size.  Government is 
reviewing the FDI policy and regulations, on a continuing basis, with a view to their further liberalisation and increasing their investor-friendliness. WT/TPR/M/249/Add.1 
Page 76  
 
  China 4: 
REPORT BY THE SECRETARIAT SECTION II:  TRADE POLICY REGIME:  FRA MEWORK AND OBJECTIVES:  (4) BUSINESS 
ENVIRONMENT:  Paragraph 39 
"Most sectors are at least partially open to FD I, subject to a cap and specific conditions 
(Table AII.4).  However, the number of sectors/ac tivities in which FDI is prohibited increased during 
the review period (Table II.8)…" 
Could the Indian delegation please explain the rati onale behind this increased prohibition on the 
number of sectors/activities open to FDI? 
Reply:  The list of sectors prohibited under both the Foreign Exchange Management Act and 
FDI Policy as extant at the time of the earlie r review, was subsequently consolidated under the 
FDI policy, which is available in the public  domain.  Only one additional sector 
i.e. "manufacturing of cigars, cheroots, cigar illos and cigarettes, of tobacco or of tobacco 
substitutes" has since been added.  This ha s aligned the policy with Government's earlier 
decision of not granting industrial li censes for fresh capacity in the sector. 
China 5: 
REPORT BY THE SECRETARIAT SECTION II:  TRADE POLICY REGIME:  FRA MEWORK AND OBJECTIVES:  (4) BUSINESS 
ENVIRONMENT:  Paragraph 41 
"Despite its generally open policy thrust, India rest ricts investment from companies or nationals of 
certain countries. …" 
Could the Indian delegation please explain th e rationale behind the restrictions imposed on 
companies or nationals of certain countries?  How are these countries identified? 
Reply:  The policy on FDI has been steadily liberali sed and is reviewed from time to time, with a 
view to increasing its investor-friendliness.  In ke eping with this thrust towards an increasingly 
open policy environment, country-specific restri ctions on investment, which had earlier found a 
place under the policy on FDI, have al so been gradually reduced over time. 
China 6: REPORT BY THE SECRETARIAT SECTION III:  TRADE POLICIES AND PRACTICE S BY MEASURE:  (2) MEASURES DIRECTLY 
AFFECTING IMPORTS:  Paragraph 86 
"…Between January 2006 and 31 December 2010, I ndia initiated 209 anti-dumping investigations 
against 34 trading partners, compared with 176 re ported in its last Review (Chart III.4).  The 
products involved included chem icals and products thereof, plas tics and rubber and products thereof, 
base metals, and textiles and clothing…" 
Could the Indian delegation please comment on the factors for the surge of anti-dumping 
investigations initiated during this review period?  WT/TPR/M/249/Add.1 
 Page 77 
 
 
  Reply:  Anti-dumping investigations are carried  out strictly as per India's Customs Tariff 
(identification, assessment and collection of anti-dumping duty on dumped articles and for 
determination of injury) Rules, 1995 as amended and in conformity with the provisions of the WTO Agreement on implementation of Article VI of the GATT 1994. 
China 7: 
REPORT BY THE SECRETARIAT 
SECTION III:  TRADE POLICIES AND PRACTICE S BY MEASURE:  (2) MEASURES DIRECTLY 
AFFECTING IMPORTS:  Paragraph 119 
"In August 2006, the Central Government passed th e Food Safety and Standards (FSS) Act of 2006 to 
consolidate separate laws, and to establish the Food Safety and Standards Authority of India (FSSAI).  
According to the authorities, this law has been  notified (Chapter II(2)(i)).  However, the rules and 
regulations to operationalize this Act have not b een notified yet.  Once the Food Safety and Standards 
Regulations, 2010 and Rules 2011 are notified, the F ood Safety and Standards Act 2006 will be fully 
implemented and will repeal some of the separate laws." 
When are the rules and regulations to operati onalize the FSS Act expected to be notified? 
Reply:  Food Safety and Standards Rules 2011 an d Food Safety and Standards Regulation, 2011 
were notified vide Gazette  Notification dated on 5 May 2011 and 1 August 2011 respectively by 
Government of India and are available on FSSAI we bsite:  fssai.gov.in.  The FSS Act came into 
effect from 5 August 2011. 
China 8: REPORT BY THE SECRETARIAT 
SECTION III:  TRADE POLICIES AND PRACTICE S BY MEASURE:  (4) MEASURES AFFECTING 
PRODUCTION AND TRADE:  Paragraph 219 
"India became an observer to the WTO Agreement on Government Procurement in February 2010.  
According to the authorities, reforms to date have moved India towards a more transparent and 
competitive procurement framework. …" 
Does India have a timetable with regard to formally  starting the process of becoming a Party to the 
GPA? 
Reply:  Issue of India's accession to GPA is under examination.  At present, a firm commitment 
on this issue is not feasible. 
China 9: Report by the Secretariat (WT/TPR/S/249):
  II.  TRADE  POLICY  REGIME:   FRAMEWORK  AND  
OBJECTIVES:   (4) Investment Regime:   Paragraph 35: 
"Since 1 April 2010, foreign direct investment (FDI) has been regulated by the Consolidated FDI 
Policy issued by the Department of Industrial Policy and Promotion (DIPP)." 
"Sectors not listed in the Policy are 100% open to FDI under the automatic route subject to 
applicable laws, rules, and security conditions." WT/TPR/M/249/Add.1 
Page 78  
 
  Question:  Please explain whether th is policy is a simple alternative or a major policy adjustment.  
Please explain what the automatic route is. 
Reply:  Government undertook a major exercise on  consolidation of all existing regulations on 
FDI, with the aim of integration of prior regulations on FDI, contained in various sources, such as the Foreign Exchange Management Act (FEMA), Reserve Bank of India (RBI) circulars, 
various Press Notes etc., into one consolidated do cument, so as to reflect the current regulatory 
framework.  The final document in this regard was released on 31 March 2010.  Such consolidation is intended to ensure that all in formation on FDI policy is available at one place, 
which is expected to lead to simplification of the policy, as well as greater clarity and 
understanding of foreign investment rules amon g foreign investors and sectoral regulators. 
Investments can be made by non-residents thro ugh two routes:  the automatic route and the 
government route.  Under the automatic route, th e non-resident investor or the Indian company 
does not require prior approval of the Governme nt of India, through the FIPB (Foreign 
Investment Promotion Board), fo r the investment.  U nder the government route, prior approval 
of the Government of India, through the FIPB, is required. 
China 10: 
Report by the Secretariat (WT/TPR/S/249):III.  TRADE POLICIES AND PRACTICES BY MEASRUE:  
(2) Measures Directly Affecting Imports: 
Question: 
(1) Does India take such a view that due to dom estic judicial proceedings in the anti-dumping 
investigations the duration of temporary anti- dumping measures and the investigation period could 
exceed six months and eighteen months respectively?  Are these in conformity with Article 5.10, 
Article 7.4 and Article 7.5 of th e Agreement on Anti-dumping Measures? 
(2) Is there any such practice in anti-dumping inv estigations in Chinese pro ducts?  If so, please 
provide details. 
Reply (1):  India's Investigating Authority is aware of the time limit prescribed under the WTO 
Agreement and the Anti-dumping Rules of India.  However, due to judicial interventions in the 
case of imports of R 134a from China PR and Japan, exceptional circumstances were created 
due to which anti-dumping investigation coul d not be completed within the time frame. 
Reply (2):  There is no such general practice in India's anti-dumping investigations.  This case is 
the sole exception and full reasons and circumstan ces of the judicial interventions in this case 
leading to the extended time have been explaine d in the final findings issued by the DGAD.  A 
copy of the final findings can be downl oaded from the website www.commerce.nic.in. 
China 11: Report by the Secretariat (WT/TPR/S/249):III.  TRADE POLICIES AND PRACTICES BY MEASRUE:  
(2) Measures Directly Affecting Imports: 
Question:  Since 2008, India has initiated severa l anti-dumping investigations as well as taken 
anti-dumping measures against textile  products of China.  Please provide details on production and 
sales of the relevant products in India and the import and export data after anti-dumping measures 
were taken.  WT/TPR/M/249/Add.1 
 Page 79 
 
 
  Reply:  Data relating to production and sale of domestic industry and import and export data is 
given in the final findings issued by the investigating authority.  The information sought by China relates to period after the anti-dumping  measures were taken.  Generally such kind of 
data is not maintained by the investigating authority.  However, the concerned domestic 
industry has been requested to provide data rel ating to production and sale of the relevant 
products.  As regards import and export data, the same can be found at the website 
www.dgciskol.nic.in. 
China 12: 
Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question 4:  Please provide information concerning all policies supporting the textile industry issued 
by the Indian Central Government from 2008  to 2011 and the effects of these policies. 
Reply:  The Government introduced National Te xtile Policy in 2000 with a vision to develop a 
strong and vibrant textile industry.  Some of th e objectives of the policy are to facilitate the 
textile industry to attain and sustain a pre-eminent global standing in the manufacture and 
export of clothing;  liberalise controls and regul ations so that the different segments of the 
textile industry are enabled to perform in a greater competitive environment;  enable the industry to build world class state-of-the-art ma nufacturing capabilities in conformity with 
environmental standards, and for this purpose to  encourage both foreign direct investment as 
well as research and development in the sector. 
For further details refer www.texmin.nic.in. 
China 13: 
Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question:  Please provide details of the export control measures that the Indian Government has 
taken on cotton between 2009 and 2011, includi ng export price ceiling, export registration 
procedures, etc., as well as the reform process of th ese measures, if any.  Please explain the contract 
registration procedures for cotton and cotton yarn exporters at the Directorate General of Foreign 
Trade (DGFT).  Please also explain the Textile  Commissioner's policy orientation on cotton export 
between 2009 and 2011. 
Reply:  Export of cotton has been free since 2009 except during the period 
April 2010-August 2011 when cotton exports we re subjected to quantitative restrictions.  
Quantitative restrictions on export of cotton for the cotton year 2010-11 has been removed till 
30.09.2011, subject only to the condition of registr ation of contracts for export of cotton with the 
Directorate General of Foreign Trade, as per DGFT Notification No. 62 dated 02.08.2011.  The detailed procedure for registration of contract is given in the DGFT Notification No. 63 dated 
4 August 2011 and is available at website http://dgft.gov.in. 
China 14: 
Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question:  Please share with us I ndia's definition of courier service.  Please also provide information 
regarding approval procedures, qualification requirements and the current commercial presence of 
foreign investment in the courier service in India. WT/TPR/M/249/Add.1 
Page 80  
 
  Reply:  The Post Office Amendment Bill which deals with the subject is presently under the 
consideration of the Parliament. 
China 15: Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question:  Please describe the development of Indi a's radio and television industry.  What are the 
policies with respect to foreign investment, equity and acquisition as well as  broadcasting of foreign 
programs?  Please also describe the development of  India's cable network industry, including its 
relationship with the radio stations and television stations. 
Reply:  The Broadcasting industry in India is in  the realm of both public and private sector.  
The public sector broadcasting is the mandate of  All India Radio (AIR) and Doordarshan (DD) 
which are governed by Prasar Bharati (PB), an  autonomous body set up under Prasar Bharati 
Act 1990 a copy of which is available on the Ministry's website at www.mib.nic.in. 
Private television operators are not allowed to ente r in the terrestrial broadcasting sector as it is 
an exclusive domain of the public broadcaster i.e. Prasar Bharati, however companies can 
operate satellite television channels after obtain ing necessary permission from the Ministry of 
Information and Broadcasting as per the Policy Guidelines for Uplinking/Downlinking for TV 
Channels.  A copy is available on the Ministry's website.  Companies desirous of downlinking a foreign uplinked channel in India have to register their channel with the Ministry of Information and Broadcasting as per the Downlinking Guidelines. 
There is no restriction with regard to the telecast  of foreign content on channels permitted by 
the Government;  however the telecast content should be in accordance with the Programme 
Code as provided in the Cable Televi sion Networks (Regulation) Act 1995. 
So far 745 TV channels have been permitted out of which 366 are news and current affairs 
channels and 379 are non news an d current affairs channels.  Te leports (earth stations) are 
permitted as per the provisions contained in the uplinking guidelines. 
With regard to foreign investment policy in the broadcasting sector, it can be seen from the 
consolidated FDI Policy document available at www.dipp.nic.in. 
The Cable operations in India are governed by the Cable Television Networks (Regulation) Act, 
1995 and the Cable Television Networks Rules, 1994.  To operate a cable television network, the 
operator has to be registered with the registering  authority (head post-master of the head post 
office of the area) as a cable TV operator.  Ca ble services are predominantly analog in nature 
and nearly 68 million i.e. over 93 % of the cabl e homes receive TV signals though analogue 
mode.  Different categories of cable operators h ave developed over the years.  There are multi 
system operators (MSOs) who set up their own headend for reception, aggregation and 
retransmission of signals from the broadcasters an d further distribution to local cable operators 
(LCOs) or to the subscribers.  There are independent cable operators (ICOs) who have their 
own Headends and distribute directly to the subscribers only. 
The Ministry has embarked on an ambitious digitalization project for introducing digital 
addressable system in the cable TV sector with a sun set date for switching off analogue services 
by December 2014.  This will be implemented in  four phases covering all metros by March 2012.  WT/TPR/M/249/Add.1 
 Page 81 
 
 
  China 16: 
Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question:  Please provide information on the po licies and practices of India in new audio-visual 
media such as webcast, IPTV and mobile TV, partic ularly with respect to market access, content 
requirements for programs and supervision. 
Reply:  Unified access service provider licensee can provide voice, data and video including 
IPTV and mobile TV.  Internet service provid er may also provide IPTV.  However, content 
requirements for programs are governed by Mi nistry of Information and Broadcasting 
guidelines.  The Government on 08.09.2008 has put in place a policy on IPTV enabling another 
mode of distribution of permitted satellite TV ch annels the telecom and cable networks.  This 
segment is still nascent in India and Industry esti mates suggest that there will be less than 
one million IPTV users across Indi a.  A copy of the Policy for IPTV is available on this 
Ministry's website at www.mib.nic.in. 
This Ministry of I and B has not yet framed a Policy on Mobile TV.  The Ministry in 
consultation with the stakeholders is working presently on laying down a suitable policy 
framework for enabling the private players to pr ovide mobile TV services through terrestrial 
route. 
Regulation of internet is the domain of th e Ministry of Communications and Information 
Technology.  Web casting issues are therefore governed by them. 
China 17: 
Report by the Secretariat (WT/TPR/S/249):SEC TION IV:  TRADE POLICIES BY SELECTED 
SECTORS: 
Question:  Does India plan to gradually rel ax restrictions on visa for foreign labours? 
Reply:  No such proposal is currently under consideration. 
China 18: 
Report by the Government of India (WT/TPR/G/249):   Paragraph 60: 
"The Micro, Small and Medium Enterprise Development (MSMED) Act 2006 redefined micro, small 
and medium enterprises on the basis of the level of investment." 
Question:  Could the Indian delegation please share with  us what kinds of help have been provided to 
micro, small and medium enterprises to enhance th eir global competitiveness?  How effective are 
they? 
Reply:  The Micro, Small and Medium Ente rprises Development (MSMED) Act, 2006, which 
came into force in 2006, provides the first ever-leg al framework for recognition of the concept of 
"enterprises" (comprising both manufacturing  and services).  Apart from clear and more 
progressive classification of each category of enterprises, the Act provides for a statutory consultative mechanism at the national level with wide representation of all sections of 
stakeholders, particularly three classes of ent erprises, and with a wide range of advisory 
functions.  Notification of schemes/programmes for this purpose, progressive credit policies and WT/TPR/M/249/Add.1 
Page 82  
 
  practices, preference in government procurements  to products and services of the micro and 
small enterprises and more effective mechanisms for mitigating the problems of delayed payments to micro and small enterprises among ot hers have been provided in this Act.  In 
addition, the Government announced the "P ackage for Promotion of Micro and Small 
Enterprises" in parliament on 27.2.2007, which,  inter alia, provides for legislation, credit 
support, fiscal support, support for clust er based development, technology and quality 
upgradation, marketing, entrepreneurial and ma nagerial development and strengthening of 
data base for MSME sector.  Government has also kicked off National Manufacturing 
Competitiveness Programme to enhance the competitiveness of the MSMEs. 
China 19: 
REPORT BY THE SECRETARIAT:  SECTION II:  TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) INVESTMENT REGIME 
Question 19:  Please explain the Indian policies on establishi ng representative offices (not for 
operation or investment) by foreign companies in India.   What are the specific application procedures 
and related time limit?  Please also provide info rmation on other countries' representative offices in 
India. 
Reply:  A foreign entity wishing to establish a representative office or a liaison office in India is 
required to apply through an authorised dealer bank to the Reserve Bank of India for approval.  The RBI may consult the Government. 
The permission is granted for a period of three years subject to renewal.  However, no extension 
would be considered for LOs of entities which are NBFCs and those engaged in construction 
and development sectors (excluding  infrastructure development comp anies).  Upon expiry of the 
validity period, these entities have to either clos e down or be converted into a joint venture 
(JV)/wholly owned subsidiary (WOS), in conformi ty with the extant foreign direct investment 
policy. 
China 20: 
REPORT BY THE SECRETARIAT:  SECTION II:  TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) INVESTMENT REGIME 
Question 20:  Please explain the detailed policies and regulations for foreign information technology 
service companies to set up branches in India or to  form joint ventures with Indian companies to 
undertake outsourcing business. 
Reply:  For setting up of IT/ITES companies,  100% FDI is permitted on automatic route.  
Setting up of branch office for rendering services in IT and development of software in India is 
permissible with the approval of Reserve Bank of India.  Joint ventures are also permitted under the policy with the approval of Government of India.  
China 21: REPORT BY THE SECRETARIAT:  SECTION II:  TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) INVESTMENT REGIME 
Question 21:  Please provide the latest changes in  the measures adopted by India in recent years for 
encouraging or restricting FDI.  WT/TPR/M/249/Add.1 
 Page 83 
 
 
  Reply:  The latest version of the updated Circular on FDI policy (i.e. "Circular 1 of 2011"), 
effective from 1.4.2011, contained a number of significant policy changes, including: 
(i) pricing of convertible instruments upfront, on  the basis of a conversion formula, instead 
of price;  
(ii) inclusion of fresh items for issue of sha res against non-cash considerations, including 
import of capital goods/machinery/equipm ent and pre-operative/pre-incorporation 
expenses;  
(iii) removal of the condition of prior approval in  case of existing joint ventures/technical 
collaborations in the "same field";  and 
(iv) development and production of seeds and plan ting material, without the stipulation of 
having to do so under "controlled conditions". 
China 22: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (1) INTRODUCTION:  Paragraph 2 
"To determine the 'effective' applied tariff rate  (i.e. basic duties and other customs duty) on a 
particular product, separate customs and excise tax sche dules must be consulted, which adds to the 
complexity of the tariff." 
Question 22:  Please provide more informati on on "separate customs and excise tax schedules" and 
how they are applied in different situations. 
Reply:  The tariff structure has been simplified co nsiderably in recent years.  However, this is 
an on-going process.  The present duty structu re is simple though there are certain exemptions. 
Basic customs duties are applied as per the rat es in the Schedule to the Customs Tariff Act, 
1975 read with any exemption notification.  The rates of additional customs duty, equivalent to the excise duty on domestically produced goods, is as per the schedule to the Central Excise 
Tariff Act, 1985 read with any exemption notificati ons.  Both the tariff schedules are based on 
the Harmonized System of Nomenclature and adopt eight-digit tariff headings. 
China 23: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES  DIRECTLY AFFECTING IMPORTS: 
Question 23:  In India, the tariff rate for passenger cars could be as high as 100% while the average 
rate is 56.7%, both being higher than for other types of cars.  In view of the rapid development of the 
auto industry in India in recent years, is India co nsidering reducing the tariff rates for passenger cars 
in order to make the automobile industry more open and competitive? 
Reply:  There is no such proposal at present. China 24: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  Paragraph 8: WT/TPR/M/249/Add.1 
Page 84  
 
  "Importers (Indians and foreign nati onals), with a few exceptions, must register with the Directorate 
General of Foreign Trade (DGFT) and obtain an impor ter-exporter code (IEC) number to be able to 
import commercially." 
Question 24:  Please clarify which of the followi ng understandings best describes how importers can 
be allowed to engage in import and export business:  1) Registeri ng with the DGFT and obtaining an 
IEC number;  2) Registering with the DGFT and then  registering with the customs to obtain another 
code. 
Reply:  No export or import shall be made by any person without an IEC number unless 
specifically exempted under paragraph 2.8 of th e Handbook of Procedure related to the Foreign 
Trade Policy.  These publications are available in the DGFT website http://dgft.gov.in.  Once 
IEC is received, the same becomes applicable fo r import and export cl earance at the customs 
end. 
China 25: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  Paragraph 12 
"In addition, importers with a good track record and complying with qualifying criteria, are entitled 
to be accredited for special clea rance procedures under the Accredited Client's Programme (ACP).  
As at early 2011, 250 ACP importers are allowed to self-assess their consignm ents with no need for 
examination, in line with India's commitments to simplify and harmonize Customs' procedures under 
the revised Kyoto Convention." 
Question 25:  Please clarify whether the ACP was formulated in accordance with the WCO's AEO 
system and make further elaborations on the ACP, in cluding its criteria, accredited procedures and 
relevant facilities. 
Reply:  The ACP is an equivalent of the WCO's AEO programme. The importers with clean compliant track record are identified by this programme and their 
imports are exempted from normal customs cont rol measures.  Presently, 279 importers avail of 
this facility and they contribute to nearly 13% of  the total imports.  The imports of ACP clients 
are exempted from document verification (a ssessment) and goods verification (examination). 
The importers desirous of availing the facility as  "accredited clients" are required to apply for 
registration.  Importers meeting the qualifying criteria are eligible under the programme.  Secretariat's report at page 37 provides the list of qualifying criteria.  Customs Circular Nos. 42/2005 dated 24.11.2005 and 29/2010 dated 20.08.2010 provide the details of the 
programme as also the qualifying crit eria (may be viewed at www.cbec.gov.in). 
China 26: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  Paragraph 22: 
"The Central Board of Excise and Customs is authorized, by notification in the Gazette of India, to fix 
'tariff values' (reference prices) for any  type of imported (exported) good." 
Question 26:  Please explain the consistency betw een such practice and Article 1.1 of the Agreement 
on Customs Valuation.  WT/TPR/M/249/Add.1 
 Page 85 
 
 
  Reply:  Under Section 14(2) of the Customs Act,  1962 tariff values can be fixed for any class of 
imported goods or export goods having regard to th e trend of value of such or like goods.  Tariff 
values are currently being fixed only in respect of palm group of oils, crude soybean oil, poppy 
seeds and brass scrap.  These values are fixed on th e basis of prevailing international prices of 
these goods as observed from the various reputed international journals and other publications. 
The tariff values are neither arbitrary or fictit ious values nor minimum customs values.  As 
these values on identified goods are computed based on the prevailing international prices, that is to say, the prices at which these goods are sold  or offered for sale in the ordinary course of 
international trade under fully co mpetitive conditions, such values are not inconsistent with 
Article VII of the GATT 1994.  These values are in fact floating values and are frequently 
reviewed and revised so as to keep them closer to the transaction values under Article 1.1 of the 
CVA.  
China 27: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES DIRECTLY AFFECTING IMPORTS:  Paragraph 26: 
"India does not apply non-preferential rules of origin." 
Question 27: 
Please clarify (1) According to which rules does India issu e the certificate of origin for MFN imports? 
Reply:  India does not issue certificate of origin  for its MFN imports.  It only does so for its 
exports. 
(2) According to which rules does India determine the origin of goods under the circumstances where 
certificate of origin is required to be submitted as described in the paragraphs of "export incentive 
scheme" and "Certificates of registration and import permits"? 
Reply:  No certificate of origin is required to be submitted under any of the export incentive 
schemes under the Foreign Trade Policy or for impo rt permits or certificates of registration. 
China 28: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES  DIRECTLY AFFECTING IMPORTS: 
Question 28:  According to our exporters, the admin istration system for imported goods is complex in 
India.  Mandatory accreditation requirement is  implemented on more than 100 products and foreign 
manufacturing companies are required to pay high  amount of accreditation fees.  Such practices 
restrict trade to a large extent.  Could India please provide an explanation? 
Reply:  India prescribes mandatory accreditation re quirement on only a few products to ensure 
minimum quality requirements as allowed under the WTO agreements.  The fee charged is 
proportionate to the services rendered. WT/TPR/M/249/Add.1 
Page 86  
 
  China 29: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES  DIRECTLY AFFECTING IMPORTS: 
Question 29:  It is reported that India lists Chi na as a "sensitive country", and takes legal measures to 
restrict import of Chinese power equipment.  Could India confirm this news?  And if so, please 
explain its legal basis. 
Reply:  Countries are not treated as "sensitive", but  specific products are.  It is not clear what 
the source of the above statement is.  These reports  are not true as China is the largest supplier 
of Power equipment to India.  Any import r estriction is on MFN basis and are meant to 
promote import of quality materials/equipment and products which are not sensitive from the 
security point of view.  These restrictions are covered under Art XX of GATT. 
China 30: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) MEASURES  DIRECTLY AFFECTING IMPORTS: 
Question 30:  According to our exporters, India applies two different set of policies in telecom 
equipment import for Chinese suppliers and suppliers fr om some other countries.  Export of Chinese 
equipment to India is often restricted on secur ity grounds.  Could India please confirm the above 
statement?  If so, what is the basis for the Indian  Government to adopt two sets of policies on security 
review concerning import of telecom equipment?  Is this in conformity with the WTO non-discrimination principle?  Please provide data of telecom equipment import from China as well 
as from other countries.  How will the Indian Go vernment ensure policy stability and transparency in 
the future? 
Reply:  The above statement, based on account s of exporters does not seem to be factually 
correct as China is the leading supplier of teleco m equipment to India.  Restriction on imports 
on telecom equipment, if any, has been on secu rity grounds.  This is not inconsistent with 
Article XX of GATT. 
China 31: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) MEASURES DIRECTLY AFFECTING EXPORTS 
Question 31:  It is reported that India plans to reform its VAT system in respect of goods and labour 
service.  Please provide relevant background informa tion and describe the progress of this reform.  
Please also provide information on India's expor t rebate system in respect of goods and labour 
service. 
Reply:  India proposes to introduce a comprehensive Goods and Service Tax to replace the 
existing system of domestic taxes both at th e Centre (excise duties and services tax) and the 
States (state VAT, sales tax etc.).  Since India is a multi- party and a federal country, discussions 
are underway between the central and States govern ments to finalize the design and structure 
of this tax.  In the meanwhile, the Central Government has introduced a Constitution Amendment Bill in Parliament in  February2011 to enable the two levels of Government to levy 
this tax.  WT/TPR/M/249/Add.1 
 Page 87 
 
 
  China 32: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) MEASURES DIRECTLY AFFECTING EXPORTS:  Paragraph 135 
"Export prohibitions apply mainly for environmental, food-security, marketing, pricing, and domestic 
supply reasons;  and to comply with international treaties." 
Question 32:  Please explain how export prohibitio ns for environmental, food-security, marketing, 
pricing, and domestic supply reasons are applie d in a way consistent with WTO rules? 
Reply:  In the Foreign Trade Policy, the prohibition and restriction on exports are given in 
Schedule II of ITC(HS) Classification of Export  and Import items.  From the entries given 
under various chapters of Schedule II, it would be clear that the restrictions are imposed on the basis of environmental, wild life, food security , and international treaties and with respect to 
special chemicals, organisms, materials, equipment and technology (SCOMET).  Of late, restrictions have been imposed on export of certain commodities like pulses etc., in view of food security reasons.  The WTO Agreements permit a Member to maintain such prohibitions and 
restrictions. 
China 33: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) MEASURES DIRECTLY AFFECTING EXPORTS:  Paragraph 135 
Question 33:  In recent years, the Indian Government c onstantly adjusts its policy on iron ore export.  
Could India please share its short and medium term policy orientation on iron ore export? 
Reply:  Export policy for iron ore has not under gone changes as reported.  Export of iron ore 
with iron content below 64% is free subject to an ad valorem  duty of 20% both for lumps and 
fines, which was rationalized from earlier 15% and 5% respectively. 
China 34: REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) MEASURES DIRECTLY AFFECTING EXPORTS:  Paragraph 135 
Question 34:  Export-oriented enterprises all over  the world have been heavily affected by the 
international financial crisis and the European sover eign debt crisis.  A large number of small and 
medium-sized enterprises went bankrupt.  Under su ch circumstances, what kind of financial measures 
has the Indian Government taken to guide the trans formation and industry upgrade of export-oriented 
enterprises? 
Reply:  India was not as gravely affected by the international financial crisis as many other 
Members.  Targeted credit at concessional ra te for a few vulnerable sectors was offered for 
limited period to export enterprises (which have since been withdrawn). 
China 35: 
REPORT BY THE SECRETARIAT:  SECTION III:  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTION  AND TRADE:  (vi) Intellectual property 
rights 
Question 15:  Please describe how India has enforced trademark protection in recent years.  How 
does India protect well-known trademarks? WT/TPR/M/249/Add.1 
Page 88  
 
  Reply:  The Trade Marks Act, 1999 provides a very  strong law for effective enforcement.  The 
trade marks enforcement remedies available in India includes civil (infringement and passing 
off remedies), criminal remedies, administrative  action and other measures which can all be 
pursued simultaneously.  The Act specifically pr ovides for disposal of infringing material 
including all tools, plates, dyes used for manufac turing the pirated goods.  Indian courts have 
also granted injunction in trademark infringeme nt cases.  Section 134 provides that suits for 
infringement of a registered trade mark could be instituted before a district court having 
jurisdiction.  Sub-section (2) of section 134 enacts that infringement suit can be filed at the option of the plaintiff at the place where he re sides or carries on business.  This is a departure 
from the normal practice under the Civil Proce dure Code where civil suit can be filed only 
where the defendant actually resides or carries on business or personally works for gain.  
Courts in India routinely order damages and ord er preservation of assets pending trial in many 
cases. 
Criminal remedies are also available for trade mark infringement.  A complaint has to be filed 
before the magistrate for this purpose for falsific ation of trade mark which is a criminal offence 
under chapter XII of the Trade Marks Act, 1999 .  In fact offences under section 103, 104 and 
105 have been classified as cognizable offence under the Trade Mark Act meaning a police officer can arrest an accused without a warrant. 
Attention may also be invited to section 115(4)  of the Trade Marks Act, 1999 which provides as 
follows:   
"Any police officer not below the rank of deputy superintendent of police or equivalent, may, if 
he is satisfied that any of the offences referred to in sub-section (3) has been, is being, or is likely 
to be, committed, search and seize without warrant the goods, die, block, machine, plate, other 
instruments or things involved in committing the offence, wherever found, a nd all the articles of 
seized shall, as soon as practicable, be produced before a judicial magistrate of the first class or 
metropolitan magistrate, as the case may be:  
PROVIDED that the police officer, before maki ng any search and seizure, shall obtain the 
opinion of the Registrar on facts involved in th e offence relating to trade mark and shall abide 
by the opinion so obtained." 
Further, many Indian specific organizations Indian Motion Pictures Association, NASSCOM 
etc. fight trademark counterfeit and copyright piracy by creating awareness and also by 
cooperation with the enforcement agencies such as the police.  Special IP cell have been set up in 
states and suo moto  raids are carried out on the basis of information provided by the industry 
organizations. 
IPRs are private rights.  The onus is theref ore on the IP owners to seek protection and 
enforcement through the established legal regime. 
Protection of well-known trade marks in India: 
Article 16(1) and (2) of TRIPS Agreement contains obligations on member states to give 
effective protection to well-known marks.  Pursuant thereto India has provided statutory recognition to this in terms of section 2(1)(zg) which defines a well-known trade mark and provisions of section 11(6) to 11(10) which provi des detailed guidelines for determining that a 
trade mark is well known and the factors to be  taken into account for such determination. 
However, even before the Trad e Marks Act, 1999, courts in India has through judicial 
pronouncement recognized and adequately protect ed the well-known trade marks in India.  To  WT/TPR/M/249/Add.1 
 Page 89 
 
 
  cite some examples:  (a) the Registrar in Sund er Paramand vs. Caltex (1982 PTC) refused an 
application for the registration of the trade mark CALTEX in respect of watches in class 
14 which was upheld by the High Court even thou gh Caltex was well known only in respect of 
petroleum products;  (b) DUNHILL, a well-known ma rk in respect of cigarettes, and which was 
sought to be registered in respect of cycle part s was refused registration by the Registrar;  
(c) FIAT, a well-known trade mark in respect of  automobiles was protected by refusal of 
registration of identical mark in respect of hosi ery.  Also, an application to register the trade 
mark "FIAT" in respect of electric transformers, electric cut outs, etc. in class 9 was refused by 
the Registrar on the ground that the mark was a well-known mark in respect of road motor 
vehicles. 
Sub-section (6) of section 11 lays down the factors wh ich the Registrar shall take into account in 
determining whether a trade mark is well known trade mark or not.  It mandates that the Registrar "shall" take into account – any fact which he considers relevant – including: 
 knowledge or recognition of that mark in the relevant section of the public, including 
knowledge in India obtained as a result of promotion of the trade mark; 
 duration, extent and geographical area of use of that mark; 
 duration, extent and geographical area of any promotion of the mark, including 
advertising or publicity and presentation, at fairs or exhibitions; 
 the duration and geographical area of any registration of or any publication for 
registration of that mark, to the extent they  reflect the use or recognition of the mark; 
 record of successful enforcement and the exte nt to which the mark has been recognized 
as a well-known mark by any court or Registrar. 
The onus is on the proprietor of the mark to establish by evidence that the mark is well known. 
China 36: REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
AGRICULTURE 
Question 36:  Is there any adjustment to the curren t agricultural policy objectives in the twelfth 
five-year plan of India?  If yes, please elaborate. 
Reply:  The Twelfth Five Year Plan of India, to  be applicable for the period 2012-2017 is still to 
be prepared and adopted.  
China 37: 
REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
OTHER SECTORS 
Question 37:  Please describe the policies, me asures and specific practices adopted by India to 
promote software and information technology service companies, especially small and medium-sized 
companies among them. 
Reply:  The Government of India is implemen ting the Software Technology Parks (STP) scheme 
for promoting software and information techno logy service companies which has been widely WT/TPR/M/249/Add.1 
Page 90  
 
  successful and the exports made by STP registere d units have grown manifold over the years.  
The STP scheme is meant for all IT/ITES co mpanies and is applicable to all SMEs. 
China 38: REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
OTHER SECTORS 
Question 38:  Please describe the development of India's software and information services 
outsourcing industry, including the scale, internatio nal market share, brand enterprises, and the level 
of technology.  Please also describe the lat est policy development of India in this field. 
Reply:  Information technology/information te chnology enabled services sector (IT/ITES) has 
played a vital role in acquiring a brand equity for the nation and has contributed immensely to 
the increase in our GDP, employment and export s.  The IT/ITES exports have grown from a 
mere $330 million in 1993-94 to $12.8 billion in  2003-04 and to a staggering $59 billion in 
2010-11.  This sector accounts for over 5% of India's GDP, and employs 2.54 million professionals directly and another 8.3 million people  indirectly.  Today, India is regarded as the 
premier destination for the global sourcing of  IT/ITES.  A majority of the Fortune 500 and 
Global 2000 corporations are sourcing IT/ITES from India.  Further most of the Capability 
Maturity Model (SEI-CMM) Level 5 firms are based in India. 
The Indian IT sector has witnessed a mushroomin g of RandD labs (initially captive units of 
MNC companies) in the past five years employ ing the best of our local talents, which has 
resulted in seeding intellectual capital for use do mestically and by SME Indian companies.  The 
industry segment that works in the area of embedded systems has also moved up the value chain 
by seamless integration in providing turnkey solutions comprising RandD, product 
development (hardware and software), system integration, system testing, warranty/maintenance.  Similarly in the semico nductor space, IT companies have moved up the 
value chain from merely offering design services  to acquiring status of fab-less semiconductor 
companies where the companies are involved in creati on of IP, design, assembly and testing and 
shipping a full product/solution to customers. 
IT-ITES sector is totally deregulated and 100%  FDI is permitted under the automatic route. 
China 39: REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
OTHER SECTORS 
Question 39:  It is reported that the Indian  Government recently launched the Jawaharlal Nehru 
National Solar Mission which plans to ban the import of solar energy equipment.  Is there a clear 
timetable for the entry into force of this mission?  How does this policy comply with WTO rules and 
India's WTO commitments?  Does India have any special requirements for foreign companies to invest in the solar energy industry? 
Reply:  India's Jawaharlal Nehru National Solar Mission (JNNSM) does not ban the import of 
solar energy equipment.  Rather this ambitious project throws open immense investment 
opportunities both foreign and domestic.  The deta ils of this programme can be found at website 
www.mnre.gov.in.  This programme is compliant  with India's obligations under WTO.  As 
regards policy for foreign investments more deta ils can be found at the website of Department 
of Industrial Policy and Promotion:  www.dipp.nic.in.  WT/TPR/M/249/Add.1 
 Page 91 
 
 
  China 40: 
REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
OTHER SECTORS 
Question 40:  Please describe the recent developmen t of India's steel industry, including the output, 
capacity, consumption, import and export of major steel products. 
Reply:  Indian steel industry in April- July 2011:  performance summary.   
(i) Crude steel:  during April-July 2011, crude  steel production was 23.45 million tonnes 
(mt).  Crude steel capacity during 2010-11 stood at 78 mt (prov.) 
(ii) Total finished Steel:  the following is a detaile d status on the performance of Indian steel 
industry (in terms of total finished steel) during April-July 2011, based on provisional 
data released by JPC.  
Total finished steel (alloy + non-alloy) India – total finished steel:  April-July 2011 (prov) 
Qty (mt) % change* 
Production  23.09  10.1 
Import  1.88 (-)49  
Export  1.68 96 
Consumption  22.22  1.6 
* Over same period of last year.  
Source:   JPC.  
Overall trends: 
 Production for sale of total finished st eel at 23.09 million tonnes (mt), registered a 
growth of 10.1% during April-July 2011. 
 Imports of total finished steel at 1.88 mt in April-July 2011, declined by 49%.  
 Exports of total finished steel at 1.68 mt in April-July 2011, rose by 96%.  
 India remained a net importer of total finished steel, during April-July 2011.  
 Real consumption of total finished steel at 22.22 mt grew by 1.6% in April-July 2011.  
China 41: REPORT BY THE SECRETARIAT:SECTION IV:  TRADE POLICIES BY SELECTED SECTORS:  
OTHER SECTORS 
Question 41:  Please provide deta ils and reasons of restrictions in  import and export of steel products 
since 2009. 
Reply:  There have been no restrictions on export  of steel products over the years.  Licensing 
requirement was imposed on import of a few steel items namely, "HR coil (7208)" and "other 
articles of iron and steel (73269099)" on 21 November 2008 and have been withdrawn on 
8.1.2010 and 8.7.2010 respectively.  These were shor t term measures taken at the time of global 
slowdown and the sudden increase in imports. WT/TPR/M/249/Add.1 
Page 92  
 
  China 42: 
REPORT BY INDIA:  Paragraph 8 
"While the growth rates of agriculture and indust ry have fluctuated, the servic es sector has been the 
engine of India's economic growth.  With a share of more than 55% of the GDP and an annual 
growth rate of over 10%, this sector contri butes about a quarter of the total employment." 
Question 42:  Please describe the main policies and measures for promoting the services industry in 
India. 
Reply:  Services sector has indeed played an in creasingly important role in India's economic 
growth.  In order to promote further growth of this sector the Government has announced 
measures from time to time in sectors such as tourism, shipping, IT and ITeS, ports, R&D etc.  
Some of the measures announced are as follows: 
Tourism sector 
Along with the continuation of promotional efforts under the Incredible India campaign, the 
Government has introduced the Visa-on-Arrival (VoA) scheme for tourists from five countries, 
namely Singapore, Finland, New Zealand, Luxemb ourg, and Japan on a pilot basis with effect 
from 1 January 2010.  During January–December  2010, a total of 6549 VoAs were issued under 
this scheme.  The VoA scheme has been extended to the nationals of Cambodia, Vietnam, Laos, 
and Philippines with effect from 1 January 2011 and Myanmar and Indonesia from 25 January 2011. 
Shipping sector 
In order to facilitate growth of the Indian shipping industry and make it competitive at 
international level, the government has initiate d several measures like bringing acquisition of all 
types of ships under open general licence;  allowing 100% FDI in the shipping and port sectors;  
cargo support to Indian shipping lines by pr oviding chartering wing (transchart) of the 
Ministry of Shipping;  introducing tonnage tax system during 2004-05;  formulating a Cruise 
Shipping Policy of India in June 2008;  and est ablishing the Indian Maritime University in 
November 2008. 
Port services 
Some recent developments in the port services sector include the finalization of a model 
concession agreement for awarding projects on pub lic private partnership (PPP) basis in 2008 
and introduction of web-based port community systems. 
Storage services 
Major policy initiatives taken recently by the G overnment include construction of godowns 
under the seven-years guarantee scheme of the Government of India, most of them being managed by the CWC or SWCs;  permission of  up to 100% FDI in the construction of 
warehousing infrastructure;  and constructi on of warehouses under the Grameen Bhandaran 
Yojana of NABARD and the Rastriya Krishi Vikas Yojana. 
Real estate services 
The policy measures include permission for FDI in  townships, housing, built-up infrastructure, 
and construction development projects, includi ng SEZs, under the automatic route, which has 
attracted foreign investors into this sector.  WT/TPR/M/249/Add.1 
 Page 93 
 
 
  IT and ITeS 
The Government has been supporting the IT and ITeS sector in many ways including support 
for development of state of the art infrastructure. 
RandD Services 
The Government has taken many measures to encourage RandD like enhancing the weighted 
deduction on expenditure incurred on in-house RandD from 150% to 200% for the 
manufacturing business and from 125% to 175% for payments made to national laboratories, research associations, colleges, universities, and other institutions for scientific research, and 
allowing a 125% weighted deduction for approv ed associations engaged in research in social 
sciences or statistical research, besides exempt ions in the income from approved research 
associations in the Budget 2010-11. 
China 43: 
REPORT BY INDIA:  Paragraph 66 
"India has put in place a policy for developing sp ecial economic zones (SEZs), with the main 
objectives of development of infrastructure faciliti es, generation of additional economic activity, 
promotion of exports of goods and services, pr omotion of investment from domestic and foreign 
sources and creation of employment opportunities." 
Question 43:  Please explain in more detail the policy for SEZs. 
Reply:  The main objectives of the SEZ Scheme are: 
(a) generation of additional economic activity; 
(b) promotion of exports of goods and services; 
(c) promotion of investment from domestic and foreign sources; 
(d) creation of employment opportunities; 
(e) development of infrastructure facilities. 
Special economic zones (SEZs) and SEZ units ar e governed under the provisions of SEZ Act, 
2005 and SEZ Rules, 2006, which may be viewed on www.sezindia.nic.in. 
COLOMBIA  
SECRETARIAT REPORT (WT/TPR/S/249) 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
(a) Registration and documentation 
Colombia 1: Paragraph 12 of the Secretariat Report states that  importers with a good track record may apply for 
accreditation under the Accredited Client's Programme (ACP). WT/TPR/M/249/Add.1 
Page 94  
 
  1. Would India please specify what obligations th is entails and what are the benefits granted to 
such importers?  What steps and other measures have been taken or are being envisaged by India in 
order to improve and simplify customs pro cedures for the purposes of trade facilitation? 
Reply:  The importers with clean compliant tr ack record are identified by the ACP programme 
and their clearances are exempted from normal  customs control measures.  Other than the 
compliance with all Custom laws, there is no other obligation for the Accredited Client's 
Programme (ACP) clients.  The imports of ACP clients are exempted from document verification (assessment) and goods verification (examination).  The containers belong to ACP 
importers are delivered directly at the port/CFS itself. 
The importers desirous of availing the facility as "Accredited Clients" are required to apply for 
registration.  Importers meeting the qualifying criteria are eligible under the programme.  
Secretariat's report at page 37 provides the list of qualifying criteria.  Customs Circular Nos. 42/2005 dated 24.11.2005 and 29/2010 dated 20.08.2010 provide the details of the programme as also the qualifying crit eria (may be viewed at www.cbec.gov.in). 
Other Measures for trade facilitation include in troduction of "Self-Assessment" for importer 
and exporters: 
(i) Self-Assessment has been introduced fo r both import and export clearance. 
(ii) A risk management system is in use for selective scanning of containers. 
(iii) RMS for customs clearance of courier cargo and exports will be introduced shortly. 
(vi) Import prohibitions, rest rictions, and licensing 
(b) Import licensing 
Colombia 2: 
According to paragraph 59 of the Secretariat Report:   "Licences are subject to a licence application 
fee, which varies according to the c.i.f. value of imports." 
2. Is this fee consistent with the provisions of Article VIII:1(a ) of the GATT and Article 3.2 of the 
Agreement on Import Licensing Procedures? 
Reply:  The actual cost of services rendered is mu ch higher than the existing application fee.  
However, the application fee is being reviewed. 
Colombia 3: According to paragraph 62 of the Secretariat Repor t, imports of certain goods are restricted (i.e. 
subject to a licence) when the c.i.f. pri ce is lower than the minimum import price. 
3. Is the importer given the opportunity to prove th e amount paid or payable?  If it is shown that 
the value to be declared is act ually that which has been negotiated - whether paid or payable, must 
the importer in any event adjust this value to the mi nimum price in order to obtain the licence?  If 
determination of the customs value of such goods is based on minimum prices, would this not be 
inconsistent with Article 7 of the Agreement on Customs Valuation?  WT/TPR/M/249/Add.1 
 Page 95 
 
 
  Reply:  All goods imported into India are val ued for customs purposes under section 14 of the 
Customs Act, 1962 read with the Customs Valuation Rules, 2007.  Under the said Rules, there is 
no provision for imposing minimum pri ces for the purpose of customs valuation. 
The import of the afore-cited provision (ref: pa ragraph 62) is that imports above a CIF price 
are free and imports below the CIF price are restricted. 
(viii) Contingency measures 
(a) Anti-dumping and countervailing measures Overview 
1. Representativeness of the domestic i ndustry for initiating an investigation 
Colombia 4, 5: 
According to paragraph 73, page 60, of the Secretar iat Report:  "Anti-dumping investigations may be 
initiated by the Directorate General of Anti-Du mping and Allied Duties (DGA D), in the Department 
of Commerce, upon a written applicat ion by or on behalf of domestic industry, or on its own initiative 
if there is justification to launch an investigation.  An application is scrutinized by the DGAD to 
ensure it is adequately documented and provides sufficie nt evidence for initiation.  If the evidence is 
not adequate, a 'deficiency letter' is issued, normally  within 20 days of the receipt of the application.  
For an investigation to be initiated, the investigati on petitioners must account for at least 25 per cent 
of total domestic production of the like article ;  and the domestic producers expressly supporting the 
application must account for more than 50 per cent of the total production of the like article by those expressly supporting and opposing the application." 
With reference to Article 5.4 of the Anti-Dumpin g Agreement, Colombia wi shes to ask India the 
following questions: 
4. At what point in time does the Investigating Authority determine that the application has been 
made by the domestic industry? 
Reply:  This determination is made before th e initiation of anti-dumping investigation. 
5. In order to determine serious injury for th e purposes of initiating an investigation, does the 
Investigating Authority make its determination ba sed on the economic and financial figures presented 
for 25 per cent or for 50 per cent of domestic production?  Does representativeness of 25 per cent of 
the domestic industry at the time of initiating the inves tigation apply solely in the case of fragmented 
or atomized industries, or is this  a provision of a general nature? 
Reply:  As per the Anti-Dumping Agreement and India's Anti-dumping Rules, anti-dumping 
investigation can be initiated where the domest ic producers account for not less than 25% of 
total production of the domestic like article.  It is the endeavour of the Investigating Authority 
to make the injury determination based on examination of as large number of domestic 
producers as possible.  The representativeness of 25% of the domestic industry applies to all 
types of industry in accordance wi th the Anti-dumping Agreement. 
2. Review of the margin of dumping 
Colombia 6, 7: 
According to paragraphs 87 and 88 of the Secretar iat Report:  "As of 30 June 2010, the average 
length of an anti-dumping measure applied by India was 56.7 months.  The longest lasting measure WT/TPR/M/249/Add.1 
Page 96  
 
  was 161 months (acrylonitrile butadiene rubber from Korea);  18 duties had been in place for over 10 
years, and 81 measures for at least 5 years. 
During 2006-10, 113 sunset reviews were initiated.  They resulted in the elimination of the measure in 
38 cases, and in re-imposition in 57 cases;  the remaining cases were pending as of late 2010." 
6. In the case of sunset reviews of anti-dumpi ng measures, does the Investigating Authority 
perform new calculations in order to establish dumping and modify the margin of dumping and hence 
the corresponding anti-dumping duty? 
Reply:  During the sunset review investigations , the Authority performs new calculations of 
dumping margin for the period of investigatio n of the review.  The dumping margin of the 
review investigation can be modified, or may remain the same depending upon the outcome of 
the review investigation. 
7. What is the established time-period for c onducting the prospective analyses of serious injury 
and causal link? 
Reply:  In review investigation, the time period  for conducting prospective analysis of likelihood 
of dumping and injury is mentioned in the expo rters' questionnaire (part 2) and is generally up 
to two years after the period of investigation (POI) of review. 
(b) Safeguards 
Legislative and administrative framework 
1. Proceedings of the St anding Board on Safeguards 
Colombia 8: 
According to paragraph 92 of the Secretariat Report:   "The Director General (Safeguards), in the 
Department of Revenue has responsibility for hear ing the petitions and conduct investigations on 
safeguards.  The Director General is also respons ible for carrying out recommendations under the 
Indo Singapore Trade Agreement ( Safeguard Measures) Rules 2009.  A request for a safeguard 
investigation must be made in writing to the Dire ctor 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 safeguar d measures are requested to  be imposed for more 
than a year, details of efforts made or planned in  order to adjust positively to import competition, 
including details of progressive liberalization, mu st be provided, under the Safeguard Duty Rules 
1997.  Thereafter, the Director Gene ral may initiate an investigation to determine the existence of 
serious injury or threat thereof to the domestic indust ry, 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).  The proceedings of the Standing Board on Safeguards 
are not open to the public." 
8. What legal provisions preclude  the opening of such proceedings  to the public, since this could 
violate the principle of transparency and the right of defence established in WTO law in this type of 
investigation? 
Reply:  Safeguard investigations are conducted by DG Safeguards as per the Safeguard Duty 
Rules which are available on the website of DG Safeguards.  All interested parties are provided 
adequate opportunities to present their views as per the requirement of Article 3 of the Safeguard Agreement.  India makes notificati ons to the Safeguard Committee as per the  WT/TPR/M/249/Add.1 
 Page 97 
 
 
  requirement of Article 12 of Safeguard Agreeme nt to ensure transparency of the measures 
being taken.  The functioning of the Standing Board on Safeguards is an inter-ministerial consultation process on the recommendation of the DG Safeguards to facilitate the decision 
making by the Central Government. 
2. Exemption from duty 
Colombia 9: 
According to paragraph 92 of the Secretariat Repor t:  "Its views are placed before the Finance 
Minister for approval in respect of safeguard duti es and before the Commerce Minister for imposition 
of quantitative restrictions.  If the Central Govern ment, after conducting a safeguard investigation, is 
satisfied that any article is impor ted 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 ar ticle.  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 exempte d, the quantity exempted, and the 
article's origin." 
9. What criteria and conditions does the Central Government take into account for granting this 
type of exemption for certain products?  Is this ext ended to a particular co untry, and under what 
conditions would a country be  granted such an exemption? 
Reply:  India's Safeguard Legislation under Section 8B of the Customs Tariff Act 1975 contains 
provisions regarding the power of Central G overnment to impose safeguard duty, which 
inter-alia includes a provision regarding ex emption of certain developing countries from 
safeguard duty as per Article 9.1 of the WTO Safeguard Agreement. 
3. Critical circumstances Colombia 10: According to paragraph 93 of the Secretariat Report:  "If a request is made for provisional safeguard 
measures, full and detailed information regarding th e existence of critical circumstances and how a 
delay in applying the measures would cause damage d ifficult 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 Cent ral Government through the Board on Safeguards.  
Provisional measures may be imposed by th e Central Government for up to 200 days." 
10. What have been the main critical circums tances criteria for establishing provisional 
measures, and among these criteria has any kind of exemption been envisaged for the developing 
countries? 
Reply:  Under Rule 2 of Customs Tariff (Ident ification and Assessment of Safeguard Duty) 
Rules, 1997 (Safeguard Duty Rules), "critical circum stances" have been defined.  The criteria of 
"critical circumstances" is considered on merits  by the Investigating Authority after examining 
the evidence in this regard.  Provision regardi ng exemption to developing countries as per 
Article 9.1 of Safeguard Agreement is contained in Section 8B of Customs Tariff Act, 1975. 
4. Quantitative restrictions Colombia 11: 
According to paragraph 95 of the Secretariat Repor t:  "Until 2010, safeguard measures could only 
take the form of duty surcharges.   The Foreign Trade (Development and Regulation) Amendment Act WT/TPR/M/249/Add.1 
Page 98  
 
  2010 (No. 25 of 2010) amended I ndia's safeguard legislation to allow for the use of quantitative 
restrictions as remedy measures.  The amendmen t allows 'the Central Government, after conducting 
such enquiry as it deems fit, is satisfied that any goods are 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 Ga zette, impose such quantitative restrictions on the 
import of such goods as it may deem fit'.  The qua ntitative restrictions may not be applied on imports 
of goods originating from a devel oping country if the share of imports does not exceed 3 per cent;  or 
on imports of goods originating fr om more than one developing country so long as the aggregate of 
imports from all countries does not exceed 9 per cent of  the total imports of such goods into India." 
11. What are the criteria in India's legislati on for applying quantitative restrictions on imports?  
What mechanism is used to establish the level of imports subject to a quantitative restriction and how 
is this maximum level divided acro ss the various exporting countries? 
Reply:  The Foreign Trade (Development a nd Regulation) Act,1992 has been amended in 
August 2010 to provide safeguard measures co nsistent with WTO Agreement on Safeguards 
and the corresponding Rules are being formulated .  The criteria for applying such quantitative 
restrictions will be in accordance with  the WTO Agreement on Safeguards. 
(x) Sanitary and phytosanitary measures (SPS) India has a coordinated system of inspecti on, surveillance and control in the sanitary and 
phytosanitary sphere.  The Report notes that Indi a has nominated three institutions as national 
enquiry points under the WTO SPS Agreement, nam ely the Department of Animal Husbandry, 
Dairying, and Fisheries for animal health and relat ed issues;  the Department of Health for food 
safety related issues and plant protection;  and the Department of Agriculture and Cooperation for 
plant health or phytosanitary issues.  Between  1996 and February 2011, India made 71 notifications 
to the Committee on Sanitary and Phytosanitary Measures. 
Imports of animal products require sanitary impor t permits issued by the Department of Animal 
Husbandry, Dairying, and Fisheries, once the relev ant risk analysis has been conducted.  These 
sanitary import permits are not licences, but certific ates verifying that India's sanitary requirements 
are fulfilled. 
In this connection and given the information containe d in the Report, we have no specific questions or 
comments on SPS matters for this TPR. 
(2) M
EASURES DIRECTLY AFFECTING EXPORTS  
(viii) Export promotion and marketing assistance 
Colombia 12, 13: 
According to paragraph 170 [Translator's note:  paragraph 169] of the Secretariat Report, the 
Department of Commerce has provid ed support for trade facilitation, such as the single window for 
clearance of goods and e trading facilities. 
12. How many entities are involved in the issu ing of documents via the single window?  What 
trade transactions can be conducted through this window?  Has this portal made it possible to reduce 
the costs and time involved in foreign trade operations? 
Reply:  As an important partner in the "eTRADE" project, the endeavour is to successfully 
integrate with all relevant network partners.  Department of Commerce has implemented an 
automated environment for web based elect ronic filing and provided a retrieval and  WT/TPR/M/249/Add.1 
 Page 99 
 
 
  authentication system of electronic document s based on an agreed protocols and message 
exchange with its community partners primar ily customs, banks and export promotion 
councils, other export promotion bodies at all the regional offices of the DGFT.  Payment of 
authorization fee is made through the electronic  fund transfer mode (EFT).  Digital signature 
has been integrated into the authorization application processing.  Message exchange on 
Registration Cum Membership Certificate (RCMC)  data with Export Promotion Council's has 
been started in August 2010. 
Significant progress has been made to implement e-trade project in a time bound manner to 
bring all stakeholders including Customs, DGFT, banks, ports, airlines etc. on a common platform.  This will obviously add to our ende avour to achieve the objective of single window 
concept for foreign trade, which will furth er reduce the cost and the transaction time. 
13. In order to streamline procedures, does I ndia have or envisage having goods simultaneously 
inspected by all control bodies involved in ex port and import procedures?  What has been its 
experience in this regard? 
Reply:  To the extent possible, Customs tries to ensure that examination, if any for customs 
purposes is carried out in the presence of other regulatory bodies.  As such, it is Government's 
endeavor to ensure that the imported goods and export goods are inspect ed, where necessary by 
all regulatory bodies simultaneously. 
(3)
 MEASURES AFFECTING PRODUCTION AND TRADE  
(vi) Intellectual property rights (i) Trade secrets 
Colombia 14: 
According to paragraph 297 of the Secretariat Repor t:  "India has no specific  legislation regulating 
the protection of trade secrets;  hence enforcement measures/penalties for violations of trade secrets 
are available through common law.  Trade secrets are protected either through contract law or 
through the equitable doctrine of breach of conf identiality.  The Indian Contract Act (Section 27) 
provides some sort of limited protection as it bars any person from disclosing information acquired as 
a result of a contract.  It is also common to insert  a confidentiality clause in a technology transfer or 
other licence agreement to maintain the confidential nature of the subj ect matter, not only during the 
employment period of the employees and contractors but also after its termination, though for a fixed period.  Aggrieved parties may seek action throu gh the civil courts by obtaining an injunction 
preventing a third party from disclosing the trade s ecrets, return of all confidential information and 
proprietary information, and comp ensation for any loss suffered due to disclosure of trade secrets." 
Bearing in mind that Article 39 of the TRIPS Agreem ent establishes that for confidential information 
to be subject to protection it must possess three characteristics, namely that it "(a) is secret in the sense that it is not, as a body or in the precis e configuration and assembl y […], generally known 
among or readily accessible to persons within the circles that normally deal with the kind of 
information in question;  (b) has commercial value because it is secret;  and (c) has been subject to 
reasonable steps under the circumstances, by the person lawfully in control of the information, to 
keep it secret": 
14. How does India ensure the consistency of its  domestic legislation with the aforementioned 
conditions?  Does its domestic legisla tion include these characteristics? 
Reply:  Article 39 of TRIPS provides flexibiliti es to the members on enfo rcement of protection 
of undisclosed data.  Our existing domestic  laws are protecting the undisclosed data. WT/TPR/M/249/Add.1 
Page 100  
 
  IV. TRADE POLICIES BY SELECTED SECTOR 
(2) A
GRICULTURE  
(ii) Agricultural policy objectives 
Colombia 15: According to paragraph 11, page 128,  of the Secretariat Report:  "Agricultural policy is formulated 
and implemented mainly by the Ministry of Agriculture  at the central level with the assistance of other 
institutions [...].  India's current agr icultural policy is outlined in the 11
th Five Year Plan (2007-12), 
which identified three core policy objectives:  f ood security, food self-sufficiency, and income support 
for farmers.2  In order to meet these objectives, India actively intervenes in the agriculture sector, 
including in production, marketing, consumption, and international trade." 
15. Would India please provide details concerning the interventi on mechanisms used in the case 
of marketing of agricultural production? 
Reply:  India is implementing certain progra mmes for strengthening marketing structure and 
infrastructure in the country.  These relate to st rengthening market price information network, 
strengthening Agricultural Produce (Grading and Marking) Act, 1937 to provide for grading 
and marking of agricultural produce and a rural warehouses construction scheme. 
Details are available at the following web add ress: http://agricoop.nic.in/Compedium7410.pdf.  
Colombia 16: According to paragraph 12, page 128, of the Secret ariat Report:  "India's agricultural policies are 
consistent with the Governmen t's long standing policies of protecting domestic producers from 
foreign competition and consumers from  domestic and global price fluctuations for food staples such 
as wheat, rice, and vegetable oils.  The Government  uses tariffs and non-tariff measures (NTMs) in its 
domestic policies to meet these objectives.  The tensi on between the desire to raise food prices for the 
benefit of farmers and to lower them for the benefit of  consumers leads India to intervene heavily in 
the farm sector with multiple policy instruments." 
The Report further notes that "[c]ertain agricultu ral products that were previously subject to 
quantitative restrictions are now considered sens itive products and bear above average tariffs". 
16. Would India please indicate what kinds of instrument are put in place in order to protect 
consumers against undue increases in the prices of food staples such as wheat, rice and vegetable 
oils?  Could it specify the tar iff subheadings and the respective tariff levels applied to the group of 
sensitive products? 
Reply:  Measures like reduction and elimination of  import tariffs temporarily during period of 
shortage in production on account of drou ght and other calamities are taken to increase 
supplies and bring down prices.  India has no ca tegorisation of tariff lines as sensitive for the 
present. 
In order to moderate prices, tariffs have been exempted on all crude ed ible oils [1508, 1509, 
1510, 1511, 1512, 1513, 1514 or 1515].  Refined edib le oils [1508, 1509, 1510, 1511, 1512, 1513, 
                                                      
2 These objectives should be view ed in the context of the signifi cant challenges faced by India 
including:  a history of food shortages, a large segment of the population dependent on the agriculture sector for 
its livelihood, and hundreds of millions of poor Indians who spend most of their incomes on food.  More than one third of the population, mostly rural Indians, still lives on less than US$1 per day.  Indian farmers are a 
politically powerful voting bloc that has a major influenc e on Indian domestic and international trade policies.  WT/TPR/M/249/Add.1 
 Page 101 
 
 
  1514 or 1515] attract a lower duty of 7.5%.  Whea t [1001 10 90 or 1001 90 20] and rice [1006 30] 
attract nil basic customs duty. 
(a) Measures affecting imports Colombia 17: According to paragraph 18, page 129, of the Secretariat Report:  "Subsequent to Article XXVIII 
renegotiations in 2003, India introduced in its Schedule tariff rate quotas  for four product groups 
(19 tariff lines at the HS eight digit level accordi ng to the authorities):  milk and milk powder;  maize 
(corn);  rape, colza, and mustard oil;  and crude  sunflower seed and safflower oil.  As of 2008/09, 
tariff quotas for crude sunflower seed oil or safflow er oil have ceased to operate  as the applied tariff 
on those products was reduced to 0 per cent (Table III .6).  In 2009, India in troduced a tariff quota for 
sugar (HS 1701.9100 or 1701.99.90) of  1 million tonnes with an in quota tariff rate of 0 per cent.  
Initially, sugar could only be impor ted through four companies but, a ccording to the authorities, this 
restriction has been removed.  In 2010, India increa sed the amount of milk that could be imported 
under the in quota tariff rate from the original 10,0 00 tonnes to 30,000 tonnes, and introduced a tariff 
rate quota for butter (Table III.6).  Imports under TR Qs are allowed only through eligible entities or 
designated agencies.  These entiti es and agencies need to apply to the DGFT prior or by 1 March of 
each financial year proceeding the quota year.  The Exim Facilitation Committee in DGFT receives, 
evaluates and allots the TRQ.  Imports have to be completed before 31 March of the financial year for 
which the quota is allocated." 
17. Would India please provide details concern ing the provisions and methodology established 
for the allocation of import quotas to these entities/agencies? 
Reply:  Quotas are established annually and admi nistered on an MFN basis.  There is no 
maximum limit to be allocated per applicant.  Directorate General of Foreign Trade is the 
competent authority to allocate the tariff quota among the eligible entities.  Applications are 
examined upon receipt and assessed according to the criteria stated in the notifications and 
circulars issued by DGFT on a yearly basis.   Import quotas under TRQ have been allowed 
primarily to the state trading enterprises to ensu re monitoring and to avoid any discrimination.  
Details of the TRQ has been notified to  WTO and can be seen at WTO document 
G/AG/N/IND/6 dated 7th March, 2011.  Detailed pr ocedure for allocation notified by DGFT 
from time to time is available in the website:  http://dgft.gov.in. 
Colombia 18: 
According to paragraph 21, page 130, of the Secretariat Report:  "Since the removal of most 
quantitative restrictions on imports in 2001, a mechan ism has been set up to monitor imports of items 
considered to be sensitive.  The number of sensitive items has increased since 2007, from 300 to some 
415 items (Chapter III(2)(vi)).  Monitored sensitive item s include bamboos, cocoa, copra, cotton, milk 
and milk products, edible oils, food grains, fruits and vegetables,  pulses, poultry, tea and coffee, 
spices, and sugar." 
18. Would India please explain the mechanism set up to monitor imports of such items?  Since 
this mechanism entered into operation, has there been  any ban on imports of ite ms classified as being 
sensitive? 
Reply:  Monitoring of imports of sensitive items is being done on a monthly basis.  An item is 
included in the list on need based basis where it is felt that import of such item should be 
monitored.  No ban/prohibition has been imposed so far. WT/TPR/M/249/Add.1 
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  (b) Measures affecting exports 
Colombia19: According to paragraphs 25 to 27, pp. 131- 132, of the Secretariat Report:  "The 11
th Five Year Plan 
placed special emphasis on promoting production a nd exports of commercial crops and agri-based 
processed products.  Plans to promote exports incl ude, inter alia, the revitalization of plantations, 
and the provision of tax incentives.  However, th is would require the adoption of a less controlled, 
more long-term and stable agriculture policy, inste ad of ad hoc reactions to short term price 
fluctuations, such as export bans, which have often b een at the cost of farm ers.  According to the 
authorities further development of India's new ag ricultural commodities futures markets would also 
allow for better transmission of price signals and management of risks. 
India imposes export restrictions and prohibitions main ly for environmental, food security, marketing, 
pricing, and domestic supply reasons, and to comply with international treaties.  Since 2007, some 
agricultural products have been subject to export prohibitions, including non-basmati rice, wheat, 
pulses, edible oils, milk powder, casein and casein derivatives, and onions (Tables II.4 and AIII.5).  Goods subject to export restrictions and quotas mu st also be accompanied by licences from the DGFT 
and, when necessary, by other p ermits.  For instance exports of cotton require in addition to an 
export licence an export authorization registrati on certificate (EARC).  Export quotas apply to 
organic non-basmati rice and organic wheat.  Ex port prohibitions and export quotas are notified 
annually;  they are usually in place for a specific period, during which they may be subject to changes 
(Chapter III(3)(v)).  These changes diminish the predict ability of the regime.  Minimum export prices 
are also maintained under the Fo reign Trade Policy 2009-14 to control prices and availability in the 
domestic market. 
In addition, to these measures, India imposes export taxes, which are used to , inter alia, ensure 
domestic supply of raw materials for higher value added industries;  promote further processing of 
natural resources, ensure an 'adequate' domestic price, and preserve natural resources.  Export taxes 
are sometimes used in combination with other measures to attain shor t term goals.  For instance, in 
April 2010, India introduced export licensing/EARC  requirements for six months on raw cotton and 
cotton waste, in addition to export taxes, with the purpose of ensuring adequate domestic supply and 
containing cotton price increases in the domestic market." 
19. Would India please explain how these measu res are consistent with the WTO rules and the 
Agreement on Agriculture in particular?  How are th e minimum export prices to control prices and 
availability in the domestic market calculat ed and to which prod ucts do they apply? 
Reply:  The various measures by India to, inter alia , ensure domestic supply, are taken in terms 
of relevant GATT/WTO provisions. 
(c) Internal measures Colombia 20: According to paragraph 35, page 134, of the S ecretariat Report:  "The Government maintains 
minimum support prices (MSPs) for major agricul tural commodities.  MSP levels and the products 
subject to MSPs are reviewed annually.  MSPs ar e announced prior to each planting season.  In 
2009/10, India maintained MSPs on 25 crops.  MS Ps are fixed by the Government following the 
recommendations of the Commission for Agricultu ral Costs and Prices (CACP), which takes into 
takes into account several factors to fix them.  MSPs  aim at covering the act ual expenses incurred by 
the farmer in cash and kind, including rent paid for leased land and imputed value of wages of family 
labour, rent for owned land and interest on fixed cap ital.  Despite differences in cost of production 
across states, MSPs are uniform throughout the country."  WT/TPR/M/249/Add.1 
 Page 103 
 
 
  20. Would India please explain  what benefits are provided  to farmers when Government 
appointed bodies intervene in the purchase of prod uction, in the case of prices falling below the 
minimum support price?  What have been the amounts granted by the Government under this 
mechanism? 
Reply:  Farmers get minimum assured prices u nder the Price Support Scheme (PSS) in case the 
market prices fall below this level for their entire produce. 
Amounts incurred on procurement of pro ducts under PSS are available at web link 
agricoop.nic.in/Agristatistics.htm.  
Colombia 21: 
According to paragraph 37, pp. 134-135, of the S ecretariat Report:  "In 2009, the statutory minimum 
price (SMP) for sugarcane was replaced by the fa ir and remunerative price (FRP);  a minimum price 
set at the central level, below which no sugar m ill may purchase sugarcane from a farmer.  State 
governments also set a state advisory price (SAP) fo r sugarcane.  If the SAP is higher than the FRP, 
the state government bears the lo ss.  In addition to the price intervention, a quota of the sugar 
production (at present 10 per cent), referred to as 'l evy sugar', is earmarked for distribution under the 
Targeted Public Distribution System (TPDS).  The remaining sugar may be sold under the monthly 
regulated release system.  Exports of sugar are also controlled through a quota system." 
21. Would India please provide information regar ding the amount of support granted to the sugar 
sector in recent years and explain  how such measures are consis tent with the domestic support 
disciplines in the Agreem ent on Agriculture? 
Reply:  There is no procurement of sugarcane  by public agencies.  Domestic support up to 
2003-04 has been notified in India's notification to the WTO, G/AG/N/IND/7 dated 9 June 2011, 
which covered the period 1998-99 to 2003-04. 
Comment regarding agriculture notifications 
On pages 133 and 134, the Report notes that India' s latest notification on export subsidies was made 
in 2002 and that on domestic s upport in 2011, but that the latt er covered domestic subsidies applied 
in 2004.  The Colombian Government invites the Government of India to update its notifications on 
export subsidies and domestic support as  soon as possible.  It is important that Members should not 
forget that the notification mechanism is a tool  for enhancing transparency, because it shows the 
programmes and measures applied by Members and wh ether they comply with the commitments 
undertaken. 
(3) SERVICES 
(i) Overview 
Colombia 22: 
According to paragraph 54 of the Secretariat Report:  "During the period under review, India's 
exports of services grew at over 13.5 per cent per annum.  India is a net exporter of services 
(Chart IV.1);  its services balance showed a surplus of US$35,726 million in 2009/10 (equivalent to 
2.7 per cent of GDP), US$6,257 million higher than in 2006/07.  India is a leading exporter of computer and related services, including software installation and data processing, and a major 
supplier of back office processing services, such as  abstracting and indexing, data processing, legal 
transcription, telemarketi ng, and website design." WT/TPR/M/249/Add.1 
Page 104  
 
  Bearing in mind the important role played by int ernational trade in services in India and the ongoing 
need to generate statistics on the sector that can pr ovide better information for policy formulation, as 
well as the reference in the document under discu ssion to the major computer services developed in 
India, it can be seen that more disaggregated information on trade in these sectors exists, 
accordingly: 
22. What mechanisms or strategies has the Govern ment of India implemented with a view to 
generating disaggregated statistical figures on services? 
Reply:  As per provisions of Foreign Exchange Management Act (FEMA), 1999, "authorised 
dealers" are required to report foreign exchange transactions to Reserve Bank of India (RBI).  
RBI compiles the data reported upon by "authori sed dealers" and publishes the same in form 
of balance of payment statistics. 
Colombia 23: As emphasized in this trade policy review, India has become one of the world's leading exporters of 
computer services. 
23. What has been the impact of the finis hing schools programmes in promoting and 
strengthening human capital in this sector?  What  other services sectors are benefiting from such 
programmes and how have these been implemented? 
Reply:  Finishing school concept has picked up in India since last few years and this is still 
evolving.  No study has been carried out to ascertain the impact of finishing schools on the 
sector in India. 
COSTA RICA 
I.  India Report (document WT/TPR/G/249) 
1.  During 2009-2010, India's exports showed a nega tive growth rate due to the effects of global 
recession.  The Government announ ced corrective measures in the Un ion Budget for 2009-2010 and 
the Foreign Trade Policy document.  These measu res, together with the recovery of the global 
economy, enabled an export growth of 37.5% in 2010-2011.  Could India explain and elaborate these 
measures?  (Page 9, paragraph 12) 
Reply:  These measures are given in the high lights of the FTP (23 August 2010) and are 
available at DGFT website http://dgft.gov.in. 
2.  A liberal foreign investment regime have made India an attractive destination for foreign 
investment.  What do you mean by a liberal invest ment regime?  What kind of incentives are 
provided?  (Page 12, paragraph 21) 
Reply:  India has put in place an attractive  regime for foreign direct  investment, under which 
FDI, up to 100%, under the automatic route, is permitted in all sectors, except a few.  India does not provide incentives specifically for FDI. 
3.  In paragraph 28, page 15, indicates that  government policies emphasize "promote an 
labour-intensive industries to provide employment in  the manufacturing sector."  Could India list and 
explain the nature, objectives and scope of these policies?  (Page 15, paragraph 28)  WT/TPR/M/249/Add.1 
 Page 105 
 
 
  Reply:  India has identified labour intensive sectors such as food and agro processing sector, 
small and medium manufacturing industries, text iles and garments and leather sector as key to 
employment generation.  Accordingly, the policy objective is to boost and strengthen these sectors by providing tax incentives, concessional loans, technology upgradation incentives etc. 
and also focus on skill development of large workforce to ca ter to these sectors.  
4.  In order to reduce the impact of inflati onary pressures on the economy, India reduced the import 
duty on rice, wheat, pulses, edible oils, butter and ghee, sugar, onions and shallots.  Are these 
reductions in import duties permanent or has a limited  validity period?  If the latter, when does that 
period expire?  (Page 17, paragraph 36) 
Reply :  These are temporary me asures that are reviewed from time to time as regards their 
applicability period. 
5.  How did the Government of India fund the exp ansionist policy for increased public spending in 
2008-2009 adopted to address the global crisis?  (Page 17, paragraph 37) 
Reply :  The expansionary fiscal polici es comprised tax cuts and expenditure hikes as indicated 
below: 
Break up fiscal expansion with respect to 2007-08 
(As % of GDP)  
  2008-09  2009-10  2010-11 (RE)  2011-12 (BE) 
Total fiscal expansion  3.49  3.84  2.54  2.05  
Expenditure  1.54  1.35  1.15  -0.29  
6.  What tax rate is charged in the case of in come tax and tax on dividends?  (Page 20, paragraph 50) 
Reply:  For tax rates in case of income tax and dividends, kindly refer to www.finmin.nic.in. 
7.  Could India mention whether the adoption of a prudential framework for banks, applies equally to 
all financial institutions or there is some discri mination with regard to foreign capital financial 
institutions?  (Page 21, paragraph 52) 
Reply:  The application of prude ntial framework for banks and fina ncial institutions in India is 
based on the specific needs, size, core functions and capabilities, etc. of the concerned entity, viz. 
commercial banks, cooperative banks, regional ru ral banks, non-banking financial companies, 
etc.  However, the prudential framework is the same for all commercial banks including foreign 
banks having offices in India.  It may be a dded that conscious steps are being taken for 
application of framework equally albeit at a different pace as suitable to the financial 
institutions other than commercial ba nks, based on the regulatory assessment. 
8.  Could India elaborate on why the regional rural banks and 'local' banks (territory wise) are 
excluded from the application of the principles of  Basel II?  What makes these banks different from 
other commercial banks to which BASEL II appl ies since the agreement was signed in 2009?  
(Page 22, paragraph 55) 
Reply:  Regional rural banks (RRBs) are stat e-sponsored, region-based, and rural-oriented 
commercial banks with local feel and pro poor fo cus.  They have been established primarily for 
the purpose of developing th e rural economy by providing credit and other facilities 
particularly to the economically weaker/disadvant aged sections of the society such as small and 
marginal farmers, agricultural labourers, artisans , small entrepreneurs, etc.  A large number of 
RRBs (196) were established during the period 1975 to 1987. WT/TPR/M/249/Add.1 
Page 106  
 
  Factors like limited area of operation, weak c lientele base, low volumes, high overheads, loan 
delinquency etc. led to high accumulated losses an d piling up of bad assets in the case of many 
RRBs.  Also, RRBs were lending at low interest rates as they were financing the weaker sections 
and were allowed to pay a slightly higher rate of  interest on deposits.  As a result, financial 
health of most of the RRBs became weak and in  the case of few RRBs, there was an erosion of 
public deposits, besides capital.  Many RRBs were having accumulated losses and negative net 
worth.  Hence, owing to weak financial position of sizeable number of RRB, it was not desirable 
to apply Basel Norms for them.  Incidentally, to  address the problems of poor performance of 
the RRBs, several RRBs were recapitalized  twice between 199 4-95 to 2008-09. 
However, several working groups and task fo rce have suggested introduction of CRAR in 
phased manner.  As a step towards this, RRBs were advised to disclose their CRAR as on 
31 March 2008 and thereafter every year as "notes on accounts" to their balance sheets.  In 
September 2009, Government of India consti tuted a Committee under the Chairmanship of 
Dr.K.C.Chakrabarty, Deputy Governor, Reserve Bank of India to study the current level of 
capital-to-risk-weighted assets ratio (CRAR) of RRBs and to suggest a roadmap for achieving a 
CRAR of 9% by March 2012.  The Committee submitted its Report to the Government of India 
on 30 April 2010.The Committee carried out an assessment of capital requirement for all the 
82 RRBs to enable them to have CRAR of at le ast 7% as on 31 March 2011 and at least 9% 
from 31 March 2012.The Committee have assessed that 40 RRBs (out of 82) will require capital infusion to the extent of Rs 2200 crore.  The th ree stake holders of RRBs have started releasing 
their contribution towards recapi talization.  It is expected th at now capital base of RRBs will 
become strong and best international practice of  CRAR will also become applicable for RRBs in 
near future. 
Incidentally, even Basel I norms a re also not applicable to RRBs. 
As for differences from other commercial banks, RRBs are established under separate Act.  
They are established by the Government of India by a notification in the Official Gazette  and 
RRB Act, 1976 provides the legislative framew ork for RRBs.  Secondly, there are three 
shareholders of RRBs. i.e. GoI, state Govern ment and sponsor bank and the share capital is 
subscribed by the Government of India (50%), state Government concerned (15%) and a sponsor bank (35%).  They have limited avenues for raising fresh capital as like other commercial banks, they cannot rai se capital from the market.  Thirdly, the area of operation of 
commercial banks is nationwide whereas RRBs a re confined to a few districts.  As RRBs are 
operating in small pockets of various regions, insolvency, failure of one or two RRBs will not 
have contagion on the banking system as a whole.  Also, commercial banks give loan to corporate houses whereas RRBs primarily give  loans to people of small means. 
9.  On the issue of attracting foreign investment  it is stated that in certain sectors, such as 
infrastructure, tax breaks and oth er fiscal incentives are granted.  C ould India specify what 'other 
fiscal incentives' mean?  (Page 22, paragraph 56) 
Reply:  India has designed a number of in centives for attracting investment in the 
infrastructure sector.  For instance, a tax holiday was granted for the enterprises being set up in the special economic zones in the country.  The policy environment has been made more 
conducive for the spread of public private partnership in the infrastructure sector. 
10.  It is claimed that in 2008 there was further liberalization, under which the Government of India 
allowed foreign direct investment in most secto rs of the economy, whether through government 
authorization or under the automatic procedure of Reserv e Bank of India.  Indicated in the footnote to 
page number 29 that there are sectors and activities not  open to private investment.  Could India  WT/TPR/M/249/Add.1 
 Page 107 
 
 
  mention what these sectors are and what is the authorization process - other than the automatic 
process?  (Page 22, paragraph 57) 
Reply:  Sectors/activities not open to pri vate investment include atomic energy and railway 
transport (other than mass rapid transport systems). 
Investments can be made by non-residents thro ugh two routes:  the automatic route and the 
government route.  Under the automatic route, th e non-resident investor or the Indian company 
does not require prior approval of the Governme nt of India, through the FIPB (Foreign 
Investment Promotion Board), fo r the investment.  U nder the government route, prior approval 
of the Government of India, through the FIPB, is required. 
11.  What are the policies in India to develop sp ecial economic zones?  Please provide examples. 
(Page 25, paragraph 66) 
Reply:  The main objectives of the SEZ Scheme are: (a) generation of additional economic activity; 
(b) promotion of exports of goods and services; 
(c) promotion of investment from domestic and foreign sources; 
(d) creation of employment opportunities; 
(e) development of infrastructure facilities. 
A special economic zone may be established either jointly or severally by the Central 
Government, state Governments or any person for manufacture of goods or rendering services 
or for both or as a free trade and warehousing  zone.  Proposals for setting up of SEZs are 
considered by the Board of Approval only after written consent of the concerned state Govt. 
Establishment and functioning of SEZs are gove rned under the provisions of SEZ Act, 2005 and 
SEZ Rules, 2006, which may be viewed on www.sezindia.nic.in. 
12.  As a result of progressive tariff reductions a nd exemptions, collection of customs duties, as a 
percentage of the value of imports has fallen quite quickly, which is an indicator of liberalization.  
What has India done to compensate for this 'shortf all'?  What other funding mechanisms or income is 
driving India to continue its policy of ec onomic development?  (Page 25, paragraph 68) 
Reply:  India's tax reforms essentially focused  on reducing the cascading nature of indirect 
taxes and greater reliance on direct  taxes.  This process began in the 1990s as a part of economic 
reforms.  Corporate income tax has by and large grown in sufficient measure and together with growth in service tax has compensated this shortfall. 
13.  Given the implications on trade, can you expla in the reason for the in creased use of sanitary 
measures or technical barriers?   (Page 26, paragraph 72) 
Reply:  As per our experience and various studi es, global trade has witnessed increased use of 
non-tariff barriers in the form of sanitary and phytosanitary measures and technical barriers to 
trade.  The reasons for such an increase h ave been documented in different studies. WT/TPR/M/249/Add.1 
Page 108  
 
  14.  What are the quotas granted by India to the LD Cs?  Are they currently in place?  What is the 
method of distribution?  (Page 27, paragraph 78) 
Reply:  In addition to the preference a llowed under the bilateral agreements, India has 
announced its Duty Free Quota Free Scheme namely Duty Free Tariff Preference (DFTP) 
Scheme and is in operation since August 2008 allowing duty free or preferential access for goods 
for all LDCs.  Details of the scheme is availa ble at the URL address http://commerce.nic.in/ 
trade/international_tpp_DFTP.pdf. 
15.  The maximum term provided for Duty Free Preferential Tariff Scheme (DFTP) of India to Least 
Developed Countries is five years, which began in Apr il 2008.  Do you plan to validate this scheme 
for a further period after it expires?  If so, for how long?  (Page 27, paragraph 78) 
Reply:  India's Duty Free Tariff Preference (DFTP) Scheme for LDCs came into effect since 
August 2008 with tariff reductions spread over fi ve years and the tariff reductions shall be 
completed by 2012.  There is no expiry time for the scheme. 
16.  The report states that "India believes that trade agreements should be the basic elements 
(building blocks) to achieve the overall objec tive of trade liberalization and complement the 
multilateral trading system".  Would India be willing to consolidate agreements with a broader scope, 
covering areas beyond the access of goods and investme nt with Latin American partners?  (Page 27, 
paragraph 79) 
Reply:  India has concluded several agreements which go beyond the traditional market access 
in goods by including trade in services and invest ments.  India is also negotiating several other 
comprehensive agreements covering goods, serv ices and investments.  Any agreement with 
Latin-American partners would depend on the perceived mutual benefits arising out of such an 
arrangement and agreement of all partneRs 
17.  Could India provide more information about the variables considered in determining the degree 
of deepening of trade agreements with differen t partners?  (Page 27, paragraphs 80 and 81, and 
page 28, paragraphs 82, 86 and 87). 
Reply:  The degree of liberalisation depends on a number of factors like comparative advantage, 
domestic sensitivities, incremental benefits , complementarities in trade flows etc. 
18.  What is the progress in the negotiations of  the "comprehensive agreement" with New Zealand 
and Australia?  (Page 28, paragraph 82) 
Reply:  Six rounds of negotiations have been held with New Zealand and one round with 
Australia. 
II.  Report of the WTO Secretariat (document WT/TPR/S/249) 
19.  The report says that India is part of the Agreement on Information Technology (ITA).  Could 
India indicate the regime of collection of fees/ ta xes for the digital products transmitted electronically 
or by courier?  (Page x, paragraph 6) 
Reply:  In line with the Ministerial Decision  of 2 December 2009 on electronic commerce, India 
does not impose customs duties on electronic tran smission of products.  Digital products 
imported into India by courier are however charged to duties in the same manner as for 
imports products by the sea or land route.  WT/TPR/M/249/Add.1 
 Page 109 
 
 
  20.  The report indicates that India has signed seven  preferential agreements.  Could India indicate 
whether in some of these agreements it has negotiated a chapter on  electronic commerce?  (Page x of 
paragraph 6) 
Reply:  The India-Singapore Comprehensive Economic Cooperation Agreement has a chapter 
on e-commerce. 
21.  Although India has taken various measures to  attract foreign direct investment, FDI is prohibited 
in certain sectors or activities, such as retail, so me real estate, manufacturing of snuff and snuff/ 
tobacco substitutes, and some agricultural activities.   What explains this restriction?  (Page xi, 
paragraph 8) 
Reply:  The FDI policy, inter alia , takes into account national prio rities, in the context of India's 
developmental goals. 
22.  Under what circumstances exemptions from  licenses, permits and fees are granted?  Are the 
exemptions based on any law?  (Page xi, paragraph 9) 
Reply:  Yes, the same is provided under th e FTP which is available at DGFT website 
http://dgft.gov.in. 
23.  Are exemptions (licenses, permits and fees) th at vary by product, users, or specific programs to 
promote exports consistent with the principle of  most favoured nation?  (Page xi, paragraph 9) 
Reply:  These exemptions do not di scriminate between the WTO Members. 
24.  The report notes that it has created an electronic filing system for customs clearance thus 
facilitating trade and substantially  reducing time taken.  However, the report also states that the 
system of licenses, permits and fees  is very complex.  What steps are being taken to reduce this 
complexity?  (Page xi, paragraph 9) 
Reply:  The system of licenses and permits is  not as complex as has been reported.  The 
Government has started EDI with Customs and is now working with banks and other related 
agencies etc.  The applications and fees can be paid online and thereby reducing the interface between the exporter/importer with the DGFT.  DGFT  is the first organisation in India to have 
a 2042 bit digital certificates. 
25.  In addition to the base rate tariff, impor ters must pay an additional duty ("countervailing duty") 
and special additional duty in lieu of local taxes.  Could India explain the implementation of these 
taxes?  On what products these additional du ties apply?  (Page xi, paragraph 10 and page 57, 
paragraph 43) 
Reply:  The additional duty ("countervailing duty") and special additional duty are in the 
nature of charges equivalent to internal taxes ap plied at the border in order to provide level 
playing field for the domestic industry.  Additi onal customs duty is applied on the imported 
goods in lieu of the excise duty applicable on domestically produced goods, while special 
additional duty is levied in lieu of taxes such as  state VAT, sales tax, levied or collected by state 
government or local taxes/charges. 
These duties are equivalent to internal charg es and are permissible under WTO provisions.  
While CVD is levied at rates equal to the excise duty rates applicable to domestically manufactured goods, special CVD is charged at 4% ad valorem  or 1% in the case of jewellery 
articles.  Both aim at providing a level playing field for the domestic industry vis-à-vis  imported WT/TPR/M/249/Add.1 
Page 110  
 
  goods.  Thus these duties apply only on like go ods which, when produced domestically, are 
subject to excise duty or state VAT/local levies.  Goods/items that are exempt from excise duty or state VAT are also exempt from additional  duty or special additional duty respectively. 
26.  Are there cases wh ere there is local tax exemptions gi ven to certain products, but additional 
duties on the importer is maintained?  (Page xi, paragraph 10) 
Reply:  Generally, goods that are exempt from lo cal taxes such as state VAT by the States are 
also exempted from special additional duty. 
27.  What mechanisms are used in India to ensure that an importer has predictability of the tariffs it 
must pay?  What actions are being taken by the Government of India to resolve the complexity of 
tariffs?  (Pages xi and 27,  paragraphs 10 and 50) 
Reply:  The tariff structure has been simplified co nsiderably in recent years.  However, this is 
an on-going process.  It is Government's  endeavour to gradually remove exemptions. 
With the adoption of the Electronic Data In terchange (EDI) system and automation of 
businesses, the rates of duty and exemptions are automatically determined.  All notifications 
relating to tariff changes are published in the Official Gazette  and are made available on the 
official website. 
28.  The report indicates that "tariff values" should be reviewed every two we eks, however, some of 
these values have remained unchanged since 2006.  How do you ensure that the values that India is 
using are not incorrect or arbitrary?   (Page xi and xii, paragraph 11) 
Reply:  Tariff values are currently being fixed only in respect of palm group of oils, crude 
soybean oil, poppy seeds and brass scrap.  Thes e values are frequently reviewed and revised on 
the basis of prevailing international prices of these goods as observed from the various reputed 
international journals and other publications.  The tariff values are not arbitrary values. 
29.  Have all prohibitions, licensing and restrictions, requirements for packaging, quality and 
sanitary conditions been reported by India to the WTO?  (Page xii, paragraph 15) 
Reply:  As and when changes are made in exis ting regulations or standards and conformity 
assessment procedures thereof or new regulatio n or standard and conformity assessment 
procedures are drafted, this is duly notified  to the WTO as per transparency obligations 
prescribed in the SPS and TBT Agreements. 
30.  The report notes that it may impose import restrictions on grounds of self-sufficiency among 
others.  How is the self-sufficiency determined?  W hat is the legal basis to allow this provision?  
(Page xii, paragraph 15) 
Reply:  There is no product at present on wh ich import restriction has been imposed on the 
grounds of self-sufficiency. 
31.  When does India consider "moral" as a legitim ate objective to implement technical barriers or 
sanitary barriers?  (Page xii, paragraph 15) 
Reply:  Under Article XX(a) of GATT, measures  necessary for protecting of public morals are 
permissible.   WT/TPR/M/249/Add.1 
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  32.  Could India further elaborate on price support system that applies to basic commodities?  Are 
these price control mechanisms reported as Amber Box to the Committee on Agriculture?  (Page xiii, 
paragraph 19, page xiv, paragraph 23, a nd pages 120-124, paragraphs 208-218) 
Reply:  As indicated in response to similar quest ions from some other Members, all perishables, 
which include fruits, vegetables, oil-palm, areca-n ut etc. are covered by a Market Intervention 
Scheme (MIS).  MIS operations are used in excepti onal circumstances to prevent distress sale by 
farmers. 
Certain crops are covered under Minimum Support Price (MSP) operations.  The crops covered 
during 2009-10 are indicated at footnote 26 und er paragraph 33 of the Secretariat Report.  
There is no change in the coverage except exclusion of Tobacco from 2008-09 onwards. 
MSPs are available at www.agricoop.nic. 
There is no limit to the quantity to be purchased under the Price Support Scheme (PSS).  All 
quantities offered at MSPs are accepted.  PSS coverage extends throughout the country. 
India has not scheduled any Aggregate Measurement of Support (AMS) i.e. "Amber Box" 
commitments in the Uruguay Round.  Domestic support provided by India under de minimis  
and other provisions of the Agreement on Agricu lture have been notified to the WTO up to 
2003-04.  
33.  What kinds of tax incentives are offered by India to encourage investment in manufacturing?  
(Page xiv, paragraph 24) 
Reply:  Some of the tax incentives to promot e investment in manufacturing are as below: 
(i) Section 35AD of the Income Tax Act provides for investment-linked deduction of 100% 
of the capital expenditure (other than on  land, goodwill and financial instrument) 
incurred wholly and exclusively, for the pur poses of the "specified business" during the 
previous year in which such expenditure is incurred.  Under Sections 80-IB(4), 80-IC and 80-IE of the Act, incentives have been provided for industrial undertakings/enterprises in the State of Jammu and Kashmir, Himachal Pradesh, 
Uttrakhand and North Eastern States.  For fu rther details, the Income Tax Act may be 
viewed on www.incometaxindia.gov.in. 
(ii) On indirect tax front, the applied tariff for goods (equipment, machinery, capital goods 
etc.) required for the initial setting up of la rge projects are at a concessional rate of 5%. 
34.  The report states that in the financial services  sector there are limits on foreign ownership, and 
while there may be permit conditions, or specific ma rket access issues, in some cases these conditions 
may be more restrictive than expressly imposed, such as a cap on investments.  Could India explain 
what kind of restrictions on ownership and access to markets it maintains?  (Page xiv, paragraph 25) 
Reply:  Foreign investment in India is govern ed by FDI policy and rules framed under Foreign 
Exchange Management Act, 1999.  Extant regulations for foreign investment in financial services are as follows: 
(1) Foreign investment in private Banks is perm itted up to 74% and for nationalized banks 
the limit is 20%.  There are also guidelines for setting up of branches/subsidiaries of foreign banks. WT/TPR/M/249/Add.1 
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  (2) Foreign investment up to 49% is permitted in credit information companies, stock 
exchanges, depositories and clearing corporat ions, commodity exchanges.  Investment in 
these services needs prior approval of FIPB/R BI.  FII may invest in these companies 
only through secondary market. 
(3) FDI up to 49% is also permitted in asset reconstruction companies. 
(4) In the Insurance sector FDI is allowed upto 26%. 
(5) Foreign direct investment up to 100% is perm itted in NBFCs, which are undertaking 18 
activities, viz., merchant banking, underwri ting, portfolio management services, 
investment advisory services, financial cons ultancy, stock broking, asset management, 
venture capital, custodial services, factoring, credit rating agencies, leasing and finance, 
housing finance, forex broking, credit ca rd business, money changing business micro 
credit and rural credit. 
(6) Currently the legislation limits the FDI participation to 26% for insurers and 
reinsurers.  The minimum capital requirement for setting up an insurance company is 
Rs 1 bn (US$22.5 mn) and Rs 2 bn (US$45 mn) for a reinsurance company.  The 
legislation also requires insurance companies to maintain a minimu m solvency margin 
ratio of 150% or Rs 50 crs/Rs 100 crs for di rect insurers/reinsurers respectively at all 
times.  There are no restri ctions to market access. 
35.  What are the criteria for choosing individuals or legal entities that are exempted from income 
tax?  (Pages 10-11, paragraph 22) 
Reply:  Government grants tax exemptions to various individuals and entities based on various 
criteria like charitable purposes, infrastructure development, etc. 
36.  Are the schemes for export promotion, which im ply a subsidy, notified to the WTO?  (Page 11, 
paragraph 22) 
Reply:  India has notified the programme relating to preferential tax policies relating to setting 
up of special economic zones (SEZs) and the SE Z units in the notification G/SCM/N/186/IND 
dated 18 October 2010.  Many of the export promotion schemes are not in the nature of 
subsidies as per the provisions of ASCM.  Indi a is making efforts to gather information in 
respect of subsidies that require to be notified. 
37.  Could India indicate whether the market opera tions conducted by the Reserve Bank of India are 
for private banking?  Is the Reserve Bank of India considered a commerci al bank?  (Page 12, 
paragraph 27) 
Reply:  RBI's market operations do not target any specific segment in banking.  They are aimed 
at modulating liquidity in the banking system as  per the policy needs.  RBI is not considered a 
commercial bank viewed from the perspective of market operations. 
38.  According to the Report of the Secretariat, "I ndia believes that trade policy is an instrument for 
achieving its overall objectives of economic polic y such as, industrialization, development and 
self-sufficiency."  In this regard we would like to kn ow If India has broader trade policy, which allows 
to deepen its relationship with different partners in Asian. (Page 23, paragraph 2)  WT/TPR/M/249/Add.1 
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  Reply:  India's "Look East Policy" is a conscious initiative for closer engagement with 
South-East and East Asian countries.  The Look East Policy does not confine itself to improving 
commercial ties but seeks to foster deeper po litical, economic and strategic cooperation. 
39.  What is the coverage of the Economic Part nership Agreement being negotiated with Canada?  
Are you looking to negotiate labour and envir onmental provisions?  (Page 28, paragraph 84) 
Reply:  The agreement with Canada shall cov er trade in goods and service and investments. 
No. India is not looking to negotiate labour and environment provisions with Canada.  
40.  The commitment to notify Domestic Support to  the Committee on Agricu lture requires that it 
should be done within 90 days after the end of the calendar year.  By what date India plans to catch up with its commitments on WTO notification on Agriculture for the years 2005 to 2010?  (Page 30, 
paragraph 17 and page 156, paragraph 32) 
Reply:  India's notification to the WTO, G/AG /N/IND/7 dated 9 June 2011, covered the backlog 
for the period 1998-99 to 2003-04.  Work is underway on India's notifications for the subsequent years. 
41.  Could India indicate what are the companies/societies called "Nidhi"?  (Page 38, Table II.8) 
Reply:  It is a company registered under Comp anies Act and notified as a nidhi company by 
Central Government under Section 620-A of Compan ies Act.  These compan ies essentially carry 
on the business of lending and borrowing (accepti ng deposits and making loans) with their 
members or shareholders. 
42.  It is mentioned that individual tariff rates may be amended during the year.  On average, how 
many changes are made each year?  Is there a limit to the number of annual changes that can be 
done?  (Page 40, paragraph 2) 
Reply:  The existing tariff rates have been fairly  stable and rate changes have not been frequent.  
Since the Central Government is empowered to  exempt any goods from customs duty in public 
interest, there is no limit on the number of annual changes that can be made.  Typically, 
changes are made annually at the ti me of presentation of the Budget. 
43.  Which commodities are subject to price cont rols?  How often are these prices charged and where 
are these published?  (Page 41, paragraph 5) 
Reply:  There are 74 drugs specified as scheduled drugs under Drugs (Prices Control) Order, 
1995 (DPCO, 1995).  Prices of medicines containi ng any of these 74 drugs individually or in 
combination are fixed/revised under the provision s of said order.  The prices so fixed are 
notified in the Official Gazette . 
Among fertilizers, only urea is under price cont rol at present.  The price changes are published 
by way of notifications by the Department of Fertilizers. 
44.  What are the exceptions and under what prov isions are there exceptions to the obligation of 
registering as an importer?  (Page 41, paragraph 8) 
Reply:  The same is at para 2.8 of the Handbook of Procedure Vol 1 and is available at 
http://dgft.gov.in. WT/TPR/M/249/Add.1 
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  45.  Could India explain the "importer-exporter code"?  Will a person doi ng both import and export 
require two codes?  (Page 41, paragraph 8) 
Reply:  Importer exporter code (IEC) number is n eeded for any person to import or export any 
product.  One IEC Number is sufficient for both imports and exports.  Two codes are not 
required. 
46.  Is it possible to release goods imported fo r domestic consumption to be released with a 
guarantee?  In what cases can the guarant ee be waived?  (Page 41, paragraph 9) 
Reply:  Yes, but it is not possible to release  goods imported for domestic consumption with a 
guarantee in all cases.  As for instance, the good s prohibited for import or the goods restricted 
for import subject to fulfillment of certain cond itions cannot be released on the basis of a 
guarantee. 
Nevertheless, the regime for home consumption provides for release of the goods upon provision 
of a security in certain situations, as for instance, where there is a delay in the final determination of the customs value of the goods.   Sometimes, it is not possible to finally 
determine the customs value of the goods due to non-availability of some relevant information 
and/or documents.  Withholding release of g oods in such cases may cause hardship to the 
importers by way of payment of demurrage/det ention charges, disturbance in production 
schedule and other financial losses.  To meet su ch exigencies, provisions have been made in 
Section 18 of the Customs Act, 1962 (details may be viewed at www.cbec.gov.in) to assess the duty provisionally and to authorize release of the goods upon submission of a security by the importer pending final determination of the customs value. 
The security need not be in the form of a guarantee. 
47.  The report indicates that "goods exported from India may re-imported within three years, 
provided that there has been no change in the cla ssification of the goods."  What happens in cases 
where changes were made to a good but still it maintain s its tariff classification?  Can duty-free entry 
be allowed?  (Page 41, paragraph 9) 
Reply:  The re-import procedures are dealt with  under Section 20 of the Customs Act, 1962 and 
the various exemption notifications.  Normally, the re-imported goods are liable to duty and are 
subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof.   However, there are exemption notifications 
relating to re-import.  The exemptions are co nditional and also the duty-free entry is not 
allowed in all cases. 
As for instance, under notification No. 158/95-Cus., dated 14.11.1995, goods manufactured in 
India and re-imported into India for repairs or for reconditioning are exempt from duty subject 
to the conditions, inter alia, that such re-importat ion takes place within 3 years from the date of 
exportation and the Customs is satisfied as regar ds identity of the goods and that the goods after 
repairs or reconditioning are exported.  This is a case where the duty-free entry is allowed 
subject to the fulfillment of certain conditions.  However, under notification No. 43/96-Cus., 
dated 23.7.1996, goods manufactured in India and exported for carrying out coating, electroplating or polishing operations, when re-impo rted into India, after completion of the said 
processes are charged to duty on the value comprisi ng the fair cost of th e said processes carried 
out abroad and insurance and freight, both ways .  One of the conditions for availing of this 
facility is establishment of the identity of goods.  This is a case where the classification remains 
unchanged in most situations but changes have been made to the good by way of coating or 
polishing operations.  WT/TPR/M/249/Add.1 
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  48.  Paragraph 14 states that "imports are not al lowed without the certificate of conformity, which is 
issued only for end users and not for general importers. "  What happens if an import is attempted for 
distribution at national level of a product?  Does it prevent some comp anies from making these 
imports and proceed with the sale in the domestic market?  (Page 43, paragraph 14) 
Reply:  Some of the items have multiple uses wherein use in some specific purpose is regulated 
by separate permission.  For example, in case of  Boric acid, the restriction is for regulating it 
when used as insecticide.  Information about e nd-use for import of product is necessary to 
ensure that the product imported for non-in secticidal purposes does not get diverted to 
improper/un-regulated use.  There is a corresp onding requirement for domestic producers of 
such items requiring declaration of part iculars regarding quantum of the product 
manufactured and sold by them to ascertain/veri fy its end-use.  The requirements relating to 
such permit and reporting apply to all dual or multi use insecticides.  Section 29 of the Insecticides Act 1968 enumerates the offences for whic h punishment of imprisonment (or fine or 
both) has been provided for.  There are sev eral government enforcement/intelligence agencies 
which keep a vigil on misuse whether it is imported or diverted from local market. 
49.  The report notes that free zone (SEZ) companies must pay (must be paid) an amount equal to the 
duty to be paid on imported goods.  What does "imported goods" refer to:  the raw material needed to produce a final good or imported machinery and other elements to establish the zone?  (Page 43, 
paragraph 14) 
Reply:  "Imported goods" normally refer to Capital goods as well as raw materials. 50.  Are there instances of later review?  Is there a customs procedure established by law?  (Page 45, 
paragraph 17) 
Reply:  Chapter XV of the Customs Act, 1962 (CA 62) comprising Section 128 to Section 131C 
details the legal provisions whereby any person aggrieved of an assessment order can seek a review thereof by filing appeal.  Even the Government can review such orders. 
51.  What is the justification for a pre-inspecti on of imports of textiles and clothing?  (Page 45, 
paragraph 19) 
Reply:  As per General Note 11 of the ITC(HS) Classifications of Export and Import items, 
import of textile, textile articles, woollen textil es and woollen blended fabrics are allowed to be 
imported only when the import consignments ar e accompanied by a pre-shipment certification 
from a textile testing laboratory accredited to national accreditation agency of the country of 
origin (i.e. the exporting country).  Further details are available at http://dgft.gov.in. 
52.  Could India explain what are the non-ad valorem  "alternative" tariffs that apply to textiles and 
clothing?  (Page 51, paragraph 29) 
Reply:  Certain tariff lines in the textile sector at tract alternative tariffs, that is, they attract 
10% ad valorem  or a specific rate (denominated in rupees per square metre or rupees per piece 
or rupees per kg) whichever is higher. 
53.  Could India elaborate further on the tariff conc essions?  Which specific pr oducts are covered by 
this award?  (Page 57, paragraph 39) 
Reply:  Tariff concessions in this Para have been  used to mean reduction in tariff rates by way 
of exemptions issued by the Central Government in public interest.  These have been given to WT/TPR/M/249/Add.1 
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  goods of specified description either unconditionally or subject to the fulfilment of certain 
conditions.  The major ones are listed in Notification No. 21/2002–Customs dated 1.3.2002. 
54.  Why is there a ban on the import of beef and b eef products and under which Article of the GATT 
is it justified?  Please provide the same info rmation about the ban on vegetable oils. (Page 62, 
paragraph 53) 
Reply:  The import of beef and beef produc ts has been banned under the flexibilities provided 
by Article XX of GATT.  There is no ban on imports of vegetable oils. 
55.  Specifically which products require a special  import license issued by the DGFT and why?  
(Page 64, paragraph 5) 
Reply:  It will be notified shortly. 
56.  Can quotas only be requested by  certain agencies or some propor tion can be allocated directly to 
private companies?  Is it possible for individuals to use the quota of entities for import?  (Page 56, 
paragraph 36) 
Reply:  Any person satisfying the stipulated conditions, can apply for the quota. 57.  In the case DS360 raised by the United States against India, the Appellate Body considered the 
additional duty and extra additional duty inconsistent with paragraph 1 b) of Article II of GATT 994, 
to the extent they exceed the tax on domestic consum ption of alcoholic beverages and sales tax, taxes 
on value added and other taxes or local charges that I ndia claims that are equivalent to the additional 
duty and extra additional duty.  What has taken India to avoid the burdens on these taxes do not 
exceed the taxes that India considered "e quivalent"?  (Page 59, paragraph 43) 
Reply:  The Appellate Body has reaffirmed the ex isting legal position that under Article II:2(a) 
of the GATT 1994, Members are allowed to im pose a charge on the imported products 
equivalent to internal taxes levied on like dom estic products.  The duties and taxes on imported 
alcoholic beverages other than customs duties ar e charges equivalent to internal taxes imposed 
in respect of like domestic products. 
58.  In case the state trading companies cannot make imports of products subject to state trading, are 
others authorized to import or should they meet cert ain requirements?  Is there any restriction on the 
import volume?  (Page 68, paragraph 68) 
Reply:  Paragraph 2.11 of the FTP prescribes that the DGFT may grant an authorisation to any 
person to import and export any of these goods.  To get such authorisations, a person has to 
apply to DGFT. 
59.  The report of the Secretariat notes that the Central Government of India may extend the 
stipulated period of one year of anti-dumping inves tigations in cases of judicial intervention of any 
court.  Could you clarify in what case can a cour t intervene in an investigation of an administrative 
nature that is still in progress?   (Page 71, paragraph 74) 
Reply:  Various high courts of India and th e Supreme Court of India (the Apex Court) may 
intervene in trade remedy investigations, particul arly before the final determination is made, as 
per the provisions of Article 226 and Article 32 of the Constitution of India.  This writ 
jurisdiction is generally invoked whenever the co urts find that the matter is in larger public 
interest or there is want of jurisdiction or when  issues relate to allegations of errors in the  WT/TPR/M/249/Add.1 
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  investigations for which there may not be legal remedy before the Appellate Tribunal 
(CESTAT). 
60.  Could India confirm that  its domestic legislation on an tidumping establishes the mandatory 
application of the lesser duty rule?  (Page 71, paragraph 75) 
Reply:  India's domestic legislation on anti -dumping requires the mandatory application of 
lesser duty rule. 
61.  The Secretariat's report indicates that the DGAD may terminate an antidumping investigation if 
it receives a written request of the domestic industry or  on its behalf.  In that sense, could the DGAD 
decide to continue the investigation for reasons of  public interest despite receiving a request of the 
domestic industry or legal mandate would be requi red to complete the procedure?  (Page 71, 
paragraph 78). 
Reply:  Rule 14 of India's Anti-Dumping Rules contains detailed provisions regarding 
termination of an anti-dumping investigation.  A copy of the Rules can be downloaded from the website www.commerce.nic.in.  
62.  Could India confirm that its domestic legisl ation on safeguard measures require investigators to 
verify that the increase in imports is the result of  unforeseen circumstances, as required by Article 
XIX of GATT 1994?  (Page 76, paragraph 93) 
Reply:  India's Safeguard Legislation contains  provisions for conducting investigations in 
accordance with the WTO Ag reement on Safeguards and Article XIX of GATT 1994. 
63.  We are interested to know about the MOUs si gned by the BIS in terms of bilateral cooperation 
and the mutual recognition agreement on standardization.  In this regar d, we request a copy of the 
documents mentioned in this par agraph. (Page 79, paragraph 100) 
Reply:  BIS has entered into MoUs for bilateral cooperation in the fields of standardization and 
conformity assessment.  A copy of a typical MoU is enclosed at Annex 1. 
64.  What percentage of technical regulations in India are harmonized with international standards?  
(Page 80, paragraph 104) 
Reply:  Technical regulations are notified by various central government 
ministries/departments and regulatory bodies.  Most of the technical regulations are 
harmonized with international standards. 
65.  What are the requirements for obtaining EC OMARK and which products are covered?  (Page 80, 
paragraph 105) 
Reply:  The products that have been licenced  as being "environment-friendly" are given in 
Annex1. 
66.  What is the criteria to determine which produc ts should be compatible with Indian standards and 
must bear the BIS certification mark or und er license from BIS?  (Page 80, paragraph 106) 
Reply:  The Central Government based on its inte rnal assessment and in public interest notifies 
the products for mandatory BIS certification mark under a licence. WT/TPR/M/249/Add.1 
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  67.  Could India detail what are the monitoring mechanisms to verify compliance of products to 
Indian standards?  (Page 81, paragraph 107) 
Reply:  The details of the monitoring mechanisms  to verify compliance of products to Indian 
standards are given in BIS (Certification) Regu lations, 1988 which are available on BIS website 
http://www.bis.org.in. 
68.  The powers of institutions dealing with SPS ar e not clear as mentioned in this paragraph.  Can 
India provide further explanation regarding the comp etence of each institution and the contact points 
and links on the Internet where one can see the measures taken by the Indica on this topic?  (Page 83, 
paragraph 117) 
Reply:  The following departme nts are dealing with SPS issues: 
(i) Department of Animal Husbandry, Dair ying and Fisheries (www.dahd.nic.in) for 
animals and animal products. 
(ii) Department of Health and Family Welf are (www.mohfw.nic.in) for human health. 
(iii) Department of Agriculture and Cooperation (www.agricoop.nic.in) for plants and plant 
products. 
69.  Can India provide additional information about  ports authorized to im port animal products and 
plants and the reasons why such limitations are estab lished for admission to only a few entry points?  
(Page 85, paragraph 122) 
Reply:  Designated ports notified for the purpose are the seaports at Mumbai, Kolkata, 
Chennai, Kochi and Vishakhapatnam, the airports  at Delhi, Chennai, Mumbai and Kolkata and 
the Land Customs station at Petrapole under Livestock Importation Act, 1898.  These ports 
have the Animal Quarantine and Certification Services Station. 
70.  Could India indicate whether imports of fo od containing genetically modified material must 
submit a proposal to the Review Committee of Genetic  Modification?  In what circumstances entry of 
GM foods in India be denied?  Could India prov ide some examples of cases of denial of access to 
genetically modified imports?  (P ages 86 and 87, paragraph 125) 
Reply: 
(1) Import of Genetically Modified (GM) Food Products in India is governed by the rules 
for "Manufacture, Use, Import and Export and Storage of Hazardous Micro Organisms/Genetically Engineered Organisms or Cells", 1989 notified under provisions 
of Environment Protection Act, 1986.  Genetic Engineering Appraisal Committee 
(GEAC) is the apex body notified under the sa id Rules to accord approval for import of 
GMOs including GM food. 
(2) GEAC has prescribed the procedure for import of GM foods in the country.  For import 
of living modified organisms (LMOs) as fo od, feed and processing (FFP), environment 
clearance of GEAC needs to be obtained, for which bio-safety and food safety studies 
need to be furnished.  In case of GM pro cessed food, the GEAC follows an "event based 
approval" in a given crop.  If the processed food contains any ingredient derived from 
LMO as food, feed and processing (FFP) or GM processed food derived from LMO, and if the LMO/product thereof has been appr oved by GEAC, no further approval is 
required, except for declaration at the port of  entry.  In case, it does not have the  WT/TPR/M/249/Add.1 
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  approval of GEAC, the procedure applicable in case of GM processed food derived from 
LMO is applicable. 
(3) Accordingly, as per the provisions incorporated in the ITC (HS) Classifications of 
Export and Import Items (Schedule I), import of any food, feed, raw or processed or any ingredient of food, food additives or any food product that contains GM material and 
which is being used either for industrial production, environmental release or field 
application, will be allowed only with the approval of the Genetic Engineering Appraisal 
Committee (GEAC) in Ministry of Environment and Forests, Government of India.  At the time of import, all consignments containi ng products which have been subjected to 
genetic modification will carry a declaratio n stating that the product is genetically 
modified.  In case, a consignment does not ca rry such a declaration and is later found to 
contain Genetically Modified material, th e importer is liable to penal action under 
Foreign Trade (Development and Regulation) Act, 1992. 
(4) The GEAC did not allow the import of GM co rn soya blend in the absence of submission 
of necessary certification. 
71.  How well do these export controls relate to  paragraph 2.b of Artic le XI of GATT 1994?  
(Page 88, paragraph 129) 
Reply:  These measures are meant to ensure the standards, quality assurance or grading, the 
compliance of export policy etc., which are consistent with the provisions of Article XI of GATT 
1994. 
72.  Do they apply these export taxes on a temporary basis and in order to address critical shortages 
of foodstuffs and essential goods, as is stated in parag raph 2.a.  Article XI of GATT 1994?  (Page 90, 
paragraph 133, pages 91-92, paragraphs 135-141, page 154, paragraph 218) 
Reply:  Currently there is no export duty on any food item.  
73.  In relation to exports, what criteria is used for when a state trading enterprise is not going to 
export?  Are there restrictions on volume or amount s suggested by the stakeholders are authorized?   
(Page 93, paragraphs 142-143) 
Reply:  The volume and amount are evaluated to  determine likely impact on domestic prices 
and availability.  Accordingly the state trading enterprises determine the exports quantum at a 
particular period of time. 
74.  Could India indicate some of the public sector enterprises in the services sector that have access 
to credit at preferential interest rates?  (Page 108, para 181) 
Reply:  Para 181 of the Secretariat Report a nd the related table III.23 does not appear to refer 
to the services sector.  The intent of the question is not clear. 
75.  Under what circumstances and conditions do an alysis of anticompetitive agreements or abuse of 
dominant position outside India that cause or ma y cause significant adverse effects on competition in 
India progress?  How are such in vestigations conducted?  What might  be the effects if there is a 
positive finding?  (Page 117, paragraph 199) 
Reply:  Section 32 of the Competition Act, 2002 provides for power of Competition Commission 
of India to inquire into anticompetitive agreements  or abuse of dominant position outside India 
that cause or may cause significant adverse effect on competition in India.  The procedure WT/TPR/M/249/Add.1 
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  followed is in accordance with section 19 and 26 of  the Act.  Thus, there is no special procedure 
provided for these cases.  Such investigatio ns are conducted according to the procedure 
prescribed in section 19 and 26 of the Act.  In  case of positive findings, the Commission may 
pass an order under section 27 and 28 of the Act. 
76.  Is it possible to access the different rules app lied by India in government procurement somewhere 
on a single electronic portal?  (Page 124, paragraph 220) 
Reply:  Rule 137, 160 and 161 of the General Fi nancial Rules contain the basic principles of 
public buying.  Chapter 6 of the General Financia l Rules, 2005 contains general rules applicable 
to all ainistries or departments regarding proc urement of goods, engagement of consultants and 
outsourcing of services.  Detailed instructions rel ating to the procurement of goods can be issued 
by the procuring ministries/departments in confor mity with the general rules contained in this 
chapter.  Establishment of legislative framew ork for public procurement is under consideration 
of the Government of India.  Hence, as on date, detailed instructions applied by different 
departments are not available in a single elect ronic portal.  GFR and the Procurement Manual 
are available on http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/ 
GFR2005.pdf and http://www.du.ac.in/fileadmin/DU/DUCorner/MPProc4ProGod.pdf 
respectively. 
77.  Is there a body that exercises oversight function in  public procurement for entities at all levels of 
government?  (Page 124, paragraphs 220 and 221) 
Reply:  Yes, besides internal controls, Comptr oller and Accountant General of India, and the 
Central Vigilance Commission perform the oversight. 
78.  Are there objective criteria laid down for de termining if in a contract tender only domestic 
suppliers can participate?  (P age 124, paragraph 220) 
Reply:  Yes, it is also decided by the procuring agency. 79.  Which authority does audit work and monitors pub lic procurement at the state level?  Is there a 
homogeneous structure or it varies in every state?  (Page 124, paragraph 221) 
Reply:  Besides internal controls and monito ring, Accountant General and the State Vigilance 
Commission monitor such procurement activities in States.  Public procurement is regulated through a series of executive directives which suppl ements the regulations (e.g. the directives 
issued by Vigilance Commission from time to time). 
80.  Is there a forum or a timeline to raise queri es regarding any procurement?  Is the procedure 
referred to such as consultation, ar bitration, appeal and review is th e same for all public institutions?  
(Page 125, paragraph 222) 
Reply:  The disputes over the tendering process and award of particular contract are resolved 
by addressing the grievances to the higher authority of organization and if it is not resolved satisfactory, the supplier can appeal to the co mpetent court.  The same grievance redressal 
mechanism is available to the foreign supplier also. 
81.  To which authority one could appeal to re garding government procuremen t under the provisions 
of the Contract Law of India 1872, the Specific Repair Act of 1963 and the Sale of Goods Act 1930?  
(Page 125, paragraph 222)  WT/TPR/M/249/Add.1 
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  Reply:  Contracts are resolved by addressing the grievances to the higher authority of 
organization and if it is not resolved satisfac tory, the supplier can appeal to the competent 
court. 
82.  Considering that India only notifies successful  award of tender, it is possible that a supplier 
interested in a contract that he has not won, re quests and is provided an explanation of the reasons 
that led to the choice of another supplier?  (Page 126, paragraph 227) 
Reply:  On request, the requisite information can be provided. 83.  Are procurement procedures same for all entities,  although there are different rules, or are there 
substantial differences in the types of pro cedures and processes?  (Page 126, paragraph 228) 
Reply:  Rule 137, 160 and 161 of the General Fi nancial Rules contain the basic principles of 
public buying.  Chapter 6 of the General Financia l Rules, 2005 contains general rules applicable 
to all ministries or departments regarding proc urement of goods, engagement of consultants 
and outsourcing of services.  Detailed instructio ns relating to the procurement of goods can be 
issued by the procuring ministries/departments in  conformity with the general rules contained 
in this chapter.  Establishment of legislative framework for public procurement is under 
consideration of the Government of India. 
84.  What is the web address at which one can get information on procurement by India in electronic 
form?  What percentage of purchases run under this system?  Is the whole procedure done in 
electronic form?  (Page 130, paragraph 241) 
Reply:  Presently there is no national e-procurement portal in India.  The method of e-tendering 
for public procurement has started in different departments/organisations in recent times and 
these details can be viewed from respecti ve websites of the organisations. 
85.  Could India give detailed information on the discussion paper on Compulsory Licenses issued by 
the Department of Industrial Policy and Promotion?  (Page 134, paragraph 256) 
Reply:  DIPP prepared a Discussion Paper on th e subject of compulsory licensing and hosted 
the same on its website to invite the views and suggestion on certain issues for resolution.  The 
objective of this exercise was not to invite any change/amendment to the provisions of the Patent 
Act 1970 but only to elicit the suggestions to ta ke an appropriate policy decision whether the 
existing provisions of the Patents Act, 1970 require any amplification through issuing of guidelines by the Government.  As such, the questio n of any change to the existing provisions of 
the Patents Act 1970 does not arise.  Moreover, after obtaining and examining the suggestions 
on the said Discussion Paper, the Government has decided that there is no need to issue 
additional guidelines for the issue of compulsory  license and issued a press release to this effect 
to conclude the matter.  Further, the existing  provisions of the Patent Act 1970 are already 
TRIPS compliant including Article 31 thereof.  The Discussion Paper is available on DIPP's website:  www.dipp.nic.in. 
86.  In what cases would the central government grant additional protection to certain products and 
to what types of products?  (What kind of add itional protection may give the central government 
(page 141, paragraph 286) 
Reply:  Under section 22(2) of the GI Act, Central Government may if it thinks necessary notify 
certain goods or classes of goods under Section 22 sub section (3) of the Act for additional protection.  Under Section 22(3), any person who is not an authorized user of a geographical 
indication registered under this Act in respect of the goods or any class or classes of goods WT/TPR/M/249/Add.1 
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  notified under sub-section (2), uses any other geogr aphical indication to such goods or class or 
classes of goods not originating in the place indi cated by such other geographical indication or 
uses such other geographical indication to such g oods or class or classes of goods even indicating 
the true origin of such goods or uses such othe r geographical indication to such goods or class or 
classes of goods in translation of the true place of origin or accompanied by expression such as 
"kind", "style", imitation" or the like expre ssion, shall infringe such registered geographical 
indication. 
At present in line with the TRIPS Agreement a dditional protection is available to wines and 
spirits. 
87.  Could India provide details of the schemes for promoting exports and investment that provide 
relief from import duties on intermed iate goods?  (Page 146, paragraph 2) 
Reply:  The duty neutralisation schemes such as advance authorisation scheme etc. are given in 
FTP which has been notified to WTO and is available at http://dgft.gov.in. 
88.  Could you provide details of fiscal incenti ve programs and concessional loans and other types of 
assistance that the Government offers to encourage investment in manufacturing?  (Page 146, 
paragraph 3) 
Reply:  India has a very liberal FDI policy in place to encourage foreign investments in the 
manufacturing sector in the country.  For instance 100 % FDI is allowed in the telecom equipment manufacturing sector.  A comprehens ive National Manufacturing Policy is also 
being contemplated to boost the investment in the manufacturing sector. 
89.  What are the services sector in India access to  which requires certain conditions or permits, and 
which in some cases may be mo re restrictive than the explicit lim its on investment?  (Page 146, 
paragraph 4) 
Reply:  The FDI policy, including for the servi ces sectors, is detailed under "Circular 1 of 2011 - 
Consolidated FDI Policy", which is available in  the public domain.  Any investment, including 
foreign investment, is, however, subject to app licable laws/sectoral rules/regulations/security 
conditions. 
90.  Considering that grant of import permit is an administrative procedure, under which conditions 
will India consider that this administrative proce dure is not considered an import license?  How do 
you interpret the Footnote 1 of the Agreement on  Procedures for Import Licensing Procedures?  
(Page 153, paragraph 23) 
Reply:  Import permits are primarily to moni tor the imports and conformity to quality and 
standards, e.g. the special import permit for phytosanitary purpose, and does not bestow any 
restriction on quantum of imports. 
91.  How does India ensures that the price s upport programs (in agriculture) do not exceed the 
country's commitments, since the last notificati on to the Committee on Agriculture was in 2004?  
(Page 157, paragraph 35) 
Reply:  India has not scheduled any aggregate measurement of support (AMS) i.e. "Amber 
Box" commitments in the Uruguay Round.  Indi a's price-support programmes have been well 
within the de minimis as may be seen from India's notifications to the WTO.  India's WTO 
commitments are kept in view while formulating such programmes.   WT/TPR/M/249/Add.1 
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  92.  The report notes that the policy of allocating funds for specific purposes can cause, among other 
things, greater financial risks and, in some cases, hi nder the recovery of assets.  Is India thinking of 
eliminating this policy?  (Page 166, paragraph 62) 
Reply:  The priority sector includes sectors viz. agriculture, micro and small enterprises, 
education, housing and micro credit.  The activiti es are wide and varied and as such there is no 
risk of credit concentration.  At present, th ere is no interest rate ceiling stipulation on these 
loans.  Bank lending to priority sector needs is to be viewed as a viable and profitable business proposition.  Further, this facilitates inclusive and equitable growth.  We are not thinking of 
revising the policy.  It has proved its efficiency  over the years in channelising credit to desired 
directions. 
93.  Could you explain the reason why offshore banking units cannot receive or solicit deposits or 
investments from Indian residents, or open accounts w ith them?  Is it estimated that this restriction 
may change in the short term?  (Page 172, paragraph 79) 
Reply:  OBUs are virtually foreign branches of Indian banks located within special economic 
zones (SEZs) which are treated as deemed foreign territory.  In view of this, there is need to ring 
fence the operations of these units.  OBUs are,  therefore, required to operate and maintain 
balance sheet only in foreign currency and these ar e not allowed to deal in Indian rupees except 
for having Rupee account out of convertible fund to meet their day to day expenses.  In the 
circumstances, OBUs are not allowed to receive or solicit deposits or investments from Indian 
residents, or open accounts with them. 
94.  The report notes that even though there is increased competition in the insurance sector, 
obstacles remain like the limit of 49% in the partic ipation of foreign investment in insurance and 
reinsurance market, and Insurers must put a certain percen tage of their policies on rural and social 
sectors in India.  Can you indicate if you are cons idering changing some of these limitations?  (Page 
179, paragraphs 101 and 103) 
Reply:  The present FDI ceiling in the sector is 26%.  The Government of India has introduced 
the Insurance Laws (A mendment) Bill, 2008, in Parliament.  Presently, the Bill is under 
examination in Parliament.  The existing in surance legislation makes it mandatory for 
insurance companies to place a certain percentage of the policies with rural and social sector.  
The intention is to spread the liberalization to  all sections of the society and work towards 
financial inclusion.  With the rapid growth of  the rural economy insura nce companies see rural 
and social sector business as an opportunity and are devising new strategies and plans to tap the 
huge potential in this area. 
95.  The report states that foreigners cannot perform activities such as travel agents, tour operators 
or tourist transport companies.  Can you explain the reason of this limitation and if in the short term 
there would be any amendment?   (Page 209, paragraph 187) 
Reply:  Hotel and tourism sector has been open  for FDI up to 100% on automatic basis.  This 
also includes travel agencies and tour operators.  The Ministry of Tourism grants 
approval/recognition to the various service providers in the categories of inbound tour 
operators, domestic tour operators, tourist tr ansport operator, adventure tour operator and 
travel agencies as per the revised guidelines dated 18.07.2011. 
96.  It notes that India has signed 46 bilatera l agreements on cooperation in Tourism.  Can India 
indicate the preferences such agreements  contain?  (Page 211, paragraph 193) WT/TPR/M/249/Add.1 
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  Reply:  India has a liberal policy in the sector  to promote foreign investment.  The details 
requested in the question can be obtained from the following website:  http://tourism.gov.in. 
97.  In paragraph 23 of the report of India (W T/TPR/G/249) states "While still a developing country, 
India is also emerging as a source of investment , which increased from U.S. $ 19,100 million in 
2008-2009 to U.S. $ 19,700 million in 2009-2010  to 18,000 million U.S. dollars in 2010-2011 
(April to December).  Mauritius received the larg est share of gross outward FDI in 2010 2011 
(April-December), followed by Singapore, the United States, the Netherlands and the United Kingdom. 
"Moreover, in paragraph 48 of the first section (E conomic Environment) Report of the Secretariat 
(WT/TPR/S/249) states that "Mauritius remains the largest source of FDI, accounting for 
approximately 40.2 per cent of inward FDI flows in  2009/2010.  Part of these large flows may result 
from the advantages of the tax treaty between M auritius and India, which may make it attractive for 
investors to route their investments through Mauritiu s to take advantage of preferential provisions, 
which include exemption from the capital gains ta x.  Other major sources during the period under 
review were Singapore, the Un ited States, Cyprus and Japan. 
"Costa Rica request further clarification regarding the origin of inward FDI, as well as the main 
destination of India's outward FDI. 
Reply:  
During 2010-11, c ountry-wise data show that inv estments routed through Mauritius 
remained the largest component of gross FDI in flows to India followed by Singapore and the 
USA (Table 1). 
Table 1:  Foreign direct investment  flows to India:  country-wise 
(US $ million)  
Source 2006-07 2007-08 2008-09 2009-10 P 2010-11 P 
1 2 3 4 5 6 
Total FDI  9,307  19,425  22,697  22,461  14,939 
Country-wise inflows 
Mauritius  3,780  9,518  10,165  9,801  5,616 
Singapore  582 2,827  3,360  2,218  1,540 
USA  706 950 1,236  2,212  1,071 
Cyprus  58 570 1,211  1,623  571 
Japan  80 457 266 971 1,256 
Netherlands  559 601 682 804 1,417 
United Kingdom  1,809  508 690 643 538 
Germany  116 486 611 602 163 
UAE  215 226 234 373 188 
France  100 136 437 283 486 
Switzerland  57 192 135 96 133 
Hong Kong, China  60 106 155 137 209 
Spain  62 48 363 125 183 
Korea, Rep. of  68 86 95 159 136 
Luxembourg  – 15 23 40 248 
Others  1,055  2,699  3,035  2,376  1,184 
India's main destinations for outward FDI 
India's outward FDI policies have been prog ressively liberalised since 1992 and simplified to 
meet the changing needs of a growing economy.  The scope for outward FDI particularly expanded significantly after the introduction  of Foreign Exchange Management Act in  WT/TPR/M/249/Add.1 
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  June 2000.  Subsequently, automatic route for outward FDI was further liberalised in 
March 2003 to enable Indian parties to invest to  the extent of 100% of their net worth, which 
was later gradually increased to 400% which a ccelerated the pace of increase in cross-border 
acquisitions. 
During 2010-11, outward FDI grew significantl y over 2009-10.  Direction-wise (i.e., in terms of 
recipient countries), investment routed through Ma uritius constituted the largest component of 
gross outward FDI during the period, followed by Singapore and the Netherlands.  Trend in country-wise outward FDI is provided in Table 2. 
Table 2:  Country-wise distribution of India's outward FDI 
(US$ million)  
Sr.  No. Country  2006-07 2007-08 2008-09 2009-10 2010-11 
1 2 3 4 5 6 
1 Mauritius 950.3 1,512.2 2,075.1 1,371.5 5,045.1 
2 Singapore 1,045.1 8,370.6 3,749.7 3,798.5 3,980.0 
3 Netherlands 350. 1 1,869.8 2,794.8 1,529.9 1,516.6 
4 USA 708.0 1,188.8 957.5 754.1 1,188.3 
5 UAE 208.0 826.2 629.2 636.4 832.3 
6 British Virgin Islands  55.2 803.8 275.9 747.5 281.1 
7 UK 384.7 740.8 345.2 345.0 398.4 
8 Cyprus 178.6 575.7 2,299.0 458.4 516.2 
9 Others 9,357.5 2,566.3 5,072.4 2,684.2 2,938.2 
10 Total  12,287.2 16,942.0 16,123.7 10,953.9 16,702.1 
Source:  RBI Bulletin, August 2011. 
EUROPEAN UNION 
I.  ECONOMIC ENVIRONMENT 
(2)  RECENT ECONOMIC DEVELOPMENTS 
India's report, page 13, para. 28 The report mentions the Right of Children to F ree and Compulsory Education Act 2009, which came 
into force on 1 April 2010 and which provides fo r free and compulsory education to all children 
between the ages of 6 to 14. 
1) Would it be possible to get information about the enforcement of this act, in particular if it has 
impact on child labour?  In this context, what is the current situation of India concerning possible 
ratification of ILO Conventions:  C138 Minimu m Age and C182 Worst Forms of child Labour? 
Reply:   India enacted the Right to Education Act in 2009 to provide every child in the age group 
of 6-14 years free and compulsory education.  The Government has also launched a countrywide 
campaign of Education for All (Sarva Shiksha Abhiyaan) for providing education to children in 
the aforesaid age group. 
India has not ratified ILO Conventions No. 138 and 182 and the issue of working out the 
modalities for ratifying the ILO Co nvention 182 in line with our Constitutional Provisions and 
domestic laws is under consideration.  Most form  of child labour is already prohibited under 
various Indian legislations. WT/TPR/M/249/Add.1 
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  It is also stated that in the areas of higher and technical education, policy initiatives aim to make the 
population group between 18-24 years (about 12% of  the total) employable and competitive. 
2) Could India provide more information on the me ntioned policy initiatives which aim to make the 
population group between 18-24 years (about 12% of  the total) employable and competitive? 
Reply:  Productive employment generation with decent work conditions is an important 
concern not only for the national employment policy but also for the national agenda of 
inclusive growth.  Active labour market policies are pursued to generate both wage as well as 
self-employment.  The major employment gen eration programmes which are currently in 
operation in India include:  Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Prime Minister's Employment Generation Programme (PMEGP), 
Swarnajayanti Gram Swarozgar Yojana (SGSY) and Swarna Jayanti Shahari Rozgar Yojana 
(SJSRY).  These programmes have reflected immen se potential for generating short term rural 
wage employment as well as sustainable self-employment. 
The present demographic dividend can best be ha rnessed by significantly enhancing levels of 
skills among workers.  It is with this perspective that India has set an overall target of creating 
500 million skilled workers by 2022 under the Nation al Skill Development Policy.  A three tier 
institutional structure consisting of Prime Mi nister's National Council on Skill Development, 
Skill Development Co-ordination Board and Nati onal Skill Development Corporation has been 
set up to take forward the skill development agenda. 
India's report, page 13, para. 29 The report refers to the National Skill Development Policy which was initiated in 2010 and which sets 
an ambitious target of equipping nearly 500 million persons with im proved skills by 2022 for enabling 
access to decent employment and ensuring India's competitiveness in a dynamic global labour 
market. 
3) Would it be possible to receive more information a bout this policy, in particular about the specific 
initiatives that have already been launched and others that may be in the pipeline? 
Reply:  National Policy on Skill Development aims at increase in productivity of workforce both 
in the organized and the unorganized sectors, seeking increased participation of youth, women, disabled and other disadvantaged sections and to  synergize efforts of various sectors and reform 
the present system.  The National Skill De velopment Policy has the following vision: 
 Skill development should harness inclusivity and reduce economic and social divisions 
among Indian workforce particularly across rural-urban, male-female, 
organized-unorganized and traditional/contemporary. 
 Matching the emerging demands for skills  across various industries and economic 
enterprises. 
 Evolving National Vocational Qualification Framework comparable with international 
standards. 
 Developing standard certification system by recognizing and including quality skills 
acquired through any informal system of learning. 
 Greater and more active role for workers'  organizations, industry, civil society, 
Panchayati Raj Institutions and other professional bodies.  WT/TPR/M/249/Add.1 
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   Greater reduction of poverty through e nhanced earnings of skilled workers. 
Recent initiatives for skill development:   (1) Institutional arrangement:  a three tier inst itutional structure consisting of Prime 
Minister's National Council on Skill Development, Skill Development Co-ordination Board and National Skill Development Corporat ion has been set up to take forward the 
skill development agenda. 
(2) Upgradation of 1896 Government Industrial Training Institutes (ITIs). 
(3) Skill Development Initiative:  the SDI will pr ovide short-term flexible modular training 
courses through the Modular Employable Skills (MES) scheme.  The courses will be delivered through public-private partnership a rrangements.  The acquiring of skills will 
be evaluated by official bodies selected by the central government and certified by the 
National Council for Vocational Training (NCVT). 
(4) Establishment of ITIs for minorities. 
India's report, page 20, para 60 The report mentions reforms aiming at making MSMEs globally competitive through technological 
upgrade, skill development, a cluster development approach, etc. 
4) Would it be possible to get more information about the related skill development initiatives? 
Reply:  Prime Minister's National Council on Sk ill Development has set a target of training 
500 million persons by the year 2022.  National  Policy on Skill Development has carried out 
benchmarking of the training targets for vario us ministries/departments for developing Skill 
Development Programme in the sectors under th eir control.  Planning Commission is 
coordinating with ministries/departments for preparing skill development plans and setting up 
the targets for the successive Five year plans.  The training target of MSME is 15 million 
persons by 2022. 
WTO Secretariat's report, page 4, para. 7 and table I.2 The paragraph states that agriculture continues to be the mainstay of the majority of the population, 
occupying some 52% of the total workforce (incl uding non-organized labour).  In the table below 
data only for organised employment is provided. 
5) Would it be possible to receive separate data for organised and unorganised labour? 
Reply:  An important characteristic of empl oyment in India is the predominance of the 
unorganised sector.  The size of the organised sector, characterised by higher earnings and job 
security is small.  It accounted for less than 6% of the total employment in 2004-05.  Over the 
years, organised sector employment has grown slowly than the growth in total employment, 
reflecting the faster growth of the unorganised sector.  As a whole, about 96% of female 
employment is in the unorganised sector as agains t about 91% of males.  In urban areas, the 
percentage of unorganised sector workers is close to 65-70%. WT/TPR/M/249/Add.1 
Page 128  
 
  WTO Secretariat's report, page 6, para, 11 
It is mentioned that no complete employment fi gures are available.  The authorities have indicated 
that this is due to the relatively large segment of non-organized (not formally employed) workers, and 
that only figures for organized employment are available. 
6) Would it be possible to receive an estimate of a proportion of unorganised employment? 
Reply:  Unorganized sector in the country constitutes about 94% of the work force. 
The report indicates that agriculture accounts for just  over 5% of total organized employment but this 
figure is misleading, as most agriculture l abourers are not unionized or otherwise organized. 
7) What is the proportion of unionised labour in India?  In this context, what is the current situation 
of India concerning possible ratification of ILO Conventions:  C 98 Right to Organise Collective 
Bargaining and C87 Freedom of Associati on and Protection of the Right to Organise? 
Reply:  As estimated in 2006, the number of worker members of central trade unions and state 
trade unions was around 12 lakh and 77 lakh, respectively.   
Conventions No. 87 and 98 are yet to be ratified du e to conflicts with existing domestic laws and 
Constitutional provisions. 
WTO Secretariat's report, page 6, para.12 
It is mentioned that data from the Planning Co mmission show that 27.5% of the population lived 
under the poverty line in 2004/05, down from 36% in 1993/94.  However, a 2009 study by an expert group, found a 37.2% poverty ratio for 2004/05.  It is stated that although these levels are 
considerably below those of a decade ago, there is still a large number of poor, especially in the rural 
areas. 
8) What is the presumed reason for the large difference in data for 2004/2005 given by the Planning 
Commission and the expert group?  On which basis is it concluded that poverty levels are considerably below those of a decade ago since the expert group study found that they did not 
change in years 1993/94 - 2004/05? 
Reply:  The expert group under the Chairmanship of Shri Suresh Tendulkar was constituted in 
2009 to re-examine the poverty estimates.  The expert group recommended that the rural 
poverty line should be recomputed to reflect mone y value in rural areas of the same basket of 
consumption that is associated with the exis ting urban poverty ratio.  The expert group 
recalibrated the rural poverty line in all Stat es, which increases the population counted below 
the new poverty line.  This explains the difference  in data for 2004/2005 given by the Planning 
Commission and the expert group.  As such, Planning Commission estimates and the expert 
group estimates cannot be compared with each ot her due to different ways of computing rural 
poverty. 
(5)  BALANCE OF PAYMENTS WTO Secretariat's report, page 12-13 India continues to use both capital and current ac count controls, which are not contained in the 
reports.  WT/TPR/M/249/Add.1 
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  9) Could India provide an overview of these conditi ons, including on free repatriation of profits and 
divestment of FDI (as referred to in paragraph 38 of Secretariats report) and its plans for future, 
if any? 
Reply:  India is fully convertible on th e current account since 1994.  However certain 
quantitative restrictions have been placed on  small list of current account transactions.  
Repatriation of profits in the form of divide nd payments on foreign investments in India are 
treated as current account transactions and as such there are no restrictions on remittance of 
the same subject to payment of applicable taxes and tax laws in the matter.  As regards capital 
account convertibility, India has followed a grad ualist approach and capi tal controls are being 
liberalized in a calibrated manner.  Foreign in vestment under the foreign direct investment 
(FDI) route is very liberal wherein FDI is allowed in almost all sectors (barring a few sensitive 
sectors) under the 100% automatic route for FD I (subject to the reporting requirements, 
pricing guidelines and other terms and conditions stipulated under the relevant FEMA regulations).  Further transfer of shares under th e FDI scheme from non-residents to residents 
or divestment of shares/FDI investment by no n-resident investors is also under the automatic 
route subject to the respective reporting requi rements, pricing guidelines and other relevant 
terms and conditions under the extant FEMA regulations. 
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(2)  TRADE POLICY FORMULATION AND IMPLEMENTATION 
WTO Secretariat's report, page 24, para. 14 10) Would India explain what – if anything - it is doing to help its producers: 
i) Produce goods which are environmental and socially sustainable 
ii) Access niche markets overseas through adheren ce to voluntary sustainability standards 
(for example, Fair Trade, UTZ Certified, Global G.A.P.)? 
Reply:  There is no internationally agreed de finition of environmental goods (EGs), nor are 
there any agreed criteria for their classificati on.  Given the challenges in defining and 
classifying these goods, there has been lack of convergence amongst WTO Members in defining 
or developing modalities for identification of environmental goods. 
To increase consumer awareness, the MoEF, G overnment of India launched the voluntary 
eco-labeling scheme known as "Ecomark" in 1991 vide Notification No. GSR 85(E) dated 20 February, 2011 for easy identification of envi ronment-friendly products.  Any product which 
is made, used or disposed of in a way that significantly reduces the harm it would otherwise 
cause the environment could be considered as environment-friendly product.  The specific 
objectives of the scheme are as follows: 
 To provide an incentive for manufacturers and importers to reduce adverse 
environmental impact of products. 
 To reward genuine initiatives by companies to reduce adverse environmental impact of 
their products. 
 To assist consumers to become environm entally responsible in their daily lives by 
providing information to take account of  environmental factors in their purchase 
decisions. WT/TPR/M/249/Add.1 
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   To encourage citizens to purchase products  which have less harmful environmental 
impacts. 
 Ultimately to improve the quality of the en vironment and to encourage the sustainable 
management of resources. 
So far, the Government of India has notified the final criteria for the following 16 product 
categories which also include processed fruits and vegetable under food items:  
1.  Soaps and detergents  2.  Paper 
3.  Food items   4.  Lubricating oils  
5.  Packaging material/package   6.  Architectural paints and powder  
7.  Batteries 8.  Electrical/electronic goods 
9.  Food additives 10.  Wood substitutes 
11.  Cosmetics 12.  Aerosol propellants 
13.  Plastic products 14.  Textiles 
15.  Fire-extinguishers 16.  Leather 
We are pleased to note that India has ratified f our of the core ILO Conventions and three of the 
priority Conventions. 
11) Would India please indicate its intentions in rela tion to the ratification of the following core ILO 
Conventions which it has not yet ratified:   Conventions 87, 98, 138, 182? 
Reply:  This has already been replied in questions 1 and 7 above. (3)  REGIONAL TRADE AGREEMENTS 
(ii)  Preferential and regional trade agreements 
WTO Secretariat's report, page 27, para. 20 The report points to certain reservations by India regarding regionalism "because of its complexity 
and possible trade diversion". 
12) Could India elaborate further on these reservations , and the causes of such concern?  How does 
India reconcile these concerns with its on-going regional trade policy? 
Reply:  India believes that RTAs complement the multilateral rule-based trading regime.  
India's concerns on regionalism stem not from possible trade diversion but from the multiple 
tariff differentials, complicated rules of origin and the duty inversion effect of RTAs and how 
these could act as a disincentive for local manufacturing. 
WTO Secretariat's report, page 200-201, Table AII.3 According to our information, India's FTA with  Japan, which was signed in February 2011, has 
entered into force on 1 August. 
13) Could India explain the main objec tives pursued with this FTA?  In addition, could India share 
information regarding the tariff coverage of this agreement?  When does India plan to notify this 
FTA to WTO? 
Furthermore, India has recently signed two bila teral FTAs with two ASEAN members, namely 
Malaysia and Thailand.  These agreements have not yet been notified to WTO.  WT/TPR/M/249/Add.1 
 Page 131 
 
 
  Reply:  A Comprehensive Economic Partnership Agreement (CEPA) between India and Japan 
was signed on 16 February 2011.  This Agreemen t has come into force from 1 August 2011.  The 
main objectives pursued with this Agreement are to: 
(a) liberalize and facilitate trade in goods and services between the Parties; 
(b) increase investment opportunities and stren gthen protection for investments and 
investment activities in the Parties; 
(c) ensure protection of intellectual property and promote cooperation in the field thereof; 
(d) promote cooperation for the effective enforceme nt of competition laws in each Party; 
(e) improve business environment in each Party; 
(f) establish a framework to enhance closer cooperation in the fields agreed to in this 
Agreement;  and 
(g) create effective procedures for the implementa tion and application of this Agreement 
and for the resolution of disputes. 
The total coverage of liberalisation under this Ag reement from Indian side is 87.16% and from 
Japanese side is 92% of tariff lines at 6 digit level. 
The process to notify this Agreement to WTO is under way. 
14) Could India indicate when it plans to  notify these two agreements to WTO? 
Reply:  The agreement with Malaysia will be notified shortly. The agreement with Thailand covers only 82 tariff lines and is part of the Early Harvest Scheme 
under the Framework Agreement for Establishing a Free Trade Area between the Republic of India and the Kingdom of Thailand.  The FTA is still under negotiation and would be notified to 
the WTO in due course. 
WTO Secretariat's report, page 28, para. 21 Further to these two bilateral agreements, India concluded an FTA with another ASEAN Member, 
namely Singapore, which has been in force since 2005.   These three bilateral agreements do co-exist 
with the FTA that India signed with ASEAN in 2007 a nd which entered into force in 2010.  According 
to the report, the Indian authorities noted that "tariff concessions under bilateral agreements with 
countries that also belong to regional agreements to  which India is a party, are generally wider and 
deeper than those under the regional agreements and t hat the trader can choose which preference to 
use".  Concerning rules of origin, it is stated that  these are not necessarily th e same in the bilateral 
and regional agreements but that the "origin criterion  for products not covered by specific rules have, 
by and large, been harmonized". 
15) Could India spell out the reasons for having negotiated in parallel bilateral and regional 
agreements with the ASEAN Members? 
Reply:  Negotiations on the bilateral and regio nal agreements commenced at different points of 
time.  While the bilateral with Singapore wa s concluded before the regional agreement with 
ASEAN gained traction, the other bilateral negotiations took a back-seat when the ASEAN WT/TPR/M/249/Add.1 
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  negotiations took off.  The bilateral agreement s are more ambitious than the regional agreement 
with ASEAN. 
16) Could India explain how it ensures that expor ters are well-informed about their respective 
advantages, and by which agreemen t can they benefit most from? 
Reply:  The information on RTAs is published in  the official website of the Department of 
Commerce.  In addition, the Department of  Commerce organises outreach programmes in 
different parts of the country in partnership with industry associations and chambers of 
commerce. 
17) Is India working towards further harmonization of its rules of origin applied to bilateral and 
regional trade agreements? 
Reply:  Yes. 
18) Would India elaborate on the extent to which, and how, social and labour issues are addressed 
within each of the FTAs signed during the reviewing period? 
Reply:  India considers RTAs as instruments for increasing bilateral and regional trade with its 
partners with the aim of developing industry.  India believes that social and labour issues are 
better dealt with by directly addressing them th rough targeted policy interventions and schemes 
and not by linking them with trade. 
(4)  INVESTMENT REGIME WTO Secretariat's report, page 28, paragraphs 23-34 The report does not provide information of corporat e social responsibility regul ations and guidelines 
which are an important element of the business environment. 
19) Could India provide informati on about corporate social respons ibility regulations and guidelines 
in place including any recent development? 
Reply:  In order to assist the businesses to adopt responsible governance practices, the 
Government of India has prepared Corporate Social Responsibility Voluntary Guidelines 2009 
for responsible business which will add value to th e operations and contribute towards the long 
term sustainability of the business.  These guidel ines indicate some of the core elements that 
businesses need to focus on while conducting their affairs.  The core elements of the CSR Policy 
includes care for all stakeholders, ethical functi oning, respect for workers' rights and welfare, 
respect for human rights, respect for environment and activities such as education, skill building for livelihood of people, health, cultural and social welfare particularly for the disadvantaged sections of society for social and in clusive development.  This will enable business 
to focus as well as contribute towards the in terests of the stakeholders and the society. 
While the report explains that foreign companies can incorporate as foreign branches (footnote 20), it 
also indicates that foreign branch offices c an only engage in foreign trade and representative 
activities. 
20) Could India confirm whether a branch of a fo reign company is allowed to operate without 
incorporation? 
Reply:  Branch office has to register with the Registrar of Companies.  WT/TPR/M/249/Add.1 
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  21) Could India explain the conditions for the op erations of the branch of a foreign company, 
including in which sectors there are restrictions on this? 
Reply:  According to Companies Act, a branch is defined as any new physical outlet of a 
business.  There is no definition of a branch of a foreign company in the meaning of representative entity in India (except for financial services). 
A branch office has to register with the Registrar of Companies.  Further, FDI is restricted for 
following sectors as such a foreign entity engaged in  following area cannot open a branch office:   
(i) Retail trading (except single brand product retailing). 
(ii) Atomic energy. 
(iii) Lottery business. 
(iv) Gambling betting. 
(v) Business of chit fund. 
(vi) Nidhi company. 
(vii) Trading in transferable development rights (TDRs). 
(viii) Activities/sector not opened to private sector investment. 
According to Companies Act, a branch is defined as  any new physical outlet of a business.  There 
seems to be no definition of a branch of a foreign  company in the meaning of representative entity in 
India (except for financial services). 
22) Could India clarify 
i) The definition of a branch in its legislati on, including listing the differences in different 
sectors; 
ii) The definition of the representative offi ce in its legislation, if it exists; 
iii) The differences in treatmen t of branches of companies incorporated in India and direct 
branches of foreign companies? 
Reply:  For the purpose of FEMA (Foreign Exch ange Management Act) Regulations "Branch" 
shall have the meaning assigned to it in sub- section (9) of Section 2 of the Companies Act, 1956 
(1 of 1956).The details of FEMA can be seen at  www.finmin.nic.in.  For the purpose of FEMA 
regulations "liaison office" means a place of business to act as a channel of communication between the principal place of business or head office by whatever name called and entities in India but which does not undertake any commerc ial/trading/industrial activity, directly or 
indirectly, and maintains itself out of inward re mittances received from abroad through normal 
banking channel 
The branch of a foreign company (set up wi th the approval of RBI under FEMA) can only 
undertake limited activities including some commercial activities as permitted under the extant FEMA regulations.  However, a company incorporated in India by a foreign company (either as WOS or JV) can conduct full fledged operations akin to any other domestic company albeit in WT/TPR/M/249/Add.1 
Page 134  
 
  compliance with the permitted activities under th e extant FDI policy and FEMA regulations.  
Further any office established by it would also be able to conduct all activities akin to a branch of a domestic company albeit in compliance with the extant FDI policy. 
23) Does India envisage a change of the current branch definition to allow for the concept of direct 
branch of foreign company as a non-incorporated representati ve entity, which may have more 
than one outlet in different geogr aphical locations in India? 
Reply:  No change in definition is envisaged.  However, a non-resident entity can open multiple 
branches in India after taking due approval of the Reserve Bank of India under the relevant FEMA regulations. 
WTO Secretariats report, page 33, table II.8 
24) Could India confirm that the list in table II.8 covers all sectors where foreign direct investment is 
prohibited?  In particular, coul d India confirm that FDI is allowed in legal services, auditing and 
news agency services? 
Reply:  The list in table II.8 covers sectors in which FDI is prohibited under the FDI policy.  
However, any investment, including foreign invest ment, is subject to applicable laws/sectoral 
rules/regulations/security conditions, which may contain restrictions 
WTO Secretariat's report, page 33, para. 41 According to the report, India applies investment restrictions to nationals and companies of certain 
neighbouring countries. 
25) Could India clarify how its GATS commitments are honoured for citizens of WTO Members, 
including those with double nationality where one nati onality is that of a neighbour to which the 
restrictions apply and for juridical persons incor porated in these countries, but owned by other 
WTO Members' persons? 
Reply:  The policy on FDI has been steadily liberali sed and is reviewed from time to time, with a 
view to increasing its investor-friendliness.  In ke eping with this thrust towards an increasingly 
open policy environment, country-specific restri ctions on investment, which had earlier found a 
place under the policy on FDI, have al so been gradually reduced over time. 
WTO Secretariat's report, page 32-33, paragraph 39-40 The report by India highlights the liberal and transpa rent investment policy of India, while the report 
by the Secretariat indicates that the number of sect ors where FDI is restricted has increased in recent 
years, and that sectoral restrictions -even in secto rs with no ownership caps- remain more restrictive 
than an explicit investment cap. 
In this regard, the EU would like India to pr ovide related information concerning the following 
sectors: 
26) As for accounting services, what st eps are being taken to allow Indian companies to have their 
audit reports signed by locally incorporated foreign firms using internationally recognised 
names, as well as to end the restrictions on th e number of partners?  By when can this be 
expected?  WT/TPR/M/249/Add.1 
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  Reply:  The existing ICAI (Institute of Char tered Accountants of India) Act and regulations 
framed thereunder regulate the profession of Chartered Accountants which inter alia  also 
includes the operation of Chartered Accountan cy firms in India including the manner of 
registration and the name of such firms which are approved by ICAI. 
27) Concerning legal services, what are India's pl ans as regards opening the legal services for 
foreign investment? 
Reply:  As of now, there is no proposal to open legal services for foreign investment. 
28) As regards postal services, we note that a Postal  Bill has been prepared by Indian government.  
Could India please give an overview of any restrictions reducing the current market access/scope of business and any new requirements and obligatio ns for foreign postal or courier companies? 
Reply:  The Post Office Amendment Bill is p resently under consideration of the Government 
and has yet not been introduced in the Parliament. 
29) With respect to retail services, India is considering 51% FDI in multi-brand retail.  Could India 
confirm when this will come into effect and w hat the requirements for investment (thresholds, 
mandatory investments, etc.) that will be put in place for foreign players to operate are? 
Reply:  The existing policy allows for 51% foreign  direct investment (FDI), only in single brand 
retail trade, subject to specified conditions.  FDI in multi brand retail trading is prohibited.  Government of India had released a Discussion Paper on the subject of "Foreign Direct 
Investment in Multi-Brand Retail Trading", in  order to obtain stakeholder comments, for 
informed policy making.  Comments were received from a number of stakeholders.  The discussion papers, as well as the comments rece ived thereon, are in the public domain.  The 
Government has not taken a final decision in this regard. 
30) Regarding security services, has India taken any steps to raise the curren t FDI equity cap?  By 
when can this be expected? 
Reply:  There is no proposal in this regard at present. 31) As for education services, when will India's 'Foreign Education Providers' bill be passed? 
Reply:  The Foreign Educational Institutions (Regulation of Entry and Operations) Bill 2010 
was introduced in Rajya Sabha (the Upper Hous e of Parliament) on 3 May 2010 and is under 
consideration of the Parliament. 
32) With regard to defence services, has India taken any steps to raise the current FDI equity cap?  
By when can this be expected? 
Reply:  A discussion paper on "Foreign Direct Investment in Defence sector" had been released 
by Government for stakeholder consultations in 2010.  The paper had outlined the concerns 
related to liberalising the FDI regime for the defe nce sector and possible ways of meeting them.  
No decision has been taken in this regard. 
33) Could India confirm that economic  activity undertaken in relation to a new or existing investment 
respects India's national labour law, the fundamental rights at work as embodied by the ILO's 
2008 Declaration on Social Justice for a Fair Globalisation and the 8 core ILO Conventions (nos. 
29, 87, 98, 100, 105, 111, 138 and 182)?  How does India ensure that these are in fact respected? WT/TPR/M/249/Add.1 
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  Reply:  Government of India has ratified 4 core conventions and 3 priority/governance 
conventions.  The four core conventions rati fied by India are Forced Labour Convention 
(No. 29), Abolition of Forced Labour Conventi on (No. 105), Equal Remuneration Convention 
(No. 100) and Discrimination (Employment Occupation) Convention (No.111), and the three priority conventions are Labour  Inspection Convention (No. 81), Employment and Social Policy 
Convention (No. 122) and Tripartite Consultation s (International Labour Standards) (No. 144), 
and all activities have to obey the national la ws.  Internal mechanisms for enforcement and 
monitoring have been put in place to ensu re that violations of laws do not occur. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS 
(ii)  Customs valuation 
WTO Secretariat's report, page 39, para. 20 The Report states that the transaction value method may be rejected if "reasonable doubt" arises on 
the accuracy of the decl ared value.  There are six circumst ances under which a customs officer may 
raise reasonable doubt.  Raising reasonable doubt does not lead to an upfront rejection of the import 
value presented, which, if justified by the importer, is accepted. 
34) Could India indicate: 
i) Whether this refers to implementation of Decision 6.1 of the WTO Customs Valuation 
 Committee; 
ii) Whether the "six circumstances" mentio ned are the total criteria applied; 
iii) Whether risk analysis and risk criteria also apply; 
iv) How the importer can justify th e declared customs value, w ith respect to each of the 
 individual "six circumstances" mentioned; 
v) Whether any other action is taken by cust oms, in cases where the transaction value 
 method is not used? 
Reply:  The provision cited only gives the inst ances where the proper officer could raise doubts 
on the truth or accuracy of the declared value  based on certain reasons or grounds.  The 
grounds for doubting the truth or accuracy of  the declared value are communicated to the 
importer on request.  The importer, if he so requests, is also given an opportunity of being heard before a final decision is taken in the matter. 
It is relevant to mention here that Rule 12 of the Customs Valuation Rules, 2007 by itself does 
not provide a method for determination of value;  it provides a mechanism and procedure for 
rejection of declared value in cases where there is  reasonable doubt that the declared value does 
not represent the transaction value.  The acceptance of the declared value is based on the facts 
and circumstances of each transaction, as en visaged in the CVA.  Following the CVA, the 
Indian valuation legislation provides that where the declared value is rejected, the value will be determined by proceeding sequentially in accord ance with rules 4 to 9 of the said Customs 
Valuation Rules, 2007. 
The reply to the five specific questions is as under: (i) Yes.  WT/TPR/M/249/Add.1 
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  (ii) The "six circumstances" are given only fo r the purposes of illustration.  There could be 
more than the six circumstances mentioned in Rule 12 of the Customs Valuation Rules, 2007 for raising doubts on the truth or accuracy of the declared value depending on the facts of the case. 
(iii) Yes, risk analysis and risk criteria are also applied based on a number of risk 
parameters.  The acceptance of the declared  value would be based on the facts and 
circumstances of each transaction, as envisaged in the CVA. 
(iv) Based on the query raised by the Customs, th e importer is required to furnish a copy of 
the agreement between him and the seller a nd all other documents as may be required 
to justify the truthfulness of the declared value.  The CVA provides for a process of 
consultation between the Customs and importer with a view to arriving at a basis of 
value of goods. 
(v) The Indian Customs law gives primacy to transa ction value;  in case of rejection of the 
declared value, the methods prescribed in the WTO CVA are applied sequentially for determination of customs value. 
35) Can India explain what are "tariff values" (reference prices) and what purpose do they serve in 
practice? 
Reply:  Tariff values have been notified for pa lm oils, crude soybean oil, poppy seeds and brass 
scrap, as these goods are prone to undervaluation.  Tariff values are fixed on the basis of prevailing international prices of these good s as observed from the various reputed 
international journals and other publications. 
The tariff value system promotes greater uniformit y and certainty in assessment practice.  It 
checks undervaluation and thus acts as an im portant policy instrument for collection of 
appropriate amount of customs duty. 
WTO Secretariat's report, page 40, para. 21 The Secretariat's report states that a "landing charge" of  1% of the c.i.f. value is added to the c.i.f. 
value in order to obtain the transaction value." 
36) Could India clarify if this 1% char ge is a charge to be paid to cu stoms authorities, or is part of a 
method to calculate the transaction value?  If the charge is to be paid to customs authorities, how 
does this charge reflect the approximate cost of service rendered as required by Article VIII of the 
GATT? 
Reply:  Article 8.2 of the CVA states that, in fr aming its legislation, each Member shall provide 
for the inclusion in or the exclusion from the customs value, in whole or in part, the loading, 
unloading and handling charges associated with the transport of the imported goods to the port or place of importation.  India has provided for the inclusion in the assessable value of landing 
charges which represent the cost of unloading and handling charges of the imported goods at 
the port of importation. 
The duties are levied on the customs value of goods which, inter alia , includes the landing 
charges.  These charges are not pa id to the customs authorities. WT/TPR/M/249/Add.1 
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  (iv) Tariffs 
WTO Secretariat's report, page 45, para. 31 The reports of both India and the Secretariat note t hat tariffs have been progressively reduced in 
recent years.  As noted in both reports, Indi a attributes its overall enhanced productivity and 
competitiveness to th is increased openness. 
However, some sectors remain highly protected:  the average of 33.2% for agricultural goods masks 
some exceptionally high peaks, i.e. 150% for spirit drinks, or the average of 8.9% for manufactured 
goods hides the 60% rate applied to passenger cars. 
37) When does India plan to further reduce tariffs in these sectors in order to bring the stimulus of 
international competition to these parts of the Indian economy? 
Reply:  India has autonomously reduced its tariffs from time to time on a number of 
agricultural products, as part of its domestic policy aimed, inter alia , at domestic supply 
management, and in keeping with its continuing commitment to trade openness. 
(v) Other charges affecting imports WTO Secretariat's report, page 50-51, para. 43 
The report of the WTO Secretariat notes that most impor ts remain subject to the SAD.  In the case of 
spirit drinks the headline rate of 4% is effectively 10% cif because it is applied on the duty paid value 
i.e. 4% x (cif + BCD @150% cif).  The report further states that the SAD is refundable for those imported goods on which State-level sales/value added taxes are paid.  However, the procedures for 
reclaiming the SAD are so bureaucratic and time c onsuming that many importers conclude that 
seeking a refund is not cost-effective. 
38) Does India plan to give early consideration to suspension of the SAD on those imported goods for 
which the former Additional Duty (A D) has already been suspended? 
Reply:  There is no such proposal under consideration. WTO Secretariat' s report, page 50, para.45 According to the Secretariat's report, the average ta riff declined reflecting I ndia's shift towards lower 
tariff.  Thus, the average effective applied MFN tar iff fell from 15.1% in 2006/07 to 12% in 2010/11.  
However, the average total duty rate, including extra charges (additional customs duty, special 
additional customs duty, some cesses and charges), s hown in Table III.8, attained 25.6% in 2010/11.  
For HS 01-24 the average total duty including extra charges amounts to 42.6% and for HS 25-97 to 23.1%.  These averages compare to effective app lied MFN rates which are respectively 35.1% for 
agricultural goods and 8.6% for industrial goods. 
Duty rates including extra char ges range across the board from 0% to 527.4%.  The highest rates 
apply to beverages, spirits and tobacco (23.9% to  527.4%), and transport equipment (0% to 107.1%).  
The authorities noted that some of these extra taxes are "in lieu" of domestic taxes. 
39) How does India explain the difference between the effective applied MFN rates to which it 
committed in the WTO and the applied –higher- total duty to which certain goods appear to be 
subjected?  Is India planning to reduce in a signific ant manner such levels of taxation in line with 
decrease in the applied MFN tariff?  WT/TPR/M/249/Add.1 
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  Reply:  India's effective applied MFN rates ex cluding duties equivalent to internal/domestic 
taxes, are within its WTO bound levels.  The levels  of duties equivalent to internal taxes such as 
excise duty have also come down in the last few years in keeping with the reduction in excise 
duty rates from 16% in 2007-08 to 10% in 2010-11. 
40) With regard to wines and spirits and passenger cars , could India indicate what taxes applied to 
imported products are "in lieu" of domestic taxes? 
WTO Secretariat's report, page 52, para. 46 
India notes that it intends to remove the cascadi ng effect of taxes and provide a common national 
market for goods and services through the introduction of GST, hopefully in 2 012.  Economists have 
estimated that India's GDP could be boosted by as mu ch as 2% by the successful introduction of GST.  
However, this is dependent upon the application of the tax to all goods and services at a uniform rate. 
Under the provisions of the draft Constitutiona l Amendment Bill currently being considered by 
Parliament, a number of important sectors includi ng petroleum products, natural gas, real estate and 
alcoholic drinks are specifically excluded from the sc ope of the new tax arrangements.  This will limit 
the overall benefits of the GST and create distortions in the market. 
Reply:  Alcoholic liquors currently attract ba sic customs duty of 150% but are fully exempt 
from additional duty.  The levy of 4% special additional duty is applicable to imports of 
alcoholic liquor in lieu of internal taxes. 
As regards passenger cars, additional duty and speci al additional duty are applicable in lieu of 
domestic taxes. 
41) Does India envisage using its very best endeav ours to secure the inclusion of all goods and 
services in the proposed GST?  Are a mechanism  and timeline foreseen to extend coverage to 
commodities which may be initially excluded, such as alcoholic beverages? 
Imported wines and spirits face 28 different state market s within India, each with different internal 
tax structures.  A variety of discriminatory tax and other non-fiscal measures imposed by state governments continue to compound the market acce ss problems created by the 150% customs duties 
applied to these products.  These state measures have b een raised in WTO Consultations requested by 
the EU under the WTO dispute settlement case (case DS380).  Dispute settlement  consultations were 
requested in 2008 and took place in four rounds;  th ey have resulted in some  improvements, although 
the discriminatory measures implemented by state governments continue to seriously impair access to 
the state markets concerned.  New forms of discrimi nation are regularly proposed by different states. 
Reply:  Since India is a federal country, the desi gn and structure of GST has to be finalised by 
consensus on the basis of discussions between th e Centre and the States.  These discussions are 
currently underway. 
42) What commitments can India make to ensure that Indian states finally bring their practices into 
conformity with India's WTO obligations? 
Reply:  As acknowledged by the EU, several stat e governments have taken steps to rationalise 
the taxation of wines and spirits.   The Central Government cont inues to work with the state 
governments as regards the taxation of imported wines and spirits. 
WTO Secretariat's Report, page 57, para. 63 
India maintains import quotas for marble and similar stones (HS 2515.11.00, 2515.12.10, 
2515.12.20, and 25 15.12.90) which are administered through a system of import licenses.  The recent WT/TPR/M/249/Add.1 
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  notification No. 64 (RE-2010)/2009-2014 of In dia's Ministry of Commerce and Industry 
(4 August 2011) establishes a set of conditions related  to the import of rough marble blocks for the 
financial year 2011-12.  Amongst others, import licenses are subject to a minimum import price of US$ 325 per Metric Tonne of rough marble blocks. 
43) Could India explain the reasoning behind the maintenance of import quotas for marble and 
similar stones and the established minimum import price? 
Reply:  India's import policy on marble and similar stones is not inconsistent with its 
obligations under the WTO Agreements. 
(vii)  State trading 
WTO Secretariat's report, page 58, para. 68 
We have noted that the section of the WTO Secretariat's report covering state trading makes no 
reference to STEs operating at the State level.  A number of Indian Stat es operate STEs in the 
alcoholic drinks sector and some appear to disadv antage imported products as  compared to their 
domestically produced like products. 
44) What mechanisms or measures are available to India to ensure that these STEs comply with 
India's WTO obligations vis- à-vis national treatment? 
Reply:  Any goods, for which exclusive or special pr ivileges for import or  export has been 
granted to STE(s), the STE(s) are required to make any such purchases or sales involving 
imports or exports solely in accordance with commercial cons iderations, 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 is one of the co nditions stated in paragraph 2.11 of the Foreign 
Trade Policy, 2009-14, which is available at the we bsite http://dgft.gov.in.  Amongst others, they 
are monitored by the concerned administrative  departments/ministries and the auditing 
agencies. 
(viii) Contingency measures 
WTO Secretariat's report, page 61, para. 78 
45) Could India explain what the major innovations br ought by the new procedure for sun set reviews 
(SSR) as compared to the previous rules are? 
Reply:  The Customs Tariff Act 1975 (as amended from time to time) and Anti-Dumping Rules 
require the authority to conduct review of anti- dumping duties.  The Hon'ble Delhi High Court 
has held in Writ Petition No. 16893 of 2006 th at sunset review is mandatory in order to 
determine whether cessation of the existing duty is likely to lead to the continuation or recurrence of dumping and injury.  Therefore the Authority, in terms of said order, initiates a sunset review investigation in accordance with Section 9A(5) of the Act read with Rule 23 of 
Antidumping Rules to review the need for contin ued imposition of duty and to examine whether 
the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury. 
WTO Secretariat's report, page 62, para. 80 
46) Could India please inform whether it is foreseen in  Indian law that a review for new exporter or 
producer from a country that is subject to an anti- dumping duty should be "initiated and carried 
out on an accelerated basis" as provided by Article 9.5 of the WTO Anti-dumping Agreement?  WT/TPR/M/249/Add.1 
 Page 141 
 
 
  Reply:  Rule 22 of India's Anti-Dumping Rules explains the provisions for determination of 
margin of dumping for exporters not origina lly investigated.  The above rules can be 
downloaded from the website www.commerce.nic.in. 
WTO Secretariat's report, page 62, para. 81 As explained in the report, it is understood that  no price undertaking can be accepted before a 
preliminary determination is made. 
47) Could India indicate until when a price undert aking can be accepted by the investigating 
authorities? 
Reply:  The provision for suspension or termin ation of investigation on furnishing of price 
undertaking is explained under Rule 15 of India's Anti-Dumping Rules. 
WTO Secretariat's report, page 66, para. 97 
The report indicates that initiations of safeguard investigations increased substantially during the 
reviewing period.  It is noted that the mere in itiation of safeguard investigation even if no measures 
are imposed can disrupt imports. 
48) Could India explain how it ensures that: 
i)  Such investigations are initiated on the basis of a duly justified complaint; 
ii)  Due restraint is exercised in  using this exceptional instrume nt in consideration of India's 
commitment to resist protectionism (G-20); 
iii) Safeguard measures are applied only to the extent necessary to preven t or remedy serious 
injury and to facilitate adjustment? 
It must be added that, in some cases, the same product was subject to both a safeguard and an 
anti-dumping investigation. 
Reply (i):  Rule 5(3) of India's Safeguard Duty Rules obligates the investigating authority to 
examine the accuracy and adequacy of the evid ence provided in the application and to satisfy 
that there is sufficient evidence regarding:  (a) inc reased imports;  (b) serious injury or threat of 
serious injury;  and (c) a causal link between incr eased imports and alleged injury or threat of 
serious injury.  The DG (safeguards) initiates sa feguard investigations by following this Rule. 
Reply (ii) and (iii):  During the period of review, 17 safeguard investigations were initiated 
based on prima facie evidence furnished in the applications.  However, measures were recommended by the Investigating Authority only in 6 cases out of 17.  Further restraint was 
exercised by imposition of lower rate of safegu ard duty and for a shorter duration of time than 
recommended by the Investigating Authority (IA).  In one case, the safeguard measure was 
limited to the period of provisional safeguard me asure.  At present only one safeguard measure 
of India is in force. 
49) Could India provide a legislative reference, if any, or explain how in practice India applies 
simultaneously trade defence instruments ( notably anti-dumping and safeguard measures) and 
avoids double-imposition? 
Reply:  In such cases, India ensures that there is no double imposition.  If an anti-dumping 
measure is applied where a safeguard measure is already in force, the anti-dumping measure is WT/TPR/M/249/Add.1 
Page 142  
 
  adjusted to take into account the injury address ed by the safeguard measure.  Similarly where 
an anti-dumping measure is already in force, the safeguard measure is applied after taking into 
account the existing anti-dumping measure in force. 
(ix)  Technical regulations and standards WTO Secretariat's report, pages 67-68, para. 99-102 
The WTO Secretariat's report contains a section on  technical regulations and standards, including 
labelling.  However, it is only in the followi ng section on Sanitary and Phytosanitary measures (SPS) 
that the Food Safety and Standards Act of 2006 is mentioned, which established the Food Safety and 
Standards Authority of India (FSSAI).  The FSSAI has recently published and implemented Food 
Safety and Standards Regulations on various subject s, which affect all food and drink products 
imported into India.  Some of these contain labelling and packaging provisions, thereby falling under 
the scope of the TBT Agreement.  However, d espite repeated requests from the EU, these 
requirements have these requirements have not  yet been notified to the TBT Committee 
50) Does the Government of India intend to notify these new regulations under the TBT Agreement, 
thereby providing WTO members with the opportunity  to comment formally?  If not, why not? 
Reply:  The draft Regulation was notified to  SPS Committee during October 2010, and was also 
placed on FSSAI Portal giving opportunity to  its stakeholders to offers comments.  The 
comments so received were duly considered befo re final notification on 1 August 2011 by 
Government of India.  As such there is no plan  to notify the same to WTO TBT Committee now. 
WTO Secretariat's Report, page 70 et seq., para. 112-114 The Report states that "according to the authoriti es, labelling requirements are uniform across all 
states and for all foreign suppliers" (paragraph 112) .  On the other hand, the Report concedes that 
"the requirement that packaging must specify the maximum retail price of the product, including taxes, is a further complication, since sales taxes are levied at the state level" (paragraph 114).  
However, through a Customs Circular of 15 April 2011 India granted exemptions to the requirement 
that all pre-packaged goods must be labelled, including with the maximum retail price (MRP), 
already before being imported to In dia:  imported goods which are "small-sized" or "sensitive to heat 
and dust" may be labelled in bonded warehouses at the point of import, subject to certain procedural 
conditions. 
51) Could India confirm that this important exempti on which allows labelling (including with respect 
to the MRP) in bonded warehouses will be applied ext ensively?  Would it be possible for India to 
consider an even broader exemption which would ge nerally allow labelling of imported products 
in bonded customs warehouses, prior to distributi on and sales, as an alternative to labelling in 
the country of origin? 
Reply:  At present there is no proposal for fu rther exemption for allowing labelling of the goods 
imported into India at bonded warehouses.  
(x) Sanitary and phytosanitary measures 
WTO Secretariat's report, page 73, paras. 119-121 
The report states that once the Food Safety and Standards Regulations, 2010 and Rules 2011 are 
notified, the Food Safety and Standards Act 2006 will be fully implemented and will repeal some of 
the separate laws.  The EU noted that a publ ication in the Official Gazette was made on  WT/TPR/M/249/Add.1 
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  5 August 2011 (please refer to Draft Food Safety Standards (Food Imports) Regulations 2011 notified 
July 20011 and Licensing and Registration, Packaging and Labelling, Laboratory and Sampling 
Analysis, Food Product Standards  and Food Additives, etc. publis hed in Official Gazette of 
5 August 2011). 
52) Could India provide an update on the status of notif ications of the Regulations and Rules?  When 
will these be notified to WTO and when will these legal texts be enforced?  Would it be possible to 
detail which separate laws will be repealed and to provide an indication when it would take 
place? 
Reply:  FSS Rules and Regulations have been notified to the WTO.  The FSS Act, Rules and 
Regulations have come into effect from 5 Augu st 2011.  The following Act and orders stands 
repealed with the notification of FSS Act, Rules, and Regulations: 
(1) Prevention of Food Adulteration Act, 1954. 
(2) Fruit Products Order, 1955. 
(3) Meat Food Products Order, 1973. 
(4) Vegetable Oil Products (Control) Order, 1947. 
(5) Edible Oils Packaging (Regulation) Order, 1998. 
(6) Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967. 
(7) Milk and Milk Products Order, 1992. 
(8) Any other order under Essential Commodities Act, 1955 relating to food. 
53) Could India explain the procedure it is following to notify the various pieces of food legislation 
which are currently being prepared by FSSAI? 
Reply:  The draft regulations, befo re finalisation are notified in the Official Gazette  and placed 
on the FSSAI portal to enable interested parties to send their comments.  It is also at this stage 
notified to the WTO.  The final regulations is notified in the Official Gazette  of the Government.  
54) Does India plan to have a transitional period before entry into force of the Food Safety Standards 
Regulation which was published in Indian Gazette of 5 August 2011? 
The FSSAI also aims to establish a single reference  point for all matters relating to food safety and 
standards, by moving from a multi-agency to a centralized system.  The various agencies 
implementing food laws will be brought under the FSSAI. 
Reply:  The regulations have come into force with immediate effect. 55) Could India please provide more details on th is process of moving from a multi-agency to 
centralised systems (e.g. timelines, which agenci es will be brought under the FSSAI)?  Would this 
also reduce the time needed for custom clearance of goods (d ocumentary, identity and physical 
checks)?  Could India provide more informa tion on the timelines of the custom clearance 
process?  Could India clarify whether sufficient capacity (staff, storage capacity etc.) has been 
put in place for ensuring no unnecessary delays at the border during custom clearance, in 
particular during the process of moving from  a multi-agency to centralised systems? WT/TPR/M/249/Add.1 
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  Reply:  The previous eight food laws as me ntioned in the Second Schedule of FSS Act, 2006 
stand repealed with effect from 5 August 2011.  This had shifted regulatory control from multiple agencies to a single agency in the country.  This would lead to reduction in time for obtaining licences and getting clearances for imports. 
56) Could India clarify if there is sufficient storage  capacity for perishable goods during the time 
required to complete testing formalities?  Could I ndia also clarify its tes ting approach (frequency, 
random, each consignment, type of checks)?  Is  India also considering conditional clearance 
depending on test results? 
Reply:  Presently the existing system under the PFA is being continued.  However, a new import 
control regulation is being developed and will be  notified for consultation in due course. 
Adequate storage facilities are available to sto re perishable goods for completion of import 
safety procedures/formalities. 
Testing frequency depends upon the risk associated with the good. 57) What is the duty structure levied by India on food products coming in for fairs and exhibition?  
Are these food product required to go through mandat ory testing?  Does India plan to enhance its 
testing capacity - as currently testing facilities a re not available at every international port of 
arrival (i.e. all consignments need to undergo t esting) and this can cause delays in clearance and 
cause damage to food products  as storage conditions are not  appropriate for perishables? 
Reply:  The provisions for mandatory testing are uniform.  FSSAI has prepared a plan to 
enhance testing capacity of food articles by w ay of notification of more number of National 
Accreditation Board for Testing and Calibration Laboratories (NABL) accredited private 
laboratories. 
Special provisions are proposed to be made in the "Draft Food Safety and Standards (Food 
Import) Regulations, 2011" to facilitate fa st clearance of perishable food items. 
WTO Secretariat's report, page 73, para. 121 Imports of animal products into India require san itary import permits issued by the Department of 
Animal Husbandry, Dairy and Fisheries;  permits must  be obtained prior to shipping from the country 
of origin.  The Department approves or rejects the application after an import risk analysis on a 
case-by-case basis. 
58) Which are the criteria that India is using for the import risk analysis for the approval of an 
application on a case-by-case basis?  Does I ndia possess a risk assessment based on science 
when it deviates from the relevant international standards of the World Animal Health 
Organization (OIE)?  If so, would India be able to share this risk assessment upon request, in 
particular for the following import conditions:  poultry, pig and pig products, dairy products, and 
genetic material?  What are the procedu res and time frame for obtaining such permits? 
Reply:  The Indian health certificates for import  of livestock/animal products are notified after 
approval by competent authority on recommendation  made by technical experts based on risk 
assessment and science.  On a case to case basis, request for import applications are deliberated 
in the meeting of "Committee on Risk Analysis" comprising technical members who provide inputs based on science, domestic regulations and consistent with the Indian health certificate 
for deciding the application for import.  India has shared with EU the scientific basis for the 
conditions in the Indian health certificates for im port of poultry, pig and pig products, dairy  WT/TPR/M/249/Add.1 
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  products, and genetic material, which is uniformly  applicable to all countries.  The requests for 
issue of import permits are considered on a fo rtnightly basis and permits are issued within 
30 days for applications submitte d with all required information. 
WTO Secretariat's report, page 73, para. 121-122 
Article 6 of the SPS Agreement states that 'Membe rs shall, in particular, recognise the concepts of 
pest- or disease-free areas and areas of low pest or disease prevalence'.  The EU noted that import 
conditions of animals and animal products into India do not foresee the possibility to recognise the 
concepts of disease-free areas. 
59) Will India consider recognising the concept of dise ase free areas?  When does India intend to 
include into its import conditions for animals an d animal products the possibility to recognise 
disease free areas from trading partners in line with the WTO-SPS agreement?  Could India 
clarify whether it recognises the concept of pest free areas as referred to by The International 
Plant Protection Convention (IPPC)?  If so, could India provide further information on the procedure to be followed?  What are the procedures and time frame for obtaining such 
recognition? 
Reply:  India maintains that the entire country  free from disease is the most suitable and 
appropriate option to prevent ingress of di seases.  However in case of certain diseases 
establishments which are free from diseases are accepted.  India is open to discussion on 
acceptance of disease free "compartments" for trade. 
WTO Secretariat's report, page 73, para. 122-123 Phytosanitary import requirements have been established for a number of plants and plant 
products/origins by India.  The establishment and implementation of new regulation include lengthy 
procedures, and is therefore considered not being trade friendly.  Particularly, the pest risk 
assessment (PRA) may be pending and the timeframe  not foreseeable.  This sets barriers not only to 
trade in new products, but also to the devel opment of alternative phytosanitary measures. 
60) Could India indicate the procedure for carrying out a PRA?  Could India indicate a timeframe 
needed for finalising a PRA?  Does India intend to improve the Pest Risk Assessment process with 
the objective of minimising negative trade effects? 
It is mentioned that products listed in Schedule VII of the PQ Order 2003 May be imported without 
import permit but may be required to fulfil other co nditions, such as fumigation.  India requires, for 
several plant products, treatment with Methyl Bromide (MB) prior to export.  MB is addressed in the 
Montreal Protocol on Substances that Deplete the Ozone Layer, and by the International Plant 
Protection Organisation IPPC, and should not be used. 
Reply:  India conducts PRA as per the guide lines contained in ISPM No. 2 – Framework for 
Pest Risk Analysis, ISPM No. 11 – Pest risk analysis for quarantine pests, including analysis of environmental risks and living modified organis ms, ISPM No. 21 – Pest Risk Analysis for 
Regulated non-quarantine pests and ISPM No. 3 – Guidelines for the Export, Shipment, Import 
and Release of biological control agents and other beneficial organisms besides the other 
relevant ISPMs. 
PRA process is completed expeditiously in India.  The Indian PRA process is in line with the 
ISPMs. 
The national standards on PRA are being furth er harmonized in accordance with the recently 
revised ISPMs of relevance. WT/TPR/M/249/Add.1 
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  61) Is India looking into alternative treatments other then MB?  Would India allow alternative 
treatments other than MB for all imported pl ants and plant products?  Would India abandon 
annual derogations for use of alternative t reatments and replace them with a permanent 
authorisation, available to all exporting countries,  with the objective to minimise negative trade 
effects? 
Reply:  The use of methyl bromide (MB) is presently permitted for quarantine and 
pre-shipment purposes under the Montreal Protocol on Substances that Deplete the Ozone Layer.  Nevertheless, India is open to consid er alternatives to MB fumigation, provided they 
provide the same level of protection. 
Presently India grants six monthly derogations in respect of certain commodities, which allow 
fumigation of those commodities with MB at the port of arrival in India. 
(3)  MEASURES DIRECTLY AFFECTING EXPORTS 
(iii)  Export taxes, charges, and levies 
WTO Secretariat's Report, page 76, para. 131 Export taxes on tanned and un-tanned hides, skins, and leathers (except manufactures of leather) in 
the range of 25-60 % have remained in place since the last WTO Trade Policy of India in 2007.  
Amongst others, export taxes for iron ores and con centrates (including iron ore fines) were 
introduced in 2009.  In March 2011, the export duty on iron ore concentrates and iron ore fines was raised to a common level of 20 %. 
62) Could India give any indication on a possible timeline for the reduction and/or removal of the 
export duty on hides, skins and le athers?  What is the specific reasoning behind the increase of 
the export duty on iron ore concentrates and iron ore fines in March 2011? 
Reply:  Export duties are imposed to preserve natural resources and raise revenue.  Such export 
duties are not inconsistent with the WTO provisi ons.  The export duty on iron ore has been 
rationalized. 
(v)  Export prohibitions, restrictions, and licensing 
WTO Secretariat report, page 78, para.135 
The report compiles information concerning the expor t restrictions applied in India, which are also 
listed in Table AIII.5.  Some of these bans were suppo sed to represent short-term measures to ease the 
domestic supply but they have instead been in place for more than four years. 
63) With India's rising global footprint, does India consider that export restrictions (e.g. export bans 
on non-basmati rice and wheat in 2007 and later on cotton) risk creating greater international 
price volatility and encouraging other countries to close their markets, exacerbating global 
fragmentation? 
Reply:  India has removed the export restrictio ns on wheat, cotton and non-basmati rice. 
WTO's Secretariat Report, page 79, paragraph 140 The Report mentions India's export restrictions on cotton and cotton yarn.  India has removed the 
export quota on cotton yarn with effect from 1 Ap ril 2011.  As regards raw cotton, India still  WT/TPR/M/249/Add.1 
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  maintains an export quota;  however, on 8 June 2011 India has decided to increase the export quota 
on raw cotton for the 2010/11 season ending on 30 September 2011. 
64) Could India consider a complete removal of the exp ort quota on raw cotton?  Alternatively, could 
India give an indication of the possible export quota for the next season beginning on 1 October 2011? 
Reply:  Cotton and cotton yarn are now freely expo rtable subject to registration by Directorate 
General of Foreign Trade (DGFT) in the Depart ment of Commerce.  The detailed procedure for 
registration is available at website http://dgft.gov.in. 
(vi)  State trading 
WTO Secretariat´s report, page 80, para.143 
65) If these central public sector en terprises (CPSEs) undertake comm ercial activities, is there any 
means of enforcing the principle of competitiv e neutrality? (This is, ensuring that those 
enterprises don't have undue advantages due to thei r public status over their private competitors) 
Reply:  The principle of Article XVII of GATT applies to these enterprises and the CPSEs 
operate on commercial considerations and in a non-discriminatory manner. 
66) How does India ensure the fundamental right s at work as embodied by the ILO's 2008 
Declaration on Social Justice for a Fair Globalisation and the 8 core ILO Conventions and are respected by state-owned enterprises, in particul ar those that are engaged in manufacturing or 
processing destined for export? 
Reply:  India has a comprehensive legal structur e for labour welfare and protection.  There are 
roughly 44 central laws and 170 state statutes rel ated to labour regulation.  Many laws have 
followed directly from Conventions framed by the ILO.  Whenever an ILO Convention is 
framed, signatory countries may ratify the Conven tion and frame corresponding laws in their 
own legislative system.  India has ratified the IL O Convention (No. 81) on labour inspections in 
industry.  India has also ratified several ot her important Conventions related to minimum 
wages, equal wages and payment of wages, and ha s introduced legislation accordingly.  Labour 
inspections are carried out under these laws.  Inspections are meant to uphold provisions 
related to hours of work, wages, safety, he alth and welfare, and employment of children. 
The elaborate system of labour legislation can be classified into four categories, namely, 
industrial relations laws;  wage laws;  working conditions laws and soci al security law.  All 
normal labour laws are also applicable to SEZs , and to state-owned enterprises, in particular 
those that are engaged in manufacturing or proc essing destined for ex port, which are enforced 
by the respective state Governments. 
(vii)  Export support WTO Secretariat' s report, page 81, para.145 67) Could India provide information on the "free trade  zones":  Are these the same as the "special 
economic zones described in the report?  If th ey are not, please describe eligibility criteria for a 
company to establish itself in a free trade zone , how many and what type of companies are 
located in these zones, what type of incenti ves are provided to the companies concerned and 
whether those incentives can be quantified. WT/TPR/M/249/Add.1 
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  Reply:  Facilities available to industries establis hed in a special economic zone are given in SEZ 
Act, 2005 and SEZ Rules, 2006.  SEZ Ac t and Rules are available on website 
www.sezindia.nic.in. 
WTO Secretariat's report, pages 82-85, para. 148-158 
The paragraphs under reference describe operation speci al economic zones and export oriented units. 
68) Could India provide more information concern ing labour standards applicable in special 
economic zones and export oriented units?  Plea se provide information whether there are any 
differences in legal provisions and practice applied in this respect in special economic zones and 
export oriented units on the one hand and the rest of the Indian economy on the other hand (i.e. 
are there any exemptions or special provisions  foreseen for the special economic zones and 
export oriented units)? 
Reply:  All labour laws are applicable in special economic zones.  The rights of the 
workers/labour are therefore protected under the SEZ Act.  Under Section 49 of the SEZ Act, 
2005 the Central Government has powers to modify provisions of SEZ Act and other enactments relating to special economic zones.  However, under this provision, the Central 
Government cannot relax any Central Act or any rules or regulations made there under, which 
would affect the welfare of the labour in the SE Zs.  So, normal labour laws are applicable to 
SEZs, which are enforced by the respective State Governments.  
WTO Secretariat report, page 82, para. 148 69) What kind of entities, including services companies,  is located in SEZ? Can India assess the 
amounts of benefits that these entities receive due to the advantages related to the location in 
these areas compared to similar en tities located in other parts of India that are not subject to 
these special incentive-export schemes? 
Reply:  Out of all the units located in SEZs, ma jority are in MSME sector and some units are of 
large size also.  The scheme is based on the pr inciples of duty neutralisation of the exported 
goods.  Thus, assessing the amount of benefits is not necessary.  
WTO Secretariat's report, page 33, para 82, and page 84 para 153 
70) We kindly ask India to provide information on the export-processing zones (EPZs), in particular: 
i) Could India define them?  What are the eligibility criteria for companies to establish 
 themselves in them? 
ii) Please describe the advantages for companies of  establishing themselves there compared  to 
similar entities located elsewhere in India.  Can those advantages be quantified? 
Reply:  All the erstwhile EPZs have been co nverted into special economic zones (SEZ).  
Facilities available to industries established in a special economic zone are given in SEZ Act, 
2005 and SEZ Rules, 2006.  SEZ Act and Rules are available on website www.sezindia.nic.in. 
71) What kind of entities, including services companies, is  located in the Export Oriented Units that 
are not SEZ?  Can India assess the amounts of bene fits that this scheme brings to these entities?  
Please describe the functioning of the scheme. 
Reply:  Unit undertaking to export their entire production of goods and services except 
permissible sale in DTA may be set up under the EOU scheme for manufacture of goods including repair, remaking, reconditioning,  re-engineering and rendering of services.   WT/TPR/M/249/Add.1 
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  As the units under the scheme are dedicated to  export their entire goods and services except 
permissible DTA sale, duty on procurement of capital goods, raw material and consumables are 
deferred for stipulated time period till the expo rt is effected, based on the principles of duty 
neutralization.  Thus, assessing the amount of benefits is not necessary. 
EOUs are functioning under the administrative  control of the Development Commissioner of 
Special Economic Zones, under the Department of Commerce in Ministry of Commerce and 
Industry.  Executive control of EOUs is vest ed with the jurisdictional Commissioner of 
Customs/Central Excise, Central Board of Excise and Customs in Department of Revenue, Government of India.  After receiving Le tter of Permission (L OP) from Development 
Commissioner, the unit applies for Customs Bo nding from Customs and Central Excise 
authority as per the conditions stipulated under relevant notifications.  Thereafter, the unit is 
allowed to import or procure locally, without p ayment of duty, all types of goods including raw 
materials, components, packing materials, co nsumables for manufacture and export expect 
permissible DTA sale.  All movement of goods and services in bonded premises are monitored 
by bond officers of Customs and Central Excise.  Performance of EOUs would be monitored by 
the Jurisdictional Development Commissioners.  In the event of non-fulfilment of export 
obligation as per legal under-taking given by the unit, EOUs are liable to pay duty foregone along with interest and penalty as th e provisions of Foreign Trade Policy. 
WTO Secretariat' s report, page 86, para.159 Regarding the drawback system in India the report lis ts the two types of drawback currently into 
operation:  the "all industry rate" and the "brand rate". 
72) Could India provide statistical data covering th e last five years concerning the amounts refunded 
under every type of drawback and a sectoral breakdown where those refunds are most significant? 
Reply:  The details of refunded amount ( duty drawback granted) is as follows: 
Year  2006-07  2007-08  2008-09  2009-10  2010-11  
Drawback amount (inclusive of both all industry rate and brand 
rate drawback) (Rs in Crores)  5646  7595  12101  9218  8859 
Note: The duty drawback under brand rate is around 3% of the total duty drawback. 
The sectoral breakdown of duty drawback is as follows: 
Sl.  No Drawback chapter Sector % of total drawback 
1 61-63  Garments and made ups  57 
2 50-60  Textiles (other than garments etc.)  10 
3 41-43  Leather products  8.5 
4 64 Foot-wears  6.2 
5 72-83  Handicraft and art-ware of  metal and hand tools  5.6 
(ix)  Export finance and insurance 
WTO Secretariat´s report, page 89, para. 170 
73)  Could India elaborate a bit further on how int ernational rules on export credits are used as 
benchmarks in designing and implementing these policies and instruments? WT/TPR/M/249/Add.1 
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  Reply:  Interest rates on export credit in Indi a are governed by the guidelines of the Reserve 
Bank of India (Central Bank of the country and the banking regulator) which stipulates that interest rates including export credit rates sha ll not be lower than the "base rate" of each 
individual bank.  "Base rate" includes the cost  of capital for each bank and the minimum 
return expected, approved by their respective boards.  Thus export credit in India is at 
commercial and market oriented rates. 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE 
(i)  Incentives 
WTO Secretariat's page 92, para. 178-179 According to publicly available information (see st atement of the Minister of State for Finance of 
17 December 2008, available at http://pib.nic .in/newsite/erelease.as px?relid=45755), India's 
Ministry of Agriculture, Department of Animal  Husbandry Dairying and Fisheries "has been 
implementing a Centrally Sponsored Scheme (C SS) on Development of Marine Fisheries, 
Infrastructure and Post Harvest Operations.  Under the component on Fishermen Development 
Rebate on High Speed Diesel (HSD) oil, a rebate/s ubsidy of Rs. 1.50 per litre on HSD consumed by 
the mechanised fishing vessels below 20 meter Over All Length (OAL) is provided.  Rebate is shared 
on 80:20 basis between Centre and State Governments.  In case of the States where Sales Tax is exempted by them and in UTs, the entire subsidy amount is borne by the Government of India" 
74) Could India provide information (actual figures or , alternatively, estimated amounts) relating to 
the fuel subsidy provided und er the Fishermen Development Rebate on High Speed Diesel (HSD) 
oil, for the years 2009 and 2010?  Fu rthermore the EU would be interested to know whether this 
Centrally Sponsored Scheme is complemented, or  coexists, with other fuel subsidy schemes 
provided by the States.  In the affirmative, c ould India provide information (States granting the 
subsidy, modalities, amount s) on these latter schemes? 
Reply:  Under the Centrally Sponsored Sche me on Development of Marine Fisheries, 
infrastructure and post-harvest operations, a rebate on high speed diesel (HSD) oil used by 
small mechanized fishing vessels below 20m length is provided to coastal states/union 
territories.  The central rebate is restricted to 50% of the sales tax exempted by the States with 
a ceiling of Rs 3.00 per litre.  The central subsidy under this scheme is restricted to (i) the fishing vessels of less than 20m size which were registered before the Tenth Five Year Plan (2002 to 2007), (ii) the fishing vessels owned by fishermen belonging to below poverty line (BPL) 
category and (iii) 500 litres per fishing vessel fo r every active fishing month.  Because of 
stringent conditions attached to the scheme, no  amounts have been disbursed during the last 
two years. 
India is making efforts to gather the inform ation relating to support programmes of state 
governments so that these may be notified to the WTO, if required. 
According to publicly available information Indi a's Marine Products Export Development Authority 
(MPEDA) maintains a series of "subsidy assi stance schemes" for the fisheries sector (see 
http://www.mpeda.com/inner_hom e.asp?pg=subsidy/subsidy.htm). 
One of these ongoing subsidy assistance schemes is  labelled "Financial Assistance for constructing 
New Tuna Long Liners".  According to the informatio n provided in the website the objective of the 
scheme is "To encourage the fishermen to constr uct New Tuna Long liners".  Also according to the 
website the assistance rate is "5% points on bank  interest limited to Rs.10 lakh for 18-20 meter 
vessels and Rs.15 lakh for above 20 meter vessels".  WT/TPR/M/249/Add.1 
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  75) Could India provide information on the implementa tion of this scheme, in particular the number 
of vessels built with subsidies granted thr ough this scheme and the amounts disbursed?  Has 
India carried an assessment of the impact of the increase in fishing capacity, following the 
implementation of the scheme, on existing fis hery resources, in particular tuna stocks? 
Reply:  Under the MPEDA "Financial Assistan ce for constructing New Tuna Long Liners" 
scheme, no financial assistance ha s been released.  Therefore, th e question of any assessment of 
impact on the fisheries resources does not arise.  India's MSY for tuna and tuna like species is 
210,000 tonnes and the catch is only 138,000 tonnes. 
(iii)  Competition policy WTO Secretariat's report, page 98-99, para. 195 
76) Could India indicate the up-to-date number of requests received by the CCI and make a 
breakdown of the type of requests according to instrument (cartels, dominance etc.) as well as 
indicate the statistics on the follow-up given to t hose requests?  The 30 orders given, are these of 
a procedural nature or do they represent final deci sions on the substance in requests received by 
the CCI? 
WTO Secretariat´s report, page 100, para. 201 
Regarding regulators' powers and competencies compared  to those of the CCI, the report alludes to 
possible difficulties for the CCI in the implementation of the Competition Act. 
Reply:  CCI has so far received 141 requests excl uding the 50 transferred cases from MRTPC.  
As in many cases, the request has been received under both the provisions of anticompetitive 
agreements and abuse of dominant position;  it  could not be classified according to the 
instruments (cartels, dominance, etc.).  Out of these 141 requests, 43 have been closed at a prima 
facie stage under section 26(2) of the Act, whereas 19 cases have been decided after a full investigation.  Out of the 50 transferred cases fr om MRTPC, 21 were cases have been closed at a 
prima facie stage under section 26(2) of the Act, whereas 18 cases have been decided after a full investigation.  These 37 orders given after the investigation by Director General represent final 
decision on the substance in request received by the CCI. 
77) Could India further explain the different comp etencies of the regulators and the CCI and the 
cooperation framework?  Could India clarify, fo r example, if the CCI can autonomously launch 
investigations and make decisions on competition issu es in the sectors covered by regulators?  Is 
there obligatory hearing of the CCI before the enac tment of sector regulation in the regulated 
sectors? 
Reply:  Cooperation with other regulators has be en provided by way of sections 21 and 21A of 
the Competition Act, 2002.  Section 21 states that  a statutory authority (regulator), during the 
course of a proceeding before it, on an issue ra ised by a party or suo motu, has taken or 
proposes to take a decision which would be cont rary to Competition Act, may make a reference 
to CCI in respect of such issue.  CCI would provide an opinion within 60 days of such reference 
to the concerned authority and the said authority would give its finding recording reasons on 
the issue concerned.  Similarly, during the cou rse of proceedings before the Commission, on an 
issue raised by a party or suo motu, in which the Commission has taken or proposes to take a 
decision which would be contrary to any provisions of any Act, may make a reference to the statutory authority concerned with the implementa tion of the said Act.  The said authority 
would provide an opinion within 60 days of such reference to the Commission and the WT/TPR/M/249/Add.1 
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  Commission would consider the opinion given by statutory authority and give its finding 
recording reasons on the issue concerned. 
CCI can autonomously launch investigations and make decisions on competition issues in the 
sectors covered by other regulators, for e.g. Teleco m Regulatory Authority of India, if it falls 
within the parameters of the Competition Act, 2002.  There is no provision dealing with 
"obligatory hearing of the CCI before the enactmen t of sector regulation in the regulated sectors" . 
78) Regarding SOEs, could India indicate if entities in which it has stakes and which operate in 
commercial sectors do benefit of privileged access to subsidies or speci al subsidization in 
particular if they make losses? 
Reply:  The Government of India has established the Board for Reconstruction of Public Sector 
Enterprises (BRPSE) in December 2004 to advise the Government, inter alia , on measures to 
restructure/revive sick and loss making CPSEs.  The concerned administrative 
ministries/departments are required to submit proposals in this regard for consideration of BRPSE.  The concerned administrative ministry/d epartment is thereafter required to obtain the 
approval of competent authority for the revival package on the basis of recommendation of 
BRPSE. 
79) Does the Competition Act apply fully to the STEs mentioned in paragraph 68 of the Secretariat's 
report, and does the CCI have the authority to take decisions regarding any anti-competitive 
practice entertained by STEs? 
Reply:  Competition Act fully applies to STEs mentioned in paragraph 68 of the Secretariat's 
report and CCI has the authority to take deci sions regarding any anti-competitive practice 
entertained by STEs. 
80) Does the Competition Act apply fully to the 249 central public sector enterprises (CPSEs) 
mentioned in paragraph 143 of the Secretariat' s report and does the CCI have the authority to 
take decisions regarding any anti-compe titive practice entertained by CPSEs? 
WTO Secretariat´s report, page 101, para. 204 
Reply:  Yes, the Competition Act applies fully to the 249 CPSE s and CCI has the authority to 
take decisions regarding any anti-competitive  practice entertained by CPSEs, but does not 
include any activity of the Government related to the sovereign functions of the Government 
including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space, as per the definition of "enterprise" under 
section 2(h) of the Competition Act, 2002. 
81) How many notifications of combinations has the CCI received since June 2011 and how many 
cases have been decided upon? 
Reply:  Three notices under section 6(2) of the Competition Act, 2002 have been received.  CCI 
has issued orders in 2 cases and one case is und er review.  In addition, CCI has also received 
details of acquisition, under the provisions of section 6(5) of the Act in two cases. 
82) Has there been given any exemptions granted of the kind referred to in this paragraph? 
Reply:  No such exemption is granted under Competition Act, 2002 .  WT/TPR/M/249/Add.1 
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  (v)  Government procurement 
WTO's Secretariat Report, page xii, paragraph 20 83) How does India ensure that "competition from forei gn suppliers is ordinarily allowed"?  Is this 
reflected in any legislative or non-legislative text? 
Reply:  There is no bar on foreign suppliers fr om participating in tenders and local agents of 
foreign suppliers can also obtain registration from DGSandD. 
WTO's Secretariat Report, page 106, paragraph 219 The Report notes that India does not have consol idated data on "the economic significance of 
government procurement".  Consolidated data on proc urement, including a breakdown of the value of 
contracts by tendering method, is a crucial element to be considered as India moves towards a more 
transparent and modern procurement system. 
84) Is there any data on procurement that India c ould share with the WTO members?  Does India 
have any plans in gathering and consolidating such data? 
Reply:  Different departments and organisations have started implementing e-tendering only 
recently.  Moreover, as public procurement is d ecentralised, no data is presently available.  
Under the National e-Governance Plan, effo rts are being made for e-procurement and 
centralised information base thereof. 
India became an observer to the WTO Agreement on Government Procurement in February 2010. 
85) What are the intentions of the Indian authorities with regard to the objective of joining the GPA?  
What are the steps being taken towards that accession? 
Reply:  Issue of India commencing accession to GPA is under examination.  At present, any 
commitment on this issue is not feasible.  
WTO's Secretariat Report, page 106, paragraph 220 It is indicated that "the Central Government has  set reservations and price preferences as part of the 
procurement system". 
86) Could India provide a full list of those reservati ons and price preferences, as well as a detailed 
explanation of their objectives and scope?  Also, could India indicate whether these reservations 
and preferences are temporary? 
Reply:  Transparency and fairness in GP are val ues that have stand-alone significance for India 
purely in the domestic context.  We are en gaged in improving our procurement systems.  
However, carve outs and offsets are essential for the development of the sensitive sectors in a 
developing economy like India, and has been availed of even by other GPA signatories.  The 
Central Government, through administrative in structions, has reserved certain products for 
procurement from MSMEs and KVIC etc.  For example, 358 products belonging to respective 
industry sectors are reserv ed for procurements from micro and small enterprises (MSEs) by 
state/central ministries/departments/PSUs.  Inst ructions relating to price preference/reservation 
for procurement of certain items/categories of suppliers are issued by certain 
ministries/departments such are D/o Public En terprises and M/o Micro, Small and Medium 
Enterprises. WT/TPR/M/249/Add.1 
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  WTO's Secretariat Report, page 106, paragraph 221 
87) What is the scope of the "control and oversight functions" carried out by the central authorities 
listed by India?  Do all States have similar systems? 
Reply:  Besides internal controls, Comptroll er and Accountant General of India, and the 
Central Vigilance Commission perform the oversi ght.  Similarly, in the state governments, 
Accountant General and the State Vigilance Commi ssion monitor such procurement activities.  
Public procurement is regulated through a series of executive directives which supplements the 
regulations (e.g. the directives issued by Vigilance Commission from time to time). 
WTO's Secretariat Report, page 106, paragraph 222 88) Do these procedures only concern disputes over contract compliance in a particular 
procurement?  How are disputes over the tenderi ng process and award of a particular contract 
resolved?  Does the Indian domestic law provide for the possibility to challenge a bid?  To what 
extent can foreign suppliers make use of these processes? 
Reply:  Yes, these procedures only concern disputes over contract compliance in a particular 
procurement.  Presently, the disputes over the tendering process and award of particular 
contract are resolved by addressi ng the grievances to the higher authority of organization and if 
it is not resolved satisfactory, the supplier ca n appeal to the competent court.  The same 
grievance redressal mechanism is available to the foreign supplier also. 
WTO's Secretariat Report, page 107, paragraph 224 89) Which are the procuring entities that are subject to  the central procurement level?  Are all subject 
to the whole list of rules and directives listed in this paragraph?  Wh ich is the regulatory 
framework applied to public-private partnerships?   Which rules apply to public purchasing by 
entities in the utilities sector, such  as for the generation and distribution of electricity, gas, oil 
and water, as well as in the transport sectors? 
Reply:  Procuring entities at the Central level are primarily the central government 
ministries/departments, central public sector enterprises/undertakings which operate own 
commercial line.  The General Financial Rules (GFR) 2005 and the procurement manuals 
contain the basic principles of public buying.  Chapter 6 of the General Financial Rules, 2005 
contains general rules applicable to all mini stries or departments regarding procurement of 
goods, engagement of consultants and outsourcing of  services.  Detailed instructions relating to 
the procurement of goods can be issued by the procuring ministries/departments in conformity 
with the general rules contained in this chapter. 
It is indicated that "the GFRs and the manual a re guidelines with no legal standing and therefore are 
not enforceable as law". 
90) Are these "guidelines" subject to any review mechanisms should they not be followed by the 
relevant contracting authorities?  How can India ensure they are complied with?  Could India please clarify which types of servic es and works are covered by the GFR? 
Reply:  The General Financial Rules (GFR) 2005 and the procurement manuals contain the 
basic principles of public buying.  Chapter 6 of  the General Financial Rules, 2005 contains 
general rules applicable to all Ministries or  Departments regarding procurement of goods, 
engagement of consultants and outsourcing of ser vices.  Besides internal controls, Comptroller 
and Accountant General of India, and the Cent ral Vigilance Commission perform the oversight  WT/TPR/M/249/Add.1 
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  and ensure compliance.  The details of GFRs are available on http://finmin.nic.in/the_ministry/ 
dept_expenditure/GFRS/GFR2005.pdf. 
91) To what extent is chapter 5 of the GFRs on "Works" relevant also in the context of chapter 6 on 
"Procurement of goods and services"?  Does Indi a have any plan for further reforms of its 
government procurement regulatory framework?   In particular, are there any plans to 
harmonised the various procurement rules, directiv es, etc into one single piece of legislation and 
to subject all contracting authorities (whether at cen tral or State level) to this?  What is the 
timing for such reforms?  Could India indicate  where tenders are generally published?  Are there 
any plans to create a centralised point of access to procurement information and opportunities in 
India? 
Reply:  Establishment of a legislative framew ork for public procurement is under consideration 
of the Government of India, but this will not change the Constitutional provisions on rights of the Centre and the States. 
WTO's Secretariat Report, page 107, paragraph 225 The Report notes that "the rules and procedures framed by individual departments are based on their 
perceptions and interpretations of the GFRs". 
92) To what extent can individual departments depart from those guidelines?  How can the Ministry 
of Finance ensure all central level entities follo w those guidelines?  What is the relevant 
regulatory framework for the procurement of services? 
Reply:  Rule 137, 160 and 161 of the General Fi nancial Rules contain the basic principles of 
public buying.  Chapter 6 of the General Financia l Rules, 2005 contains general rules applicable 
to all ministries or departments regarding proc urement of goods, engagement of consultants 
and outsourcing of services.  Detailed instructio ns relating to the procurement of goods can be 
issued by the procuring ministries/departments in  conformity with the general rules contained 
in this chapter.  Establishment of legislative framework for public procurement is under consideration of the Government of India.  Besides internal controls, Comptroller and 
Accountant General of India, and the Central Vi gilance Commission perform the oversight and 
ensure compliance. 
WTO's Secretariat Report, page 107, paragraph 226 93) How can suppliers be registered in DGSandD system ?  What are the registration requirements?  
Do they defer for foreign suppliers? 
Reply:  The detailed procedures and guidelines for registration of suppliers including foreign 
suppliers with DGSandD is gi ven in DGSandD website www.dg snd.gov.in link Registration 
Forms and Guidelines. 
WTO's Secretariat Report, page 107, paragraph 227 94) Could India explain how other bidders can obtain information about the results of the tender as 
well as how the tender was conducted?  Could Indi a explain further what type of negotiations 
may be conducted with the bidder offering th e lowest price?  Under which circumstances? 
Reply:  Such details can be provided on specific request from the tenderer, though tenders are 
opened publicly in the presence of the suppliers.   There should normally be no post-tender 
negotiation.  If at all negotiations are warranted  under exceptional circumstances, then it can be WT/TPR/M/249/Add.1 
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  with lowest tenderer only.  The exceptional ci rcumstances include procurement of proprietary 
items, items with limited source of supply and items where there is suspicion of a cartel formation. 
WTO's Secretariat Report, page 107, paragraph 228 and Table III.27 
The report provides information on the different procurement methods. 
95) Could India further explain whether these are onl y procurement methods for those contracting 
authorities subject to the GFRs or whether these are common to all procuring entities? 
Does the term "open tender" under GFRs means t hat only domestic but also foreign suppliers are 
eligible to participate in a tender? 
What is the difference between "open tenders" and "global tenders". 
Which criteria are used when determining that it is  not in the public interest to procure goods through 
open tender, and thus to use limited tendering.  Wh o takes such a decision and can it be appealed 
before an independent review body? 
Reply:  Yes, all central miniseries are subject to GFRs.  Unless specifically indicated in the 
tender notice/document, both domestic and foreign suppliers can participate against open 
tender. 
As per GFRs 2005, invitations to tenders by advert isements should be used for procurement of 
goods of estimated value of Rs 2.5 million and ab ove so as to get a wide response.  This 
advertised tender enquiry is called an open tend er enquiry.  This is usually in the domestic 
context.  Where the ministry/department feel that it  is necessary to look for suitable competitive 
offers from abroad, the requirement is public ized globally.  Publicizing the requirement 
globally is known as advertising a global tender enquiry. 
GFR 2005 and the procurement manual are availabl e at:  http://finmin.nic.in/the_ministry/ 
dept_expenditure/GFRS/GFR2005.pdf and http://www.du.ac.in/fileadmin/DU/DUCorner/ MPProc4ProGod.pdf, respectively. 
WTO's Secretariat Report, page 109, paragraph 231 
96) Could India explain the criteria used by DGSandD to set the list of eligible suppliers?  Are there 
any specific requirements for foreign suppliers? 
Reply:  The eligibility criteria used by DG SandD include mandatory registration with 
DGSandD for both indigenous and foreign suppliers.  If any additional eligibility criteria is used, same may vary from case to case and will be stipulated in the tender which includes possession of special plant and machinery, past experience in successful execution of similar 
store. 
WTO's Secretariat Report, page 109, paragraph 231 India retains preferential treatment fo r micro and small enterprises (MSEs) 
97) Could India provide its definition of micro and sma ll enterprises?  Could India provide further 
details, definition and a list of what are "central pub lic sector enterprises" (CPSEs)?  Could India 
confirm that the preference system for CPSE s does not exist since 31 March 2008?  WT/TPR/M/249/Add.1 
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  Reply:  Section 7(1) of the Micro, Small and Medium Enterprises Development (MSMED) Act, 
2006 categorized the enterprises in to manufactu ring and services, which are further classified 
as micro, small and medium enterprises (MSMEs ) based on the investments in "plant and 
machinery" and in "equipment" respectively as under: 
(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 investme nt 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: 
(iv) a micro enterprise, where the investment  in equipment does not exceed ten lakh 
rupees; 
(v) a small enterprise, where the investment in equipment is more than ten lakh 
rupees but does not exceed two crore rupees;  or 
(vi) a medium enterprise, where the investment in equipment is more than two crore 
rupees but does not exceed five crore rupees. 
The business units owned, managed and controlled  by the central government are termed as 
central public sector enterprises or central public  enterprises or a public sector undertaking.  
The preference system for CPSEs in government pr ocurement no longer exists.  A list of CPSEs 
is available at http://dpe.nic.in. 
WTO's Secretariat Report, page 110, paragraph 236 98) Could India explain for which items are the BIS and BEE standards mandatory?  Can these be 
replaced by the use of international technical stan dards?  Could India indicate whether the use of 
international technical standards, where exist, coul d satisfy requirements fr om Indian contracting 
authorities? 
Reply:  The list of Indian standards for ma ndatory compliance under a licence from BIS is 
available on BIS website http://www.bis.org.in .  The four products for which BEE has made standards mandatory can be ch ecked at www.bee-india.nic.in. 
The term "international technical standa rds" does not figure in the TBT Agreement. 
WTO's Secretariat Report, page 110, paragraph 238 99) What is the relevant regulatory framework for the procurement of services?  What are the 
procuring methods and the thresholds  applied for the procurement of services by both central and 
State-level procuring authorities? WT/TPR/M/249/Add.1 
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  Reply:  Please see replies to questions Nos. 89 to 92 above. 
WTO's Secretariat Report, page 111, paragraph 241 As stated in the Report, "e-tendering has fa cilitated the participation of bidders, increased 
competition and diminished the incentive to create cartels". 
100) Could India facilitate the data showing the in creased participation and competition?  Which 
 requirements do suppliers have to comply with in order to be eligible to participate in 
 electronic tendering?  Are these different for foreign suppliers? 
Reply:  Different departments and organisations have started implementing e-tendering only in 
the recent past.  Moreover, as public procur ement is decentralised, no data is presently 
available.  To participate in electronic tend ering, the suppliers should possess valid digital 
signatures and should be registered with orga nisation/department to use its e-tendering 
platform.  There is no distinction in this pro cedure between indigenous or foreign suppliers. 
WTO's Secretariat Report, page 111, paragraph 242 101) What is the status of electronic tendering at State level? 
Reply:  Many States use NIC solution for e-pr ocurement.  Under the national e-procurement 
mission, all entities are being encouraged to migrate to e-procurement. 
WTO's Secretariat Report, page 111, paragraph 243 102) Could India indicate the main differences betw een the specialised procedures in the railway, 
 postal, telegraph and defence sectors and the GFRs and other general procurement directives 
 and guidelines? 
What is the treatment accord ed to foreign suppliers under those specialised procedures? 
Reply:  Replies to earlier questions may also be seen.  Detailed instructions relating to the 
procurement of goods can be issued  by the procuring ministries/dep artments in conformity with 
the general rules contained in this chapter.  Unless specifically indicated in the tender 
notice/document, both domestic and foreign suppliers can participate against open tenders. 
103) Could India further detail its requirements in t erms of technology transfers in global tenders? 
Reply:   Procurement by all central miniseries are s ubject to General Fina ncial Rules (GFRs), 
2005 and GFR.  Search for the appropriate technology is a commercial decision of the enterprises. 
(vi)  Intellectual property rights 
(a)  Overview 
A high-level Inter-Ministerial Report, "Report on Step s to be taken by the Government of India in the 
context of Data Protection Provis ions of Article 39.3 of TRIPS Agreement" in May 2007 suggested 
that Indian legislation regarding data protection for pharmaceuticals may not be TRIPS compliant, and put forward a recommendation on how the problem coul d be solved.  The EU also learned that a 
new legislation is being developed in In dia concerning plant protection products.  WT/TPR/M/249/Add.1 
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  104) Could India inform whether it intents to follow the recommendations put forward in this 
 report, and if so, to indicate  the possible timeframe for such  changes?  Could India provide 
 information on this new pending legislation? 
Reply:  The report is being examined and decision will be taken as per the national interest.  
The legislation on plant protection products is pending in the Parliament. 
(b)  Patents 
WTO's Secretariat Report, page 114, paragraph 250 The EU is concerned about the e nhanced efficacy requirement included in Section 3(d) of the new 
Patent Act. 
105) Could India please explain its views in this regard, in particular concerning Section 3(d) 
 TRIPS compatibility? 
Reply:  The efficacy requirement for a new form of a known substance is to substantiate the 
inventive step provided novelty of the substance is  already established.  This provision is fully 
TRIPS compatible in view of Article 8 and 27 of TRIPS. 
WTO's Secretariat Report, page 115, paragraph 256 
The EU has concerns regarding Sections 84 (and others) .  In the EU's opinion, the range of situations 
in which a compulsory license can be imposed is very broad. 
106) Could India explain why it considers it necessary to be able to issue compulsory license in 
 such broad situations, and whether it c onsiders such measures are TRIPS compliant? 
Reply:  The provisions are TRIPS compliant in view of 7, 8 and 31 of TRIPS . 
The EU has concerns regarding Sections 83and146 of the new Patent Act.  The EU has especially 
strong concerns regarding the right of the Controll er to publish sensitive information regarding the 
extent to which the patent is commercially worked in India. 
107) Could India please explain the need for a lo cal working requirement, and the need for the 
 possibility to publish these data?  How does Indi a consider this requirement in light of its 
 TRIPS obligations? 
Reply:  Such publication is required for public knowledge and transparency which may help a 
prospective applicant for compulsory license.  TRIPS does not exclude any such publication. 
(e)  Copyright WTO's Secretariat Report, page 119, paragraph 278 108) Could India please describe the main features of the Copyright (Amendment) Bill 2010, and 
 when this bill is foreseen to be adopted? 
Reply:  The bill is yet to be passed by the Parliame nt.  Hence, at this stage it is not possible to 
share the details. 
(f)  Geographical Indications 
WTO's Secretariat Report, page 120, paragraph 286 WT/TPR/M/249/Add.1 
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  The report notes that "additional protection may be  provided by the Central government to certain 
goods or classes of goods by notification in the Offic ial Gazette.  At present wines and spirits are the 
only class of goods that receive higher protection in India". 
109) Could India confirm that "additional protection" and "higher protection" refer to the level of 
 protection of Article 23 TRIPS? 
Reply:  Yes. 
110) Could India provide details of the notificati on made by the Central Government in the 
 Official Gazette to grant higher protection to wines and spirits?  Does India envisage to make 
 notifications in the Official Gazette for other goods, and if so, which ones? 
Reply:  The notification states that: 
"Whereas sub-section (2) of Section 22 of Geogra phical Indication of Goods (Registration and 
Protection) Act, 1999 provides for additional protection for certain goods or class or classes of goods as notified; 
And whereas, the Central Government is satisfied that a notification extending additional 
protection as provided in sub-section (3) of Sect ion 22 of the Geographical Indication of Goods 
(Registration and Protection) Act, 1999 is necessary. 
Now, therefore, in exercise of the powers conf erred by sub-section (2) of Section 22 of the 
Geographical Indication of Goods (Registration and Protection) Act, 1999, the list of the goods 
specified in the Schedule are extended additional  protection under the sub-section (3) of Section 
22 of the said Act." 
At present there is no proposal for extending  the list of goods for providing additional 
protection. 
111) Could India specify whether higher protection is  granted to wines and spirits as a result of 
 the application foreseen in Chapter III of the GIs Act 1999? 
Reply:  Higher protection to wines and spirits is granted as stated in the notification under 
Section 22(2) of the GI Act and subsequent no tification.  The procedure to be followed for 
registration is stated in Chapter III of the GI Act and Chapter VII of the GI Rules. 
112) Could India clarify whether applicants have to submit an additional application for 
 additional protection of wines and spirits?  If so, could India explain the procedures  applicable, including timing for consideration by the Registrar? 
Reply:  Yes.  Procedure applicable for additional  protection of wines and spirits is elaborated in 
Chapter VII of the GI Rules. 
113) Could India clarify whether the Registrar appli es the rules of Chapter VII of the GIs Rules 
 2002 to wines and spirits, in particular Rules 79, 81, 81.(1) and (2)?  In application of  Rule 79, could the Registrar refuse the additional protection to wines or spirits and on what  grounds? 
Reply:  Yes.  The rules subsumed in Chapter VII of the GI Rules, 2002 will apply to registered 
GIs on wines and spirits which seek additional protection.  WT/TPR/M/249/Add.1 
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  Yes, the Registrar could accept, refuse or a ccept with conditions the application seeking 
additional protection.  The grounds for refusal or conditional acceptance would be communicated to the applicant after the Registra r has heard the applicant under Rule 80 of the 
GI rules.  The communication will carry in writin g the grounds for such action and the material 
used by him in arriving at the decision. 
114) Could India explain the meaning of Section 85 of the GIs Act 1999 "Provisions as to 
 reciprocity" and to what situation it is applicable? 
Reply:  Section 85 of the GIs Act 1999 is meant for countries who are not members of WTO 
where "Provisions as to reciprocity" may be in voked.  However, Government of India has not 
issued any notification as yet to that effect. 
(j) Enforcement 
India has approved brand-new laws on IPRs but still lacks on enforcement, which is undermining its 
own economic interests.  For a knowledge economy like India, it is important to strike an appropriate 
balance between its legitimate IPR-related develop mental concerns and commercial aspects of IPR. 
115) How is India striking this balance, including stronger enforcement of IPR laws and 
 engagement in WIPO? 
Reply:  The enforcement measures adopted by India are in compliance with the TRIPS 
Agreement.  There is no obligation to provide stronger enforcement of IPR Laws than those 
mandated by TRIPS. 
India has strong enforcement clauses in th e domestic laws which are TRIPS compliant . 
IV.  TRADE POLICIES BY SECTOR 
(2)
  A GRICULTURE  
(ii)  Agricultural policy objectives 
WTO Secretariat's report, page 137, para. 49 It is mentioned that in 2008, India implemen ted the Agricultural Debt Waiver and Debt Relief 
Scheme, under which some 36.9 million farmers have had their debts waived or have been granted 
some kind of relief.  According to the authorities this programme is not in force. 
116) Could India provide more information on the opera tion of this scheme?  In particular, when 
 was the programme in force and what the gr ounds for its introduction and timeline were? 
Reply:  The Agricultural Debt Waiver and Debt Relief Scheme 2008 was a one-time scheme.  
The Scheme covered all agricultural loans, dis bursed by scheduled commercial banks, regional 
rural banks and cooperative credit institutio ns up to 31 March 2007 and overdue as on 
31 December 2007.  Implementation of the Scheme was by and large completed with respect to 
small and marginal farmers by 30 June 2008.  Repayment period under one time settlement 
applicable to other farmers was extended till 30 June 2010. 
(3)  SERVICES 
(i)  Overview 
(ii)  Financial services 
WTO Secretariat's report, page 140, paragraphs 58 and 62 WT/TPR/M/249/Add.1 
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  It is noted that financial services, especially bankin g and insurance, continue  to be dominated by 
state-owned companies, despite measures to promote competition from the private sector. 
117) What additional measures is India minded to take in or der to increase competition? 
Reply:  In order to achieve greater competitio n and ensure financial inclusion, Reserve Bank 
envisages issuing licences to a few more new ba nks in the private sector.  For the purpose, 
Reserve Bank had studied the international pr actices and considered the Indian experience and 
released a discussion paper on entr y of new banks in the private sector on 11 August 2010.  The 
draft guidelines on licensing of new banks have also been released on 29 August 2011 for comments.  On examination of the feedback and after certain vital amendments to the Banking 
Regulation Act, 1949 are carried out, final gu idelines would be issued and the process for 
granting licences to new bank in the private sector would be initiated. 
Further, to promote competition in the banking  sector, RBI gives a single class of banking 
licence to the foreign banks which allows them to  carry on both retail and wholesale banking.  
RBI has on 21 January 2011 issued a "Discussion Paper on Presence of Foreign Bank in India", inviting comments/suggestions from all stakehol ders.  The Discussion Paper proposes possible 
autonomous liberalisation for foreign banks, perm itting presence in India by way of wholly 
owned subsidiary (WOS).  Further in the insurance sector an amendment bill is under consideration. 
WTO Secretariat's report, page 141-146, paragraphs 61, 62, 70 and 78, The Reserve Bank of India is encouraging foreign banks to incorporate as wholly owned subsidiaries 
instead of operating as direct branches.  How ever, several restrictions on business scope and in 
particular the limitation on number (18-20) of lo cal branches (geographical operations) is still 
applied to foreign banks while has been removed fr om Indian owned banks.  The recent discussion 
paper issued by RBI has suggested national treatment. 
118) Could India confirm whether it will provide full or partial national treatment to foreign 
 owned bank subsidiaries on all restrictions currently in place? 
Reply:  RBI has on 21 January 2011 issued a "D iscussion Paper on Presence of Foreign Bank in 
India", inviting comments/suggestions from all stak eholders.  At this stage, it will be premature 
to comment on the final outcome. 
WTO Secretariat's report, page 141, paragraphs 65 According to the report, the ATM penetration in India remains low.  According to information 
available to EU, RBI considers every ATM of a fo reign bank as a new branch and hence restricts the 
number installed in a given year. 
119) Does India intend to change its definition of b ank branches as not to include ATMs and back-
 offices in different geographical locations in  order to encourage ATM penetration? 
Reply: (a) Para 2 of the Master Circular dated 1 July 2011 on Branch Authorisation defines 
branch as under:   
For the purpose of branch authorisation policy, a "branch" would include a full-fledged 
branch, a satellite office, an extension co unter, an off-site ATM (automated teller  WT/TPR/M/249/Add.1 
 Page 163 
 
 
  machine), administrative office, controlling o ffice, service branch (back office processing 
centre) and credit card centre.  A call centre will not be treated as a branch.  A call centre is one where only accounts or product information is provided to the customers 
through tele-banking facility and no banking  transaction is undertaken through such 
centres.  Also, no direct interface with clients/customers is permitted at call centres. 
(b) At present no change is envisaged in the definition of bank branches as not to include 
ATMs and back-offices in different geographica l locations in order to encourage ATM 
penetration.  However, to encourage AT M penetration scheduled commercial banks 
have been permitted to install of-site/mobile ATMs at the centres/places identified by them, without permission from the Reserve Bank. 
(c) Further, domestic scheduled commercial ba nks (other than RRBs) are permitted to 
open branches/mobile branches/administrative offices/central processing centres (CPCs)/service branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001 without permission from the Re serve Bank.  It may be mentioned that 
administrative offices, central processing cen tres (CPCs) and service branches are back 
offices, as there is no direct interface with the customers. 
(d) For the purpose of WTO commitments of 12 branches in a year, the off site ATMs 
opened by foreign banks are not taken into account. 
WTO Secretariat's Report, page 144, paragraph 74 According to the report, the RBI has been impl ementing "advanced approaches" to evaluate risk 
under Basel II since July 2009. 
120) Is the RBI in the process of implementing Basel III and, if yes, what is the timeline of such 
 implementation and will it diverge in any si gnificant way from the Basel III guidelines? 
Reply:  So far as implementation of Basel II I in India is concerned, availability of adequate 
amount of capital, both in terms of quality a nd quantity provides significant comfort to begin 
implementation of the new framework as per the time schedule fixed by the Basel Committee on 
Banking Supervision (BCBS).  Nevertheless, RB I has taken a number of initiatives to ensure 
smooth transition of the banking sector to Basel  III framework.  In order to raise awareness 
among banks about Basel III, RBI has been regu larly briefing the chief executives of banks 
since RBI became member of the BCBS in 2009.  These meetings also provide an opportunity 
for RBI to assess the level of preparedness of  banks to implement Basel III and clarify any 
issues which they may have in this regard.  Other initiatives taken by RBI include organising 
various training programmes through its trai ning establishments, seminars, meetings and 
participation in seminars organized by the Indian Banks' Association (IBA) and other 
self-regulatory bodies. 
The BCBS is monitoring the impact of Basel III proposals through the semi-annual 
Quantitative Impact Study (QIS) on banks.  Te n Indian banks are participating in this QIS 
exercise.  The outcome of the QIS will not only gi ve an idea about the impact of the Basel III 
rules on Indian banks, but will also help in enhancing the understanding of banks about the subtle nuances of various aspects of Basel III proposals. 
In the meantime, RBI is examining the Basel II I regulations and will issue guidelines to the 
extent applicable for banks operating in I ndia in due course.  RBI would adhere to the 
internationally agreed phase in period starting in 1 January 2013 for implementation of 
Basel III. WT/TPR/M/249/Add.1 
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  WTO Secretariat's report, page151, paragraphs 101 
Indian Government's 'Insurance Laws (Amendment)  Bill 2008' seeks to raise the FDI cap from 
existing 26% to 49%. 
121) Could India confirm when it will enter into force? 
Reply:  The Government of India has introdu ced the Insurance Laws (Amendment) Bill, 2008, 
in Parliament.  The Bill inter alia  provides for enhancement of holdings of equity shares by a 
foreign company, in Indian insurance compani es, from 26% to 49%.  Presently, the Bill is 
under consideration in Parliament. 
WTO Secretariat's report, page 155, paragraphs 115 According to the Secretariat's report, India implements several foreign equity restrictions on FII's 
into securities sector, such as 10% ow nership cap for individual FIIs and 24% equity cap for all FII's, 
as well as 26%/23% caps for investments into stock exchanges. 
122) Could India confirm that these restrictions are in place and are in conformity with its GATS 
 commitments? 
Reply:  The present limits for investment in stock exchanges are prescribed as under: 
 Securities Contracts (Regulation) (Ma nner of Increasing and Maintaining Public 
Shareholding in Recognised Stock Exchanges) Regulations, 2006 was notified on 13 November 2006 to all recognised stock exchanges. 
 In terms of Regulation 8 (2)(a) and (b) of the above said Regulations amended on 
23 December 2008:   
 "(2) the combined holding of all persons resident outside India in the equity share 
capital of a recognised stock exchange sha ll not exceed, at any time, 49% of its total 
equity share capital, subject further to the following: 
(a) the combined holdings of such persons acquired through the foreign direct 
investment route shall not exceed 26% of the total equity share capital, at any 
time; 
(b) the combined holdings of foreign instit utional investors shall not exceed twenty 
three% of the total equity share capital, at any time." 
(iii)  Telecommunications 
WTO Secretariat's report, page 157, paragraphs 125 
The Report outlines all the regulations governing the telecom sector and indicates that a New 
Telecom Policy 2011 is currently being drafted. 
123) Are foreign satellites operators free to contract directly with telecommunications operators? 
 If not, could India elaborate on the reasons why this is not possible?  Resale of 
 telecommunication services is not allowed in Indi a.  Could India explain the reasons behind 
 this policy choice?  Will these issues be  addressed in the New Telecom Policy 2011? 
Reply:  As far as telecom sector is concerned, this is governed by SATCOM Policy which states 
as below:  WT/TPR/M/249/Add.1 
 Page 165 
 
 
  "The SATCOM policy shall provide for users to  avail of transponder capacity from both 
domestic/foreign satellites.  Howev er, the same has to be in consultation with the Department of 
Space." 
The National Telecom Policy is in the process of consultation with various stakeholders.  All 
relevant issues related to telecom sector in In dia would be looked into while formulating 
National Telecom Policy 2011. 
WTO Secretariat's report, page 159, paragraphs 119, 120 According to the Secretariats report, India impl ements a foreign equity restriction by which 10% 
ownership cap is applied to individual companies as  well as restrictions that  equity can be hold on 
only one licence company per service area for access services. 
124) Could India confirm that these restrictions a re in place and in conformity with its GATS 
 commitments? 
Reply:  Para 125 of the Secretariat Report clea rly explains the cap of 10% in respect of cross 
holding among licensees in same service areas.  It has no linkage with Indian or foreign equity. 
(iv) Transport 
Maritime transport: 
WTO Secretariat's report, page 162, paragraphs 134 
125) Could India confirm that there is no cargo reservation policy either for SCI or for national 
 flagged vessels?  If cargo reservation policy exists,  India is requested to provide information 
 concerning in which particular areas this policy is implemented. 
Reply:  The Cargo Reservation Policy in Indi a is for Indian flag vessels and no particular 
distinction is made between SCI vessels (which are Indian flag vessels) and other Indian flag 
vessels.  Hence, the policy applies to SCI vessels as well as other Indian flag vessels.  It may 
further be mentioned that as per the DG Shi pping circular (2010), the existing basis for 
according cargo preference is as follows: 
 Right of first refusal:  Indian flag vessels (regardless of country of built – India or 
foreign).   
 Right of second refusal:  BBCD vessels (bareboat charter cum demise);  only after 
demise of charter period, the vessel may fly Indian glag hence till that time, BBCD 
vessels have only second right of refusal. 
 Right of third tefusal:  Indian built foreign owned (foreign flag) vessel. 
 Last right of refusal:  any foreign flag vessel. 
As regards the particular areas where the above  mentioned policy is implemented, the details 
are as following:   
For chartering a vessel for carriage of any gov ernment or privately owned/controlled cargoes 
for export or import, Indian flag vessels will have  the first right of refusal for carrying the 
cargoes.  Only if such licence cannot be given to Indian flag vessel, a foreign flag vessel be allowed to be chartered/taken on rental basis. WT/TPR/M/249/Add.1 
Page 166  
 
  It may thus be observed that the above policy a pplies to situations wherein, an Indian entity 
charters a vessel. 
WTO Secretariat's report, page 163, paragraphs 138 126) Could India explain its license regime in more detail, in particular if there are different 
 criteria/rules for granting license to foreign flagged vessels? 
Reply:  The license regime is as per the Merchant Shipping Act, 1958 and the guidelines issued 
by the Director General of Shipping.  The details are available at the website www.dgshipping.com. 
WTO Secretariat's report, page 164, paragraphs 142 127) Is there sufficient progress achieved in the developmen t of costal shipping?  If not, does India 
 foresee further actions?  Could these include  further opening of market access and thus 
 lowering costs and increasing shipping services availability? 
Reply:  Coastal shipping in India is still at a nascent stage as road transport in India accounts 
for over 50% of ton-mile of cargo traffic followe d by rail with about 30% and less than 10% by 
coastal shipping.  Though the number of coastal v essels in Indian fleet is about 70%, it is only 
10% of the Indian tonnage in terms of GT.  Growth in coastal shipping has not been able to 
keep pace with the growth of the logistics industry in India. 
The Maritime Agenda 2010-20 and the proposed c oastal shipping policy include various actions 
required for promoting coastal shipping in Indi a, which include, promoting river-sea vessels, 
manning relaxation without compromising on the safety, financial incentives, infrastructural 
facilities, modal shift in cargo from rail and ro ad, legal issues, declaration of IV limits in 
different states, data-base and communication infr astructure, cabotage policy support, custom 
processes and procedures for the development of  seamless movement of cargo and growth in 
Coastal shipping.  These actions are part of a proposed policy document and are expected to 
open the market access, lower costs and increase  shipping services availability for Indian coastal 
trade in the near future. 
WTO Secretariat's report, page 165-166, paragraphs 149-150 
128) In view of the need identified by the "N ational Maritime Development Programme" to 
 modernise infrastructure and to improve car go handling and transition, does India foresee 
 further action to promote foreign investment and expertise?  The recen t decision to increase 
 import duties on dredgers from 0% to 9.577%  and on related spare parts from 12.83% to 
 23.845% as well as the new requirement that a certain percentage of the crew of 
 international dredging companies providing servi ces in India must be composed of Indian 
 citizens could also adversely affect the implem entation of the NMDP.  Could India share its 
 views? 
Reply:  To modernize infrastructure and to improve cargo handling and transition, various 
projects have been identified afresh in the comp rehensive vision document on maritime sector 
for the next ten years released by the Govern ment of India as Maritime Agenda, 2010-2020, 
which also includes investment through pr ivate sector and the foreign investments. 
As far as creation of berths (additional capacity ) and modernization of existing berths in major 
ports as per NMDP (National Maritime Development Program) is concerned, good number of Port infrastructure projects are being taken up on PPP mode as per guidelines of the Ministry  WT/TPR/M/249/Add.1 
 Page 167 
 
 
  on private sector participation in port sector  of 1996 which also allows 100% FDI which 
includes expertise and experience in handling/operating ports. 
New requirements for crew have been prescribe d for not only dredgers but for all foreign 
vessels operating in Indian coastal waters under license.  Accordingly DGS circular 1A and 1B 
have been issued.  DGS circular 1A of 2011 manda tes relaxation in the crewing requirements of 
Indian ships.  As per this, Indian ships operating  in the coastal waters of a foreign country can 
engage crew of that nationality while operating in  their coastal waters if such requirements are 
mandated by that country.  This has been done in  order to prevent either loss of Indian business 
or of Indian tonnage in terms of the need to flag the ship out of India.  Further DGS Circular 1B (for engaging Indian crew on board th e ship in Indian coastal water) has been 
issued.  As per this circular, a minimum of one third Indian officers and ratings should be 
engaged on board such vessels when they are chartered for operation in the Indian coastal waters for a period of more than 90 days and must hold relevant Indian certificates.  Similarly where the period of licence exceeds 180 days a minimum of one half of Indian officers and ratings is required to be employed.  Further whe re the period of licence is not continuous the 
above condition will be imposed whenever the cu mulative period of licence exceeds 90 days or 
180 days in a calendar year.  Similar regulation ex ists in countries like Br azil, Indonesia, etc. 
Further on request of the shipping industry, it has been decided that in case of non-deployment 
of Indian crew/officers, the company /ship own ers'/charterers are required to provide training 
slots for the Indian crew/officers on the same sc ale as prescribed for the regular tonnage tax 
scheme i.e. 10:1.5 for the entire period of applic ation/requirement of the licence in respect of the 
deficient number of man days required. 
Air transport: 
WTO Secretariat's report, page 166, paragraphs 152 The Indian authorities announced earlier this year that they are planning to review all the airport 
concession agreements. 
129) Could India provide more information on the conditions of this review and the impact it could 
 have for foreign investors/airport operators? 
Reply:  No proposal for review of airpor t concession agreements is under consideration.  
WTO Secretariat's report, page 166, paragraphs 153 
130) Could India explain in more detail what the crit eria are for the allocation of slots in Indian 
 airports?  Is India following the IATA Slot Guidelines? 
Reply:  The Airports Authority of India (AAI), the agency responsible for slot allocation in 
India, is following a set procedure for allocation of slots.  In addition, AAI is also following 
IATA Slot Guidelines for allocation of slots to  international airlines operating from India. 
131) How does India ensure the safeguards of a non-discriminatory, neutral and transparent 
 system for allocation of slots?  How many airports are coordinated (IATA level 3) or 
 scheduled facilitated (IATA level 2)? 
Reply:  To ensure the safeguard of non-discri minatory, neutral and tr ansparent system for 
allocation of slots to international airlines, th ere is a Slot Allocation Committee represented by 
members from DGCA (Director General Civil Av iation), BCAS (Bureau of Civil Aviation WT/TPR/M/249/Add.1 
Page 168  
 
  Security), defence authorities, JVC operators and Air India.  AAI convenes a meeting wherein 
all the stakeholders – regulatory bodies and airlines are present.  Slots as requested by airlines and the offers given by airport operators are discu ssed in this meeting.  These slots/offers are 
further discussed and finalized in the schedule conference organized by IATA, twice in a year, which is attended by airlines and airport operatoRs 
Any request received from airline for amendment to the existing slot or request for any 
additional slot is analysed on the principle of airport capacity and thereafter the slots are 
accepted or alternate offers are given. 
In case of any dispute between airport operator and airlines, firstly efforts are made to resolve 
the dispute at the level of airport operator and the slot allocation committee.  If the dispute still 
remains unresolved, the same can be addressed to a ppellate authority i.e. member (Ops.) in case 
of AAI airports and Airport Coordination Committee in case of Greenfield airports. 
Out of 17 airports managed by AAI where intern ational airlines operate, Chennai airport is a 
coordinated airport (IATA level 3), Kolkata and Trivandrum are scheduled facilitated airports 
(IATA level 2). 
WTO Secretariat's report, page 168, paragraphs 160 
132) Could India specify under which conditions can a third country company supply ground 
 handling services at airports in India? 
Reply:  This is governed by Section 3(1)(iii) of the Airports Authority of India (General 
Management, Entry for Ground Handling Regulation  2007).  The details can be seen from the 
website http://www.aai.aero/public_n otices/aaisite_test/main_new.jsp#. 
As regards the new ground handling policy announced in 2010: It is the EU's understanding that a 
new GH regulation was prepared last year by the Indian authorities with a view to limiting the access 
to ground handling services at big airports (in particular only one "independent" handler was 
possible in addition to the airport and the Indian carrier, and self-handling was not possible for a number of ground handling services).  The limitation was due to security concerns. 
133) Has this regulation entered in force or ha s India decided to reconsider the limitations? 
Reply:  The above Regulation has entered in force. WTO Secretariat's report, pages 166-168, footnotes 180, 191, 201 Comment to the WTO Secretariat 
The abovementioned footnotes seem to be incorrect.  Grateful if the Secretariat could correct them in 
the revised version of the report. 
Rail Transport: 
WTO Secretariat's report, page 172, paragraphs 177 
India levies taxes on transport tariffs for rail freight , while private wagons benefit from a rebate.  
Taxes go to the State budget, not to the railways, when at the same time Indian railways benefit from 
State subsidies.  WT/TPR/M/249/Add.1 
 Page 169 
 
 
  134) Would India agree that it would be more appropriate, simpler and more transparent to 
 abandon such taxes, leaving these revenues to the railways and cut back on the transfers by 
 the State? 
Reply:  At present no additional taxes are being levied by the State on tariff for transportation 
of goods by rail.  Busy season surcharge and terminal charges etc. are not taxes but charges 
which are part of the tariff of Railways.  These are flexible charges designed to respond to 
market trends.  As regards the freight rebate to private wagons, it is also part of the freight 
policy to compensate for the investments made for procuring such wagons. 
WTO Secretariat's report, page 173, paragraphs 177 135) Has India considered whether ca rriers should granted ability to fix rail prices/tariffs in a 
 flexible way reacting to changing market situations? 
Reply:  Ministry of Railways is empowered by the Indian Railway Act with powers to fix tariff 
rates independently.  Though haulage rates for movement of container trains by registered 
container train operators are fixed by the Indian  Railway, the CTOs are given the flexibility to 
charge tariff rate, for transportation of goods, as per prevalent market situation. 
(v) Tourism WTO Secretariat's report, page 176, paragraphs 187 
According to the report, foreigners may not operate  as a travel agent, tour operator or tourist 
transport operator.  India's GATS commitments  allow commercial presence with a 51% equity 
ceiling. 
136) Could India confirm whether the mentioned lim itations do not apply to commercial presence? 
Reply:  Hotel and tourism sector is open  for FDI up to 100% on automatic basis. 
HONG KONG, CHINA 
Hong Kong China 1: Contingency Measures (WT/ TPR/S/249, p.61, para. 75) 
As noted in the Secretariat Report, the Indian Go vernment is obliged under law to restrict the 
anti-dumping duty to the lower of the margin of du mping or the margin of injury.  We would be 
grateful if India could provide further details on ho w this is implemented in practice including how 
the relevant margins are being determined. 
Reply:  The margin of injury is determined as the difference between landed value of subject 
goods from subject country and the non-injurious price of domestic like product determined for 
the domestic industry during the same period (perio d of investigation).  The margin of injury is 
determined in all investigations as India follows lesser duty rule.  
Hong Kong China 2: 
Banking (WT/TPR/S/249, P.142 AND 143, para. 68) 
As noted from the Secretariat report, a number of regulatory changes and legislative amendments are 
awaiting enactment and a Financial Sector Legisl ative Reforms Commission has been set up to 
rewrite and streamline the financial sector laws, rules and regulations by 2013.  We would like to WT/TPR/M/249/Add.1 
Page 170  
 
  know the interface between the legislation enac tment proposed by the Minister of Finance and the 
work of the Commission. 
Reply:  Through a resolution dated 24 March 2011, the Government set up the Financial Sector 
Legislative Reforms Commission (FSLRC) with a view to rewriting and harmonizing the 
financial sector legislation, rules and regulatio ns to address the contemporaneous requirements 
of the financial sector. 
The Commission will make its recommendations within  24 months of the date of the resolution.  
It is chaired by Supreme Court Justice (Retd. ) B. N. Srikrishna, and has ten members with 
expertise in the fields of finance, economics, law and other relevant fields. 
The FSLRC can call for such information and take  such evidence as it may consider necessary 
from various sources including Ministries and Departments of the Government of India and 
State Governments.  The Commission will also engage with the inter-regulatory body the Financial Stability and Development Council (FSDC) as a part of this exercise. 
The apex-level FSDC was set up by the Government on 30 December 2010 with a view to 
strengthen and institutionalize the mechanism for maintaining financial stability and enhancing 
inter-regulatory coordination.  The Chairman of the Council is the Finance Minister of India 
and its members include: 
 Financial sector regulatory organizations:  th e heads of the financial sector regulatory 
authorities – Reserve Bank of India (RBI),  Securities and Exchange Board of India 
(SEBI), Insurance Regulatory Develo pment Authority (IRDA), Pension Funds 
Regulatory Development Authority (PFRDA); 
 Ministry of Finance:  Finance Secretary and/or Secretary, Department of Economic 
Affairs (DEA);  Secretary, Department of Fi nancial Services;  and the Chief Economic 
Adviser. 
This Council will monitor macro prudential s upervision of the economy, including the 
functioning of large financial conglomerates.  It will address inter-regulatory coordination 
issues and thus spur financial sector development.  It will also focus on financial literacy and 
financial inclusion.  A sub-co mmittee of FSDC has also been set up under the chairmanship of 
Governor, RBI. 
Hong Kong China 3: (WT/TPR/S/249, p.143, para. 70) 
We also note that since 1 December 2009, Indian banks no longer require a licence from the Reserve 
Bank of India (RBI) to open a branch in areas w ith a population below 50,000, subject to reporting.  
Would the "licence exemption" apply to foreign banks under the same circumstance? 
Reply:  The opening of branches by foreign banks,  existing and new, in India is subject to a 
limit of 12 branches in a year, as per India's commitments to WTO.  Therefore, the general permission granted to domestic scheduled commer cial banks is not applicable to foreign banks. 
Hong Kong China 4: (WT/TPR/S/249, p.145 and 146, paras.77 and 78) 
It is mentioned in the Secretariat report that th e RBI formulated a Roadmap for Presence of Foreign 
Banks in India and the Guidelines on Ownership and Governance in Private Banks in 2005.  In  WT/TPR/M/249/Add.1 
 Page 171 
 
 
  addition, a Discussion Paper on the former was rele ased in January 2011 to seek feedback from all 
stakeholders and the general public with respect to th e form of foreign bank presence in India.  We 
would be grateful for India's advice on the latest progress on the consultation and whether the guidelines, once finalized, would be introduced on a mandatory basis. 
Reply:  The Discussion Paper on presence of Fo reign Banks in India was released by RBI on 
21 January 2011 inviting suggestions/comments fr om all stakeholders.  The responses received 
from the stake holders would be taken into accoun t while finalising the guidelines.  At present, 
RBI is in the process of analysing the var ious suggestions/comments received from the 
stakeholders. 
Since the guidelines are yet to be finalised, it would be premature to comment on the outcome. 
Hong Kong China 5: 
Insurance (WT/TPR/S/249, p. 151,  para.101;  and p.153, para.108) 
We note that in recent years, the Indian authorities ha ve attempted to raise the foreign equity limit in 
an Indian insurance company from 26% to 49%, and introduce flexibility to raise capital through 
other forms instead of through equity alone.  We a re interested in knowing the time frame of their 
implementation.  Separately, we would like to know if there are any other concrete proposals to 
increase private sector investment from foreign inv estors and whether there have been obstacles to 
such attempts. 
Reply:  The Government had introduced the Insurance Laws (Amendment) Bill, 2008 in the 
Parliament on 22.12.2008.  The Bill, inter alia , provides that the aggregate holdings of equity 
shares by a foreign company, either by itself or through its subsidiary companies or its 
nominees in Indian Insurance Companies may be  increased from 26% to 49% except in case of 
insurance co-operative societies where the limit  would continue to be 26% as at present. 
At present, the Bill is pending under considerati on before the Standing Committee on Finance 
and no fixed time frame can be specified at this stage. 
Indian companies have been granted general perm ission for conversion of external commercial 
borrowings (ECB) (excluding those deemed as ECB)  in convertible foreign currency, into equity 
shares/fully compulsorily and manda torily convertible preference shares.  General permission is 
also available for issue of shares/preference sh ares against lump sum technical know-how fee, 
royalty.  From 1.4.2011, import of capital goods/ machinery/equipment and pre-operative/ pre-incorporation expenses have also been included for issue of shares against non-cash 
considerations (all of the above being subject to specified conditions). 
The policy on FDI is reviewed on a continuing basi s, with a view to its further liberalization and 
increasing its investor-friendliness. 
Hong Kong China 6: Maritime transport (WT/TPR/S/ 249, p.162, para.136) 
We noted that the Draft Policy (Revised) for th e Maritime Sector 2005 outlining the maritime 
transport development plan up to 2025 has not be implemented and was reshaped into the India 
Maritime Agenda 2010-2020.  We would like to know  if there is any initiative for liberalization of the 
sector under the plan.  Please share with us mo re details of such initiative, including its 
implementation schedule. WT/TPR/M/249/Add.1 
Page 172  
 
  Reply:  Government of India has released a comp rehensive vision document on maritime sector 
for the next ten years as Maritime Agenda, 201 0-2020.  The liberalisation policy in the port 
sector was initiated in 1996.  With the openin g up of the Indian economy, under the liberalised 
policy, the Government of India has allowed pr ivate sector participation in major ports to 
infuse funds, induct latest technology, improved management practices and above all addition 
of capacity.  Foreign direct investment up to  100% is permitted for construction and 
maintenance of ports and harbours. 
As per the Maritime Agenda, 2010-2020, followi ng policy directions have been envisaged: 
The Major ports have been working towards implementing "landlord port" concept duly 
limiting their role to maintenance of channels and basic infrastructure leaving the development 
operation management of terminal and cargo ha ndling facilities to the private sector.  This 
approach will continue and total realisation of this concept is expected by 2020. 
Public private partnerships will be the preferred  mode for the development of port terminals 
and other commercially viable activities in the major ports.  The standardization of RFQ, RFP 
and MCA and the formulation of guidelines for fi xation of upfront tariffs have served to make 
the PPP process transparent and to give confiden ce to the investors.  These documents will be 
reviewed periodically. 
Hong Kong China 7: Tourism (WT/TPR/S/249, p.174, pa ra.183;  and p.176, para.187) 
The Secretariat report mentions that there is no speci fic legislation to regulate the tourism sector and 
other related activities in India.  However, we also  note that there is a voluntary based licence scheme 
for travel agents, tour operators and tourist trans port operators.  According to the report citing 
information of the Indian authorities, "a foreigner may not operate as a travel agent, tour operator or 
tourist transport operator" under this licence scheme.  In this regard, we would like to know whether 
a foreigner, or a foreign company, could operate as a travel agent, tour operator, or tourist transport 
operator in India without the "voluntary" licences.  If not, what is the legal basis of such a 
restriction? 
Reply:  The Ministry of Tourism grants appr oval/recognition and not licencing to the various 
service providers in the categories of inbound tour  operators, domestic to ur operators, tourist 
transport operator, adventure tour operator and travel agencies as per the revised guidelines 
dated 18.07.2011.  The aims and objectives of th e scheme for recognition of service providers in 
all the said five categories are to improve thei r quality standards and service so as to promote 
tourism in India and abroad. 
This is a voluntary scheme open to all bonafi de service providers in India to bring them in 
organized sector.  The approval/recognition is given by Ministry of Tourism only to those service providers who are in operation/business in India for more than a year. 
However, the service provider has to obtain  license/permission from various Central 
Government and state Government authorities on  case to case basis to start their business. 
INDONESIA Indonesia 1: 
Report by the Secretariat:  INVESTMENT REGIME:  Foreign Investment Regime:  WT/TPR/M/249/Add.1 
 Page 173 
 
 
  Since 1 April 2010, foreign direct investment (FDI ) has been regulated by the Consolidated FDI 
Policy issued by the Department of Industrial Policy and Promotion (DIPP).  The first Consolidated FDI Policy was issued in 1 April 2010 to reflect the current regulatory framework by consolidating 
all prior regulations on FDI contained in the Foreign Exchange Management Act (FEMA) 1999, the 
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) 
Regulations 2000, and the Reserve Bank of India circulars and press notes. 
Could India please elaborate further the arrange ment under this policy and would there be a 
significant change under this new FDI Poli cy?  (WT/TPR/S/249, Page 31, Para 35) 
Reply:  Government undertook a major exercise on  consolidation of all existing regulations on 
FDI, with the aim of integration of prior regulat ions on FDI, contained in various sources, such 
as the Foreign Exchange Management Act (FEMA), Reserve Bank of India (RBI) circulars, various press notes etc., into one consolidated docu ment, so as to reflect the current regulatory 
framework.  The final document in this regard was released on 31 March 2010.  Such consolidation is intended to ensure that info rmation on FDI policy is available at one place, 
which is expected to lead to simplification of the policy, as well as greater clarity and 
understanding of foreign investment rules amon g foreign investors and sectoral regulators. 
The policy on FDI is reviewed on a continuing basi s, with a view to its further liberalization and 
increasing its investor-friendliness.  The review is  carried out through a consultative process, 
with the involvement of stakeholders, both from  within and outside the Government.  It may, 
therefore, not be possible to specify future changes at this stage. 
Indonesia 2: Report by the Secretariat:  MEASURES  DIRECTLY AFFECTING IMPORTS:  Tariffs 
As noted in the report by Secretariat, in year 2010/11,  tariffs range from zero to 150%.  The majority 
of lines (71% or 8,042) carry a rate greater than 5% but less than 10%, while 12.8% of total lines have a tariff rate greater than zero but less than 5%.  This is a major change from 2006/07, when 
65% of all lines were within the 10-15% range, and 10.4% of lines at 25-30%. 
In reality, the Indonesian exporters are still experien cing problems to export paper products due to 
high tariff imposed by India.  Does this policy still exist and if it does, could India please provide 
further explanation?  Does India also have a pr ogram to reduce high tariff?  (WT/TPR/S/249, 
Page 44, Para 30) 
Reply:  Paper products, in general, attract ba sic customs duty of 10% only.  Newsprint and 
light-weight coated paper for printing of magazines  are fully exempt from this duty.  Newsprint 
is also exempt from additional custom duty and special additional duty (SAD) of 4%. 
Indonesia 3: 
Report by the Secretariat:  MEASURES  DIRECTLY AFFECTING IMPORTS:  Tariffs 
Preferential rates are granted for certain articles under GSTP, regional (SAFTA, APTA, 
MERCOSUR, and ASEAN), and bilateral agreements (Singapore, Korea, Rep. of Chile, and Sri 
Lanka).  Under the GSTP, India has granted ta riff concession to 12 countries on a limited number of 
products.  With regard to differences in applied tar iff, the Indonesian tire producers were still subject 
to 10% of tariff, while the same products importe d from some other countries enjoyed benefit from 
lower tariffs. WT/TPR/M/249/Add.1 
Page 174  
 
  Could India please explain the reason of implem enting different treatments under the policy?  
(Referred to document WT/TPR/S/249, Page 49, Para 41) 
Reply:  The basic customs duty on tyres is currently 10%.  Since free trade agreements or 
preferential trade agreements are negotiated bila terally on the principle of reciprocity, the 
coverage of products and extent of tari ff reductions committed under each may vary. 
Indonesia 4: 
Report by the Secretariat:  MEASURES DIREC TLY AFFECTING IMPORTS:  Technical Regulations 
and Standards 
Para 106 stated "Fees under the Foreign Manufactu rers Certification Scheme, in place since 1999, 
are:  Rs 1,000 for the application, US$300 for pr ocessing, US$2,000 for marking, and a unit rate fee, 
which varies according to the product";  and further in the foot note 123 stated that "The renewal 
application fee is Rs 500, the license fee is Rs 1,000 per year, and there is a minimum annual marking 
fee of US$2,000 and a marking fee based on production marked during the preceding operative year 
of license payable in U.S. dollars less the amount already paid on quarterly basis. 
Based on the above mentioned figures, Indonesia would li ke to seek further clarification from India to 
ensure that the scheme would not create burdens ome to particular industries. (WT/TPR/S/249, 
Page 69, Para 106) 
Reply:  No reply is being furnished as no specific query has been raised. Indonesia 5: 
Report by the Secretariat:  MEASURES DIREC TLY AFFECTING IMPORTS:  Technical Regulations 
and Standards 
As mentioned in para 108 "BIS la boratories have test facilities for most under the Certification Marks 
Scheme.  In addition to the BIS laboratories, servi ces are provided by 115 national laboratories 
recognized under the BIS Laboratory Recognition Scheme". 
In that regard, Indonesia would like to request India to elaborate further the BIS Laboratory 
Recognition Scheme, considering that the Indonesi an National Accreditation Body (KAN) has not 
signed MoU with BIS.  The Indonesian laboratories testing result had apparently been rejected by the 
Indian authorities.  In response to this probl em, we would recommend if India could accept the 
APLAC/ILAC MRA scheme. (WT/TPR/S/249, Page 70, Para 108) 
Reply:  Accreditation is one of the requirements of the BIS Lab Recognition Scheme.  
Accreditation by signatories to APLAC/ILAC is acceptable.  The details of the BIS Lab 
Recognition Scheme are available at BIS Website http://www.bis.org.in. 
Indonesia 6: Report by the Secretariat:  MEASURES DIREC TLY AFFECTING IMPORTS:  Technical Regulations 
and Standards 
As noted in the report by Secretariat, The Legal  Metrology Act and The Legal Metrology (Packed 
Commodities Rules 2011 implemented as of 1 April 2011, replaced the Standards of Weights and 
Measures Act 1976, the Standard of Weights and Measures (enfor cement) Act 1985 and the Standards 
of Weights and Measures (Packaged Commoditi es) Rules 1977, which regulated labelling 
requirements in India.  Labelling requirements ar e uniform across all states and for all foreign  WT/TPR/M/249/Add.1 
 Page 175 
 
 
  suppliers.  Labels must be in Hindi (Devnagiri sc ript) and in English, they must be written in the 
language of the locality where the products is ultim ately sold.  This increases distribution cost, since 
India has 16 official languages, and food processing companies often do not know which pallet of 
food products will be transpor ted to a specific State. 
We are of the view that the labelling requiremen ts may create barriers to trade because it would 
increase distribution cost, particularly to those foreign  suppliers.  Hence we would like to know if the 
Government of India had also implemented any other policy in this regard?  (WT/TPR/S/249, 
page 70, Para 112 and Para 114) 
Reply:  Rule 9(4) of Legal Metrology (Pac kaged Commodities) Rules 2011 lay down that 
labelling declaration on "a package" shall either be in Hindi in Devnagri script or in English.  
Thus, it is clear that even a single declaration in English is adequate to meet the requirements. 
Indonesia 7: Report by the Secretariat:  MEASURES DIRECTLY AFFECTING IMPORTS:  Sanitary and 
Phytosanitary Measures (SPS) 
Imports of animal products into India require sanita ry imports permits issued by the Department of 
Animal Husbandry, Dairy and Fisheries;  permits must  be obtained prior to shipping from the country 
of origin.  The Department approves or reject the application after an import risk analysis on a 
case-by-case basis.  Could India please provide further explanation concerning the mechanism of 
approval and rejection on a case by case basis?  Are the import risk analysis based on commodity 
kind, country, kind of animal disease, or other par ameters?  (WT/TPR/S/249, Page 73, Para 121). 
Reply:  The sanitary import permit is issued fo r import of livestock products if, after a detailed 
import risk analysis, it is found that the import  of the consignment will not adversely affect the 
health of the animal and human populations of the country.  The import risk analysis is conducted by a committee of officers of the De partment on the basis of internationally 
recognized scientific principles of risk analysis.  The analysis is conducted with reference to the 
specific product and the disease situatio n prevailing in the exporting country vis-à-vis  the 
disease situation in India. 
Indonesia 8: Report by the Secretariat:  MEASURES AFFEC TING PRODUCTION AND TRADE:  Incentives 
As noted in the report by secretariat, the central  government allocates funds to subsidize interest 
rates, including to exporters managed by Ministry of  Finance, and of Heavy Industries and Public 
Enterprises.  Preferential interest rates to exporters, was given to many sectors during 1 April 2007 
up to 31 March 2011. 
Could India please provide further explanation to ensu re that the allocated funds to subsidize interest 
rate to Indian exporters are still in accordance with  WTO Rules (SCM Agreement).  Does India intend 
to maintain its policy in the future?  (WT/TPR/S/249, Page 92, Para 181). 
Reply:  The Benchmark Prime Lending Rate (B PLR) system was replaced by the Base Rate 
System with effect from 1 July 2010.  Banks may choose any benchmark/methodology to arrive 
at the Base Rate that may be disclosed tran sparently.  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 appropri ate.  Accordingly, under the Base Rate System WT/TPR/M/249/Add.1 
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  interest rates applicable for all tenors of fresh /renewed rupee export credit advances are at or 
above base rate. 
Therefore, the interest rates on export credit based on the Base Rate System do not lead to 
subsidy as per ASCM. 
OTHERS: 
Indonesia 9: Pneumatic tyres and tubes for automotive vehicles (G/TBT/N/IND/20 and Add.1:  G/TBT/N/IND/40 
and Rev.1) 
Indonesia would like to seek clarification from India whether there are only two laboratories 
approved by the Indian authorities to conduct c onformity assessments.  Indonesia would recommend 
if India could accept the result of  laboratories accredited by th e accreditation body where they have 
already signed APLAC/ILAC MRA. 
Reply:  Yes, at present there are only two labora tories approved by BIS for testing of pneumatic 
tyres and tubes.  Recognition of one additional  lab is under process.  The results of such 
laboratories can be accepted provide d they are recognized by BIS. 
Indonesia 10: 
Drugs and Cosmetics Rules 2007 (G/TBT/N/IND/33) 
Indonesia would like to seek further clarification fr om India on whether there is a different treatment 
on the validity period of Cosmetics Registra tion Certificates between foreign and domestic 
manufactures as well as import licensing requirements. 
Reply:  The domestic manufacturers of cosmetic products are required to get manufacturing 
license, which is valid for five years.  They  are subject to stringent quality checks whereas 
imports are free without any requirement of such conditions. 
JAPAN The Secretariat Report (WT/TPR/S/249) III.  TRADE POLICIES AND PRACTICIES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(iv) Tariffs (c) Tariff-rate quotas 
(Question 1:  Page 48, paragraph 37)  
The WTO secretariat's report states that "the author ities noted that the fill ratio of these quotas is low, 
apparently because of lack of demand".  According to the trade data (WTO IDB data), however, there 
are substantial amounts of imports for some of the products listed in Table III.6 (Skimmed milk 
powder/whole milk powder) even though the secretaria t's report says the amount of in-quota total 
imports are zero.  Could India kindly explain more in detail why the amount of in-quota total imports 
are zero according to the se cretariat's report while there are substantial amounts of imports 
according to the IDB data?  WT/TPR/M/249/Add.1 
 Page 177 
 
 
  Reply:  As per our record, imports of skimmed milk took place only in one year as reflected in 
the TPR Report at Table III.6. 
(v) Other charges affecting imports (Question 2:  Page 50, paragraph 42) 
As to the Indian Education Cess referred to in Chapter 
Ⅲ (2)(ⅴ), Japan understands that the 
Standing Committee on Finance in the Indian Parliament discussed its policy on the Cess in 2010, 
including the possibility of abolishing it.  Japan woul d like to request India to give more information 
on the current situation in the discussions and the future prospects in the matter. 
Reply:  There was no such discussion in the Standing Committee on Finance. 
(viii) Contingency measures 
(Question 3:  Page 61, paragraph 74, 75) 
(An anti-dumping measure on 1,1,1,2-Tetrafluoroe thane or R-134a of all types from Japan) 
(1) The Indian Regulatory Authorities (The Direct orate General of Anti-Dumping and Allied Duties 
(DGAD)) initiated investigations into this product on 19 August 2009.  A preliminary determination 
was made on 19 February 2010.  On 30 July 201 0, DGAD issued a public notice to extending the 
investigation for another 6 months, to 18 February 2011.  Despite the time frame set by DGAD, it 
came to its final determination on 10 May 2011, more than 20 months after the initiation.  According to Article 5.10 of the Agreement on the Implemen tation of Article VI of the General Agreement on 
Tariffs and Trade 1994 (herein after referred to as " the AD Agreement"), "[i]nvestigations shall, 
except in special circumstances, be concluded w ithin one year, and in no case more than 18 months, 
after their initiation."  However, DGAD made th e final determination more than 20 months after the 
initiation.  Could India explain how this practice is consistent with Article 1 and Article 5.10 of the 
AD Agreement, which precludes WTO members from imposing anti-dumping duties without 
conducting an investigation in accordance w ith the provisions of the Agreement? 
(2) Article 5.10 of the AD Agreement stipulates that "investigations shall, except in special 
circumstances, be concluded within one year".  Neither in the notice of extension issued on 
30 July 2010 nor in the final determination issu ed on 10 May 2011 did DGAD explain explicitly what 
"special circumstances" existed in this case.  Could India give the "special circumstances" which 
prevented the investigation from concluding within one year? 
(3) In its final determination issued on 10 May 2011,  DGAD states that "pursuant to the orders dated 
6 January 2011 of the Hon'ble Division Bench of the Madras High Court and orders dated 
3 February 2011 of the Hon'ble Supreme Court, the subject investigation continued beyond the 
maximum time limit prescrib ed under the AD Agreement i.e. 18 February 2011".  Could India explain 
how this practice is consistent with the WTO Agreements? 
(4) Article 6.9 of the AD Agreement stipulates that "the authorities shall, befo re a final determination 
is made, inform all interested parties of the essential facts".  In this case, neither the Government of 
Japan nor those Japanese companies identified as in terested parties had been informed of the 
essential facts before the final determination, which prevented them from defending their interests as 
is guaranteed under the AD Agreement.  This means  that, the Government of Japan and the Japanese 
companies involved were deprived of an opportunity  to defend their interests.  Could India explain 
how this practice is consistent with the AD Agreement? WT/TPR/M/249/Add.1 
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  Reply:  Japan had also raised these questions in the Committee on Anti Dumping Practices.  
India has very recently provided responses which have been circulated vide WTO document G/ADP/Q2/IND/5 dated 22 August 2011. 
(An anti-dumping measure on Polyvinyl Chloride Paste Resin (PVC Paste Resin) from Japan) (5) The Indian Regulatory Authorities (DGAD) in itiated an investigation into this product on 
3 November 2009.  A preliminary determination wa s made on 11 June 2010.  Since then, there had 
been no announcement from DGAD until the Embassy of Japan in India received a disclosure of the 
essential facts on 27 April 2011, which indicated the intention of DGAD to issue its final determination on 2 May, two working days after th e disclosure of the essential facts and the last day 
before the investigation would have exceeded 18 m onths.  On 2 May 2011, DGAD made its final 
determination.  Article 5.10 of the AD Agreement stipulates that "investi gations shall, except in 
special circumstances, be concluded within one year".  In this case, DGAD did not issue a notice of extension as it had done for the investigation into 1, 1,1,2-Tetrafluoroethane or  R-134a of all types.  
Could India explain the "special circumstances" which prevented the investigation from concluding 
within one year?  In addition, pl ease explain why there was no public notice of extension in this case 
while DGAD had issued one for the investigati on of 1,1,1,2-Tetraflu oroethane or R-134a. 
(6) Article 6.9 of the AD Agreement stipulates that the disclosure of the essential facts under 
consideration "should take place in sufficient time for the parties to defend their interests".  Could 
India explain how the above practice is  consistent with the AD Agreement? 
(7) According to the public notice on the impositi on of provisional measures issued on 26 July 2010," 
the anti-dumping duty imposed under this notification s hall be effective up to and inclusive of 25th 
January 2011."  In spite of this notice, Indian cust oms continued to collect a provisional anti-dumping 
duty even after 25th January 2011.  Article 7.4 of the AD Agreement stipulates that "[t]he application 
of provisional measures shall be  limited to as short a period as possible, (...), to a period not 
exceeding six months".  Could India explain how this  practice is consistent with the AD Agreement? 
(8) In this case, the imports from Japan turned out to be negligible, 0.19 per cent of the total imports, 
in the final determination.  In the prelimina ry determination, DGAD recomm ended the imposition of 
an anti-dumping duty on the imports from Japan, and the Ministry of Finance issued a notice to impose US$111.63/MT in anti-dumping  duty.  Article 10.3 of the AD Agreement stipulates that "[i]f 
the definitive duty is lower than the provisional duty paid or payable, (…), the difference shall be reimbursed."  Could India ensure that the du ties collected will be promptly reimbursed? 
Reply:  Japan had also raised these questions in the Committee on Anti-Dumping Practices.  
India had provided responses which were circulated in WTO document G/ADP/Q2/IND/5 dated 
22 August 2011. 
(Sunset Review of Anti-dumping duties on Styrene Butadiene Rubber (SBR) 1900 series from Japan) (9) The Indian Regulatory Authorities (DGAD) made the final determination of the second sunset 
review of this product on 30 June  2010, and recommended an extension of the anti-dumping duty to 
the Ministry of Finance.  However, even though one year has passed, the Ministry of Finance has not 
yet published the extension notification.  Could I ndia indicate when the Ministry of Finance will 
publish the notification?  In addition, please explai n why the Ministry of Finance could not publish it 
for such a long period. 
(10) In this case, it is not clear whether the anti- dumping duty was collected or not during the period 
from the final determination by DGAD to the notification of the Ministry of Finance.  Could India 
clarify this?  WT/TPR/M/249/Add.1 
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  Reply:  Though the DGAD had made recommendation  in the sunset review for continuation of 
anti-dumping measures, the Ministry of Finance did not impose measures and confirmed to this 
effect on 21 April 2011.  Accordingly the anti- dumping duty on styrene butadiene rubber (SBR) 
has been terminated with effect from 27 June 2010.  This has been informed by India in the 
semi-annual report for period  1 July–31 December 2010. 
(ix) Technical regulations and standards 
(a) Standards 
(Question 4:  Page 67, paragraph 99)  
(Background) 
In regard to the conformity assessment procedure on India's mandatory certification on iron and steel 
products, Japan understands that India has postponed the enforcement of the "Second Order" since 
February 12, 2009. 
However, Japan has heard that the Indian govern ment adopted a mandatory standard for the "Second 
Order" on June 24, 2011. 
Japan has managed to achieve the safety and protecti on of consumers by implementing many strict 
regulations on finished products, e.g. the Buildin g Standard Law or the Electrical Appliance and 
Material Safety Act.  The Japanese governme nt has not implemented mandatory certification 
regulations on intermediate products, but only on finished products, because certification on 
intermediate products is not useful. 
Japan would like to remind India that even if such a regulation is enforced, it should be implemented 
in a way that is consistent with Article 2.2 of the TBT Agreement which stipulates that "technical 
regulations shall not be more trade-restricti ve than necessary to fulfil a legitimate objective", 
reflecting the spirit of the series of G-20 Commitm ents, as well as giving adequate consideration to 
actual business transactions. 
Japan would like to request India to seriously review the need for its current technical regulations on 
iron and steel products from the point of view on both their political objectives and actual economic 
effects.  Then, Japan expects that imposed technica l regulations on steel prod ucts will be eliminated 
as soon as possible and no more technical regulations  on steel products will be imposed in the future. 
From the above-mentioned point of view, Japan would like to ask the following questions; (1) Japan is aware that the government of Indi a understands this position and Japan believes that 
India will not establish any further mandatory standar ds for intermediate products.  Japan would like 
to know the development of Indian Standa rd (IS) on steel since last February. 
(2) If mandatory standards are applied to a broader range of steel materials, Japan asks India to 
consider introducing an exemption mechanism for steel  materials that conform to internationally 
recognized standards like JIS that are equal to or stricter than BIS.  Indonesia, Malaysia and other ASEAN countries have already enacted such exemption mechanisms. 
Reply:  Decision regarding notifying Indian st andards on steel and steel products, or for any 
other products, for mandatory compliance under a licence from BIS rests with the Central 
Government/regulatory body.  The list of Indi an standards on steel and steel products 
established since Februarz 2011 is given below: 
(i) IS 15911:2010:  structural steel (ordinary quality) – specification. WT/TPR/M/249/Add.1 
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  (ii) IS/ISO 14284:1996:  steel and iron sampling and preparation of samples for 
determination of chemical composition. 
Section 14 of the BIS Act 1986, empowers the Ce ntral Government to notify, in the public 
interest, any article of any scheduled industry which shall compulsorily conform to Indian standard under a licence from BIS.  This provisi on does not permit accommodation of any other 
standard, whether equal or stricter. 
We cannot agree to the suggestion of Japan si nce we believe that JIS is not a relevant 
international standard. 
(c) Certification and c onformity assessment 
(Question 5:  Page 69, paragraph 105)  
With regard to the mandatory certification system for automobile tyres, Japan has indicated the 
problems several times at WTO/TBT Committee and bila teral meetings.  The Indian government has 
already implemented their system, while Japan ese tire manufacturers have not yet had several tires 
certified due to insufficient capacity of the certificati on authorities, such as the Bureau of Indian 
Standards, and two testing laboratories.  Due to these circumstances, the relevant Japanese 
companies have been forced to suspend exports from  Japan to India and this situation is tantamount 
to building a technical barrier to trade.  Japan woul d like to know what the Indian government thinks 
of this situation in the context of WTO rules. 
Reply:  BIS as a certification authority has sufficient capacity.  BIS till date has received 
12 applications for grant of license for pneumatic tyres from Japanese manufacturers.  Out of these, licenses have been granted in 11 cases.  Only  in one case, the application is pending as the 
visit was delayed because of the natural calami ty in Japan.  Presently, the samples are being 
tested. 
(Question 6:  Page 69, paragraph 105)  
The Government of India amended the Unified Access Service License Agreemen t for security related 
concerns for the expansion of Telecom Services in  various zones of the country on 31 May 2011.  
Article 41.6 A (iii) of this amendment prescribes that "[f]rom 1
st April 2013 the certification shall be 
made only through authorized and certified agenc ies/labs in India," although before 1st April 2013 
foreign labs can certify conformity.  Please explain  the reasons why the Government of India will 
narrow down the scope of certified labs. 
From the beginning, regarding the conformity assessment system based on ISO/IEC standards 
(e.g. ISO/IEC15408 and ISO/IEC27001), mutual rec ognition of these conformity assessment results 
has already been operated and is now establishe d by an international framework. (For 
ISO/IEC15408, CCRA is already in operation.  For ISO/IEC27001, IAF is now establishing a multilateral recognition program.) 
Japan knows that India is also joining these inter national frameworks.  So, Japan is worried that if 
the Indian domestic rules which authorize only I ndian agencies/laboratories come into effect in 
April 2013, it will be in contradiction to internationa l rules. (If this domestic rule comes into effect, a 
mutual recognition system will not be able to work.)
 Please describe how the government of India 
will deal with these problems. 
Furthermore, please make clear the reason why the foreign confor mity assessment body (CAB) will be 
excluded from the scope of certified agencies/labs.  Please describe wh ether the government of India  WT/TPR/M/249/Add.1 
 Page 181 
 
 
  will accept the conformity assessment results of  ISO/IEC15408 and ISO/IEC27001 by these foreign 
CABs.  Please explain the background of this sti pulation and decision-making process.  Even if these 
domestic rules come into effect in April 2013, pl ease make sure that foreign-funded CABs in India will 
be treated equivalently as well as Indian domestic CABs. 
In addition to the questions in the previous par agraphs, Japan has two more questions about the 
amendment.  First, Article 41.6 A (vi) stipulates that "[t]he Licensee shall … ensure that all the 
documentation, including software details are obtai ned from manufacturer/vendor/supplier in English 
language''.  Please describe what "software details " means and the difference from the source code.  
Second, Article 41.6 A (viii) prescribes that ''[t ]he licensee … shall ensure that the Vendor/Supplier 
allow the Telecom Service Provid er, Licensor/DoT, and/or its designated agencies to inspect the … 
software."  Please describe details about the insp ection of software and the relationship between the 
deposition of a source code and this inspection. 
Reply:  There is no intention of not recognis ing the process based co nformance test conducted 
by international labs for general IT products. 
The license amendment is clear in itself which im plies that documents should be in English 
which is also a WTO official language. 
For ensuring that hardware and software being s upplied are safe, right of inspection is normal 
in buyer supplier relationship. 
(3)MEASURES DIRECTLY AFFECTING EXPORTS 
(iv) Export prohibitions, rest rictions, and licensing 
(Question 7:  Pages 78, 214-215, paragraph 135 – 138, Table A III.5)  
Concerning paragraphs 135 to 138 of Article III and Table AIII.5 in the Appendix Tables, India has 
been imposing some export prohibitions.  Could India please answer the following points: 
(1) Has India notified the WTO of th ese measures?  And if not, when is India going to notify them? 
(2) Has India held consultations with other memb ers as is stipulated in Article 12.1(b) of the 
Agreement on Agriculture? 
(3) Which article of the WTO agreem ents are these measures based on? 
(4) concerning these measures 
(i) exceptions on certain products 
Concerning paragraph 136 and Table AII.5, some products (e.g. basmati rice, organic 
non-basmati rice and organic wheat) are not subject to export prohibitions.  What are the reasons 
for these exceptions? 
(ii) exceptions for certain members 
Concerning Table AIII.5, exports to some Members are not subject to export prohibitions.  What 
are the reasons for these exceptions, and what  are the legal bases for these exceptions? 
(5) As an exporting Member, what does India think about the ramifications which export prohibitions 
have on importing Members? WT/TPR/M/249/Add.1 
Page 182  
 
  Reply:  The various measures by India to, inter alia , address domestic concerns of inflation, 
ensuring domestic supply and food security , are taken in terms of relevant GATT/WTO 
provisions. 
(4)MEASURES AFFECTING PRODUCTION AND TRADE 
(v) Government procurement 
(Question 8:  Page 106, paragraph 219)  
India is currently an observer to the WTO Agre ement on Government Procurement (hereinafter 
referred to as "GPA").  Does India intend to accede to the GPA in the near future?  If so, does India 
have any specific time line in view for accession? 
Reply:  Issue of India commencing accession to GPA is under examination.  At present, any 
commitment on this issue is not feasible. 
(vi) Intellectual property rights 
(Question 9:  Page 112, paragraph 245)  
The Secretariat report mentions that India is making efforts to build public awareness to facilitate the 
enforcement of IPR.  Japan would like India to show  the effects of the public awareness activities by 
providing data, if any, for example th e results of the public questionnaires. 
Reply:  Since 2006-07 till March 2011, 505 aw areness programmes were conducted and 
approximately 47000 people participated in these programmes. 
(Question 10:  Page 113, paragraph 247)  
According to the Secretariat Report, "The In tellectual Property Appellate Board (IPAB) was 
constituted in 2003 to hear appeals against the decisions of the registrar of trademarks and 
geographical indications.  However, as of 2007 the IPAB has also heard appe als regarding patents".  
It is known that almost 75% of its judgments we re reversed by the High Court last year and a writ 
petition challenging the legality of the IPAB has been  filed with the Madras High Court.  So please 
explain a) the measures IPAB has taken or will take in order to develop its expertise on IPR, also b) 
any institutional or other systemic backgrounds for the high unsuccessful rate of its judgments and c) 
specific issue concerning the legality of IPAB. 
Reply  (a) and (b):  IPAB is a specialized appellate body to hear and decide appeals against the 
decisions of the Registrar of Trade Marks and under section 116 of the Patents Act against the decisions of the Controller of Patents.  It exercises the powers and functions previously 
exercised by the high courts.  The Board consists of a Chairman, Vice-Chairman and three technical members whose qualifications are commens urate with their judicial responsibility.  It 
is at present chaired by a retired Judge of the High Court of Madras. 
Reply (c):  IPAB was established under Section 83 of the Trade Marks Act, 199.  There are no 
issues about its legality. 
(Question 11:  Page 113, paragraph 249)  
According to the Secretariat Report, "There are pa tent offices in Chennai, Delhi, Kolkata, and 
Mumbai that deal with patent applications originating within their respective territorial 
jurisdictions."  Please explain the measures CGPDTM  has taken or will take in order to harmonize 
criteria for the prosecution of paten t applications between Offices.  WT/TPR/M/249/Add.1 
 Page 183 
 
 
  Reply:  Patent applications are received a nd prosecuted according to their appropriate 
jurisdiction.  The procedure adopted for prosecution of patent applications is same at all patent 
office locations as these procedures are strictly within the framework of Patents Act and Patent 
Rules.  If any modifications are required to be in corporated in the patent procedures by virtue 
of amendments in the Patents Act and Patent Ru les, the same are implemented equally at all 
locations.  Thus, the criteria for the prosecution of patent applications between offices has been 
the same over the years.  Further, electronic pate nt database has been created by digitizing the 
patent records and the same has been made availabl e to users in the official website.  From 
July 2009, the CGPDTM has implemented pate nt prosecution through application software 
modules by introducing Patent Office Procedure (POP ) in all Patent Office locations in order to 
make patent prosecution speedier, transparent a nd user friendly.  To bring further consistency 
in the office procedures, the CGPDTM published the Manual of Patent Office Practice and Procedure on 22 March 2011, after consid ering views of all the stakeholders. 
(Question 12:  Page 114, paragraph 250)  
With Regard to the protection of Traditional K nowledge (TK), the Japan Patent Office (JPO) has 
utilized a Traditional Knowledge Digital Library (TKD L) in its substantive patent examinations as a 
reference tool, and has regularly reported the number of  times the content of the TKDL was cited by 
the JPO examiners during the search  process to the Council for Scie ntific and Industrial Research 
(CSIR) under the access agreement of the TKDL between the JPO and the CSIR in April 2011.  In this 
connection, Japan would like to know how much TKDL  is used in the substantive patent examinations 
by the Controller General of Patent, Design, and Trade Marks (CGPDTM). 
Reply:  TKDL is used in the substantive patent  examinations in Indian Patent Office as and 
when such use of TKDL is necessary for examin ation of patent application by virtue of the 
subject matter of the invention. 
(Question 13:  Page 114, paragraph 250)  
According to the Secretariat report, "Section 3(d) of  the Patent Act refers to the scope of patentability 
of pharmaceutical and other chemicals and calls for proof of the efficacy of the substance."  Japan 
would like to know how ''e fficacy'' is measured. 
(1) According to the explanation of Section 3(d) in India's "MANUAL OF PATENT OFFICE 
PRACTICE AND PROCEDURE" published in last March which says that "In a recent case in relation to a pharmaceutical substance, the Madras High Court held that efficacy means therapeutic 
efficacy".  With regard to phar maceutical substance-related inventions, please indicate whether 
"efficacy" means only therapeutic efficacy, or not. 
(2) Please indicate whether there are any d ifferences between the definition of efficacy for 
pharmaceutical substance-related inventions and that for other chemical substance-related 
inventions. 
Reply:  According to Section 3(d) of the Indian Patents Act, the mere discovery of a new form of 
a known substance which does not result in the enhancement of the known efficacy of that 
substance is not an invention and hence no t patentable.  The explanation given under 
Section 3(d) of the Indian Patents Act further elaborates on application of efficacy criteria to salts, esters, ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of 
isomers, complexes, combinations and other d erivatives of known substance.  The explanation 
to Section 3(d) further clarifies that these substances may be considered as patentable only if 
they differ significantly in properties with regard to efficacy. WT/TPR/M/249/Add.1 
Page 184  
 
  The Examiner on a case to case basis applies the t est as to what constitutes such salts, esters, 
ethers, polymorphs, metabolites, pure form, part icle size, isomers, mixtures of isomers, 
complexes, combinations and other derivatives to  differ significantly in properties with regard 
to efficacy from the known substance.  The co mplete specification may bring out clearly and 
categorically in the description, as to how th e subject matter differs significantly in properties 
with regard to efficacy from the known substance thereof. 
In a recent case (Novartis AG Vs.  Union of India, W.P.  No. 24760/06), the Madras High Court 
held that in relation to a pharmaceutical substan ce, the efficacy means therapeutic efficacy.  It 
was held that: 
"… what the patent applicant is expected to show is, how effective the new discovery made 
would be in healing a disease and having a good eff ect on the body?  In ot her words, the patent 
applicant is definitely aware as to what is the "therapeutic effect" of the drug for which he had 
already got a patent and what is the difference between the therapeutic effect of the patented drug and the drug in respect of which patent is asked for." 
In respect of inventions related to other fi elds of science the Court has held that:   
"Due to the advanced technology in all fields of  science, it is possible to show by giving 
necessary comparative details based on such sci ence that the discovery of a new form of a 
known substance had resulted in the enhancem ent of the known efficacy of the original 
substance and the derivatives so derived will not be  the same substance, since the properties of 
the derivatives differ significantly with regard to efficacy." 
(Question 14:  Page 115, paragraph 257)  
The Indian Patent Act provides that "parallel impor ts are allowed when aut horized under the law."  
The Secretariat Report says that "the authorities noted that:  "under the law" should be interpreted as the law of the country where the item is being prod uced."  However, there is no citation supporting 
the Indian authorities' view.  Since Article 107a can be  interpreted as Indian law instead of "the law 
of the country where the item is being produced," Japan would like to make sure whether the Indian 
authorities' view on the interpretation of Article 107a is  that "under the law" should be interpreted as 
the law of the country where the item is produced or not. 
Reply:  The words "under the law" in section 107-A( b) of the Patents Act should be interpreted 
as the law of the country where a person is duly authorized under the law to produce, sell or 
distribute the product. 
(Question 15:  Page 115, paragraph 258)  
The Secretariat Report mentions that "the number of  patents granted relative to the number of patent 
applications has increased."  However, according to the annual report of CGPDTM, the number of 
examined patent applications has been decreasing since 2006/07 and fell to 6069 applications in 
2009/10, so a considerable number of backlog cases mu st have accumulated.  Please describe what 
measures CGPDTM has taken or will take in order to deal with the backlog. 
Reply:  It is generally true that "the number of patents granted relative to the number of patent 
applications has increased."  However, the number of examined applicatio ns in a year may vary 
according to the availability of technical officers.   Backlog of pending requests of examinations 
is about one lakh.  In order to deal with th e backlog, 248 additional examiners in various 
disciplines have already been selected on the ba sis of a competitive examination and these will 
be inducted during this year itself.  WT/TPR/M/249/Add.1 
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  (Question 16:  Page 115, paragraph 260)  
The criminal punishment for patent offenders are mentioned in paragraph 260 of the Secretariat 
Report.  It is provided that statements as to the extent to which a patented invention has been sold on 
a commercial scale in India shall be furnished and that any person who refuses or fails to furnish a 
statement shall be punishable with a fine which ma y reach ten lakh rupees.  Both of them are 
stipulated in Indian patent act ar ticles 146 and 122, respectively.  Please describe what the interests 
are which are aimed to be protected by imposi ng a punishment against a breach of administrative 
obligation. 
Reply:  The general principles of working of patented inventions are given in Section 83 of the 
Patents Act and, for fulfilment of these objectives , it is imperative that patented inventions are 
worked in India.  Section 146 and Section 122 of the Act enable effective implementation of the 
general principles as the patented inventions which are not worked in India can be made 
available to the third party through compulso ry license under certain terms and conditions. 
(Question 17:  Page 116, paragraph 261)  
It is mentioned that "This amendment will enable I ndia to accede to the Madrid Protocol."  Please 
describe the anticipated date on which I ndia will accede to the Madrid Protocol. 
Reply:  The Trade Marks Amendment Bill to enable  India to accede to the Madrid Protocol was 
passed by both Houses of Parliament.  Presi dential assent has also been received.  The 
amendment will be notified only after Trad e Marks Rules required for implementing the 
amendments in the legislation are notified.  The amended Act and the Rules would be brought 
into force thereafter simultaneous ly after the infrastructure,  manpower and other support 
systems are in place at the Trad e Marks Registry.  It is therefo re not possible to anticipate the 
date on which India will accede to Madrid Protocol. 
(Question 18:  Page 116, paragraph 264)  
According to the Secretariat's Report, "A trade mark  application may be filed in any of the Registry 
offices in Ahmadabad, Delhi, Chennai, Kolkata or Mumbai, based on the territorial jurisdiction."  
Please describe what measures CGPDTM has taken or will take in order to harmonize criteria for the 
prosecution of trademark applications between Offices. 
Reply:  The five trades marks offices in the co untry at Ahmadabad, Delhi, Chennai, Kolkata 
and Mumbai have been established only for the purpose of facilitating the registration of trade marks for the common man as per territorial limi ts defined in the rules.  The procedure for 
prosecuting trade marks application is identica l at all offices and the same Act, Rules and 
procedure are applied at all offices.  The p erception that different offices follow different 
practices is a wrong understanding.  The bran ch offices are not intended to function 
independently but under the superintendence and directions of the Registrar.  Under the scheme of the Act, the branch office functions in clude receiving applications for registration, 
offering hearing at the application or opposition  stage and passing final order after hearing the 
parties.  The function of the branch offices are no t to be considered parallel or at par with those 
to the Head Office (Mumbai)which is responsible for the overall administration of the Act and 
Rules.  In matters not specifically provided in th e Act or Rules, the Registrar is considered to 
have the discretion or the final say for proper administration of the Act. 
(Question 19:  Page 116, paragraph 265)  
According to the Secretariat's Report, "The Trade  Marks Office reviews filed applications to ensure 
that they are complete.  When an application for the registration of a trademark has been accepted, it WT/TPR/M/249/Add.1 
Page 186  
 
  is published", though according to the notice "CG/F/Public Notice/2011/360" by the CGPDTM 8183 
files are still missing in the CGPDTM.  Please descr ibe what measures the CGPDTM has taken or 
will take to find the missing files as well as measur es CGPDTM has taken or will take to avoid any 
unreasonable disadvantage for right holders during the stage of enforcement, etc. 
Reply:  The CGPDTM has issued a Public Notice  originally on 25.4.2011 and subsequently on 
28.7.2011 concerning the loss of 8183 registered trad e marks files that were missing as of that 
date.  Physical Files have been reconstituted  or reconstructed on the basis of documents 
furnished by the registered proprietors or his agent on record and uploaded in the official 
website.  It may also be mentioned that CG PTDM in Misc. Petition No. O.A.109/2004/TM/DEL 
and O.A.110/2004/TM/DEL has informed IPAB that "most of the missing files have now been 
duly reconstituted or recovered or traced and the current position as of date (5.9.2011) in 
respect of missing registered trade marks files is as given below: 
TMR, Chennai 1714 
TMR, Delhi 1237 
TMR, Ahmedabad 24 
TMR, Mumbai 434 
TMR, Kolkata 51 
Total 3,460 
The last date for reconstitution of reco rds has been extended up to 31.10.2011. 
Critical information in respect of every registere d trade mark missing physical file are already 
available in the system.  Such information includ e the trade mark applied for, the name of 
original proprietor, his address, the product or services in respect of which the trade mark is 
registered, the class in which the goods/services fall, the length of use of the registered trade 
mark extracted from the trade marks journal.  Since critical information in respect of all 
missing physical records are available in the system, there is no likelihood of any disadvantage to the right holders during the stage of enforcement as apprehended 
India has put in public domain all the trade ma rks published in the trade marks journal right 
from Journal No. 1 till date.  Publication of every trade marks before its registration is a 
mandatory requirement.  The e-register of tradem arks has also been put in the public domain 
which contains, inter alia , the following information: 
 the representation of the mark; 
 the date of filing of the application; 
 the actual date of registration (viz. the date on which the mark is actually entered in the 
Register); 
 the goods or services in respect of which it is registered; 
 the class or classes in which registered; 
 name, address and description of the proprietor; 
 the address of the principal place of business in India, if any or the address for service in 
India; 
 particulars affecting the scope or the righ ts conferred by the registration including 
condition and limitations imposed by Registrar;  WT/TPR/M/249/Add.1 
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   priority date, viz. the convention applicat ion date to be accorded pursuant to an 
application from applicants of a conv ention country made under section 154; 
 if the mark is a collective or certification mark, that fact; 
 where the mark is registered pursuant to sub- section (4) of Section 11 with the consent 
of the proprietor of the earlier mark, that fact; 
 the appropriate office of the Registry in relation to the trade mark; 
 entry with respect to associated trade mark s, including dissolution of association 
(Rule 60); 
 entry with respect to renewal of registrati on, removal for non-payment of renewal fee 
and restoration of removed mark; 
 assignment of a registered trade mark with  entries pertaining to (i) the name and 
address of the assignee;  (ii) the date of a ssignment;  (iii) where the assignment is in 
respect of any right in the mark, a description of the right assigned;  (iv) the basis under which the assignment is made;  and (v) the date on which the entry is made in the 
register; 
 where a registered user is registered, the date on which the application for registration 
of user was made, the name, description and principal place of business in India of the 
registered user or his address for service and other particulars mentioned in 
paragraph (i) to (iv) of sub-clause (b) of clause (1) of Section 49.  Particulars of variation or cancellation of entry, if any; 
 orders pertaining to rectification and correct ion of register under Section 47, 57, 58, 68 
or 77; 
 alteration of registered trade mark under section 59; 
 reclassification of goods in respect of exis ting registration, if any – Rule 101; 
 e-register is dynamic and is being constant ly updated with latest request for change 
incorporated. 
(Question 20:  Page 117, paragraph 267)  
It is mentioned that "As at November 2010, there were approximately 400,000 applications pending at 
various stages."  Please describe what measures CG PDTM has taken or will take in order to deal 
with the backlog. 
Reply:  The Government has taken up the filling up of vacancies at various levels in the Trade 
Marks Registry with utmost expedition and all the vacant posts are likely to be filled up within the next six months to one year.  Addition in human resource will enable the trade marks 
registry to deal with the backlog. 
(Question 21:  Page 117, paragraph 270)  
According to the Secretariat's Re port, "the customs authorities prom ulgated guidelines" and "these 
guidelines authorize customs officials to seize goods infringing the trade marks of the right holder at 
the border without a court order."  In the same  paragraph, the report says that "according to the WT/TPR/M/249/Add.1 
Page 188  
 
  authorities, there have been no such instances."  Please describe why there have been no such 
instances although the customs officials are authorized  to do so.  Please also provide the details and 
conditions of this procedure, including whether a re quest of a right holder is necessary.  Meanwhile, 
in the same paragraph, the report says "Goods amou nting to Rs 434 million were seized by Customs 
during May 2007 to March 2010''.  Please also descri be why there are conflicting descriptions in that 
paragraph. (Japan would like to make sure whether Goods amounting Rs 434 million are seized with 
a court order or not.) In addition, there are no de tailed statistics about intellectual property (trade 
marks, copyright, etc.) nor about final disposal (the destruction of illegal goods, or handing over to an intellectual property holder, etc.) Please also d escribe what efforts, if any, the Indian government 
has been making or will make in order to make seiz ure of infringing goods more effective, such as 
through personnel training. 
Reply:  Notification No. 47/2007-Customs (NT) dated 08.05.2007 read with notification 
No. 51/2010-Customs (NT) dated 30.06.2010 prohibits import of goods infringing the intellectual 
property rights.  The Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 (IPR Rules, 2007), notified under notification No. 47/2007-Customs (NT), details the procedure 
and conditions for enforcement of IPRs  Under th e said Rules, action to suspend the clearance 
of goods suspected to be infringing IPRs is taken at the request of the right holder.  The customs 
officers may also, on their own initiative, suspend the clearance of goods, in respect of which 
they have prima-facie evidence or reasonable grounds to believe that the imported goods are 
goods infringing IPRs (details may be viewed at www.cbec.gov.in). 
The assertion that Customs has not booked any offence case for infringement of IPRs without 
court order is not correct.  The seizure figures in dicated in the text are those which have been 
booked by Customs under the IPR Rules without court orders. 
The detailed statistics on disposal, destruction are not available. 
Capacity building activities are undertaken thro ugh regular training of Customs officers and 
holding of seminars and work shops in  collaboration with trade bodies. 
(Question 22:  Page 117, paragraph 270)  
According to the Secretariat's Report, "[t]he re- exportation of goods infringing trade marks in an 
unaltered State is also prohibited."  Since "re- exportation" involves importation and exportation, the 
definition of re-exportation and tr ansit could overlap.  Japan would like India to describe the 
difference between re-exportation and transit.  Plea se also explain what procedures 'in transit' 
involves. 
Reply:  It has been rightly observed that  "re-exportation" involves importation and 
exportation.  Transit is different from re-exportat ion.  Transit is defined under Article V of the 
GATT 1994 and as per this, goods shall be deemed  to be in transit across the territory of a 
contracting party when the passage across such terri tory is only a portion of a complete journey 
beginning and terminating beyond the frontier of  the contracting party across whose territory 
the traffic passes.  Traffic of this nature is termed "traffic in transit". 
Vide Customs notification 51/2010-Customs (NT) dated 30 June 2010 India has excluded transit 
from the purview of IPR border enforcement. 
(Question 23:  Page 117, paragraph 270)  
The Secretariat's Report doesn't mention who bears th e burden of the destruction of infringing goods.  
Please describe what sort of person (such as an in tellectual property right holder, importer, or Indian 
government) bears the burden.  WT/TPR/M/249/Add.1 
 Page 189 
 
 
  Reply:  Intellectual Property Rights (Importe d Goods) Enforcement Rules, 2007 (IPR Rules) 
state that the costs toward destruction, demurra ge and detention charges incurred till the time 
of destruction or disposal, as the case may be, shall be borne by the right holder.  The cost of destruction of goods would be borne as decided by the judicial authorities. 
(Question 24:  Page 118, paragraph 271)  
According to the Secretariat's Report, "India has no t yet acceded to the Ha gue System."  Please 
describe what stage the discussions on the possi bility of acceding to the Hague Agreement have 
reached. 
Reply:  The issue is not under discussion at present. (Question 25:  Page 120, paragraph 283)  
The Secretariat's Report mentioned that "upon an application by the right holder, the Registrar of 
Copyrights conducts an inquiry, and may prohibit th e importation of copies made outside of India, 
which if made inside India would infringe the cop yright.  In these instances the Registrar of Copyright 
or a person authorized by him may enter any ship, do ck or premises where such infringing copies may 
be found and examine such copies."  Please describe  details (about the laws, rules and procedures 
etc.)
 for applications ． 
Reply:  Section 53(1), on "Importation of infringing copies", of the Copyright Act, 1957 
provides that the Registrar of Copyrights, on ap plication by the owner of the copyright in any 
work or by his duly authorised agent and on pa yment of the prescribed fee, may, after making 
such inquiry as he deems fit, order that copies made out of India of the work which if made in India would infringe copyright shall not be imported.  Section 53(2) of the Act states that, 
"Subject to any rules made under this Act, the Registrar of Copyrights or any person 
authorised by him in this behalf may enter any ship, dock or premises where any such copies as are referred to in sub-section (1) may be found and may examine such copies."  Section 53(3) of 
the Act also states that, "All copies to which any order made under sub-section (1) applies shall 
be deemed to be goods of which the import has b een prohibited or restri cted under section 11 of 
the Customs Act, 1962, and all the provisions of that Act shall have effect accordingly:  provided 
that all such copies confiscated under the provis ions of the said Act shall not vest in the 
Government but shall be delivered to the owner of the copyright in the work." 
The Chapter VIII of the Copyright Rules, 1958 which with "Importation of Infringing Copies".  
The Rule 22 provides that, "Every application, un der sub-section (1) of section 53 shall be made 
in accordance with Form VI and shall be a ccompanied by the fee specified in the Second 
Schedule."  For an application for prevention of importation of infringing copies (under section 53) a fee of Rs 400 per work, per place of entry has to be paid by the applicant by demand draft or by Indian Postal Order payable to "Registrar of Copyrights", New Delhi.  A 
copy of Application Form VI provided in the Copyright Rules, 1958 is enclosed.  However, the section 53 is proposed to be amended in the Co pyright (Amendment) Bill, 2010.  The Copyright 
Act, 1957, the Copyright Rules, 1958 and the Bill are available at www.copyright.gov.in. 
(Question 26:  Page 120, paragraph 286)  
The Secretariat's Report mentioned that "[a]dditional  protection may be provided by the Central 
Goverment to certain goods or class of goods by notification in the Official Gazette" and "[a]t present 
wines and spirits are the only class of goods that  received higher protection in India."  Please 
describe if there is a future plan to expand scope of additional protection in In dia to products other 
than wines and spirits. WT/TPR/M/249/Add.1 
Page 190  
 
  Reply:  At present there is no proposal before the Government to expand the list of products 
which could be provided additional protection. 
(Question 27:  Page 122, paragraph 297)  
According to the Secretar iat's report, "It is also common to  insert a confidentiality clause in a 
technology transfer or other licence agreement to ma intain the confidential nature of the subject 
matter, not only during the employment period of the employees and contractors but also after its 
termination, though for a fixed period." 
Please indicate how long ''a fixed period'' is.  W hat basis is used for the judgement of major cases? 
Reply:  There is no such period defined.  Ho wever the Judiciary has relied on the following 
criteria to decide major cases: 
(a) The facts and circumstances of the case. 
(b) The underlined agreement between the parties. 
(c) Principles of reasonableness. 
(Question 28:  Page 123, paragraph 299)  
According to the Secretariat Report, "Enforcement is  carried out by the police for domestic cases, and 
by the police and Customs for imports and exports" and the performance of the Customs in 2008/09, 
2009/10 are given in the Secretariat Report.  So, please describe details of the number of arrest cases.  
Also, please describe whether these statistics are available to the public or not, and if not, what 
possibility there is of access. 
Reply:  The number of persons arrested for cont ravention of the provisions of the Customs Act, 
1962 and other allied acts of the Government of India in 2008-2009,  2009-2010 and 2010-2011 
are as under: 
Year No. of persons arrested 
2008-2009 464 
2009-2010 493 
2010-2011 247 
The centralized data of arrests made under the Cu stoms Act, 1962 and other relevant allied acts 
are not available on the departmental website at present. 
(Question 29:  Page 123, paragraph 300)  
According to the Secretariat's Report, "India has made  important efforts in the field of enforcement, 
such as having specially trained IP Judges in genera l courts, training judges on issues specific to IP 
litigation."  Please provide some statistics, such as  the number of civil/criminal lawsuits relating to 
IPR and the average length of the IPR cases.  Al so, please describe whet her these statistics are 
available to the public or not, and if not, what possibility there is of access. 
Reply:  India being a federal structure, the enforcement of IPR Acts is also being carried out by 
the state authorities.  These lawsuits are pending right from the district level to the Apex Court 
of the country.  As on date no centralized system is there to maintain this information and so it  WT/TPR/M/249/Add.1 
 Page 191 
 
 
  is difficult to define the average length of the IPR cases.  Information to the party concerned to 
the case is always available. 
IV.  DEVELOPMENTS IN SELECTED SECTORS 
(2) AGRICULTURE (ii) Agricultural policy objectives 
(Question 30:  Page 134, paragraph 35, 36)  
(1)Would India kindly provide the following information?: i) The crops subject to minimum support pri ces (MSPs) each year from 2006/07 to 2009/10 
ii) The minimum support prices of each crop from 2006/07 to 2009/10 iii) The purchased quantity of each crop by go vernment-designated agencies in the Price Support 
Scheme(PSS) each year from 2006/07 to 2009/10. 
2) Is there any limit to the purchased qu antity in the Price Support Scheme (PSS)? 
3) Is the intervention in the PSS decided on and impl emented in each state/region or throughout the 
country? 
Reply:  The crops covered under minimum suppo rt price (MSP) operations during 2009-10 are 
indicated at footnote 26 under paragraph 33 of the Secretariat Report.  There is no change in 
the coverage except exclusion of Tobacco from 2008-09 onwards. 
MSPs are available at www.agricoop.nic. Year-wise details of procurement of wheat and rice by the Food Corporation of India (FCI), 
cotton by the Cotton Corporation of India (CCI) and National Agriculture Marketing 
Federation (NAFED) and oilseeds and pulses crops by NAFED are available at web link 
http://agricoop.nic.in/Agristatistics.htm, from 1996-97 onwards. 
There is no limit to the quantity to be purchased under the Price Support Scheme (PSS).  All 
quantities offered at MSPs are accepted.  PSS coverage extends throughout the country. 
(Question 31:  Page134, paragraph 36)  
(1) Would India kindly provide the following information? 
i) Specific products subject to the Market Intervention Scheme (MIS). 
ii) The market intervention prices (MIP) of specifi c products in MIS each year from 2006/07 to 
2009/10. 
iii) The purchased quantity of specific products  in MIS each year from 2006/07 to 2009/10. 
(2) Is there any limit to the purchased quantity  in the Market Intervention Scheme (MIS)? 
(3) Is the intervention in the MIS decided on and impl emented in each state/region or throughout the 
country? WT/TPR/M/249/Add.1 
Page 192  
 
  Reply:  There is no specific list of products subject to Market Intervention Scheme (MIS).  All 
perishables are covered under MIS.  A statemen t detailing specific perishables for which MIS 
operations were undertaken during 2006-2010, in cluding the procurement price, states where 
the operations were carried out, procurement made and the cost of procurement has been 
placed at website www.agricoop.nic.in.  MIS is implemented subject to a restriction of 10% of 
the anticipated production of the commodity for that particular year/season in the State.  MIS 
intervention is decided on the request of specific States and implemented in only such States. 
(Question 32:  Page134 paragraph 37)  
(1) Would India provide information on the actual  prices of the statutory minimum price (SMP) and 
the fair and remunerative price (FRP) fo r sugarcane from 2006/07 to 2009/10? 
(2) Sugarcane is subject not only to SMP, FRP an d SAP, but also to the minimum support price 
(MPS) in specific years (e.g. in 2007).  Would I ndia explain the relationship between these price 
systems? 
Reply:  There is no procurement of sugarcane by public agencies.  The fair and remunerative 
Price (FRP) for sugarcane is available at http://fcamin.nic.in/sugar/website11.pdf. 
(Question 33:  Page135, paragraph 41)  
Would India explain i) Details of the diesel subsid y, and provide ii) The amount of the diesel subsidy 
each year from 2006/07 to 2009/10? 
Reply:  The oil marketing companies had to bear cost of Rs 12647 cr, Rs 18776 cr, 35166 cr and 
52286 cr for the years 2005-06, 2006-07, 2007-08 and 2008-09 respectively, on account of under 
recoveries on sale of Diesel.  As India imports about 80% of its crude oil requirement, international oil prices play a decisive role in the domestic pricing of sensitive petroleum products.  The Public Sector Oil Marketing Companies (OMCs) viz. Indian Oil Corporation Limited, Bharat Petroleum Corporation Li mited and Hindustan Petroleum Corporation 
Limited pay trade parity price to refineries when they buy diesel, and pay import parity price 
for PDS kerosene and domestic LPG.  Accordingly,  they ought to fix retail prices based on this 
cost.  However, the retail prices, which are modul ated by the Government, are generally lower.  
The difference between the required price based on  trade parity/import parity and the actual 
selling price realized (excluding taxes and de aler's commission) represents the under-recoveries 
of OMCs. 
(Question 34:  Page137, paragraph 49)  
Would India explain what qualifications farmers need to  be eligible for the Ag ricultural Debt Waiver 
and Debt Relief Scheme? 
Reply:  Only small and marginal farmers (i.e. farmers holding up to 2 hectares of land) were 
eligible for complete waiver of all loans th at were overdue on 31 December 2007 and which 
remained unpaid until 29 February 2008.  Other fa rmers were eligible for a one time settlement 
(OTS) to get rebate of 25% upon payment of balance of 75% of outstanding loan.  
(3) SERVICES 
(i) Overview 
(Question 35:  Page 138, paragraph 52)  
What exact measures and policies is India planning to  implement in order to further bring in private 
sector investment so as to improve and expand its infrastructure?  WT/TPR/M/249/Add.1 
 Page 193 
 
 
  Reply:  India has put in place an attractive po licy on FDI, under which FDI, up to 100%, on the 
automatic route, is permitted in almo st all the infrastructure sectors. 
(ii) Financial Services 
(a) Banking 
(Question 36:  Page 141, paragraph 61)  
In legal texts, foreign participation by investment is  now allowed up to a threshold of 74% in private 
banks with government approval.  The former level was 49%.  Japan would like India to describe how 
many banks have foreign investment levels exceeding 49%. 
Reply:  Four out of 20 private sector banks had foreign investment levels exceeding 49% as on 
30 June 2011. 
(Question 37:  Page 145, paragraph 75)  
Does the newly established deposit insurance sys tem (Deposit Insurance and Credit Guarantee 
Corporation) cover deposits  made by foreign banks? 
Reply:  DICGC is the second oldest deposit insurance agency in the world and has been in 
operation since 1 January 1962.  Our deposit insu rance system covers deposits raised in India 
by foreign banks.  Any deposits collected outside India are not insured by DICGC. 
(b) Insurance (Question 38:  Page 151, paragraph 101)  
It is known that there have been some movements to wards changing the regulations of Foreign Direct 
Investment in the Indian insuran ce industry, which allows foreign ers to hold shares in an Indian 
insurance company of up to 49%.  Japan would like to know whether there are any specific 
issues/problems to be solved for further prog ress and how soon this regulation of FDI will be 
amended. 
Reply:  Government had introduced the In surance Laws (Amendment) Bill, 2008 in the 
Parliament on 2.12.2008.  The Bill, inter alia , provides that the aggregate holdings of equity 
shares by a foreign company, either by itself or through its subsidiary companies or its 
nominees in Indian Insurance Companies may be  increased from 26% to 49% except in case of 
insurance co-operative societies where the limit wo uld continue to be 26% as at present.  At 
present the Bill is under consideration of the parl iament Standing Committee on Finance and it 
will not be possible to specify a time frame. 
(Question 39:  Page 153, paragraph 108)  
Indian insurance companies are restricted from freely arranging their reinsurance due to the 
regulation on reinsurance that allows them to offer reinsurance arrangeme nt to overseas reinsurers 
overseas only when if Indian insurance companies cannot arrange reinsurance or they lack the 
capacity.  Japanese insurers are suffering from this added regulation, which is  a extra heavy burden 
on practicing their day-to-day business.  Japan would li ke to know the prospect of amendment of this 
regulation. 
Reply:  According to the reinsurance regulations , Indian insurance companies can place surplus 
over and above the domestic reinsurance arrang ements class wise with any of the reinsurers WT/TPR/M/249/Add.1 
Page 194  
 
  rated at least BBB subject to a limit of 10% of the total reinsurance premium ceded outside 
India being placed with any one reinsurer.  Furth er the regulations state that every insurer shall 
offer an opportunity to other Indian insurers incl uding the Indian Reinsurer to participate in its 
facultative and treaty surpluses before placement of  such cessions outside India.  The aforesaid 
regulations are minimal.  They are in good bala nce between the insurer's reinsurance protection 
requirements and to optimize retention in the country. 
(Question 40:  Page 153, paragraph 108)  
Japan would like to hear explanations on the fo llowing points on "(c) making the underwriting of 
third-party risks concerning motor vehicles obligatory". 
(1) The aim/purpose of this regulatory change. 
(2) The point the discussions have reached and their future progress. 
Reply:  Currently motor third party insurance is mandatory for any vehicle that is to be driven 
on the road.  The premium rate for this insu rance is mandated by the regulatory authority. 
It was observed that the premium rates charged were  not adequate to cover the cost of claims.  
The insurance companies were therefore reluctant  to underwrite this line of business resulting 
in commercial motor vehicle owners not getting insurance covers.  In order to overcome this 
difficulty the regulatory authority created a pool mechanism for the third party risks of commercial vehicles.  While the supply side i ssues of motor third pa rty insurance were removed 
by the creation of the pool, the issues on the demand side (premium adequacy) still remained.  
In order to overcome the motor third party pool deficit, the insurance amendment bill proposes 
to make it mandatory for non-lif e insurers to write a certain percentage of their total business 
as motor third party insurance.  This will enab le the insurers to exerci se better control over the 
business they underwrite and be responsible for the quality of risks they accept.  The regulatory 
authority will issue regulations in this re gard once the insurance amendment bill is passed. 
(c) Securities (Question 41:  Page 154, paragraph 112)  
The Secretariat's Report states that "the regulato ry framework was modified to enable participation 
of FIIs and mutual funds in IDRs".  Japan would like to know whether this includes easing restrictions on FIIs.  Please provide more details. 
Also, Japan would like to know about the progress in the modifications. 
Reply:  In order to develop a liquid market  for Indian depository receipts (IDRs) by 
encouraging participation by institutional invest ors, SEBI, vide an amendment in 2009 to the 
SEBI (FII) Regulations, 1995, had permitted part icipation by foreign institutions in IDRs  
Accordingly, Regulation 15(1) of the SEBI (FII) Regulations which lists the avenues for 
investment by FIIs was modified to include IDRs as well. 
(iii) Telecommunications (Question 42:  Page 157, paragraph 119)  
The Department of Telecommunications (DoT), at  the Ministry of Communications and Information 
Technology amended the guideline for security-rel ated concerns for the expansion of Telecom  WT/TPR/M/249/Add.1 
 Page 195 
 
 
  Services in March and May, 2011.  According to the guideline, it is stipulated that the licensee may 
only induct network elements into his telecom network which have been tested by a relevant 
contemporary Indian organization.  It is also st ipulated that only Resident and trained Indian 
Nationals can handle interception and monitoring cases.  Japan considers these regulations may 
disadvantage to foreign made goods or operators compared to domestic goods and operators, and is 
incompatible with WTO Agreements.  In this regard, please describe the specific views of India.  Also, 
Japan would like to know what India thinks about  notifications based on the TBT Agreement with 
regard to this regulation. 
Reply:  Compliance is not about Indian contem porary organisation, but it is that network 
elements should have been got tested as per rel evant Indian or international security standards. 
Indian residents are only prescribed for security sensitive posts. 
(Question 43:  Page 158, paragraph 122)  
According to the Secretariat's Report, even though there are 164 internet service providers in India, 
BNSL and MTNL account for 70% of all subscriptions .  What does the Government of India think are 
the possible reasons for this situa tion, from a competition perspective? 
Reply:  Broadband penetration is presently dominated by wire-line based connection.  
BSNL/MTNL are dominant players in wire-line ma rket.  Mobile technology based broadband is 
also now growing as 3G technology are being rolled out. 
(Question 44:  Page 159, paragraph 123)  
The Telecom Regulatory Authority of India (TRA I), released a Consultation Paper on Encouraging 
Telecom Equipment Manufacturing in India, in  December 2010 and issued recommendations, in 
April 2011.  Japan recognizes that this provides preferred access to products created in India and a 
similar measure has been considered for electr onic devices in the Department of Information 
Technology(DIT).  Japan is concerned that these measures might be incompatible with WTO 
agreements such as national trea tment obligation under GATT or G ATS.  Could India give its views 
about this? 
Reply:  The draft guidelines of Department  of Information Technology are under the 
consideration of the Central Government and polic y decision has to be taken.  Similarly the 
TRAI recommendations on telecom equipment manufacturing policy are under consideration 
by the Central Government and the policy has not yet been formulated.  It may be premature to 
comment on the aspect of compatibility with GATT or GATS. 
(Question 45:  Page 161, paragraph 130)  
According to the Secretariat's Report, funds from the USOF are allocated to  "eligible operators," and 
such eligible operators are specifie d by the government from time to time.  What criteria does the 
government take into consideration when making its  decision about which operators are eligible? 
Reply:  The main criteria will be type of serv ices proposed to be provided.  The "eligible 
operators" means the basic serv ice operators, cellular mobile service providers and unified 
access services licences, infrastructure provid ers and internet service providers or any other 
entities as may be specified in this behalf by th e Central Government from time to time.  All the 
details about USOF activities are given on www.uso.gov.in. WT/TPR/M/249/Add.1 
Page 196  
 
  (Question 46:  Page 161, paragraph 131)  
India doesn't commit itself to the "Engaging in  anti-competitive cross-subsidization" and 
"cost-oriented inter connection charges" mentione d in the Reference Paper.  Is this because Access 
Deficit Charge in India acts against those rules?  If there are any other reasons, Japan would like 
India to explain its background rules.  Moreover, Japan would like to know if there is any possibility 
of this regulation being amended in future. 
Reply:  The Access Deficit Charge has already be en abolished.  India has maintained measures 
for the purpose of preventing service supp liers from engaging in or continuing in 
anti-competitive practices. 
(iv) Transport 
(a) Maritime transport 
(Question47:  Page 163, paragraph 137) As mentioned in para.137 on page 163, "Providers w ould be required to register with the Directorate 
General of Shipping (DGS) and notify their tariffs".  Japan would like to know what duties are imposed on service providers if the providers are foreign shipping companies or foreign maritime 
agencies. 
Reply:  For the purpose of this Act, the sh ipping services are required to register as per 
Section 5 of the Act.  The other sections of the Act are applicable in toto thereafter.  This implies that there is no discrimination between a forei gn service provider and Indian service provider 
as far as obligation under the Act is concerned.  The entry for foreign ship companies or foreign 
maritime agencies is regulated as per the nation al laws.  FDI allowed in this sector is 100%. 
(Question 48:  Pages 163-164, paragraph 140)  
As mentioned in para.140 on page 163-164, India introduced a tonnage tax in 2005 based on "The 
Income Tax Act 1961, as amended on 1 April 2005".  With regard to this tax system, Japan would like 
to ask the following four questions; 
(1) why has the government introduced this new tonnage tax (for example, was it to increase the 
number of Indian-flagged vessels, etc.)? 
(2) how is the tonnage tax designed?  For example, its  range (which flag of registry), the requirement 
in the rate of Indian vessels, the treatment if some one's applicant does not fulfil the requirements, etc. 
(if it is not an imposition)? 
(3) whether there are any other pref erential tax systems than the tonnage tax, what kind of tax system 
India will introduce in future or has currently intr oduced for ships, inter national shipping operators 
or ship owners. (Japan would like to know in particular, who is eligible, what kind of taxes exist, what 
is the idea behind the measures (for example, sp ecial depreciation on ships for ship owners, 
deductions for Indian international shipping operators, etc.)? 
(4) if there are any other preferential measures than th is tax system, what kind of measures will India 
introduce in future or has introduced recently? 
Reply (1):  The slow growth of Indian shipping tonnage especially in the context of rapid growth 
of the merchant shipping fleet in other simila rly placed countries was viewed with concern by 
Government of India.  In the light of the var ious representations received on the need for a level  WT/TPR/M/249/Add.1 
 Page 197 
 
 
  playing field for India shipping industry vis-à-vis  international shipping and the urgent need to 
address the problem, a seven member expert committee had recommended that the Govt. must recognize the vital role of shipping in the na tional economy and provide a fiscal regime for 
Indian shipping taking into account the fact that more than 90% of the world tonnage is on a very low level of taxation and thus there is a need  to provide level playing field so that Indian 
shipping becomes internationally competitive.   In order to facilitate this, the committee 
recommended that a tonnage tax scheme be devised to be implemented effective from FY 2002-03.  However, after deliberations and co nsultations with INSA, the tonnage tax scheme 
was introduced in the Finance Bill, 2004 and came in to force with effect from 1.4.2004.  Initially 
the benefit of tonnage tax was applicable to shipping companies only.  From FY 2005-06, the 
tonnage tax benefits have been extended to dredgers also. 
Reply (2):  To be eligible to get the benefit of  tonnage tax, a company should be a qualifying 
company and its vessels qualifying vessels as define d in section XII-G of the Indian Income Tax 
Act, 1961.  The qualifying company is defined in section 115VC of Chapter XII-G of Indian Income Tax Act, 1961.  The Income Tax Act is available on the website www.finmin.nic.in. 
Reply (3):  The tonnage tax scheme is applicable for Indian shipping companies only.  India has 
not introduced any new differential tax system for international shipping operators or ship 
owners so far. 
Reply (4): India has not introduced any other preferential measures in this regard. (Question 49:  Page 165, paragraph 146)  
After the Major Ports Regulatory Authority Bill is enacted, how will port charges be decided?  Will 
the Government still be able to intervene in decisions about port charges
（especially in the 
EnnorePort ）? 
Reply:  The Major Port Regulatory Authority B ill is in preparatory stage.  Comments on the 
Bill are being taken on the various items of the Bill from all stake holders.  The content of the Bill including port charges etc. will be clearer once  the Bill is finalized.  It will be premature to 
comment on the aspects of the bill at this stage. 
(v) Tourism (Question 50:  Page 178, paragraph 192)  
Japan would like to know if the government of India has any intention to review the causes of low FDI 
inflows (i) No foreign presence is allowed in tra vel agencies, tour operators or tourist transport 
operators and/or ii) multiple taxes on tourism servi ces at central and state level) in the tourism 
subsector. 
Reply:  Hotel and tourism sector has been open for FDI up to 100% on automatic basis.  The 
Ministry of Tourism grants approval/recogn ition and not licences to the various service 
providers in the categories of inbound tour operato rs, domestic tour opera tors, tourist transport 
operator, adventure tour operator and travel agencies as per the revised guidelines dated 
18.07.2011.  The aims and objectives of the schem e for recognition of service providers in all the 
said five categories are to improve their quality standard and service so as to promote tourism 
in India and abroad.  The FDI in hotel sector has been increasing since April 2000. WT/TPR/M/249/Add.1 
Page 198  
 
  Thus India has a liberal policy in the sector to promote foreign investment.  India has also 
offered market access to tour ist guides services up to a total ceiling of 500 tourist guides 
conversant in Chinese, Spanish, Portug uese, French and Japanese languages. 
APPENDIX TABLES III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(Question 51:  Page 216, AIII. 6 Export incentives schemes, 2007-11)  
According to the information available on the website of the Ministry of New and Renewable Energy, 
the Ministry has been conducting a solar power pr oject named the "Jawaharlal Nehru National Solar 
Mission (JNNSM)" which consists of several sub-progra ms.  Please provide an overall picture of this 
project as well as the details of each sub-pr ogram, such as the eligibility, terms and conditions, 
amounts and recipients of these projects. 
Reply:  The Jawaharlal Nehru National Solar Mission (JNNSM) envisages a target of 20 000 
mw solar energy and stipulates implementation and achievement of the targets in three phases – 
first phase up to 2012-13, second phase 2013-17 an d the third phase from 2017-22.  The Mission 
provides immense opportunity for investments, bo th domestic and foreign.  In the first phase, 
the Government of India would be directly purch asing 1000 mw capacity solar power from the 
project developers through NTPC Vidyut Vyapar  Nigam Ltd. The broader goal is to promote 
ecologically sustainable growth while addressing India's energy security challenge.  It will also 
constitute a major contribution by India to the gl obal effort to meet the challenges of climate 
change. 
More details of the programme can be  found on the website www.mnre.gov.in. 
(Question 52:  Page 216, AIII.6 Export incentives schemes, 2007-11) 
The guidelines for some sub-programs, such as th e 'Guidelines for Selection of New Grid Connected 
Solar Power Projects' or 'Guidelines for Rooft op PV and Small Solar Power Generation Program', 
include domestic content requirements.  Please lis t the sub-programs of the JNNSM which include 
domestic content requirements and give details of these requirements.  Are there any project 
proponents who have fulfilled the domestic conten t requirements and have participated in the 
programs? 
Reply:  The details of the programme can be found on the website www.mnre.gov.in. The Report by India (WT/TPR/G/249) II.  ECONOMIC ENVIRONMENT 
(6) CHALLENGES 
(iii) Infrastructure 
(Question 53:  Page 16, paragraph 42)  
Could India provide details of the infras tructure investment and development in the 12
th Five Year 
Plan?  When will it be made public? 
Reply:  The Twelfth Five Year Plan of India, to  be applicable for the period 2012-2017 is still to 
be prepared and adopted.   WT/TPR/M/249/Add.1 
 Page 199 
 
 
  III.  MOVING AHEAD ON REFORMS 
(2) FINANCIAL SECTOR REFORMS 
(Question 54:  Page 18, paragraph 54)  
Japan would like India to clarify the relationship between the newly set up Financial Sector 
Legislative Reforms Commission (FSLRC), the Fi nancial Stability and Development Council (FSDC) 
and existing financial authorities (Ministry of Finance, Reserve Bank of India, etc.), including the 
structure and functions of those new organizations. 
Reply:  Through a resolution dated 24 March 201 1, the Government set up the Financial Sector 
Legislative Reforms Commission (FSLRC) with a view to rewriting and harmonizing the 
financial sector legislation, rules and regulatio ns to address the contemporaneous requirements 
of the financial sector. 
The Commission will make its recommendations within  24 months of the date of the resolution.  
It is chaired by Supreme Court Justice (Retd. ) B. N. Srikrishna, and has ten members with 
expertise in the fields of finance, economics, law and other relevant fields. 
The FSLRC can call for such information and take  such evidence as it may consider necessary 
from various sources including Ministries and Departments of the Government of India and 
State Governments.  The Commission will also engage with the inter-regulatory body the Financial Stability and Development Council (FSDC) as a part of this exercise. 
The apex-level FSDC was set up by the Government on 30 December 2010 with a view to 
strengthen and institutionalize the mechanism for maintaining financial stability and enhancing inter-regulatory coordination.  The Chairman of the Council is the Finance Minister of India 
and its members include: 
 Financial sector regulatory organizations:  th e heads of the financial sector regulatory 
authorities:  Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory Develo pment Authority (IRDA), Pension Funds 
Regulatory Development Authority (PFRDA); 
 Ministry of Finance:  Finance Secretary and/or Secretary, Department of Economic 
Affairs (DEA);  Secretary, Department of Fi nancial Services;  and the Chief Economic 
Adviser. 
This Council will monitor macro prudential s upervision of the economy, including the 
functioning of large financial conglomerates.  It will address inter-regulatory coordination 
issues and thus spur financial sector development.  It will also focus on financial literacy and 
financial inclusion.  A sub-co mmittee of FSDC has also been set up under the chairmanship of 
Governor, RBI. 
(3) Reform in Foreign Investment Policy (Question 55:  Page 19, paragraph 57) With regard to India's Foreign Direct Investment  Policy on distribution service sectors, Japan 
understands that it is under consideration to allow foreign direct investment in multi-brand retail up to 51% under a certain condition.  Japan would like to know the perspectives to implement this policy. WT/TPR/M/249/Add.1 
Page 200  
 
  Reply:  The existing policy allows for 51% foreign  direct investment (FDI), only in single brand 
retail trade, subject to specified conditions.  FDI in multi brand retail trading is presently 
prohibited.  Government of India had released a Discussion Paper on the subject of "Foreign Direct Investment in Multi-Brand Retail Trading" , in order to obtain stakeholder comments, 
for informed policy making.  Comments were recei ved from a number of stakeholders.  The 
discussion papers, as well as the comments rece ived thereon, are in the public domain.  The 
Government has not taken a final decision in this regard.  
(Question 56:  Page 19, paragraph 57)  
Japan would like India to describe the following information concerning legal services. (1) Despite the liberalization of FDI in various indus tries, the foreign law firms are not allowed to 
open office in India.  Will India undertake any possible reform of legal services? 
(2) With regard to legal services, what kind of  activities can foreign legal service providers be 
engaged in? 
Reply:  At present Foreign Law Firms are not allo wed to practice in India.  Under the Indian 
Advocates Act, 1961 they are prohibited from giving any legal advice that could constitute 
practicing Indian Law.  Currently this sector is governed by self-regulatory professional body 
(Bar Council of India).  As of now no change in the existing regime in the sector is contemplated. 
KINGDOM OF SAUDI ARABIA 
Kingdom of Saudi Arabia 1: Report by the Secretariat (WT/TPR/S/249):  III.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (v iii) Contingency measur es (a) Anti-dumping and 
countervailing measures 
Paragraph 77 states: 
An investigation may be terminated by the DGAD at any time if:  there is a written request 
from or on behalf of the domestic industry at whose instance the investigation was initiated;  
there is insufficient evidence of dumping or injury;   the injury is negligible;  the margin of 
dumping is less than 2% of the expor t price;  or the volume of th e dumped imports is less than 
3% of imports of the like product, unless the countries accounting for 3% individually account for over 7% collectively of imports  of the like product. (emphasis added). 
Question:  In considering whether there is insufficie nt evidence of dumping or injury, how does India 
consider the evidence in light of WTO Agreement disci plines?  For example, in determining whether a 
"particular market situation" exists in dumping proceedings, how does India consider evidence in 
light of the interpretation of this term und er Article 2.2 of the Anti-Dumping Agreement? 
Reply:  A determination whether "particular market  situation" exists is made in the context of 
a specific anti-dumping investigation.  An important consideration being, whether due to "particular market situation" the domestic market sales permit a proper comparison for 
dumping margin determination.  WT/TPR/M/249/Add.1 
 Page 201 
 
 
  Kingdom of Saudi Arabia 2: 
Report by the Secretariat (WT/TPR/S/249):  III.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (v iii) Contingency measur es (a) Anti-dumping and 
countervailing measures 
Paragraph 79 states: 
The DGAD conducts mid-term reviews to ass ess the need for continued imposition of 
anti-dumping duties.  These reviews may be se lf-initiated or on request from an interested 
party and in view of changed circumstances.   The review follows the same procedures 
prescribed for an investigation to the extent that they are applicable.  In 2010, a trade notice 
was issued to clarify the initiation of mid-term reviews.3  The notice indicates that an 
application for initiation of a mid-term review of an anti-dumping duty in force may be made 
to the DGAD by an interested party including exporters, importers, domestic producers, trade 
representative bodies, firms or institutions, which are representative of th e domestic industry.  
The applicant must submit positive information substantiating the need for a review.  The 
notice also indicates that the application for an interim/mid-term review may be accepted by 
the DGAD provided that a reasonable period of time,  i.e. at least one year, has elapsed since 
the imposition of the definitive anti-dumping duty by the Central Government.  However, the 
DGAD may review the need for the continued imposition of the duty, where warranted, on its 
own initiative. 
Question:  In the context of mid-term reviews, how does India ensure that its review of the dumping 
calculation complies with WTO disciplines? 
Reply:  The methodology used by India for calculation of dumping margin in the original 
investigation and in the mid-term review in vestigation is consistent with the WTO 
Anti-Dumping Agreement. 
TRADE POLICY 
Kingdom of Saudi Arabia 3: Report by the Secretariat (WT/TPR/S/249):  III.  Trade Policies and Practices by Measure:  
(2) Measures Directly Affecting Imports:  (v iii) Contingency measur es (a) Anti-dumping and 
countervailing measures 
Paragraphs 85 and 86 state (footnotes omitted): 
85. India is one of the most active users of an ti-dumping measures among WTO Members.  From 
the inception of the WTO until 30 June 2010,  India accounted for 436 of the 2,433 
anti-dumping measures adopted by Members, that is 17.9% of the total.  During the same 
period, India initiated 613 investi gations, out of a total of 3,75 2.  The initiations affected 
mainly China (137), Korea, Rep. of (47), Chin ese Taipei (45), the EU (42), Thailand (36), 
Japan (30), the United States (29), Indonesia (24), Singapore (23), Malaysia (22), and the 
Russian Federation (19). 
86. Between January 2006 and 31 December 2010, India initiated 209 anti-dumping 
investigations against 34 trading partners, compar ed with 176 reported in its last Review 
(Chart III.4). 
                                                      
3 Department of Commerce, Trade Notice No. 1/ 2010 of 17 May 2010 introduced clarification 
regarding the initiation of mid -term reviews in terms of Rule 23 of the Anti-dumping Rules (Identification, 
Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury). WT/TPR/M/249/Add.1 
Page 202  
 
  Question:  In light of India's prolific use of trade  remedy measures, can Indi a confirm that it conducts 
its proceedings consistently with  WTO agreements and jurisprudence?4 
Reply:  India conducts its anti-dumping proceedings  consistently with the obligations as per the 
WTO agreements and by taking cognizance of jurisprudence. 
Kingdom of Saudi Arabia 4: 
Report by the Secretariat (WT/TPR/S/249):  III.   Trade Policies and Practices by Measure 
(4) Measures Affecting Production and Trade:  (i) Incentives (b) Other support 
Paragraph 179 states that "'[o]ther subsidies', which account for 3% of the total explicit subsidies in 
2010/11, include market intervention and price support schemes for agricultural products."  This 
section is qualified by footnote 233, which states that "[t]he term 'subs idy' in this section is used as in 
India's Budget and other official documents, and not  in the sense of the WTO Agreement on Subsidies 
and Countervailing Measures." 
Question:  In light of this language, would I ndia consider any price support schemes to constitute 
countervailable subsidies under the Agreement on Subsidies and Countervailing Measures (SCM 
Agreement)?  Or does India believe that price s upport schemes are outside the scope of the SCM 
Agreement? 
Reply:  The definition of a subsidy under Article 1 of ASCM, inter alia , includes under 
Article 1.1(a)(2) a financial contribution by a government or public body where there is any 
form of price support in the sense of Article XVI of GATT 1994.  Further by such financial contribution a benefit should be conferred and a subsidy shall be subject to the provisions of 
Part V only if such a subsidy is specific in acco rdance with the provisions of Article 2.  Article 
XVI of GATT refers to subsidies in general wh ich operate directly or indirectly to increase 
exports or reduce imports of a product.  Theref ore, any price support per se cannot be termed 
as a "countervailable subsidy". 
Kingdom of Saudi Arabia 5: Report by the Secretariat (WT/TPR/S/249):  III.   Trade Policies and Practices by Measure 
(4) Measures Affecting Production and Trade (i) Incentives (b) Other support 
Paragraph 180 states that "[s]ubsidies for domes tic liquefied petroleum gas and kerosene under the 
Public Distribution System (PDS), and for freight5, were put in place in 2002 after the dismantling of 
the administered pricing mechanism (APM), with the aim of protecting the poor."  This section is also 
qualified by footnote 233, which states that "[t]he term  'subsidy' in this section is used as in India's 
Budget and other official documen ts, and not in the sense of the WTO Agreement on Subsidies and 
Countervailing Measures." 
Question:  Can India please elaborate on why it does not consider these "subsidies," in particular the 
price control/support mechanisms, to cons titute subsidies under the SCM Agreement. 
                                                      
4 This question also applies to paragraph 16 of the Summary, which states the following :  "India is one 
of the most active users of anti-dumping measures among WTO Members.  It initiated 209 anti-dumping 
investigations against 34 trading partners during the revi ew period, compared with 176 in the period covered in 
its last Review, and it imposed 207 anti-dumping measures, compared with 177.  The products involved 
included chemicals and products thereof, plastics and rubb er and products thereof, base metals, and textiles and 
clothing".  
5 Freight Subsidy (For Far -flung Areas) Scheme 2002.  WT/TPR/M/249/Add.1 
 Page 203 
 
 
  Reply:  Kindly refer to India's reply to previous question. 
Kingdom of Saudi Arabia 6: Report by the Secretariat (WT/TPR/S/249):  III.  Trade Policies and Practices by 
Measure:(4)Measures Affecting Produc tion and Trade:(iv)Price Controls 
Paragraphs 208-218 describe various price controls applicable in I ndia ranging from petrochemical 
goods to pharmaceuticals. 
Question:  Does India consider price controls to  constitute countervailable subsidies or create a 
"particular market situation" under the SCM Agreement? 
Reply:  Please see the response to question 4 and 5 above.  We do not find reference to 
"particular market situation" similar to Anti-dumping Agreement in the ASCM. 
Kingdom of Saudi Arabia 7: 
Report by the Secretariat (WT/TPR/S/249):  III.   Trade Policies and Practices by Measure 
(4) Measures Affecting Production and Trade (iv) Price Controls 
Paragraphs 213-215 describe India's administered pricing mechanism (APM), which regulates the 
pricing for petroleum products and notes that pr ices under production sharing contracts must be 
approved by the GOI.  Furthermore, the TPR notes that  the retail price of diesel is still under control. 
Question:  Does India consider the sale of pe troleum products under any of these price control 
measures to constitute a countervailable subsidy or particular market situation pursuant to the SCM 
Agreement? 
Reply:  Please see response to question 4 above. Kingdom of Saudi Arabia 8: 
Report by the Secretariat (WT/TPR/S/249):  III.   Trade Policies and Practices by Measure 
(4) Measures Affecting Production and Trade (iv)Price Controls 
Paragraph 215 states that "[t]he Government closely monitors the price of ce rtain hydrocarbons.  In 
case of high price volatility in the international market, the Government will intervene to stabilize 
prices." 
Question:  Can India elaborate on the circumstances under which it will intervene to stabilize prices?  
Does India consider such circumstances to constitute  a "particular market situation" under the SCM 
Agreement? 
Reply:  Government has been monitoring the prices of administered petroleum products viz. 
diesel, PDS kerosene and domestic LPG.  It has been decided to stagger de-administering the 
prices of diesel to minimize the overall impact on poor and vulnerable segment of the 
population.  The prices of PDS kerosene and domestic LPG are administered since these are 
essential for cooking and lighting purposes. 
India does not consider that stabilization of pr ices in this case would constitute "particular 
market situation".  Moreover, we could not fi nd reference to "particular market situation" 
similar to Anti-dumping Agreement in the ASCM. WT/TPR/M/249/Add.1 
Page 204  
 
  Kingdom of Saudi Arabia 9: 
India's Report (WT/TPR/G/249) 
Paragraph 71 states that India "has been subject ed to a disproportionate number of trade defence 
actions" and that "[o]ut of the 90 anti-dumping  measures taken against India during the period 
January 1995 to June 2010, 22 relate to chemicals, 19 to plastics, 11 to textiles and 26 to metal 
products (mainly iron and steel) – areas in wh ich India has gained a degree of comparative 
advantage globally in recent times. 
Question:  Does India believe that the "dispropor tionate" number of trade defence actions is 
unwarranted under WTO agreements?  If so, please explain the basis for India's belief that such 
actions are unwarranted (i.e. how a re they contrary to WTO agreements). 
Reply:  Dumping causing injury to the domestic industry is an unfair trade practice and has to 
be dealt with as per the Anti-dumping Agreement.   However, such anti-dumping actions have to 
be fair and taken in accordance wi th the provisions of the Agreement. 
KOREA, REPUBLIC OF 
Republic of Korea 1: 
Government Report, pages 17-18, paragraphs 49-51 
Over the past few years, India has implemented refor ms to rationalize and simplify its tax system.  
However, companies investing in India still have con cerns over the uncertainty of  tax burden caused 
by high tax rates, complex tax items, and discreti onary tax administration, among others.  Could the 
Indian government elaborate the efforts it is making to alleviate such concerns? 
Reply:  The consistent policy of the Government with regard to tax rates has been to levy 
moderate rates of tax on a wide tax base.  The tax rates (inclusive of surcharge and cess) in the case of corporate tax payers have been moderate d over the last two years.  The tax rate for 
domestic companies for financial year 2009-10 was 33.99%.  This has been gradually reduced to 
33.2% for financial year 2010-11 and to 32.4% for financial year 2011-12.  The Direct Taxes 
Code Bill, 2010, which is currently before Parliame nt proposes a corporate tax rate of 30% for 
domestic companies. 
As part of economic reforms, tariffs have been lowered substantially in recent years.  The tariff 
structure has been simplified considerably.  Howe ver, this is an on-going process.  The present 
duty structure is simple though there are certain exemptions.  It is Government's endeavour to 
gradually remove exemptions which are no lo nger relevant in the changed circumstances. 
Steps have been taken to simplify the process of assessment of customs duties.  With the 
adoption of the Electronic Data Interchange (EDI) system and automation of businesses, the 
rates of duty and exemptions are automatically determined.  Further, greater reliance is being 
placed on automated processes (such as EDI, Ri sk Management System etc.) to reduce human 
intervention in business process. 
India proposes to introduce a comprehensive good s and service tax to replace the existing 
system of domestic taxes both at the Centre (e xcise duties and services tax) and the States (state 
VAT, sales tax etc.).  The Central Government has introduced a Constitution Amendment Bill 
in Parliament in February, 2011 to enable levy of this tax.   WT/TPR/M/249/Add.1 
 Page 205 
 
 
  Republic of Korea 2: 
Secretariat Report, page 30, paragraph 30 
Although entrepreneurs are free to select the lo cation for setting up businesses in India, the 
establishment of a company still remains subject to z oning, to land use regulations at the state level, 
and to environmental regulations at the central  level, which leads to restrictive investment 
environment.  Recently, it seems that it is increasingl y difficult for foreign invest ors to invest in India 
due to excessive environmental regulations.  For ex ample, Korea's POSCO has been struggling to 
start a steelworks project in Orissa for six years.  The company has been faced with the lack of 
regulatory clarity between the Central Government  and States as well as strict environmental 
regulatory restrictions.  It also has difficulty in  purchasing land because of residents' opposition.  
Could India take appropriate measures to address these issues in a timely manner? 
Reply:  The requirement for obtaining a cleara nce for undertaking a non-forest activity in a 
forest area is mandated under Fo rest Conservation Act, 1980.  This requirement applies to all 
project proponents whether state/central government departments or state/central PSUs or Indian companies or foreign companies.  Th e environment clearance is mandated by EIA 
Notification under Environment Protection Act, 1986 and is similarly applicable to all kinds of 
project proponents.  These requirements are na tional in nature in light of the Indian 
circumstances.  The case of POSCO was dealt und er the existing rules/regulations at par with 
other project proponents under similar circumstances. 
Republic of Korea 3: Secretariat Report, pages 63-65, paragraphs 85-90 
Even though the issue of anti-dumping measures taken  by India was pointed out in its last Trade 
Policy Review, India's dependency on the measures has increased during the current review period.  Since 2006, India initiated 209 investigations  and undertook 207 final measures (as of 
31 December 2010), compared with  the reported numbers of 176 and 177, respectively, in the last 
Review.  There are concerns that frequent u se of anti-dumping measures can impose considerable 
burden on foreign exporters and might lead to unfai r trade.  Does India have a plan to review and 
improve its anti-dumping policies? 
Reply:  The purpose of anti-dumping duties, in ge neral, is to address the injury caused to the 
domestic industry by the unfair trade practices of dumping.  Anti-dumping investigations are 
carried out strictly as per India's Customs Tari ff (Identification, Assessment and collection of 
anti-dumping duty on dumped articles and for determination of injury) Rules, 1995 as amended 
and in conformity with the provisions of the WT O Agreement on implementation of Article VI 
of the GATT 1994. 
Republic of Korea 4: Secretariat Report, pages 72-73, paragraph 119 
With regard to SPS measures, the Indian Cent ral Government passed the Food Safety and Standards 
(FSS) Act in 2006.  However, as the rules and regul ations to operationalize this Act have not been 
announced, the Act does not seem to be at the stage of  full implementation.  When will the Act be fully 
implemented?  How does India assess the impact of the Act on its trading partners' exports to India 
when it is fully implemented? WT/TPR/M/249/Add.1 
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  Reply:  The FSS Rules, 2011 were notified on 5 May 2011 and FSS Regulations, 2011 were 
notified on 1 August 2011.  This has shifted the regulatory control from multi agencies to a single agency in the country.  This would lead to  a reduction in the time for obtaining licences 
and getting clearances for imports. 
Republic of Korea 5: 
Secretariat Report, pages 76-79, paragraph 131-141 
Recently, India's export restrictions  and prohibitions have been stre ngthened.  According to the 
Secretariat Report, export taxes for raw materi als and relevant products, such as iron ores and 
concentrates, chromium ores and concentrates, and  products of iron and steel, were introduced in 
2009.  Also, products including non-basmati rice, wh eat, pulses, and edible oils have been newly 
subject to export prohibitions sin ce 2007.  As such, there is a gr owing concern over the possibility 
that export restrictions and prohibitions by some countries can act as a risk factor against the world 
economy as the situation in the raw material and food markets has become highly unstable.  As a result, due consideration is needed in the impl ementation of export restriction and prohibition 
measures.  Could India provide its position on this issue? 
Reply:  India's production of certain items to meet its domestic demand like pulses and oilseeds 
is deficient.  In addition, production of certain essential basic food grains like wheat and rice fall on account of draught and other natural ca lamities.  During such times, India imposes 
export restrictions on specific crops.  India acco rds highest priority to her food security and 
policies are tailored to reduce impact on vulnerable sections of the society.  
Republic of Korea 6: 
Secretariat Report, page 123, paragraph 299 
In recent years, India has made substantial efforts to  ensure the effective enfo rcement of intellectual 
property rights.  According to the Secretariat Re port, the number of cases of imports confiscated 
because of IPR infringement increased from 23 in 20 08/09 to 56 in 2009/10.  How did the ratio of the 
number of confiscated cases to the frequency of  random checks change during the same period? 
Reply:  Indian Customs does not keep a record of the ratio of the number of confiscated cases to 
the frequency of random checks . 
It would be pertinent to mention in this contex t that cases resulting in confiscation are a result 
of and are dependent on many factors such as risk profiling, specific intelligence inputs on the 
case and cooperation extended by the right hold er.  Random checks may or may not result in 
detection of an offence case relating to IPR violation.  
Republic of Korea 7: 
Secretariat Report, page 1 34, paragraphs 35-36 
India is supporting its agriculture through various policies such as the Price Support Scheme (PSS), 
Market Intervention Scheme (MIS), and a number of  other agricultural support programs.  Could 
India provide its position on the concerns that th ere may be overlap or inefficiency in the sheer 
variety and complexity of the agricultural support programs? 
Reply:  There is no overlap between the co mmodities covered under the Price Support Scheme 
(PSS), and perishables covered under the Market  Intervention Scheme (MIS). 25 specific 
commodities such as paddy, maize, cotton, s oybean, wheat, etc. are covered under PSS for  WT/TPR/M/249/Add.1 
 Page 207 
 
 
  which Minimum Support Price (MSP) are announ ced before the start of the crop season.  
Market Intervention Scheme (MIS) operations ar e taken under exceptional circumstances when 
farmers are forced to make distress sale of thei r perishable crops on account of excess supply. 
Republic of Korea 8: Secretariat Report, page 158, paragraph 122 
According to the Secretariat Report, 173 licenses ha ve been issued in the mobile telecom segment 
since 2004.  However, Table IV.10 shows that  there were only 15 mobile telephony providers in 
India's mobile telecom sector in 2010.  Coul d India explain the reasons for the significant gap 
between the two figures? 
Reply:  The entire country is divided into 22  service areas and licenses are issued service area 
wise.  Thus one telecom operator may have 22 licenses, hence the difference. 
Republic of Korea 9: Secretariat Report, pages 169- 171, paragraphs 166-173 
Under its GATS schedule of specific commitments, unlike international maritime and air transport, 
India has not opened r oad transport services including passenger and cargo services.  Could the 
Indian government explain the reasons not to open this sector?  Or has it taken any measures 
liberalizing this sector irrespective of GATS commitments? 
Reply:  The road transport sector is largely open in India.  FDI is permitted up to 100% on the 
automatic route, subject to applicable laws/ sectoral rules/regulations/security conditions in 
passenger and freight.  Similarly, FDI is permitte d upto 100% on the automatic route, subject to 
applicable laws/sectoral rules/regulations/securi ty conditions in the cargo segment as well. 
Republic of Korea 10: 
Secretariat Report, page 157, paragraph 119 
The DoT controls four government-owned telecom companies, including BSNL and MTNL.  Could 
India provide the percentage of state-ownership in each of these companies?  Does India have any 
plan to privatize these state-owned companies? 
Reply:  Bharat Sanchar Nigam limited (BSNL ):  100%;  Mahanagar Telephone Nigam Limited 
(MTNL):  56.25%;  Telecommunications Consultants India Limited (TCIL):  100%; ITI Limited:  92.87%. 
No such proposal is presently under consideration. Republic of Korea 11: Secretariat Report, page 157, paragraph 119 
Having an active market for telecom resale services is believed to be a good way to promote new 
market entries, which in turn will lead to grea ter competition and consumer welfare.  Does India 
have any plan to invigorate its resale services market? 
Reply:  Presently resale is permitted only in respect of IPLC (international private leased 
circuits) through a separate licence. WT/TPR/M/249/Add.1 
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  Republic of Korea 12: 
Secretariat Report, page 158- 159, paragraphs 122-125 
According to the Secretariat Report, India allo ws 74% foreign ownership for internet service 
providers and 100% foreign ownership fo r infrastructure service providers. 
As far as Korea understands, India explained that  infrastructure service providers were internet 
service providers in its previous communications.  Yet a category titled "internet service providers" 
exists separately from "infrastructure service prov iders" in the Secretariat Report.  Could India 
provide the definition of infrastruc ture service provider and explain how it is different from internet 
service provider? 
In general, telecom regulators do not regulate service providers that do not have any network 
infrastructure or telecom facilities.  Hence, internet service providers without gateways can be 
considered as value-added service providers that are subject to little or no foreign investment 
restrictions.  Could India provide the reasons of maintaining foreign ownership restrictions for the 
internet service providers without gateways? 
It appears that India's revised offer on services allo ws only 49% foreign ownership for basic services 
and 74% foreign ownership for value-added services.  Meanwhile, foreign equity ceiling for 
value-added services is 100% in its relevant domestic law.  Does India have a plan to reflect what is in the existing domestic law in its services schedule? 
Reply:  Infrastructure providers are passive infrastructure providers like telecom tower, duct 
and dark fibre providers.  For infrastructure providers 100% FDI is permitted subject to certain conditions.  For Internet service providers 74% FDI is only permitted. 
MALAYSIA 
Malaysia 1: 
Report by the Government of India (WT/TPR/G/249), Page 21, paragraph 65 
65. India's export performance exceeded th e target of US$200 billion in 2010-11 by 
US$46 billion.  India now aims to achieve exports of US$500 billion by 2013 -14, with a compound 
annual growth rate of 26.7%, through quality up gradation of export produc ts;  export of high 
technology products;  diversification of markets;  exp ansion of the export basket;  and moving up the 
value chain. 
Could India please elaborate on the measures it  undertakes to upgrade the quality of export 
products? 
Reply:  India believes in quality products to be made available at reasonable competitive prices.  
A large number of products follow the BIS st andards (primarily based on international 
standards) and a number of products require qualit y checks before exports.  Export of products 
manufactured by quality certificate holders such as ISO certificates is encouraged.  Some of the 
support measures have been detailed in Chapt er 1B of the Foreign Trade Policy (2009-2014).  
The FTP has been notified to WTO and is  also available at http://dgft.gov.in. 
Malaysia 2: 
Report by the Secretariat (WT/TPR/ S/249-01),Page x, paragraph 7  WT/TPR/M/249/Add.1 
 Page 209 
 
 
  7. ...In order to meet these objectives, India implements a mix of policies including tax 
incentives, export promotion, and credit facilitation sch emes, to "neutralize" the cost of imported 
inputs used in exports;  however, such schemes may contribute to the complexity of India's trade 
regime…. 
 What are the measures underta ken to reduce the complexity  of India's trade regime? 
Reply:  Exercise to simplify the procedure a nd reduce the transaction cost has already been 
taken.  Continuous dialogue with all stakehold ers is a permanent feature of policy making and 
taking mid-course corrections. 
 Are there any plans to standardize or strea mline taxes across the states in India?  
Reply:  The states have powers to levy certain taxes given in list II of Schedule VII of the 
Constitution of India.  Therefore States can fix tax rates as per their requirements, which vary across states.  However the proposed goods and service tax (GST) is likely to bring a fair degree of uniformity on tax related to supply of goods and services, which is the main source of states' 
revenue.  For further details Para 51 of the Governments Report (WT/TPR/G/249) may be 
referred. 
Malaysia 3: Report by the Secretariat (WT/TPR/S/ 249-01), Page xi , paragraph 15 
15. Imports may also be subject to non-tar iff barriers including prohibitions, licences, and 
restrictions, as well as packaging,  quality, and sanitary requirements .  Import restrictions may be 
imposed on grounds of, inter alia, health, safety , moral and security reasons, and for self-sufficiency 
and balance-of-payments reasons. … 
Could India please elaborate on the reasons behind the imposition of local content requirements for 
local sales of solar product in India and mandato ry use of domestic solar and cells modules in solar 
projects? 
Reply:  The Jawaharlal Nehru National Sola r Mission (JNNSM) envisages a target of 
20 000 mw solar energy and stipulates implementati on and achievement of the targets in three 
phases – first phase up to 2012-13, second phase 2013- 17 and the third phase from 2017-22.  The 
Mission provides immense opportunity for inv estments, both domestic and foreign.  The 
broader goal is to promote ecologically sustainable growth while addressing India's energy security challenge.  It will also constitute a majo r contribution by India to the global effort to 
meet the challenges of climate change. 
Malaysia 4: Report by the Secretariat (WT/TPR/ S/249-01), paragraph 24, Page xiii 
24. … In order to encourage investment in th e manufacturing sector, India also offers a wide 
range of tax incentives, concessionary cred it, and other types of assistance. … 
What are the types of incentives offered by the Indian Government for the foreign investment in the 
solar and automotive industries? 
Reply:  India has a liberal FDI regime to promote foreign investment in the country.  As per the 
para 5.2.6.1 of the FDI policy 100% FDI is allo wed on automatic route in non-conventional WT/TPR/M/249/Add.1 
Page 210  
 
  energy generation and distribution subject to app licable laws/sectoral rules/regulations/security 
conditions.  Similarly in case of automotive sector, 100% FDI is allowed on automatic route 
subject to applicable laws/sectoral rules/regulations/security conditions. 
Malaysia 5: Report by the Secretariat (WT/TPR/S/ 249-03), Page 20 , paragraph 4. 
Most sectors are currently at least partially open to  FDI, subject to a cap and specific conditions.   
 Please elaborate on the cap and specific conditions imposed to FDI in certain 
sectors/activities. 
 Please specify the special requirements and perm its required for sectors/activities that are 
open to FDI.  
Reply:  The policy on FDI is available under the Consolidated Circular on FDI Policy (currently 
"Circular 1 of 2011"), which is currently being updated every six months, to ensure that the 
latest changes are reflected in the Circular.  Th e Circular is available in the public domain on 
the website www.dipp.nic.in.  Chapter 5 of the Circular contains the sector-specific policy on 
FDI, including the caps and general conditions on FDI. 
Malaysia 6: Report by the Secretariat (WT/TPR/S/ 249-01), page xii,  Paragraph 20. 
"Since its last Review in 2007, India has m ade several amendments to its competition policy 
legislation, and the Competition Commission of India, created under the Competition Act 2002, started operations in 2009.  In addition, some aspects of the law affecting mergers and acquisitions 
recently entered into force." 
Can India please elaborate on the new aspects that have been introduced into  its competition law 
which affect mergers and acquisitions? 
Reply: 
(i) The provisions relating to regulation of combinations (which include mergers, 
amalgamations and acqu isition of shares, voting rights, assets or control), under the 
Competition Act, 2002, were notified by the Government of India on 4 March 2011, and came into force from 1 June 2011.  The provisi ons relating to regulation of combinations 
are given under sections 5, 6, 20, 29, 30 and 31 of the Competition Act, 2002. 
(ii) The revised thresholds for combinations, give n under section 5 of the Act, are in terms 
of joint asset base of Rs 1500 crore* or turnov er of Rs 4500 core in India;  or assets of 
US$2250 million (including turnover of Rs 2250 crore in India).  If the combined entity belongs to any group, the threshold for comb inations are an asset base of Rs 6000 crore* 
or turnover of Rs 18000 crore in India;  or assets of US$3 billion (including assets of at 
least Rs 750 crore in India) or turnover of US $9 billion (including turnover of at least 
Rs 2250 crore in India) in case of outside and within India both. *1 crore = 10 million. 
(iii) The Government of India, vide recent notifi cations, has also exempted an enterprise, 
whose control, shares, voting rights or assets are being acquired and having turnover  WT/TPR/M/249/Add.1 
 Page 211 
 
 
  less than Rs 750 crore in India or having assets less than Rs 250 crore in India, from the 
provisions of section 5 of the Competition Act, 2002 for a period of five years. 
(iv) For executing the mandate given under the Co mpetition Act, 2002, the implementing 
regulations relating to regulation of combin ations were notified by the Competition 
Commission of India on 11 May 2011.  Thes e regulations are called as the "The 
Competition Commission of India (Procedure in regard to the transaction of business 
relating to combinations) Regulations, 2011". 
Malaysia 7: Report by the Secretariat (WT/TPR/S/ 249-05), page 148,  paragraph 88 
Non-banking financial companies (NBFCs), which e ngage in lending, investment in shares and 
securities, hire purchase, chit fund, insurance or collection of monies, are regulated by the RBI and 
are open to foreign investment up to 100% of thei r capital.  NBFCs do not have any cap on exposure 
to the capital market.  They are classified according to the operations they are allowed to undertake 
by the RBI.  As at March 2010 (latest available figures), there were 12,662 NBFCs, of which 311 were permitted to accept deposits and were class ified as NBFC-Ds;  non-deposit taking companies 
are classified as NBFC-NDs. 
We note the references made to Non-banking fin ancial companies (NBFCs) in paragraph 88.  To 
further our understanding on NBFCs, please provide examples of financial entities which fall within 
this category.  Do they include asset management  companies and stock broking companies as well?  
Are NBFCs solely regulated by RBI or are there ce rtain NBFCs which are co-regulated by both RBI 
and SEBI. 
Reply:  Section 45I (c) of RBI Act 1934 lists out six activities namely financing, acquisition of 
shares and securities, hire purcha se, insurance, managing chit funds, and collecting money 
under any scheme etc., as financial business.  Companies which carry on such business are NBFCs unless their principal business is carryi ng on agricultural operations, industrial 
activities, trading in goods and services or cons truction and allied activities.  Prior to being 
registered with RBI as NBFCs these entities have to first get themselves registered as companies 
under the Companies Act, 1956.  This implies that  they have to comply with the provisions of 
the Companies Act also which is under the jurisd iction of the Ministry of Corporate Affairs, 
Govt of India.  Presently companies which carry on or principally engage in the financial activities as permitted under the above Act are cla ssified as NBFCs.  There are five categories of 
NBFCs, viz., asset finance companies (AFCs), investment companies (ICs), loan companies 
(LCs), infrastructure finance companies (IFCs)  and systemically important core investment 
companies (CIC-ND-SIs).  The regulation of asset management companies and stock broking companies does not fall within the purview of RBI.  The RBI (in exercise of the powers 
conferred on it by Section 45NC of the RBI Act) has granted exemption from registration, 
maintenance of liquid assets and creation of reserv e funds to NBFCs carrying on the business of 
stock broking and merchant banking provided they are not accepting deposits, are registered by 
SEBI and acquire securities as part of their merc hant banking/stock broking activities.  This 
exemption was given as they were undertaking p redominantly non-fund based activities.  It was 
also perceived that these would not pose any risk or  compromise depositors' interest, as they are 
non-deposit taking entities and function di rectly under the oversight of SEBI.  Hence dual 
regulation is avoided.  Further, while insura nce companies are regulated by IRDA stock 
brokers/stock exchange/sub-brokers companies are regulated by SEBI.  Chit fund companies 
are regulated under Chit Acts of the respective  state Governments.  Companies including 
NBFCs which are engaged in insurance business and chit business have to abide by the rules of WT/TPR/M/249/Add.1 
Page 212  
 
  their regulators.  SEBI being a market regulator , the capital market issues and other market 
related matters pertaining to companies including NBFCs are regulated by it. 
Malaysia 8: Report by the Secretariat (WT/TPR/S/ 249-05), page 155,paragraph 112 
Other policy initiatives include changes to the regul atory environment, such as a reduction of the 
timelines for public issue;  simplified listing requirem ents for Indian depository receipts (IDRs) issued 
by companies from IOSCO MMoU si gnatories;  a liberalization of the overseas investment regime for 
mutual funds, and the abolition of an entry load for all mutual fund schemes;  and promotion of an initiative to develop the still incipient Corporate Bond Market. 
Paragraph 112 states that there has been a reduction of timeline for pu blic issues of securities.  Can 
India please provide more details i.e. how much improvement in terms of reduction of timeline has 
been achieved in this regard? 
Reply:  Earlier, it used to take 22 calendar days to list the securities of a company in a public 
issue after closure of the issue.  In line wi th SEBI's endeavour to reduce the exposure of 
issuers/investors to volatility in market condi tions and enable quicker turnaround of money 
invested, timelines between issue closure and listing  have been reduced from 22 calendar days to 
12 working days.  This has come into force w.e.f. 1 May 2010. 
Malaysia 9: Report by the Secretariat (WT/TPR/S/ 249-04), page 36, paragraph 6. 
Public procurement is considered as an important instrument of government policy and is used to 
obtain certain socio-economic objectives.  As a resu lt, the Central Government has set reservations 
and price preferences as part of the procurement system.  However, competition from foreign 
suppliers is ordinarily allowed. 
 In what circumstances and under what conditions  would competition from foreign suppliers be 
allowed? 
 Could India please elaborate on its reservations and price preferences in its  procurement system?  
Does this include the setting of minimum prices?  If yes, how does India reconcile this with its 
competition policy?  
Reply:  Procurement by all central ministries /departments are subject to GFRs.  Unless 
specifically indicated in the tender notice/docu ment, both domestic and foreign suppliers can 
participate against open tender.  Carve outs and offsets are essential for the development of the 
sensitive sectors in a developing economy like I ndia, and has been availed of even by other GPA 
signatories.  The Central Government, through administrative instructions, has reserved certain 
products for procurement from specific sectors such as MSMEs, KVIC etc. and have been 
allowed price preference to a specified level.  For example, 358 products belonging to respective 
industry sectors are reserv ed for procurements from micro and small enterprises (MSEs) by 
state/central ministries/departments/PSUs.  Inst ructions relating to price preference/reservation 
for procurement of certain items/categories of suppliers are issued by certain ministries/departments such are D/o Public En terprises and M/o Micro, Small and Medium 
Enterprises.  WT/TPR/M/249/Add.1 
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  Malaysia 10: 
Report by the Secretariat (WT/TPR/S/ 249-04), page 40, paragraph 22 
The Central Board of Excise and Customs is authorized, by notification in the Gazette of India, to fix 
"tariff values" (reference prices) for any type of imported (exported) good.  At present, India uses 
"tariff values" to calculate customs duty applicable on  imports of, inter alia, palm oil and palmolein 
oil (crude and RBD), as well as crude soybean oil,  poppy seeds, and brass scrap.  According to the 
authorities, "tariff values" are revised every two we eks and are adjusted to align with international 
market prices;  however, "tariff valu es" for edible oil remain unchanged since 2006 (Table III.2). 
 Could India please elaborate on the reason for the use of "tariff values" to calculate customs 
duty for the relevant products, instead of the transaction value. 
 Could India please elaborate on the reason for not revising the tariff values for edible oil 
since 2006.  
Reply:  Tariff values have been notified for pa lm oils, crude soybean oil, poppy seeds and brass 
scrap, as these goods are prone to undervaluation.  Tariff values are computed on the basis of 
prevailing international prices of these good s as observed from the various reputed 
international journals and other publications. 
The tariff value system promotes greater uniformit y and certainty in assessment practice.  It 
checks undervaluation and thus acts as an im portant policy instrument for collection of 
appropriate amount of customs duty. 
The tariff values are neither arbitrary or fictit ious values nor minimum customs values.  As 
these values on identified goods are fixed on the ba sis of prevailing international prices, that is 
to say, the prices at which these goods are sold or offered for sale in the ordinary course of 
international trade under fully co mpetitive conditions, such values are not inconsistent with 
Article VII of the GATT 1994.  These values are in fact floating values and are frequently 
reviewed and revised so as to keep them closer to the transaction values under Article 1.1 of the 
CVA. 
The tariff value of edible oils is reviewed along with other goods that are subject to tariff values. MEXICO 
Mexico 1: 
Report by the Secretariat I.  Economic Environment (1) O verview:  Paragraph 2;  and  
I.  Economic Environment (3) Fiscal Policy:  Paragraph 13, 14 
Report by the Government 
II.  Economic Environment (6) Challeng es (ii) Fiscal Deficit:  Paragraph 37 
While we recognize that due to the effects of gl obal crisis India has not achieved the fiscal deficit 
reduction as scheduled, we wish to ask what measu res are being proposed in th e future to achieve this 
goal. WT/TPR/M/249/Add.1 
Page 214  
 
  Reply:  The Government of India has enumera ted the accelerated fiscal consolidation path 
through expenditure correction guided by the prin ciples of gradual adjustment from the fiscal 
expansion during the crisis period in 2008-09 an d 2009-10.  The Government is able to bring 
down the estimated fiscal deficit in 2011-12 to 4.6% of GDP.  Reduction in overall expenditure 
would be the key to the fiscal adjustment path in India.  As per the roadmap on fiscal 
consolidation, the fiscal deficit is projected to be brought down to 4.1% of GDP in 2012-2013 
and 3.5% in 2013-14.  In order to keep the overall expenditure under the estimated level, the following measures are proposed by the Government of India: 
 To control the growth of expenditure on s ubsidies and related items which is a major 
component, the Government has firmly established the practice of providing petroleum and fertilizer subsidy in cash instead of secu rities.  The Government has moved towards 
nutrient based subsidy (NBS) regime in fertilizer subsidy and with respect to 
rationalization of petroleum subsidy, it ha s already decontrolled the pricing of petrol. 
 To arrest diversion of other subsidized items like kerosene oil, and LPG the government 
will move towards direct transfer of cash s ubsidy to people below poverty line in a 
phased manner. 
 To determine the effective imbalance in th e revenue account which the government has 
to eliminate, better depiction of revenue deficit through "effective revenue deficit" is 
being used as a fiscal indicator from the current financial year, which factors the 
imbalance in revenue account owing to grants for creation of capital assets. 
 The FRBM rules prescribe a cap of 0.5% of GDP in any financial year on the quantum 
of guarantees that the Central Government can assume in a particular financial year which would put a limit on the stock of contingent liabilities and for better management of contingent liabilities the government guarantee policy has been framed which lays 
down the principles to streamline the liability management by the Government. 
 The Government policy towards borrowings to finance its deficit would be anchored on 
the principles of greater reliance on domestic  borrowings over external debt, preference 
for market borrowings over instruments carrying administered interest rates, 
consolidation of the debt portfolio and development of a deep and wide market for government securities to improve liquidity in secondary market. 
 On the revenue side, implementation of GST would help in further improving the 
compliance and thereby increase the overall indirect  tax collection.  Rationalization of 
tax structure through moderate levels and few rates, implementation of Direct Taxes Code (DTC) integrating all direct tax laws, widening of the tax base and reduction in 
compliance costs through improved tax administration, adoption of IT solutions and re-engineering the business processes would foster less intrusive tax system and would increase buoyancy in tax revenues and help in fiscal consolidation. 
Mexico 2: 
Report by the Secretariat II.  Trade Policy Regime:  Framework and Objectives (1) Overview:  Paragraph 4;  and 
II.  Trade Policy Regime:  Framework and Objecti ves (4) Investment Regime (ii) Foreign investment 
regime:  Table II.8 Sectors where FDI is prohibited, 2011  WT/TPR/M/249/Add.1 
 Page 215 
 
 
  We want to know the reasons why India does not al low foreign direct investment in some sectors or 
activities such as retailing, some real estate activ ities, development of tobacco and some agricultural 
activities 
Reply:  India follows a liberal FDI policy which dovetails with its national policy objectives, 
keeping in mind sensitivities and vulnerability.  The sectors open for FDI are kept under 
constant review. 
Mexico 3: Report by the Secretariat III.  Trade Policies and Practices by Measures (2) Measures Directly Affecting Imports (vi) Imports 
prohibitions, restrictions and licensing:  Para 53 
We want to know the reasoning of India for banning of import of several (brands of) mobiles and 
cellular phones 
Reply:  Import of mobile handsets without IMEI No. and CDMA mobile phones without 
ESN/MEID is prohibited due to security risk involved. 
Mexico 4: 
Report by the Secretariat 
III.  Trade Policies and Practices by Measures (2) Measures Directly Affecting Imports (vi) Imports 
prohibitions, restrictions and licensing:  Para 62 
The report states that 24 tariff lines are subject to restrictions based on their import price.  It also 
states that these minimum import prices are set ta king into account the domestic and international 
prices and quality products.  What are the technica l criteria for determining the quality of these 
products? 
Reply:  Minimum import price (MIP) is one of the criteria to ensure the quality. 
Mexico 5: Report by the Secretariat III.  Trade Policies and Practices by Measures (2) Measures Directly Affecting Imports (vi) Imports 
prohibitions, restrictions and licensing:  Para 66 
We want to know the criteria by which India allo ws only the ports of Chennai, Kolkata and Mumbai 
for import of new cars and only to Mumbai for used cars? 
Reply:  Import of vehicles are allowed at spec ified ports for better monitoring of imports. 
Mexico 6: Report by the Secretariat 
III.  Trade Policies and Practices by Measures (2 ) Measures Directly Affecting Imports (x) Sanitary 
and phytosanitary measures:  Para 119 WT/TPR/M/249/Add.1 
Page 216  
 
  The report notes that in 2006, India passed the stand ards and food safety La w.  However, regulations 
to implement this law have not been notified yet. 
Would we want to know the reasons for this  delay and plans to publish these regulations? 
Reply:  Food Safety and Standard Regulations, 2011 were notified vide Gazette  Notification 
dated 01.08.2011 by the Government of India and are available on FSSAI website http://fssai.gov.in.  The Regulations came into force with effect from 5.08.2011. 
Due time for consultations on the Draft Re gulation was provided as per WTO provisions.  
Mexico 7: 
Report by the Government 
II.  Economic Environment (6) Challenges (iii) Infrastructure:  Paragraph 43 
The report highlights the importance of infr astructure development for promoting economic 
development in India.  It highlights the role of private investment including foreign to achieve that 
goal.  We want to know the actions that have cont emplated by India for attracting foreign investment 
in infrastructure development of highways, airports, and telecommunications, among others. 
Reply:  India has a liberal FDI policy in the Infrastructure sector.  FDI policy in the sectors 
mentioned in the question is as follows: 
(i) FDI, up to 100%, under the automatic route is permitted in the development of 
highways. 
(ii) FDI, up to 100%, is permitted in airport projects.  This is fully on the automatic route 
for Greenfield projects.  For existing project s, it is on the automatic route up to 74% 
FDI and on the government route beyond 74% FDI (para 5.2.7.2.1 of "Circular 1 of 2011 
–
 Consolidated FDI Policy" ). 
(iii) FDI, up to 100%, is permitted in the manuf acturing of telecommunications equipment. 
(iv) FDI, up to 74%, is permitted in telecommuni cation services.  This is on the automatic 
route up to 49% foreign investment and on the government route beyond 49% and up to 
74% (para 5.2.23.1 of "Circular 1 of 2011 –  Consolidated FDI Policy" ). 
TRADE POLICIES BY SECTOR / 3) Services / ii) Financial Services), Banking, Legal and regulatory 
framework, commercial banks 
Additional questions 
Mexico 1: 
In accordance with the provisions of Paragraph 70 on Commercial Banks, "and foreign banks require 
a licence from the RBI to undertake banking operations in India.  An authorization is required for the 
opening of new branches by banks and for changes in th e location of existing branches, in accordance 
with the Branch Authorization Policy.  Sin ce 1 December 2009 Indian banks no longer require a 
licence from the RBI to open a branch in areas with a population below 50,000, subject to reporting." 
Qn. Mexico wants to know if the same rule app lies to foreign banks (and they too could open such 
branches in less populous areas).  WT/TPR/M/249/Add.1 
 Page 217 
 
 
  Reply:  The opening of branches by foreign banks,  existing and new, in India is subject to a 
limit of 12 branches in a year, as per India's commitments to WTO.  Therefore, the general permission granted to domestic scheduled commer cial banks is not applicable to foreign banks. 
TRADE POLICIES BY SECTOR / 3) Servi ces / iv) Transportation a) Shipping 
Mexico 2: 
According to Paragraph 138 of Shipping, says that "foreign vessels must obtain from the Directorate 
General of Shipping a license for a particular voyage  or a period (license for a specified period) for 
coastal trade.  This license is subject to the gran ting of a certificate of no objection from the Indian 
National Shipowners' Association." 
Qn. Mexico requests further explanation regarding th e criteria to be met by owners of foreign flag 
vessels to obtain this certificate, and to know if th e license and the certificate are the only distinct 
requirements that are required in resp ect of nationals. (Alt:  Are the same requirements to be met by 
Indian nationals as well). 
Reply:  The Director General of Shipping has been  empowered to issue licenses for Indian ships 
as well as for foreign ships.  A general licen se is issued under section 406 of the Merchant 
Shipping Act, 1958 for Indian vessels and vessels chartered by a citizen of India or a company, 
or a co-operative society.  Foreign flag vessels are granted a specified period license (SPL) under Section 406/407 ibid in the coastal trade of India subject to no-objection certificate issued by the 
Indian National Shipowners' Association (I NSA).  These licenses are granted under these 
sections and they shall be in such form and sh all be valid for such period as prescribed and 
further shall be subject to such conditions as specified by the Director General of Shipping, as 
per his guidelines issued vide SD Circular Nos.  2/2002 and 2/2007 as amended from time to time 
on the subject. 
Largely, the procedure for issue of such licens es are similar for Indian flag vessels as well as 
foreign flag vessels except to the exte nt that in the case of later: 
(i) A certificate from INSA is required. 
(ii) Besides, such licenses for foreign flag vessels are limited period – specific to the contract 
tenure involved. 
(iii) There are some variations in terms of fee st ructure prescribed for such licenses for 
foreign flag vessels vis-à-vis  Indian flag.  This is reflected in the SD Circular No. 2 of 
2010 issued vide No.SD-13/POL(3)/97 dated 4.2.2010. 
(iv) In the case of foreign flag vessels such licen ses are issued up to the time limit of a 
statutory certificate such as registry certific ate, international load line certificate, 
International oil pollution certificate, car go sea safety construction certificate etc. 
The MS Act, 1958, reserves cabotage to Indian flag vessels (Part XIV).  However foreign flag 
vessels are chartered if no suitable Indian flag vessels are available.  For this purpose 
no-objection certificates are required to be ta ken from the Indian National Shipowners' 
Association under the guidelines issued by the DGS,  as amended from time to time.  A foreign 
flag carrier is allowed to deliver cargo to several Indian ports. WT/TPR/M/249/Add.1 
Page 218  
 
  TRADE POLICIES BY SECTOR / 3) Services / iv) Transportation a) Shipping, Ports 
Mexico 3: In accordance with the provisions of Paragraph 144, "  All ports are owned by the Government, but 
may be publicly or privately administered and opera ted.  Foreign investment is allowed in port 
administration subject to conditi ons, which may be modified.  " 
Qn. Mexico wants to know what these conditions  are and in what circumstances can they be 
modified? 
Reply:  It may be clarified that foreign investme nt is allowed in port op erations and not in port 
administration, subject to the guidelines of Public Private Partnership (PPP) announced by the Government of India for major ports. 
In fact, with the opening up of the Indian economy, the Government of India has allowed 
private sector participation in major ports to infuse funds, induct latest technology, improve 
management practices and above all addition of  capacity.  Foreign direct investment up to 
100% is permitted for construction and maintenance of ports and harbours. 
To encourage private sector participation, the Ministry of Shipping has already put in place 
guidelines for private sector participation.  To  ensure uniformity in bidding documents, model 
request for qualification (RFQ), request for proposal (RFP) and model concession agreement 
(MCA) documents have been standardized and ad opted.  The Government of India constituted 
Public Private Partnership Appraisal Comm ittee (PPPAC) under the Chairmanship of 
Secretary, Department of Economic Affairs, Mi nistry of Finance to appraise the proposals 
under public private partnership (PPP) mode.  The tariff setting mechanism has also been 
modified with tariffs being set upfront by the Tariff Authority for Major Ports (TAMP) before 
the projects are bid out on a revenue sharing ba sis.  The PPP guidelines are subject to review 
and modifications in the future depending upon the changes in the port sector and economic 
condition of the country. 
Mexico 4: 
In paragraph 146 states that "The Ministry of Shipping drafted the Major Ports Regulatory Authority 
Bill 2011 to establish the Major Ports Regulatory Au thority (MPRA).  If this Bill is enacted, the 
MPRA will replace the TAMP, but not with regard to  tariff fixation.  The Bill proposes that tariff 
fixation would be undertaken by the respective port authorities under guidelines issued by MPRA.  
The MPRA would also be responsible for monito ring performance of port authorities/private 
operators, and resolving disputes between port authorities, private operators, and users." 
Qn.  Mexico wants to know if the said Au thority would also settles disputes between port 
authorities and private operators with foreign partici pation under the same conditions as for Indian 
nationals. 
Reply:  Yes, MPRA in the present draft form envi sages no discrimination with regard to dispute 
resolution between port authorities and private operators with foreign participants (investors) 
and Indian Investors.  However, the Major Ports Regulatory Authority Bill is yet to be finalized. 
Mexico 5: In Paragraph 148, According to authorities, pr ivate companies, both foreign and domestic, can 
provide port services, with the exception of pilotage, "protection" and security.  WT/TPR/M/249/Add.1 
 Page 219 
 
 
  Qn. Mexico wants to have more details about  the definition and scope of the above exceptions. 
Reply:  Public private partnership (PPP) guidelines of Ministry of Shipping, Government of 
India issued in 1996 clearly indicate the details  of the areas of private sector participation.  
Pilotage, protection and security are the areas, which are sensitive in nature from internal 
security point of view and governed by port ad ministration.  As indicated earlier, foreign 
investment is allowed in port operati on and not in port administration. 
Mexico 6: Paragraph 149 states that under the National Mar itime Development programme infrastructure in 
both major and minor ports develop through partnersh ips between the private and public sectors and 
Indian private partners are fully exem pt from income tax for 10 years. 
Qn. Does the Government of India plan to either rem ove this incentive in the future or extend it to 
foreign private partners as well? 
Reply:  According to existing policy, tax incentive/tax holiday is available for the infrastructure 
sector.  In order to become eligible for tax incentive/tax holiday, the investment made in 
infrastructure shall be considered irrespective of whether Indian investors or foreign private 
partners. 
TRADE POLICIES BY SECTOR / 3) Servi ces / iv) Transport b) Air Transport 
Mexico 7: 
According to Paragraph 157, 100 per cent of FDI by  the automatic route for new airport projects are 
allowed, similarly 100 per cent FDI is allowed for ex isting projects.  Investments in excess of 74 per 
cent need prior approval and are subject to sectoral  regulations notified by the Ministry of Civil 
Aviation and Safety Certification (Table AII.4).  Private domestic partners of airport projects receive 
a total tax exemption for 10 years. 
Qn. Mexico wants to know about the main objec tive of this incentive and if there are plans to 
extend this incentive to foreign private partners. 
Reply:  The main objective of the tax exempt ion on profits is to promote development of 
infrastructure facilities.  The incentive is  available to any business undertaking which 
undertakes an airport project.  The information regarding policy on ownership and investment structure of the business as regards foreign investment may be accessed from the website of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry:  
www. dipp.nic.in.   
Mexico 8: 
In Paragraph 160, "handling (other) services are ope n to FDI, up 74 per cent, subject to sectoral 
regulations notified by the Ministry of Civil Avia tion and a security certificate.  However, FDI is 
permitted only up to 49 per cent through the automatic route.  FDI in excess of 49 per cent requires 
the approval of the Foreign Investment Promotion Board.  Furthermore, NRIs may invest up to 100 
per cent in the handling.  " 
Qn. Mexico wants to know the criteria that the Foreign Investment Promotion Board has to 
approve FDI over 49 per cent. WT/TPR/M/249/Add.1 
Page 220  
 
  Reply:  FIPB, as an inter-ministerial body, wo uld seek comments of concerned administrative 
departments, including Ministry of Civil Aviati on and based on the inputs received from them, 
would make a recommendation for approval.  The details are at www.dipp.nic.in. 
Mexico 9:  
Paragraph 164 indicates that India has signed bilat eral air services agreements with 108 countries to 
improve international air link.  There are 74 foreign ai rlines from 51 countries that operate flights to 
and from India, and operate 1486 international fligh ts weekly.  India maintains a limited open skies 
policy.  In 2008, in order to promote tourism, India liberalized operation of charter flights to and 
from India, allowing the 'all-inclusive packages' and eliminating other restrictions. 
Qn. Mexico wants to know the approximate vo lume of passengers who have benefited by this 
liberalization. 
Reply:  International traffic to  and from India is as follows: 
Year  International traffic to/from India  
2003-04  14,628,355  
2004-05  17,266,915  
2005-06  20,165,244  
2006-07  23,371,684  
2007-08  27,173,186  
2008-09  28,933,903  
2009-10  32,075,654 
TRADE POLICIES BY SECTOR / 3) Services / iv ) transport c) Land Transport, Rail Transport 
Mexico 10: Paragraph 176 states that in order to address the deficiencies in infrastructure, in 2009, the 
Government launched Vision 2020 to extend and modern ize fixed rail infrastructure and rolling stock, 
improve freight and passengers (eg through corridor s reserved for freight and high-speed corridors), 
and improve equipment reliability to eliminate a ccidents and failures.  Vision 2020 will be financed 
by public and private funds.  The objective of Vi sion 2020 is to improve the connection between the 
railways and the major ports in India, so that by 2020 about 50 per cent of total cargo in India is carried by rail. 
Qn. Mexico wants to know how to obtain mo re details on the progress in infrastructure 
connecting major cities with major seaports in the framework of the "Vision 2020". 
Reply:  Vision 2020 was prepared by Indian Railw ays to chalk out a road map for future.  The 
work has already started to provide connectivity to major ports, cities a nd to ease out congested 
routes.  Many works have already been sancti oned and are in progress.  More works will be 
proposed in the years to come subject to fe asibility and availability of resources.  Seven port 
connectivity projects are already in progress for var ious ports on eastern and western coasts of 
India.  Six projects of private port connectivity are likely to be taken up in future under PPP initiatives.  These projects are also on eastern  and western coasts of India.  The work of 
dedicated freight corridor is also going on and is  likely to be completed by 2017.  The dedicated 
freight corridors are being built on north to east  and northwest alignment of Indian Railways.  
Similarly, prefeasibility studies for high speed passenger corridors are going on for six projects 
on Indian Railways.  WT/TPR/M/249/Add.1 
 Page 221 
 
 
  Mexico 11: 
In Paragraph 179, states that since 2007 India has allowed 'authorized' operators to use the network 
of Indian Railways to provide for transportation of  goods in accordance with the Rules of Indian 
Railways (permission for the operation of trains co ntainers in the Indian Railways) in 2006, which 
allows private companies to use licensed contain er trains on the railway network for both domestic 
traffic and for import or export.  Companies must  register as Indian companies under the Companies 
Act 1956 and have a minimum annual turnover (1. 000 crore) before applying for a license. 
Qn. Mexico seeks more details on the definition of 'authorized or permitted' companies and wants 
to know if a foreign company can use the network of  Indian Railways, to provide transport of goods, 
after constituting a company in accordance with the provisions of the Companies Act 1956 in 
partnership as a Joint Venture with other companies in India, or its wholly owned subsidiaries? 
Reply:  As per the provisions of Indian Railw ays (permission for operators to move container 
trains on Indian Railways) Rules, 2006, any person individual or a joint venture or a company registered under the Companies Act, 1956 shall be e ligible to obtain the permission to operate 
container trains under these rules.  Further, the a pplicant shall have experience in any of the 
following activities, namely: transport, tr ade and commerce, infrastructure, handling of 
goods/cargo, port/land terminal operations, logistics, warehousing, manufacturing and/or 
leasing . 
Mexico 12: 
In Paragraph 65 of section c) import quotas in 20 10 India could impose quantitative restrictions by a 
notification in the Gazette of India, on import of goods that cause serious injury to the domestic 
industry as a result of safeguards investigations (section viii). 
Qn. What is the impact or distortion of competiti on when such quantitative restrictions on imports 
are placed?  What other measures are be ing considered to strengthen these sectors? 
Reply:  India has so far not imposed any quantitative restrictions as safeguard measures under 
the Safeguard Agreement. 
Mexico 13: 
In Paragraph 68 of section vii) State trading:  India still performs state-trading or canalizes some 
agricultural products (ie, certain cereals, copra and coconut oil), urea and petroleum (Table III.11).  
The DGFT allows seven state trading enterprises to trade in these products.  However, according to 
the Foreign Trade Policy 2009-2014, when these companies cannot supply the market, the DGFT may 
allow other companies to import any canalised good s.  The Indian Oil Corporation Ltd. still has a 
monopoly on natural gas imports (HS 2710.11.20), other gasoline (HS 2710.11.90) and light gas oil 
(HS 2710.19.40), while other state enterprises and pr ivate companies can market other hydrocarbons 
(Table III.11). 
Qn. What are the mechanisms the government u ses to regulate companies authorized to sell 
agricultural products that are subject to the policy of canalization? 
Reply:  Any goods, for which exclusive or spec ial privileges for import  or export has been 
granted to STE(s), the STE(s) are required to make any such purchases or sales involving imports or exports solely in accordance with commercial cons iderations, 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 WT/TPR/M/249/Add.1 
Page 222  
 
  opportunity, in accordance with customary business practices, to compete for participation in 
such purchases or sales.  This is one of the co nditions stated in paragraph 2.11 of the Foreign 
Trade Policy, 2009-14, which is available at the we bsite http://dgft.gov.in.  Amongst others, they 
are monitored and regulated by the concerned ad ministrative departments/ministries and the 
auditing agencies. 
Mexico 14: 
Paragraph 75 in sub-section viii) mentions under C ontingency measures that "The DGAD determines 
the margin of dumping for each exporter or prod ucer, after which the Department of Revenue may, 
within three months since the publication of the fi nal determination, impose the antidumping duty by 
notification in the Official Gazette. 
Qn. Are only the final determinations publishe d in the Official Gazette or are notifications 
published even at commencement or wh en interim measure are imposed? 
Reply:  The initiation of anti-dumping invest igations, preliminary findings and final findings 
are all published in the Official Gazette .  Similarly in cases of review investigations also, 
initiation of review and its final findings are published in the Official Gazette . 
Mexico 15: 
In section b) of Safeguard's legislative and admi nistrative framework, M exico wants to know: 
Qn. Is there any conflict between India's Safe guards Legislation and the Competition Law due to 
measures to safeguard domestic production? 
Reply:  There is no conflict between India's safeguard legislation and the Competition Law due 
to any safeguard measures taken as per the WTO Safeguards Agreement. 
Mexico 16: 
The Director General (Safeguards), Department of Revenue, is responsible fo r hearing petitions and 
conducting investigations relating to safeguards.  It is also responsible for making recommendations 
under the Regulation on the Trade Agreement betw een India and Singapore (Safeguard measures) 
2009.  The request for investigation must be subm itted in writing to the Director General by the 
affected domestic industry or on its behalf.  The Director General may also initiate an investigation 
on its own based on information received from a Comm issioner of Customs.  Under the Regulation on 
Safeguarding Rights of 1997, when imposition of safeguard measures is requested for more than a 
year, data should be provided about the measures ta ken or planned for adjus ting to competition from 
imports, including information about the process of progressive liberalization.  Thereafter, the 
Director General may initiate an investigation to det ermine the existence of serious injury or threat of 
serious injury to domestic industry caused by increased  imports of a product in large quantities, in 
absolute terms or in relation to domestic productio n.  The investigation must be completed and public 
be notified within eight months from the date of initiation (or the period authorized by the central 
government).  The proceedings of the Permanent B oard of Safeguards are not in the public domain, 
and it communicates its recommendation to the Mi nistry of Finance for safeguard duties and to the 
Minister of Commerce for imposition of quantitative restri ctions.  If after the investigation, the central 
government concludes that the imports of a produc t in India are in such increased quantities and 
under such conditions that cause or threaten serious  injury to the domestic industry, it may impose a 
safeguard duty on that product, by notification in the Official Gazette.  WT/TPR/M/249/Add.1 
 Page 223 
 
 
  Qn. Since only the final determination is published, how can a country present evidence or 
arguments during the investigation? 
Reply:  India makes notifications to the Comm ittee on Safeguards re garding initiation of 
investigation, preliminary determination, final determination and decision to apply or extend a 
safeguard measure as per the requirements of Article 12 of Safeguard Agreement.  As per 
Rule 6 of Safeguard Duty Rules, the Investigating Authority provides sufficient opportunity to 
all the interested parties to make written and oral submissions during the course of the investigation. 
Mexico 17: In paragraph 101 to part ix) Standards and Technical Regulations:  As on March 31, 2010 India had 
18,623 Indian standards and about 84 per cent were  harmonized with international standards (Table 
III.12).  This reflects the priority given to ma ke Indian standards harmonized with international 
standards or consistent therewith, in order to keep  pace with the growing integration into the global 
economy. 
Qn. Can one check the rules on the Internet? 
Reply:  It may be clarified that out of tho se Indian Standards for wh ich corresponding ISO or 
IEC standards exist, about 84% are harmonized (not 84% of 18623 Indian standards).  Thus about 4800 Indian standards are harmonized to ISO or IEC standards.   
There are no such rules.  However, it has b een mentioned in the BIS Standards Formulation 
Manual. 
Mexico 18: 
In Paragraph 102, paragraph ix) Standards and Technical Regulations, Indian Standards are 
formulated according to the procedures establishe d in the BIS Rules 1987.  The Technical Committee 
discusses the preliminary draft st andard developed by expert bodi es (usually members of the 
committee).  When a technical committee approves th e draft, it is distributed to stakeholders and 
posted on the BIS website for comment s to be submitted within two months.  The technical committee 
finalizes the draft standard by taking into acco unt the comments received.  The adopted standard its 
revisions, amendments and repeals a re published in the Official Gazette. 
Qn. Are the draft standards are also published in the Official Gazette? 
Reply:  No, the draft standards are not published in the Official Gazette . 
Mexico 19: In paragraph 190 to sub-section ii) According to the note the on role of state enterprises (other than 
state trading enterprises) and disinvestment, at the end of March 2010 in India 217 of the 249 Central 
Public Sector enterprises were functioning (Table AIII.10), of which 32 were being established and 59 
were "sick" or operating at a loss.  The central pub lic sector enterprises continue to play an active 
role in the economy and account for a significan t portion of the market in various sectors and 
subsectors such as oil and mini ng, power generation and transmission of electricity, nuclear power, 
heavy engineering, the aviation industry, the public storage and distribution, shipping, insurance and 
telecommunications. WT/TPR/M/249/Add.1 
Page 224  
 
  Qn. What measures are being considered to prom ote competition in sectors being subjected to 
privatization? 
Reply:  The Government has made a clear co mmitment to empowering the CPSEs and their 
managements.  It was recognised that public enterprises could not compete effectively with private entrepreneurs without freedom to func tion and operate commercially.  Thus, the 
concept of Navratna  and Mini-Ratna  was introduced to provide greater delegated authority, 
both financial and managerial and to give them  greater autonomy to compete in the global 
market.  The Government established the Maharatna  status in 2009, which raises a company's 
investment ceiling from Rs 1,000 crore to Rs 5, 000 crore.  The boards of directors of public 
sector enterprises have been professionalised.  
Mexico 20: 
In Paragraph 202, in sub-section iii) Competition Poli cy, it is stated that the Competition Act of 2002 
contains provisions on anti-competitive agreem ents, abuse of dominant position and on mergers and 
acquisitions.  The Act prohibits anticompetitive agr eements concerning the production, stockpiling, 
acquisition or control of goods or provision of ser vices.  These agreements include cartels, price 
fixing, production limiting and dividing up of markets or agreements between manufacturers and 
distributors.  However, rules make an exception to this prohibition when agreements emphasize 
efficiency.  There have been no such case during the reporting period.  The law also recognizes 
intellectual property rights, and to facilitate its protection supports reasonable restrictions imposed 
by their holders.  Agreements concerning the produ ction, supply, distribution and control of goods 
and services for export, although they may have cons iderable negative effects on competition, are 
exempt from the ban. 
Qn. What are the reasons for not prohib iting anticompetitive agreements concerning the 
production, supply, distribution and control of goods and services for export?  Are there such exclusions in other sectors of the economy? 
Reply:  In the very preamble of the Competit ion Act, the Competition Commission of India has 
been empowered to prevent practices having ad verse effect on competition, to promote and 
sustain competition in markets, to protect the interest of consumers and to ensure freedom of 
trade carried on by other participants in market s, in India.  Since the export of goods and 
services would be affecting markets in foreign co untries and not in India, hence the Competition 
Commission of India cannot take action in those matters as they fall outside India.  However, 
other jurisdictions can take action if they find any violation of their respective acts. 
Mexico 21: 
In Paragraph 207, sub-section iii) Competition Policy,  it is pointed out that the Competition Act of 
2002 covers all the business activities of the entities lin ked to the Government.  However, special 
exemptions may be granted for reasons of safety or  public interest or obligations under international 
treaties, agreements or conventions, and when a company meets sovereign functions on behalf of 
central government or a state government.  No an titrust exemptions apply to the Central Public 
Sector enterprises, including in price preferences or in acquisitio ns.  The absence of such express 
exemption is a positive element of the Competition Act,  as are references to th e Commission's role in 
promoting competition.  However, the OECD notes that the Act does not impose any obligation on 
government agency to refer matters to the Commission (in the promotion of competition), and that the 
Commission's opinions are not binding. 
Qn. Has India considered including provisions  in the Competition Act which empowers the 
Competition Authority so that its advice to other government agencies are made binding?  WT/TPR/M/249/Add.1 
 Page 225 
 
 
  Reply:  Similar provisions are there even in the Acts of other countries/jurisdictions.  The 
government agencies are independent bodies.  Ho wever, the Government takes decision in 
totality. 
NEW ZEALAND  
Tariffs  
New Zealand 1: 
Report by the Secretariat (WT/TPR/S/249):pg xi, para 12: 
New Zealand welcomes India's ongoing unilateral re ductions in tariffs.  The report notes that the 
average tariff line for WTO agricultural products is  33.3%, which is significantly higher than its 
average for WTO non-agricultural productions (8.9%) .  While the report also states India considers it 
necessary to apply higher tariffs to agricultural produc ts due to the strategic importance of the sector, 
does India plan further unilateral tariff reductions in  the agricultural sector in the longer-term to 
align them more closely to non-agricultural products? 
Reply:  Food security and livelihood security are primary considerations for India.  India has 
unilaterally reduced its applied tariffs on many agr icultural items from time to time.  India also 
undertakes temporary tariff reductions on a case-to-case basis whenever the domestic 
production of essential commodities falls signif icantly on account of drought or other natural 
calamities. 
New Zealand 2: Report by the Secretariat (WT/TPR/S/249):  pg 44, par a 29:  Non-ad valorem rates apply to 690 tariff 
lines, of which five are specific rates, while 685 a re alternate rates affecting textiles and clothing.  
The report notes that the use of specific rat es can increase considerably protection for certain 
products, in some cases to around 600%.  Is Indi a considering changing non-ad valorem tariffs to ad 
valorem in the interests of greater transparency? 
Reply:  India is a demandeur of tariff simplification and less than 6% of its tariff lines have 
specific duty, which compares well with many other members. 
New Zealand 3: 
Report by the Secretariat (WT/TPR/S/249):  pg 132 (paras 20-22) and pg 175 (paras 134-137):  New 
Zealand notes India's application of a range of  additional duties and charges on imports which are 
intended to be in line with internal taxes charged on domestically manufactured products.  
New Zealand also notes that India is working to introduce a Goods and Services Tax (GST).  New 
Zealand is interested to know what internal ta xes the GST will replace, and whether any of the 
additional duties currently charged at the border (s uch as the additional customs duty, the special 
additional duty, the education cess and the secondary and higher education cess) will be simplified as a result of the move to GST?  And, if so, whic h additional duties will be simplified?  New Zealand 
would also like to know when th e GST is likely to be introduced. 
Reply:  Since GST is likely to affect the taxatio n system of both the Centre and the States, its 
design and structure is being finalized through a process of discussion between the two.  These 
discussions are still in progress.  GST is likely to replace the central taxes, viz. central excise 
duty, excise duties levied on medicinal and toilet preparations, service tax, additional duty of customs (CVD), special additional duty of 4% (special CVD) and surcharges and cesses.  WT/TPR/M/249/Add.1 
Page 226  
 
  Amongst the state taxes that will be subsumed, th e important ones are:  VAT/sales tax and state 
cesses and surcharges. 
The GST would apply to imports, but the im ported goods would no longer attract CVD and 
special CVD. 
New Zealand 4: 
Report by the Secretariat (WT/TPR/S/249):  pg 179, para 147:  New Zealand would be interested in 
clarification about which "restricted items" referr ed to in paragraph 147 have an automatic import 
licensing system and which have a non-automatic import licence?  If any products have a non-automatic licensing system, New Zealand would be grateful for an explanation about the approval process for the non-automatic licences. 
Reply:  India will be notifying the same shortly.  Details of the import restrictions are stated in 
the ITC(HS) classification book and paragraphs 2.10, 2.31 to 2.42 of the Handbook of Procedure, Volume 1.  These documents a re available in the website:  dgft.gov.in. 
New Zealand 5: Report by the Secretariat (WT/TPR/S/249):  pg 172,  para 129:  Does the Directorate General or 
Foreign Trade (DGFT) automatically approve applic ations by eligible entities to import product 
under the TRQs?  If an application is not automa tically approved, we would be grateful for an 
explanation about the criteria used in assessing an app lication.  Have any applications by an eligible 
entity to import product under India's TRQs ever been turned down and if so on what basis? 
Reply:  List of eligible entities for allocation of quota have been stated in paragraph 2.59.1 of the 
Handbook of Procedure, Volume I and is availabl e in the website:  http://dgft.gov.in.  All 
eligible entities are eligible to avail quotas as  per request of applicants received and they may 
make application to DGFT in the prescribed form at.  Completed application forms along with 
prescribed documents must reach on or before 1 Ma rch of each financial year preceeding to the 
year of quota.  Imports have to be completed before 31 March of financial year i.e. consignments must be cleared by customs auth orities before this date.  No such application 
has been turned down in the recent past. 
New Zealand 6: Report by the Secretariat (WT/TPR/S/24 9):  pg 256, para 410 notes that initially sugar was only able 
to be imported under India's TRQ by four com panies but this restriction was removed.  New Zealand 
would like to know on what basis the restricti on on the number of eligible entities was removed? 
Reply:  Sugar is now freely importable and th e customs duty has been brought down to NIL. 
Inflation  
New Zealand 7: 1. Report by the Secretariat (WT/TPR/S/249):  pg 129, para 10:  The report notes an 
Inter-Ministerial group was set up in early 2011 und er the Ministry of Finance,  to review the overall 
inflation situation, with particular reference to prim ary food articles.  Is there a time frame for when 
the group may make recommendations and will the recommendations be publicly available? 
Reply:  The Inter-Ministerial Group (IMG) wa s constituted on 2 February 2011, under the 
Chairmanship of the Chief Economic Adviser, "t o review the overall inflation situation, with  WT/TPR/M/249/Add.1 
 Page 227 
 
 
  particular reference to primary food articles and suggest corrective measures".  Based on the 
deliberations in the first four meetings of the IM G, a position paper (Position Paper No. 1) has 
been put on the Ministry of Finance website (http://www.finmin.nic.in/WorkingPaper/ index.asp). 
Non Tariff Measures  
New Zealand 8: 
Report by the Government of India (WT/TPR/G/249):  pg 22, para 72: 
New Zealand shares India's concern about the dang er of non-tariff measures (SPS/TBT) increasing.  
We look forward to continuing to work constructively with India's SPS competent authorities to ensure measures taken to protect human, animal or plant life or health are based on scientific 
evidence and are applied in a manner that is least tr ade restrictive.  We note that the WTO report, 
pg xii, para 17:  states that in 2006 India passed  the Food Safety and Standards Act to consolidate 
separate laws and to establish an institution to deal  with SPS issues.  New Zealand understands that 
as a result of this Act, the Food Safety and Standards  Authority of India (FSSAI) has been established 
and that the Food Safety and Standards Regulati ons 2011 have just been published.  New Zealand 
would be grateful for India's confirmation that th is is the case and advice on whether there are any 
notifications outstandi ng in this regard. 
Reply:  Food Safety and Standards Rules 2011 an d Food Safety and Standards Regulation, 2011 
were notified vide Gazette  Notification dated on 5 May 2011 and 1 August 2011 respectively by 
the Government of India and are available on the FSSAI website:  fssai.gov.in.  The FSS Act 
came into effect from 5 August 2011. 
Government Procurement 
New Zealand 9: What steps has India taken towards developm ent of professional procurement capability in 
government agencies? 
Reply:  The Ministries and Departments have been delegated full powers to make their own 
arrangements for procurement of  goods and services as per the guidelines content in the GFRs  
A Ministry or Department may also project its indent to the Central Purchase Organisation (e.g. DGSandD), who have the dedicated expertise in the relevant technical fields.  Improvements in the procurement procedures and systems is an ongoing exercise.  
New Zealand 10: Report by the Secretariat (WT/TPR/S/249):  pg 235, pa ra 322:  The report notes that "rate contracts" 
are concluded by inviting bids from suppliers,  including foreign suppliers and their Indian agents, 
registered with the DGSandD, the National Small Industries Corporation (NSIC) and the Ministry of Defence.  What is the registra tion procedure for foreign suppliers? 
Reply:  The detailed procedures and guidelines for registration of suppliers including foreign 
suppliers with DGSandD is given in DGSandD  website www.dgsnd.gov.in link registration 
forms and guidelines.  Ministry of Micro, Sm all and Medium Enterprises (MSME), through 
National Small Industries Corporation (NSIC), registers domestic micro and small enterprises 
(MSEs). WT/TPR/M/249/Add.1 
Page 228  
 
  New Zealand 11: 
Report by the Secretariat (WT/ TPR/S/249):  pg 233, para 319, regar ding selection of bidders, notes 
that "only the winning bidder is informed of the result  of the bid evaluation.  The reasons for selecting 
bidders are recorded but not disclosed".  As a he althy culture of transparency in procurement as well 
as supplier development would be supported by re quirements for publication of contract award 
information and debriefing of unsuccessful suppliers on request, we strongly urge India to include 
such measures in its procurement reforms. 
Reply:  The suggestion has been noted, howe ver most tenders are opened publicly and the 
participating suppliers are present at the bid opening. 
New Zealand 12: 
Report by the Secretariat (WT/TPR/S/249):  pg 23 7, para 333:  New Zealand notes the progress by 
DGSandD on developing the e-procurement system to  promote efficiencies and transparency;  will 
India continue to develop this to promote a stand ardised procurement system across all levels of 
government? 
Does the DGSandD use a programme/website to advertise all GP contracts as part of its 
E-Government mandate?  Is procurement of p ersonnel/services covered by E-Government mandates? 
Reply:  As per Rule 150 of the GFR, 2005, an organisation having its own website should also 
publish all its advertised tender enquiries on the website and provide a link with National 
Informative Centre (NIC) website.  DGSandD has its own e-procurement portal. 
New Zealand 13: Report by the Secretariat (WT/TPR/ S/249):  pg 235, para 325: 
Does the Indian Government envisage a need in the near future to phase out preferential treatment of 
SMEs in order to facilitate eventual accession to the GPA? 
Reply:  Carve outs and S and D fl exibilities are available under GPA. 
Technical Regulations and Standards 
New Zealand 14: 
Report by the Secretariat (WT/TPR/S/ 249):  Standards:  para 193-194: 
In paragraph 193, it states that about 84% of th e 18,623 Indian standards are harmonised with 
international standards.  This means that almost 3,000 Indian standards are unique.  Paragraph 194 
states that most Indian standards are voluntary. 
 Could India provide a breakdown of these statistics by sector?  In which sectors are 
standards most and least harmonised? 
 We would like to know approximately how many of these unique standards are mandatory 
and how many are voluntary. 
Reply:  It may be clarified that out of tho se Indian Standards for wh ich corresponding ISO or 
IEC standards exist, about 84% are harmonized (not 84% of 18623 Indian standards).  In actual about 4800 Indian standards are harmonised to ISO or IEC standards.  WT/TPR/M/249/Add.1 
 Page 229 
 
 
  The Indian standards have been categorized into 14 broad sectors.  The number of Indian 
standards harmonized for each of these sectors is given in Annex 1 (file attached). 
Annex 1 
Harmonization status (as on 31 March 2011) 
Sectors  No. of Indian standards harmonized with ISO/IEC  
Civil engineering  69 
Chemical  108 
Electro-technical  681 
Food and Agriculture  223 
Electronics and information technology  1216  
Mechanical engineering  251 
Medical equipment and hospital planning  178 
Management and systems  83 
Metallurgical engineering  206 
Petroleum, coal and related products  342 
Production and general engineering  723 
Transport engineering  336 
Textile  354 
Water resources  51 
Total  4821 
New Zealand 15: 
Report by the Secretariat (WT/TPR/S/249):  Certific ation and conformity as sessment:  para 197: 
BIS is India's national certifying body, according to  paragraph 197.  It appears that it is not 
accredited as a certification body, however – the N ABCB website states that accreditation as a 
product certification body was withdrawn at BIS's request in March 2008. 
 We would like to know why BIS withdrew from this quality assurance framework. 
 In lieu of accreditation against international standards, what mechanisms has the Indian 
government put in place to ensure the competence and quality of BIS's certification scheme? 
Reply:  BIS never sought accreditation for its product certification scheme from any 
accreditation body. 
BIS is a statutory body under an Act of parliament for the purpose of standardization and 
certification.  BIS adheres to the prescribed statutory mechanism, which is based on 
international standards, to ensure the competence and quality of its certification scheme. 
New Zealand 16: Report by the Secretariat (WT/TPR/S/249):  para 198: 
The BIS product certification scheme allows some par ticipation by foreign producers, as described in 
paragraph 198.  They must be assessed and licensed by BIS.  It does not appear that there is any 
provision for recognising foreign certification bodies as competent to certify that the requirements of 
relevant standards and technical regulations have b een met.  In particular, there is no reference to 
use of international systems of accreditation – i.e. recognising or designating certification bodies WT/TPR/M/249/Add.1 
Page 230  
 
  accredited under the umbrella of the peer reviewed IAF
6 multilateral recognition arrangement 
(MLA). 
 We would appreciate hearing why India do es not recognise foreign certification bodies 
through relying on the assurances of co mpetence provided by the IAF system. 
 In the context of steadily increasing interna tional trade, is India considering moving to rely 
on the IAF system? 
Reply:  As per provisions of BIS Act, 1986, the statutory powers of granting a licence to use the 
standard mark rests with BIS on ly.  However, provisions exist in the BIS Act to recognize 
agents for carrying out inspection and/or testing activities. 
New Zealand 17: Report by the Secretariat (WT/TPR/ S/249):  para 199, 200, 203: 
On the same theme, the BIS product certification scheme, as described in paragraphs 199-200 and 
203, appears to require laboratory testing of produc ts in Indian laboratories only.  Paragraph 199 
states that India recognises foreign laboratories under the provisions of the BIS Act 1986.  We found 
lists of recognised laboratories on the BIS website, but all were located in India. 
 We would appreciate receiving a list of forei gn laboratories that have been recognised. 
 We would also like to receive the criteria that they were required to meet in order to be 
approved. 
Reply:  Till date, no foreign laboratory has filed an application for recognition under BIS Lab 
Recognition Scheme.  Any lab that qualifies the criteria set by the Lab Recognition Scheme 
(LRS), can apply to BIS and after satisfactory  audit by BIS, recognition can be granted to 
foreign lab also. 
Criteria for recognition of laboratories by BIS are available on BIS website (www.bis.org.in). 
New Zealand 18: 
Report by the Secretariat (WT/TPR/S/249): 
The BIS scheme does not appear to provide for recogn ition of the competence of foreign laboratories 
through reliance on the peer reviewed ILAC7 arrangement among laboratory accreditation bodies 
worldwide. 
 As above, we would appreciate hearing why India does not recognise foreign laboratories 
through relying on the ILAC system, and whether it is considering such a move in the interest 
of facilitating trade. 
Reply Accreditation is one of the requireme nts of the BIS Lab Recognition Scheme.  
Accreditation by signatories to APLAC/ILAC is acceptable. 
                                                      
6 IAF is the International Accreditation Forum. 
7 ILAC is the International Laboratory Accreditation Co -operation.  WT/TPR/M/249/Add.1 
 Page 231 
 
 
  New Zealand 19: 
Report by the Secretariat (W T/TPR/S/249):  para 201- 203: 
The BIS laboratory certification scheme appears to  sit beside the NABL laboratory accreditation 
system.  The NABL is internationally recognised by APLAC8 (and thus ILAC) as meeting the 
requirements of an accreditation body (interna tional standard ISO/IEC 17011) and its laboratory 
accreditation system is in accordance with in ternational standard ISO/IEC 17025 (paragraphs 
201-202).  BIS has a separate recognition scheme for l aboratories that is 'in line with' ISO/IEC 17025 
(paragraph 203), which appears to partially replicate th e accreditation scheme run by NABL. 
 We would like to know what the relationship betw een the two schemes is;  in particular, what 
degree of replication is there in the BIS scheme of the NABL scheme? 
 We would like to know what additional assessment against ISO/IEC 17025 is required for BIS 
'recognition' for a laboratory that already  has NABL accreditation to ISO/IEC 17025, and 
what value India believes the additional layers of assessment and surveillance add. 
Reply:  NABL accreditation is test wise.  BIS recognition is generally product wise.  Sometimes 
a labl may not have all tests for a product covered under their accreditation so BIS may undertake additional assessment.  BIS Lab Reco gnition Scheme is a scheme to support BIS 
product certification while NABL is the accreditation body. 
NORWAY 
Please find below questions from Norway on the occa sion of the Trade Policy Review of India.  All 
questions relate to the Secretariat report. 
Norway1: 
III.  Trade Policies by Measure: 
III. 2.i – Customs Procedures, page 37, para 12: 
According to the text, India Customs grants special clearance pro cedures under the Accredited 
Client`s Programme (ACP) to importers with a good track record and complying with the qualifying 
criteria, allowing them to self-assess their consignm ents with no need for Customs examinations.  Has 
India considered applying the same clearance proce dures to exporters, in order to enable exporters to 
make a self-declaration for instance on the origin of their consignments. 
Reply:  The Risk Management System has not b een launched on the export side.  The export 
RMS will be launched shortly.  It is expected that the Accredited Client's Programme will be 
introduced for exports aft er the launching of RMS. 
As for the question whether exporters could self-d eclare the origin of their consignments, it is 
not possible to predict decisions that might be taken in future. 
Norway 2: 
III. 2.i – Customs Procedures, page 42, para 26: 
According to the text, India does not apply non-p referential rules of origin.  Does this mean that 
India does not trade with countries who require a non-preferential "certificate of origin" ("made 
                                                      
8 APLAC is the Asia -Pacific Laboratory Accreditation Cooperation, the regional body within ILAC. WT/TPR/M/249/Add.1 
Page 232  
 
  in....") on certain products?  And does the Chamber of Commerce in India not issue those 
certificates upon request by traders? 
Reply:  India does trade with countries which require a non-preferential certificate of origin.  
These certificates are issued by the DGFT and its field offices, designated chambers of commerce, export promotion councils etc.  A comp lete list of agencies is given in Appendix 4C 
of the Foreign Trade Procedures (http://dgft.gov.in/).  
Norway 3: III. 2.iv – Tariffs, page 43 para 27 
Exports to India are subject to the standard tariff as well as to an additio nal duty and a special 
additional duty.  Not only does this constitute an add itional tariff burden on imports to India, it also 
makes it complicated for traders to determine the applied duty on their product as several customs 
and excise tax schedules must be consulted.  In additional it seems that the levels of duty are liable to change throughout the year.  Does India have any intention of simplifying and streamlining these 
procedures in order to facilitate trade? 
Reply:  The additional customs duty and special additional duty are in the nature of charges 
equivalent to internal taxes applied at the border in order to provide level playing field for the 
domestic industry. 
The tariff structure has been simplified consider ably in recent years.  However, this is an 
on-going process. 
Steps have been taken to simplify the process of assessment of customs duties and with the 
adoption of the Electronic Data Interchange (EDI) system and automation of businesses, the 
rates of duty and exemptions are automatically determined. 
All notifications relating to tariff changes are published in the Official Gazette  and are made 
available on the official website.  Steps are bein g initiated by the Government to put in place a 
user-friendly, updated, online tariff. 
Norway 4: 
III. 2.viii – Contingency measures – an ti-dumping and countervailing measures 
Norway notes from the Secretariat's Report that I ndia is the most frequent user of anti-dumping 
measures, accounting for almost 18 % of all measu res introduced during the life of the WTO, and that 
India has an almost equivalent share of the investigations initiated (16 %). 
India is in the process of conducting a dumping in vestigation against certain imports from Norway.  
This is, to our knowledge, the first investiga tion against imports from  Norway ever conducted by 
India, so we of course follow the process closely. 
We have questions regarding the right to respond to preliminary disclosures and regarding 
reasonable time for providing such responses. 
- What is the minimum time India allows for pr oviding a response to preliminary disclosures?  
Would in India's view a period for collecting co mments from Friday at 7:02 PM (i.e. after 
business hours) to the following Tuesday at 5:00 PM, i.e. two working days, seem reasonable?  WT/TPR/M/249/Add.1 
 Page 233 
 
 
  - Does India allow an extension of the time limit for comments as Norway requested, or is the 
practice not to answer such requests, as Norway has experienced? 
Any investigation imposes costs for the parties examined.  Do Indian authorities conduct any analysis 
of the costs incurred by an investigation, as well as the cost linked to the introduction of antidumping 
measures, both to down-stream producers or to  consumers over the life span of a measure? 
Reply:  There is no minimum time stipulated either under the Anti-dumping Rules of India or 
under the WTO Agreement for providing a response to disclosure.  The designated authority stipulates the time period for comments on disclosure statement keeping in mind the requirements of due process as well as overall time limit for completion of anti-dumping 
proceedings.  The same parameter applies to an y request for extension of time limit as well . 
Norway 5, 6, 7: 
III. 2.x - SPS measures, page 71, para 116 through 121 
While Norway fully recognizes India's right to regulat e in order to protect human, animal or plant life 
or health we do have certain concerns regarding the way some of these regulations are implemented 
as they seem to be more trade rest rictive than necessary.  In particul ar, this relates to difficulties in 
obtaining necessary licences, to diffic ulties concerning certain requirements in the field of SPS, and 
that their seems not to be a consistent and uniform  application of the rules.  An additional problem 
reported had been a difficulty in establishing co ntact with the relevant Indian authorities. 
‐ Certain requirements regarding attestation of fish health, microbiological examination and 
processing do not seem to be in accordance w ith internationally recognised methods for 
risk-based management and technological processe s.  Examples include requirements for 
frozen salmon and cold-smoked salmon.  Can In dia elaborate on the basis for its regulations 
on these products? 
‐ When does India envisage that the Food Safety and Standards Regulations 2010, and Rules 
2011 will be notified and consequently when does India envisage that the Food Safety and 
Standards Act 2006 will be fully implemented?  Will implementation of the Food Safety and 
Standards Act 2006 lead to a change in the designated contact points for SPS-questions? 
‐ Para 121 implies that imports of fish pr oducts are only allowed through the port of 
Vishakhapatnam.  This seems unnecessarily restrictive given India's large coastline.  Is this 
policy something India is considering to revise? 
Reply:  Norway has made certain requests to Indi a for facilitating its fish products which are 
being addressed on a bilateral basis. 
Food Safety and Standards Rules 2011 and Food  Safety and Standards Regulation, 2011 were 
notified vide Gazette  Notification dated on 5 May 2011 and 1 August 2011 respectively by the 
Government of India and by the Food Authority,  and same are available on the FSSAI website:  
fssai.gov.in.  The FSS Act came into effect from 5 August 2011.  No such change will take place.  
The matter is not under consideration as of now. 
PAKISTAN  
Pakistan 1: 
In terms of Reserve Bank of India's "master circular no. 02/2010-11" dated 1st July 2010 and 
"Consolidated FDI policy" issued by the Departmen t of Industrial Policy and Promotion, Ministry of 
Commerce and Industry, effective from 1st April 2011, India is maintaining Non-MFN restrictive WT/TPR/M/249/Add.1 
Page 234  
 
  Domestic Regulations denying Market Access to Pa kistan in India's multilaterally committed Trade in 
Services Regime.  India is requested to inform: 
a)  Whether the Pakistan-specific (in certai n cases also applicable to some other SAARC 
countries) Domestic Regulations are WTO-compatible. 
b)  The reasons for maintaining those discriminatory Domestic Regulations;  and 
c)  Is there a roadmap to amend Pakistan-specific  Domestic Regulations to bring them at par 
with India's MFN commitments and the indicative timeframe to remove these distortions? 
Reply:  The policy on FDI has been steadily liberali sed and is reviewed from time to time, with a 
view to increasing its investor-friendliness.  In ke eping with this thrust towards an increasingly 
open policy environment, country-specific restri ctions on investment, which had earlier found a 
place under the policy on FDI, have al so been gradually reduced over time. 
Pakistan 2: 
The Secretariat report has mentioned that India's ta riff structure is comple x.  To determine the 
applied border charges for a particular produc t, separate primary (schedules) and secondary 
(notifications) related to customs, central excise and st ate legislations must be consulted.  Besides, 
updated schedules and notifications of state levies are al so usually not available electronically.  India 
is requested to elaborate the following issues: 
a)  Additional duty (CVD) and special duty (Special CVD) are stated to be in lieu of 
state/domestic taxes, whereas many states also apply certain taxes on imported products separately.  
Besides, while calculating Special CVD, these levi es are charged on cumulative value of basic duty + 
CVD + central excise education cess +customs educ ation cess.  Accordingly, the charge on the 
customs value of imported goods, in fact, exceeds 4%.  India may elucidate why special duty (Special 
CVD) may not be considered as para- tariffs which are not WTO compatible. 
b) Similarly, education cess is charged on custom  value + basic duty + CVD.  Its incidence on 
imports is thus beyond the cess on domestically produced goods.  Why th is levy may not be considered 
as para-tariff. 
Reply:  Additional duty (CVD) is in lieu of excise duty payable on like domestic goods while 
special CVD is in lieu of state VAT, sales tax or  other local taxes and charges.  Special CVD is 
charged on the cumulative value of basic duty + CVD + education cess because state VAT is also charged on domestic goods on their value inclusive of excise duty and education cess.  This is consistent with WTO provisions and does not re nder special CVD a "para tariff".  States do not 
charge taxes on imported goods at the time of import. 
The levy of additional duty (CVD) and Special Additional Duty (Special CVD) are collected at 
the time of import so as to provide a level playi ng field for domestic industries.  Exemption from 
special CVD is available to goods imported for s ubsequent sale by way of a refund which can be 
claimed if proof of payment of VAT on the im ported goods is produced.  CVD is charged on 
landed cost basis.  Special CVD is charged on the total importation cost basis so as to provide 
equivalence with the domestic industry who have to pay VAT on a value inclusive of excise 
duties. 
Pakistan 3: 
The Secretariat has reported that about 685 tar iff lines have alternate applied rates (specific +ad 
val).  Major effect of such tariff is on textiles and clothing.  The report has also mentioned that some  WT/TPR/M/249/Add.1 
 Page 235 
 
 
  goods have protection of around 600% (e.g. shawls  and scarves) and the like of silk (598.32%) and 
scarves of silk (656.41%). 
Although India has eliminated specific part of the ta riff, for products included in reduction of tariff 
under SAFTA, Pakistan has a systemic concern on the hi gh level of protection, for the reason that the 
SAFTA rates of duty can be availed after complying w ith stringent conditionalities of Rules of Origin.  
Is there any roadmap to address this high level of protection especially on textiles and garments? 
Reply:  The rules of origin under the Agreement  on South Asian Free Trade Area (SAFTA) are 
the outcome of intense negotiations and mutual  agreement between the contracting states and 
impact India's exports to all the other contract ing states as much as they impact Pakistan's 
exports.  Any proposal to amend the rules of or igin would have to be mutually agreeable to all 
the parties to the Agreement. 
Pakistan 4: The Secretariat report has mentioned that pre-shipme nt inspection is necessary for export of textiles 
to India.  India is requested to provide further details of the pre-shipment inspection regime currently 
applicable to imports of textiles in India, including  the fee to be paid to authorized pre-shipment 
inspection companies. 
Reply:  As per General Note 11 of the ITC(HS) Classifications of Export and Import items, 
import of textile, textile articles, woollen textil es and woollen blended fabrics are allowed to be 
imported only when the import consignments ar e accompanied by a pre-shipment certification 
from a textile testing laboratory accredited to national accreditation agency of the country of 
origin (i.e. the exporting country).  Further details are available at http://dgft.gov.in. 
Pakistan 5: 
Technical regulations and standards are established by India mainly in terms of the provisions of the 
Bureau of Indian Standards (BIS) Act 1986 and BIS Rules 1987.  Presently, 81 products are subject to 
the mandatory BIS certification mark.  India is reque sted to provide clarity on the following issues: 
a) Products which are subject to mandatory BI S certification marks do not indicate Indian 
Customs Tariff code and many tariff lines are clubbed  in a single product indicated in the list.  This 
creates the issue of transparency and gives rise to disputes.  Is there any roadmap to notify the 
standard against products classified in sp ecific tariff headings and sub-headings? 
Reply:  There is no roadmap to notify the standa rd against products classified in specific tariff 
headings and sub-headings.  
b) Compliance with the BIS regulations is co mplex, which is evident from the following; 
i)  Foreign manufactures must set up a liaison/ branch office in India to obtain a license 
or nominate an authorized representative in I ndia.  This entails extra expenditure and 
may result the imports uncompetitive in India. 
Reply:  Maintenance of office is not mandatory  if an authorized Indian representative is 
appointed, who is responsible for due complianc e of terms and conditions of Agreement signed 
between BIS and licensed manufacturer and also the provisions of BIS Act, Rules and 
Regulations. WT/TPR/M/249/Add.1 
Page 236  
 
  ii)  BIS certificate is given against a fee whic h varies according to product for one year.  
It requires renewal against a fee whic h may be prohibitive-depending upon the 
volume of imports. 
Reply:  Fees is charged from a manufacturer fr om SAARC country in the same manner as from 
Indian industry.  There is no difference on this  aspect between Indian or foreign manufacturer 
from SAARC countries. 
iii)  It may take more than a year in most cases to get the certification. 
Reply:  The licence to a foreign manufacturer is normally granted within a period of six months.  
It is possible to adhere to this time limit provi ded the applicant takes timely actions regarding 
his preparedness for the visit, arranging the p reliminary inspection, sending samples to the 
designated laboratory, depositing testing charg es with the laboratory, and completion of all 
other stipulated requirements towards grant of licen ce etc.  In case of Pakistan security issues at 
times also cause delay. 
Iv)  Is it true that non-manufacturer expor ter cannot export these products to India? 
Reply:  Products covered under mandatory certif ication need to be BIS certified before entry 
into India.  There is at present no bar on a no n-manufacturer exporter to supply the products in 
India provided such products have been manuf actured by a manufacturer having a valid BIS 
licence and the products bear the BIS certification mark.  
 v)  Is there any roadmap to soften the stri ngent procedures to obtain BIS certification? 
Reply:  The procedure to obtain BIS certific ation mark is in line with the international 
standards. 
c) Is it correct that more than one ministries and departments are involved in standard setting 
exercise especially for food products?  In such  case what are compliance requirements and 
procedures? 
Reply:  Mandatory standards of food in India were specified under the Prevention of food 
Adulteration Rules 1955 and not BIS Rules. 
The standards of BIS are regulatory.  The PFA  standards are now adopted under a unified law 
and regulations, namely The Food Safety  and Standards Act and Regulations. 
FSSAI constituted under FSS Act 2006 is under the administrative control of Ministry of Health 
and Family welfare, has been mandated to regulate  all matters related to food safety.  The FSS 
Regulations are notified by Government of India on 1 August 2008 came into force with effect from 5 August 2011.  All the business related to f ood including import of food articles, therefore 
at present is regulated in the country as per FSS Act, Rules and Regulations there under.  
FSSAI website:  fssai.gov.in, can be referred for further details. 
Pakistan 6: Labelling requirements are applied under various st atutes.  On packaged commodities one of the 
requirements is to indicate the maximum retail pr ice inclusive of all taxes to be printed on the 
container.  Many exporters may not be aware of a ll the taxes, which vary from state to state, to 
indicate correct MRP on the package.  Besides, the labels must be in Hindi (devnagri script) and in 
English.  In certain cases they must be written in  the language of the locality where the product is  WT/TPR/M/249/Add.1 
 Page 237 
 
 
  ultimately sold.  This increases distribution cost , since India has 16 official languages, and food 
processing companies often do not know which palette of food products will be  transported to specific 
state. 
These requirements are protective in nature and the India market is closed for a large number of 
products.  Will India address these issues to open its market? 
Reply:  The Legal Metrology (Packaged Comm odities) Rules 2011 provide that "maximum 
retail price... inclusive of all taxes" will be d eclared on the packaged commodity.  This legal 
provision is a consumer friendly provision to p re-empt over-charging by sellers.  In case of 
imported items, the importer is generally awa re of admissible taxes and can factor it while 
indicating MRP.  Any dilution of this mandatory provision will adversely affect the interest of 
the consumers. 
Moreover the aforesaid requirement may be fulf illed before the imported goods are cleared for 
home consumption.  This implies that if th e goods are otherwise freely importable, requirement 
of labelling such as declaration of MRP and la belling in different languages as per port of 
import, can be done before clearance for home consumption from the customs area. 
PERU 
TECHNICAL REGULATIONS 
Peru 1: 1) What are the criteria used by India to determin e the need for a technical regulation or standard?  
Do you follow different procedures at the provincial/local level? 
Reply:  The need for technical regulations made under the provisions of BIS Act, 1986 is 
determined by the Central Government keeping in view the Public interest.  These technical 
regulations are implemented uniformly througho ut the country.  Same procedures are followed 
at every level. 
Peru 2: 2) How India determines the impact of each regulation? 
Reply:  The concerned departments undertake st akeholders consultations and carry out regular 
market surveillance to determine the impact of each regulations. 
Peru 3: 3) Does India have a mechanism to publish respon ses to comments received from members of the 
WTO to draft technical regulations or  procedures of conformity assessment? 
Reply:  In formulation of any technical regulat ion or conformity assessment the transparency 
provisions of the WTO Agreements are adhered to. 
Peru 4: 4) What is the approach taken by India for ensuring that the results of conformity assessment are 
based on technical regulations?  Does this monito ring is performed by customs or in the domestic 
market? WT/TPR/M/249/Add.1 
Page 238  
 
  Reply:  FSS Regulation 2011 specifies the technica l regulation for food items, the imported food 
testing takes care of conformity assessment before  its clearance from the port.  The monitoring 
and safety assessment is being done by the FSSAI for the domestic market and not by customs. 
Peru 5: 5) Do all the regulatory agencies of states and territories meet the obligations of the WTO TBT 
Agreement, including the notification requirement? 
Reply:  Yes, India meets all obligation of the WTO TBT Agreement including notification 
requirements. 
Peru 6: 
6) In which of India's bilateral trade agreements there are provisions  relating to TBT?  What are the 
main features of these agreements and their contributi ons with respect to the rights and obligations in 
the WTO TBT Agreement? 
Reply:  India has provisions on TBT in so me of its recent agreements.  These provisions 
reaffirm the rights and obligations of the parties under TBT and SPS agreements of WTO 
besides providing for mutual consultation, tran sparency, exploring MRAs in areas of mutual 
interest etc. 
Full details of all of India's RTAs can be ob tained from the website http://commerce.gov.in/ 
trade/international_ta.asp?id=2andtrade=i. 
Peru 7: 
7) Does India plan to make some kind of inventory in  order to eliminate those regulations that have 
become obsolete over time? 
Reply:  The technical regulations in force are as per need. 
Peru 8: 
8) Paragraph 106.  It mentions that there is a requirement for a branch or a representative for BIS 
license if the goods come from a country with which India has a memorandum of understanding. 
Also, paragraph 114 states that the labeling should be in Hindi, English and local language (of 
16 official languages) and that the packaging must show the maximum selling price, even though at 
the time of export, is difficult to determine th e state in which the product will be shipped. 
Does India has received a complaint about possibl e obstacles that these requirements can be 
generated in trade? 
Reply:  No such formal complaint has been received.  These measures do not create unnecessary 
obstacles to trade and are not trade restrictive. 
Peru 9: 
9) Paragraph 110.  Could you explain what cons ists the "competency proof" as mentioned as a 
specific requirement of NABL?  
Reply:  NABL has specific criteria which prescribe competence requirements for personnel in 
labs – like microbiological lab, electrical lab etc.  WT/TPR/M/249/Add.1 
 Page 239 
 
 
  SERVICES 
IV.  TRADE POLICIES BY SECTOR / 3) Services / iii) Telecommunications 
Peru 10: 
10) Paragraph 119 states:  "The Court fo r Settlement of Disputes and Appeals on 
Telecommunications resolves disputes between th e government and the licensees, service providers 
and consumers, and hears appeals against the decisions of the TRAI.  eru wishes to know if this Court 
is also responsible for disputes that arise when operators fail to reach an interconnection agreement. 
Reply:  Yes.  
IV.  TRADE POLICIES BY SECTOR / 3) Services / iii) Telecommunications 
Peru 11: 11) Paragraph 122 states:  "The teleco mmunications service operators can provide all 
telecommunications services."  Peru wants to know if this means that India issues a single license that allows to offer all types of telecommunications services. 
Reply:  No.  For providing different types of servic es, different licenses are issued.  For example, 
for providing voice, data and video based services  in a designated service area, unified access 
license is issued.  For long distance and internat ional long distance, there is a separate license. 
IV.  TRADE POLICIES BY SECTOR / 3) Services / iii) Telecommunications Peru 12: 12) In paragraph 129 states:  "In 2009, TRAI i ssued the Regulation on the Number Portability for 
implementing the Policy of number portability in m obile services. (...)" Peru wishes know if that 
number portability applies to fixed landline services as well? 
Reply:  No.  Mobile number portability only has been implemented in India. IV.  TRADE POLICIES BY SECTOR / 3) Services / iii) Telecommunications Peru 13: 
13) Paragraph 130 states:  "The funds from the USOF for fulfilling the obligation to provide 
universal service are allocated to" e ligible operators" of public and private sector.  Peru wishes to 
know in detail of the requirements to be met by operators to receive funds from the USOF. 
Reply:  The requirements to be met by the op erators will depend on the "type of service" for 
which USOF is to provide subsidy support.  All the details about USOF activities are given on www.uso.gov.in. 
IV.  TRADE POLICIES BY SECTOR / 3) Services / iii) Transportation / a) Shipping 
Peru 14: 14) Paragraph 144 states:  "Foreign investment in port management is subject to conditions, which 
may be modified.". WT/TPR/M/249/Add.1 
Page 240  
 
  Peru would like to know which conditions could undergo a change, and also if any of the conditions 
have changed in the past, and if yes,  what were these conditions?. 
Reply:  It may be clarified that foreign investme nt is allowed in port op erations and not in port 
administration (management), subject to the guidelines of public private partnership (PPP) announced by the Government of India for major ports.  Foreign direct investment upto 100% 
is permitted for construction and maintenance of ports and harbours.  
The PPP guidelines are subject to review and mo difications in the future depending upon the 
changes in the port sector and economic condition of the country.  This applies in the case of 
foreign investment also in the port operations. 
Peru 15: 
15) Request that India elaborates on what cons ists "efficacy trials" and how these function for 
obtaining patents for patent pharmaceuticals and  agrochemicals.  Are these requirements for 
compliance with the requirement of 'inventive step' or an additional requirement?  Does this require 
scientific proof of the functioning and efficacy of the medicine? 
Reply:  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 which does not result in 
the enhancement of the known efficacy of that substance".  The efficacy requirement has been 
further elaborated in the explanation provided under section 3(d).  Unless the requirement of the efficacy is met with, a new form of a known substance is not an invention meaning thereby that the criteria of patentability is not fulfilled.  Thus, the efficacy requirement for a new form 
of a known substance is to substantiate the inve ntive step provided novelty of the substance is 
already established. 
Peru 16: 16) Request further explanation of the limitations that citizens and residents in India face while filing 
patents applications in foreign countries, in particular  the need to get a "prior permission" of the 
Patent Office in certain cases (paragraph 251 of document). 
Reply:  Yes.  The residents and citizens of Indi a must take prior permission for filing patent 
application abroad.  Such permission is require d to enable the Patent Office to scrutinize the 
subject matter of the invention and to check wh ether the said invention falls under section 35 
which relates to defence and atomic energy so as to invoke the secrecy provisions as required 
under the said section.  Permissions are otherwise routinely granted. 
However, these provisions are not applicable in relation to an invention for which application 
for patent protection has been first filed in a country outside India by a person resident outside 
India. 
Peru 17: 17) Request clarification on the general doubt about th e validity of the patent rights granted in India:  
period of 20 years is counted from the publication (as seems to be pointed out in paragraph 254 of 
document) or from the filing of the application (paragraph 255). 
Reply:  It may be noted that the term of patent st arts from the date of filing of the application.  
In case of application filed under Patent Coop eration Treaty, the term of patent shall be 
reckoned from International filin g date accorded under PCT.  WT/TPR/M/249/Add.1 
 Page 241 
 
 
  However, Section 11A(7) provides provisional pr otection of the invention from the date of 
publication of the application.  Accordingly, the patent right accrue from the date of publication 
of a patent application under section 11(A).  Howe ver, as per Section 11A(7), the patent right 
can be enforced only when patent is granted i. e. the patentee can claim the damages from said 
date of publication only after the patent is gran ted and, also, the Applicant is not entitled to 
institute any infringement proceeding until grant of patent. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU Chinese Taipei 1: WTO Secretariat Report (WT/TPR/S/249):  SU MMARY:  (3) TRADE POLICY BY MEASURE:  
(Page xi, paragraph 9) 
As indicated in the report, an electronic system for customs clearance has been introduced and a risk 
management system is in place to selectively scr een high- and medium-risk cargo for customs 
examination. 
Could India please explain how the selective scr eening mechanism employed by its Customs can 
detect cargos that are falsely declared as low- risk by traders with the intention of averting or 
circumventing Customs enforcement, as well as th e contribution of the mechanism on facilitating 
trade and ensuring trade compliance? 
Reply:  The mis-declaration of import cargos is  also detected through intelligence.  The apex 
customs intelligence agency tracks high risk consignments through the Risk Management 
System as per their intelligence. 
Chinese Taipei 2: 
WTO Secretariat Report (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (7) DEVELOPMENTS 
IN FOREIGN DIRECT INVESTMEN T:  (Page18, paragraph 48) 
The Report mentions that Mauritius remains the larg est source of FDI, accounting for approximately 
40.2% of inward FDI flows in 2009/10.  Part of these large flows may result from the advantages of 
the tax treaty between Mauritius and India, which may make it attractive for investors to route their 
investment through Mauritius to take advantage of  the preferential provisions, which include 
exemption from the capital gains tax. 
Our questions are: i) Could India please describe the contents of its tax treaty with Mauritiu s, especially in terms 
of the advantages it offers to each of the parties?  Does India offer more advantages to 
Mauritius, for example, than to other countries? 
ii) Does the fact that Mauritius is such a large source of FDI indicate that India's domestic 
investors route their investments through Mauritiu s, and, if so does this cause problems for 
FDI management? 
Reply:  FDI coming in from Mauritius is not perceived as being unlike FDI coming in from 
other countries and is also not perceived as causing a problem in the management of FDI. 
Chinese Taipei 3: 
WTO Secretariat Report (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (1) OVERVIEW:  (Page 20, paragraph 2) WT/TPR/M/249/Add.1 
Page 242  
 
  India's trade policy is formulated and implemented mainly by the Ministry of Commerce and Industry, 
along with other concerned ministries and agencies in cluding the Ministry of Finance, the Ministry of 
Agriculture, and the Reserve Bank of India. 
Could India please provide more information on the ro le as well as the function of the Ministry of 
Foreign Affairs in formulating trade policy, particul arly with regard to the signing of regional trade 
agreements? 
Reply:  The Department of Commerce negotiate s RTAs on the basis of mandate provided by 
various ministries and departments of the Governme nt of India.  The Department of Commerce 
consults all ministries including the Ministry of External Affairs.   
Chinese Taipei 4: 
WTO Secretariat Report (WT/TPR/S/249):  (3) TRADE AGREEMENTS AND ARRANGEMENTS:  
(ii) Regional trade agreements:  (Page 27, paragraph 20) 
According to the Report, India has reservations re garding regionalism because of its complexity and 
possible trade diversion. 
i) Could India please elaborate further on its vi ews on the adverse effects of regional trade 
agreements? 
Reply:  India's concerns on regionalism stem not from possible trade diversion but from the 
multiple tariff differentials, complicated rules of  origin and the duty inversion effect of RTAs 
and how these could act as a disin centive for local manufacturing. 
ii) In light of its apparent reservations and the statement that "signing regional trade 
agreements is an element of India's overall tr ade policy objective of enhanced market access 
for Indian exports", could India please explain  to us exactly how it selects its partners for 
regional trade agreements?  Also , what criteria are applied? 
Reply:  Selection of partners for an RTA depends on a number of factors like comparative 
advantage, domestic sensitivities, incremental be nefits, complementarities in trade flows etc., 
and also the mutuality of interests seen by both partners.  
Chinese Taipei 5: 
WTO Secretariat Report (WT/TPR/S/249):  (4)  IN VESTMENT REGIME:  (i) Business environment:  
(a) Regulatory framework (Page 28, paragraph 26) 
It is reported that at least 12 procedures are re quired to set up a business in India.  These apply in 
most of India but may vary due to differences in rul es at the State level.  The World Bank estimates 
that it takes 29 days at a cost of some 56.54% of GNI per capita to start a business in India.  In 2010, 
India ranked 165 out of 183 economies for ease of starting a business, up from 168 in 2009. 
Does India have any plans to simplify the proce dures, in order to reduce business set up time and 
attract foreign investment? 
Reply:  The report of the World Bank is not rep resentative of the business environment across 
the country.  The sample size and the statistical un iverse are very limited in size.  Government is 
reviewing the FDI policy and regulations, on a continuing basis, with a view to their further 
liberalisation and increasing their investor-friendliness.  WT/TPR/M/249/Add.1 
 Page 243 
 
 
  Chinese Taipei 6: 
WTO Secretariat Report (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTION  AND TRADE:  (vi) Intellectual property 
rights:  (a) Overview:  (Page 113, paragraph 247) 
The Intellectual Property Appellate Board (IPAB) wa s constituted in 2003 to hear appeals against the 
decisions of the registrar of trade-marks and ge ographical indications.  However, as of 2007 the 
IPAB has also heard appe als regarding patents. 
i) Does this mean that all appeals regardi ng patents are now heard by the IPAB? 
ii) What is the next resort in the process of IP  litigation if an appeal is not successful before the 
IPAB? 
iii) Is the IPAB a judicial authority or purely administrative? 
Reply (i): Under Section 117A of the Patents Act,  an appeal shall lie to the Appellate Board 
from any decision, order or direction of the Controller or Central Government under 
section 15, section 16, section 17, section 18, sectio n 19, Section 20, sub-sec tion(4) of section 25, 
section 28, section 51, section 54, section 57, section 60, section 61, section 63, section 66, 
sub-section (3) of section 69, section 78, sub-sections (1) to (5) of section 84, section 85, section 
88, section 91, section 92 and section 94. 
Reply (ii):  High Courts have writ jurisdiction under Art 226 of the Constitution and Special 
Leave Petition can be taken to appeal before the Supreme Court on a question of 
law/constitutional issues. 
Reply (iii):  IPAB is a judicial tribunal.  
Chinese Taipei 7: 
WTO Secretariat Report (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (4) MEASURES AFFECTING PRODUCTION  AND TRADE:  (vi) Intellectual property 
rights:  (g) Plant varieties (Page 121, paragraph 288) 
As indicated in the Report, plant varieties are pr otected in India through the Protection of Plant 
Varieties and Farmers' Rights Act 2001, and the Rules and Regulations 2006.  Registration of a plant 
variety gives protection only in India and confers upon the right holder, its successor, agent, or licensee the exclusive right to produce, sell, ma rket, distribute, import, or export the variety. 
It would be appreciated if India could please clarify whether the natural persons or legal persons of 
all WTO Members can make applications according to the above-mentioned laws, and whether the 
rights for new plant varieties of such foreign applic ants will be protected if relevant terms are met? 
Reply:  A "breeder" under PPVandFR Act, 2001 can be a legal person.  The Act also does not 
exclude foreign applicants from the definition of breeder provided the necessary conditions are 
met. 
Chinese Taipei 8: WTO Secretariat Report (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) SERVICES:  (i) Overview:  (Page 138, paragraph 52) WT/TPR/M/249/Add.1 
Page 244  
 
  Inadequate infrastructure has beco me a critical constraint to I ndia's development of the services 
industry.  To address this concern, the 11th Five-Ye ar Plan outlined a comprehensive strategy to 
improve both rural and urban infrastructure. 
It would be appreciated if India could provide us with further information on the following aspects: 
i) Which basic infrastructure in India is the c ause of the greatest constraint to further 
development of the services industry? 
ii) Which of the other basic infrastructures in th e services industry have the highest priority 
under the 11th Five-Year Plan? 
Reply (i) and (ii):  India plans to rapidly impr ove infrastructure as inad equate roads, ports. 
power and airports has become a critical co nstraint to India's development.  The 11
th Five year 
plan outlines a comprehensive strategy to improve both rural and urban infrastructure 
including power, roads, railways, ports, airports, storage and warehousing etc.  Details of this 
(including the priority areas) are at http://planningcommission.nic.in. 
iii) How does India attract foreign investme nt to help solve these difficulties? 
Reply:  Foreign Direct Investment in most of the infrastructure sector is placed under the 
automatic route.  Foreign Investment Prom otion Board (FIPB), a single window inter- 
ministerial body, strives to provide decision on FDI proposals, expeditiously in respect of cases 
that require FIPB approval. 
Chinese Taipei 9: WTO Secretariat Report (WT/TPR/S/249):  IV.  TRADE POLICIES BY SELECTED SECTOR:  (3) 
SERVICES:  (ii) Financial Services:  (Page 140, paragraph 57) 
India's legal framework for the financial services  sector has been updated and strengthened.  
However, part of this legislation has yet to enter into force. 
i) What is the reason why part of this legislation in the financial services sector has not yet 
smoothly entered into force? 
ii) How do India's authorities plan to solve this difficulty in the short term? 
Reply:  The Banking Laws (Amendment) Bill, 2011 has been introduced in Parliament (Lok 
Sabha) in March 2011 and referred to Standing Co mmittee on Finance for their examination.  
The Bill seeks to amend the Banking Regulation Act, 1949, the Banking Companies (Acquisition 
and Transfer of undertakings) Act, 1970 and 19 80 to make the regulatory powers of Reserve 
Bank more effective. 
Chinese Taipei 10: 
Report by India (WT/TPR/G/249):  I.IN TRODUCTION:  (Page 5, paragraph 3) 
The report indicates that India faces enormous cha llenges in several areas, one of which is energy 
security.  We note that the Indian government has taken various policy initiatives in order to tackle 
this particular challenge. 
Could India please elaborate further on its energy s ecurity policy and its energy policies associated 
with trade?  WT/TPR/M/249/Add.1 
 Page 245 
 
 
  Reply:  Efficient and reliable energy supplies a re a precondition for accelerated growth of the 
Indian economy.  Oil and gas constitute around 45% of the total energy consumption.  At the 
same time, the dependence on imports of petrol eum and petroleum products continues to be 
around 80% of total oil consumption in the co untry.  While the energy needs of the country, 
especially oil and gas, are going to increase at a ra pid rate in the coming decades, the indigenous 
energy resources are limited. 
The broad vision behind the energy policy is to reliably meet the demand for energy services of 
all sectors at competitive prices.  Meeting this  vision requires that India pursues all available 
fuel options and forms of energy, both conventi onal and non-conventional.  India must seek to 
expand its energy resource base and seek new and em erging energy sources.  Most importantly, 
India must pursue technologies that maximise energy efficiency, demand side management and 
conservation. 
The emphasis is on domestic oil exploration;  acquisition of oil production assets abroad, 
developing new and renewable en ergy, development and promotion of the production and use of 
bio-fuels and on the use of solar energy. 
Chinese Taipei 11: 
Report by India (WT/TPR/G/249):  VI.  REGIONAL AND BILATERAL ARRANGEMENTS (Page 23, 
paragraph 79) 
Free trade agreements (FTAs), in India's point of view, should be "building blocks" towards 
achieving the overall objective of trade liberalizati on and complement the multilateral trading system.  
So far India has concluded 10 free trade agreements , 5 limited scope preferential trade agreements 
and is in the process of negotia ting/expanding 17 more agreements. 
i) Could India please provide us with further information regarding its policy on signing 
bilateral or plurilateral investment agreements? 
ii) In India's view, could an investment agreement provide the momentum for liberalization of 
the service industries? 
Reply:  Bilateral/plurilateral investment agreemen ts are signed on the basis of the significance 
of two-way investment flows between partner countries and perception of the benefits arising out of such an agreement in terms of enhancin g investment inflows.  Services sectors are 
governed by sector specific laws and regulation s.  Opening up of a services sector does not relate 
only to investment in that sector.  It could also  relate to other aspects that are governed by the 
specific laws and regulations.  Hence, it is not necessary that investment agreements would 
necessarily provide a momentum for liberalizatio n.  Investment agreements, however, provide 
an enabling framework for enhancing investor confidence. 
Chinese Taipei 12: A.  WTO Secretariat Report (WT/TPR/S/249) 
III.  TRADE POLICES AND PRACTICES BY MEASURES 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(vi) Intellectual property rights (Page 115, paragraph 256) 
As indicated in the Report, in the situation where the patented invention is not available at a 
reasonably affordable price, anyone interested in wo rking a patent may, after the expiry of three 
years from the date of grant of the patent, apply for grant of a compulsory licence. WT/TPR/M/249/Add.1 
Page 246  
 
  Could India please explain if this is only a cond ition or is it a prerequisite, and also whether it will 
cause disadvantage to the patent holder. 
Reply:  In fact, in order to apply for the grant of compulsory licence, it is prerequisite for any 
applicant to ensure that a period of three years from the date of grant has expired failing which 
the application for compulsory licence can be rejected  ab initio.  This period of three years is to 
ensure that the patentee or licensee is provided su fficient period to take necessary measures for 
commercialisation of the patented inventions in order to secure that inventions are worked in 
India on a commercial scale without undue delay.  Moreover, the reasonable royalty is also payable to the patentee.  Therefore, it will no t cause any disadvantage to the right holder. 
SINGAPORE 
General Issues 
Singapore 1: The WTO Secretariat report (WT/TPR/S/249, page 20, pa ra 2) notes that India uses trade policy to 
attain short term goals such as containing inflation.  We would like to seek India's elaboration on some of these trade policy measures. 
Reply:  Given the persisting inflationary situat ion affecting the common man, some trade policy 
measures were taken to contain prices of essential  commodities.  These include:  reduction of 
import duties to zero on rice, wheat, pulses, edible  oils (crude) and onion;  ban on export of 
non-basmati rice, edible oils (except coconut oil and forest based oil) and pulses (except Kabuli 
chana and organic pulses up to a maximum of 10000 tonnes per year);  suspension of futures trading in rice, urad and tur by the Forward Markets Commission, reduction of duty under 
tariff rate quota (TRQ) for skim med milk powder (SMP) from 15% to 5% for imports up to an 
aggregate of 10000 metric tonnes in a financial year;  import of 30000 tonnes of milk powder and 15000 tonnes of milk fat at zero duty a llowed to National Dairy Development Board 
(NDDB) during 2010-11 under TRQ;  and reduction in import tariffs on crude oil and petrol 
and diesel etc.  
Goods Related Issues 
Singapore 2: 
The WTO Secretariat report (WT/TPR/S/249, page 36,  para 9) states that "Re-imported goods are 
subject to duties, except goods exported for repairs abroad, for exhibitions or as samples which may 
be re-imported duty free".  We would like to seek clarification of the re-import procedures and also 
whether repaired goods would include remanufactured goods. 
Reply:  The re-import procedures are dealt with  under Section 20 of the Customs Act, 1962 and 
the various exemption notifications.  The re-impo rted goods are liable to duty and are subject to 
all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof.  However,  there are exemption notifications relating to 
re-import.  As for instance, under notifica tion No. 158/95-Cus., dated 14.11.1995, goods 
manufactured in India and re-imported into India for repairs or for reconditioning are exempt 
from duty subject to the conditions, inter alia, that such re-importation takes place within 3 
years from the date of exportation and the Custom s is satisfied as regards identity of the goods 
and that the goods after repairs or reconditionin g are exported.  Likewise, under notification 
No. 43/96-Cus., dated 23.7.1996, goods manufactured in India and exported for carrying out coating, electroplating or polishing operations, wh en re-imported into India, after completion of  WT/TPR/M/249/Add.1 
 Page 247 
 
 
  the said processes are charged to duty on the value comprising the fair cost of the said processes 
carried out abroad and insurance and freight, both  ways.  One of the conditions for availing of 
this facility is establishment of the identity of goods. 
Chapter VIII of the Indian Customs Tariff, Vol-II, published by the Directorate of Publicity 
and Public Relations, Customs, Central Excise a nd Service Tax, New Delhi provides the details 
of exemptions.  The details can al so be viewed at www.cbec.gov.in. 
Repaired goods would not include remanufactured goods.  
Singapore 3: The WTO Secretariat report (WT/TPR/S/249, page 40, para 20) states that "royalties and license fees 
must be included in the transaction value, if not in cluded in the price actually paid or payable".  We 
would like to seek clarification whether in this  case, royalties and license fees (which are paid 
separately) would be subjected, besides custom duti es, to withholding taxes as well?  In other words, 
is it India's intent to impose both custom duties and withholding taxes on royalties and licenses fees?  If not, which form of taxation would prevail? 
Reply:  The Indian Customs law has provisions fo r inclusion of royalties and licence fees that 
are identical to the provisions mentio ned under Article 8.1(c) of the CVA. 
Under the Income Tax Act, 196 any person responsible for paying to a foreign company or any 
other non-resident, any sum chargeable to tax as royalty or license fees, shall withhold income 
tax thereon at the rates in force.  This is independent of the treatment under the custom regulations. 
Singapore 4: 
The WTO Secretariat report (WT/TPR/S/249, page 42,  para 26) states that "India does not apply 
non-preferential rules of origin".  We would like to  seek clarification on how India determines origin 
for non-preferential goods for examp le when looking at anti-dump ing dutiable products or when 
differentiating between WTO member state products and non-WTO member state products. 
Reply:  Article 2 of Anti-dumping Agreement contains clear rules regarding determination of 
dumping.  Article 2.1 and 2.5 provide guidance regarding determination of dumping margin 
having regard to the country of origin.  No di fferentiation is made between products from WTO 
Members and products from non-WTO Members.  
Trade Remedies 
Singapore 5: The WTO Secretariat report (WT/TPR/S/249, page 60, para 72-84) focuses on the Contingency 
Measures - Anti-dumping (AD) and Countervailing meas ures.  We would like to clarify on (i) the set 
of criteria India utilises to impose an "All Others Rate " for an AD ruling;  and (ii) India's treatment of 
trading companies in countries which have been pl aced under an AD "All Others Rate" but the 
dutiable products being sold into India had origin ated from countries covered under the particular 
AD ruling. 
Reply:  India uses facts available as per Anti-D umping Agreement for determination of normal 
value and export price for imposition of anti-dum ping duty as all others rate on those producers WT/TPR/M/249/Add.1 
Page 248  
 
  and exporters who have not cooperated during the in vestigation.  Reference is also made to the 
provisions of Annexure II of the Agreement on anti-dumping in this regard. 
In cases where trading companies are exporters of subject goods to India and who do not 
cooperate during investigations, they are subject to "all others rate". 
Singapore 6: 
The WTO Secretariat's Report (WT/TPR/S/249, page 61, para 75) indicates that the margin of 
dumping for each exporter or producer is determin ed by the Directorate General of Anti-Dumping 
and Allied Duties (DGAD), following which the Departm ent of Revenue may, within three months of 
publication of the final findings, impose the anti-du mping duty by notification in the Official Gazette. 
a) Can India explain how it determines a dumping ma rgin?  Specifically, is a 'combination rate' 
used for the determination of duties? 
b) If so, can India explain the conditions under wh ich combination rates w ill be applied and the 
procedural safeguards, if any, to avoi d unintended penalties on exporters who have 
cooperated in the investigation to the best of their ability? 
Reply:  The dumping margin is determined in accordance with Article 2 of the Agreement on 
Anti-Dumping.  A combination rate is used wh en the producer and exporters of subject goods 
exported by them to India are different and if  they cooperate before the Authority, then a 
combination rate citing both producer and exporter is given. 
Singapore 7: 
We note with concern that (i) the number of anti-dumping measures in force have increased from 177 
on 30 June 2006 (at the end of the last TPR period) to 207 on 31 December 2010;  (ii) only about a third of the sunset reviews resulted in elimination of  the measure;  and (iii) India accounts for 18% of 
anti-dumping measures adopted by Members which is  significantly disproportionate to its share of 
global imports.  Given that most of the countries affected by India's antidumping measures are 
developing countries, would India consider measu res to mitigate the impact of its antidumping 
measures on the other developing countries? 
Would India be able to provide a list of the safe guard measures that are currently in place and 
the dates of their expiry? 
Reply:  The purpose of anti-dumping duties, in ge neral, is to eliminate injury caused to the 
domestic industry by the unfair trade practices of dumping.  The anti-dumping investigations 
are carried out as per Customs Tariff (Identification, Assessment and Collection of anti 
dumping duty on dumped articles and for determ ination of injury) Rules, 1995 as amended and 
in conformity with the provisions of Agreement  on implementation of Article VI of the 
GATT 1994. 
Currently only one safeguard measure in respect of N1, 3-dimethyl butyl-N'phenylenediamine 
(PX-13 also known as 6 PPD) is in place for a period of two years w.e.f.  30-8-2011. 
Customs Procedures 
Singapore 8: 
In the WTO Secretariat report (WT/TPR/S/249, page 37, para 10) and India report (WT/TPR/G/249, 
page 23, para 79), we note that India has concl uded 10 Free Trade Agreements.  We understand that 
a preferential Certificate of Origin (that is usually  issued by an authorised body from the exporting  WT/TPR/M/249/Add.1 
 Page 249 
 
 
  FTA partner country) needs to be presented at India customs offices together with the goods in order 
for the preferential tariff to be gr anted to the importer.  As India has numerous customs offices, can 
India share with us details on how the various authorised specimen signatures received from various 
FTA partners are being disseminated to the various  customs offices and whet her are there steps in 
place to ensure that the various customs offices have the latest list of authorised specimen signatures. 
Reply:  The hard copies, as also the scanned copies of authorized specimen signatures received 
from the various FTA partners are promptly ci rculated to the customs field formations, where 
import and export of goods take place.  As su ch, the various customs offices have the latest list 
of authorized specimen signatures. 
Singapore 9: 
The WTO Secretariat report (WT/TPR/S/249, page 39, para 17) states that the importer may appeal 
against the "assessment order" if the importer is not  satisfied with the assessment by the customs 
officer.  We would like to seek further details on the appeal procedures (other than for valuation 
appeal) e.g. circular or public website. 
Reply:  The procedure of appeals is dealt wi th under Chapter XV of the Customs Act, 1962.  
Section 128 of the said Act provides for filing an  appeal with the Comm issioner (Appeals) where 
the importer is not satisfied with the assessment order passed by an officer of customs lower in 
rank than the Commissioner (Appeals).  The appeal is to be filed within a period of sixty days 
and extendable by a further period of thirty days on sufficient cause being shown. 
Section 128A of the Customs Act, 1962 enjoins the Commissioner (Appeals) to give an 
opportunity to the appellant to be heard if he so desires.  The section further provides that the 
Commissioner (Appeals) shall pass such order, as  he thinks just and proper, confirming, 
modifying or annulling the decision or order appealed against.  The order shall be in writing and shall state the points for determination,  the decision thereon and the reasons for the 
decision.  The appeals are required to be heard and decided within a period of six months from the date on which it is filed where it is possible to do so.  The details may be viewed at 
www.cbec.gov.in. 
Further appeals lie to the Customs, Excise and Service Tax Appellate Tribunal. Technical Barriers to Trade 
Singapore 10: With respect to Mutual Recognition Agreements (M RA) signed by India with  its trading partners, how 
long does the Indian Designating Authority typically take to communicate its decision on the 
applications for registration of conform ity assessment body to its MRA partner? 
Reply:  There is no specific time frame fixed.  However, we always endeavo ur to take decision in 
the shortest time possible. 
Singapore 11: On the WTO Secretariat report (WT/TPR/S/249, page 113, para 248-260) that focuses on patents, we 
would like to seek clarification on whether there is a need for approval of marketing plans for (i) 
patented and generic drugs;  and (ii) medical devices in India.  If there is a need, we seek India's 
elaboration on the procedu res for seeking approval. WT/TPR/M/249/Add.1 
Page 250  
 
  Reply:  There is a mandatory provision of regis tration of imported products before they are 
sold in the country.  However Singapore should  elaborate what do they mean by marketing 
plans for giving further clarifications. 
Singapore 12: We would like to seek clarification with regard to the registration procedure for pharmaceutical 
products in India. 
a) With regards to the registration of western medicinal products (phar maceutical drugs), are 
such registrations done at the central govern ment level, i.e. by Central Drugs Standard 
Control Organisation (CDSCO) or by the respective health authorities within each district in India? 
Reply:  Registration is done by Central Drugs Standard Control Organisation (CDSCO). 
b) When a pharmaceutical product is registe red in India, is there a certificate or 
registration/licence number that is issued to sign ify that the drug is registered in India?  If 
there is, what is the format of the certificate/licence number?  Who issues the 
certificate/licence number? 
Reply:  A registration certificate (Form 41) is issued with a registration number.  Form is 
available on the website of Central Drugs Standard Control Organisation (CDSCO). 
Government Procurement 
Singapore 13: Could India provide official statistics or estimat es on the government procurement market, such as 
percentage of government procurement in term s of GDP, proportion of foreign participation in 
government contracts, as well as annual procurem ent expenditure by the central, state, local 
government and other government procuring entities? 
Reply:  Government procurement is a decentralized  activity and as such official statistics of 
Government procurement as percentage of GDP etc. are not available at present. 
Singapore 14: 
The WTO Secretariat report (WT/TPR/S/ 249, page 106, para 219) notes that India is moving towards 
a more competitive and transparent procurement fr amework.  However, there is no common 
procurement legislation in place currently.  Plea se elaborate if there are plans to establish a common 
procurement framework and legislation, as we ll as any plans to accede to the WTO-GPA. 
Reply:  Indian procurement system is already  competitive and transparent and Rule 137, 160 
and 161 of the General Financial Rules contain th e basic principles of public buying.  Chapter 6 
of the General Financial Rules, 2005 contains ge neral rules applicable to all Ministries or 
Departments regarding procurement of goods, en gagement of consultants and outsourcing of 
services.  Detailed instructions relating to the procurement of goods can be issued by the procuring ministries/departments in conformity  with the general rules contained in this 
chapter.  Establishment of a legislative framework for public procurement is under 
consideration of the Government of India.  Issue of India's accession to GPA is under 
examination.  At present, any commitment on this issue is not feasible.  WT/TPR/M/249/Add.1 
 Page 251 
 
 
  Singapore 15: 
The WTO Secretariat report (WT/TPR/S/249, page 106,  para 220) notes that India has set price 
preferences and reservations for domestic suppliers and cen tral public sector enterprises (CPSEs) to 
achieve certain socio-economic objectives.  Co uld India describe the industry sectors where 
procurement is typically reserved and if there are any plans to lib eralize these sectors? 
Reply:  358 products belonging to respectiv e industry sectors are reserved for procurements 
from micro and small enterprises (MSEs) by st ate/central ministries/departments/PSUs.  There 
is no plan to liberalize this at present.  The lis t of these items is available at the website link:  
http://www.dcmsme.gov.in/schemes/Listof358ItemsReserved.pdf. 
Singapore 16: 
Could India clarify if foreign suppliers are require d to be incorporated in India before they can 
participate in government tenders? 
Reply:  Various norms for obtaining bids in respect of Central Government procurement are 
contained in Rule 149 to 154 of Chapter 6 of GFRs, 2005 subject to the condition laid down in individual contracts and to the provision of Rule 150(iv) of GFRs.  However, there is no bar on 
participation of global firms incorporated outside India in central government procurement. 
Singapore 17: The WTO Secretariat report (WT/TPR/S/249, page 110 , para 241) notes that in 2004, India initiated a 
National e-Governance Plan.  The Plan has been in use since 2006.  Could India please clarify if 
there are any mandatory requirements for all procu rement to be conducted through the Directorate 
General of Supplies and Disposal (DGSandD) portal?  If not, what is the percentage of procurements 
that are being conducted through the electronic portal? 
Reply:  There is no such requirement.  As per Rule 150 of the GFR, 2005, an organization 
having its own website should also publish all its advertised tender enquiries on the website and 
provide a link with NIC website.  Procurements  through electronic port al are not centralized 
and hence no such data is available. 
Singapore 18: 
With regard to WT/TPR/S/249, page  110, para 237, could India elaborate more on how these price 
variation clauses work and possibly provide some examples? 
Reply: Price variation clause has been stated in details in clause viii of Rule 204 of GFR, 2005.  
General Financial Rules is available at the we bsite http://finmin.nic.in/the_ministry/dept_ 
expenditure/GFRS/GFR2005.pdf. 
Where the contracts are entered into with a pr ice variation clause to take care of price 
fluctuations in the raw materials, while inviting the bid, a clearly defined price variation clause with base price applicable on a specific date for the particular raw material is indicated.  For 
example, if price variation clause is allowed for an item having steel as a major input (specific 
quality of steel will be defined), in the tender/contract , it will be stated that variation in the price 
of steel of Rs 1000 or more per metric tonne over the base price of steel, the price variation 
clause will be made operational. WT/TPR/M/249/Add.1 
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  Telecommunications 
Singapore 19: 
We read with interest in the Secretariat report th at India is in the process of drafting the New 
Telecom Policy 2011 (WT/TPR/S/249, page 157, para 120).  Under this new policy 2011, could India 
share if it has plans to fully liberalise the teleco mmunications market, particularly in the area of 
foreign equity limits.  If so, can India also prov ide an envisaged timeline for full liberalisation? 
Reply:  The New telecom Policy 2011 is still under consultations.  Once finalised, it will be 
available on Department of Telecomm unications website www.dot.gov.in. 
Financial Services 
Singapore 20: 
The WTO Secretariat's Report (WT/TPR/S/249, pa ge 142, para 68) indicated that a number of 
regulatory changes and legislative amendments have been introduced, but are still awaiting 
enactment, including:  (i) the Banking Laws Am endment Bill 2011; (ii) the Bill on Factoring and 
Assignment of Receivables; and (iii) the State Bank of India (Subsidiary Banks Laws) Amendment Bill 
2009, amongst others.  These were in line with th e 2nd phase of India's Roadmap for Presence of 
Foreign Banks in India and the Guidelines on Ownership and Governance in Private Banks. 
a) Can we have a status update on the progress of these reforms and the timeline when they will 
be enacted? 
b) In the interim, is the Reserve Bank of India (RBI) still maintaining the quota of 12 foreign 
bank branches annually in India? 
Reply (a):  The status of these bills is as under: 
 The Banking Laws (Amendment) Bill, 2011 was introduced in Parliament (Lok Sabha) 
in March 2011 and referred to Standing Commi ttee on Finance for their examination. 
 The Regulation of Factor (Assignment of Receivables) Bill, 2011 was introduced in 
Parliament (Lok Sabha) in March 2011 and it was referred to the Standing Committee 
on Finance for their examination. 
 The State Bank of India (Subsidiary Banks Laws) Amendment Bill, 2011 has been 
passed by Parliament (Lok Sabha) on 11 August 2011. 
Reply (b):  The opening of foreign bank branches by  foreign banks, existing and new, in India is 
subject to India's WTO commitment of 12 branches in a year. 
Maritime Transport Services 
Singapore 21: We note from the Secretariat's report (WT/TPR/S/249, page 163, para 1 37) that India is considering 
the enactment of a Shipping Trade Practices Bill to regulate the provision of maritime transport 
services.  Would India be able to share some of the re gulations that it is being proposed in this Bill, 
and the implications for foreign companies and servi ce suppliers of maritime transport services?  WT/TPR/M/249/Add.1 
 Page 253 
 
 
  Reply:  The Shipping Trade Practices Bill seeks to facilitate swift and efficient movement of 
goods in India in relation to export or import or coastal cargo by: 
(a) Bringing transparency in trade practices of shipping transport logistics service 
providers (referred to "service providers") by: 
 Publishing of tariff as provided in clause 8 (i). 
 Intimating to service users as provided in clause 8(ii). 
 Being bound by obligations laid down for the service provider under Part V. 
(b) Providing registration for eligible service providers as under the clause 5 as per the 
procedure laid down in clause 7. 
(c) Providing Grievance Redressal Mechanism by creating Dispute Settlement Tribunal as 
provided under Part III. 
The Bill mandates by section 4, that every perso n carrying on or commencing the business of 
providing shipping service shall be registered under this Act. 
Tourism 
Singapore 22: We note with interest India's various initiatives to promote itself as a tourism destination 
(WT/TPR/S/249, page 174 – 178).  The Secretariat's re port has also mentioned this as a sector with 
good growth potential.  Despite these efforts however,  (i) foreign presence is not allowed in travel 
agencies, tour operator or tourist transport opera tion;  (ii) multiple taxes are placed on tourism 
services at the central and state level;  and (iii)  high service tax are placed on tourism services 
providers. 
Will these policies be revised in view of India's current tourism promotion efforts?  Would India 
be able to indicate the prospects for liberalisati on in the tourism sector and the easing of these 
restrictions? 
Reply:  Hotel and tourism sector has been op en for FDI upto 100% on automatic basis.  The 
Ministry of Tourism grants approval/recognitio n and not licensing to the various service 
providers in the categories of inbound tour operato rs, domestic tour opera tors, tourist transport 
operator, adventure tour operator and travel agencies as per the revised guidelines dated 
18.07.2011.  The aim and objective of the schem e for recognition of service providers in all the 
said five categories is to encourage them to im prove their quality standard and service so as to 
promote tourism in India and abroad.  The FDI in hotel sector has been increasing since 
April 2000. 
Thus India has a liberal policy in the sector to promote foreign investment.  India has also 
offered market access to tour ist guides services up to a total ceiling of 500 tourist guides 
conversant in Chinese, Spanish, Portug uese, French and Japanese languages. 
Professional Services 
Singapore 23: We note with interest that unlike India's 200 7 TPR, the current TPR report does not contain 
information with respect to professional services.  Could India share updates that might have taken WT/TPR/M/249/Add.1 
Page 254  
 
  place with respect to foreign participation in prof essional services, in sectors such as the engineering, 
legal, and medical services sector whic h had been previously reported on? 
Reply:  No further updates to be reported upon in  case of the professional services mentioned 
above. 
Investment Measures 
Singapore 24: With reference to Secretariat' s report (WT/TPR/S/249, page 31, para 35-40), we note the WTO 
Secretariat's observation that the Indian economy seem s to be more open to FDI as a result of recent 
policy changes.  We welcome India's efforts to remove foreign equity limits for micro and small 
enterprises, and to provide for better understanding and predictability of its foreign investment rules, 
such as through issuance of the Consolidated FD I Policy.  We wish, however, to seek further 
information in the following areas: 
 It was noted by the WTO Secretariat that the number of sectors/activities in which FDI is 
prohibited has increased during the review peri od.  Could India share the rationale for 
prohibiting FDI in the additional sectors? 
 The WTO Secretariat also noted  there were specific conditions and permits that may apply, 
even where FDI is allowed up to 100% and under the automatic route, and that such conditions and permits could be more restrictiv e than an explicit investment cap.  Could India 
share what some of these specific conditions or  permits are, and the rationale for imposing 
them? 
Reply:  The list of sectors prohibited under both the Foreign Exchange Management Act and 
FDI Policy as extant at the time of the earlie r review, was subsequently consolidated under the 
FDI policy, vide Press Note 7 (2008), which is  available in the public domain.  Only one 
additional sector i.e. "manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or 
of tobacco substitutes" has since been added.  This has aligned the policy with Government's 
earlier decision of not granting industria l licenses for fresh capacity in the sector. 
FDI is permitted up to 100 % on automatic ro ute subject to applicable laws/sectoral 
rules/regulations/security conditions.  These represe nt the prevailing domestic regulations in the 
sector. 
SWITZERLAND Switzerland 1: Report by the Secretariat:  I.  Economic Envir onment (2) Recent Economic Developments:  Para. 7: 
More than half of India's workforce still depend on the highly unproductive agricultural sector while 
the manufacturing sector employs only 22% of the (o rganized) labour.  What is India's strategy to 
shift employment from agriculture into th e more labour-intensive industrial sector? 
Reply:  The share of the manufacturing sector in GDP has been stagnant at around 15% over 
the years and the sector is a low contributor to employment.  The Government realises the 
importance of the sector in job creation, and is finalizing a policy with a view to raising the 
share of manufacturing in GDP to 25%.  It aims  to promote industries with the competence to 
leverage the growing opportunities at home and abroad.  WT/TPR/M/249/Add.1 
 Page 255 
 
 
  Switzerland 2: 
Report by the Secretariat:  I.  Economic Envir onment (2) Recent Economic Developments:  Para. 11: 
Taking into account "the relatively large segment of non-organized (not formally employed) workers" 
in India, we wonder whether refor ms in India's labor laws could facilitate the shift of India's 
workforce from the non-organized to the organized sector.  Is India currently assessing whether the 
shift from non-organized workforce to the organized sect or may be promoted by reforming its labor 
laws? 
Reply:  Stability in the relationship between employers and employees is important.  Therefore, 
the endeavour of the government has been to bring about labour reforms by following a 
consensual approach and to maintain harmon ious industrial relations through effective 
interventions of Central and State industrial relations machineries. 
Switzerland 3: Report by the Secretariat:  I.  Economic Environment:  (3) Fiscal Policy:  Para. 14: 
Since improvements in infrastructure are required (P ara. 5) and "since tax revenue continues to be 
insufficient to finance India's infrastructure and d evelopmental needs" (Para. 14), we wonder whether 
India is going to adopt additional policy measures to improve the investment climate in order to 
attract more private infrastructure investments, including investments from abroad.  What concrete 
policy measures is India going to adopt in order to attract additional private infrastructure 
investments, including foreign investments? 
Reply:  A roadmap on fiscal consolidation envisages prudential expenditure management 
through which the Government of India will gen erate resources to meet the development needs 
of various sectors.  As part of expenditu re correction, the Government has established a 
practice of extending subsidies in cash in order to bring down overall subsidy related liabilities.  
The public sector is vastly enhancing its use of the public private partnership (PPP) mode for project financing.  This enables fiscal space for the provision of public goods in development 
sectors where such finance is unlikely to be forthcoming. 
A number of social and economic services are pr ovided both at the Centre and in States for 
which rates of recovery of costs could improve through better user charges. 
Revenue from non-tax sources could increase with better policies in the use of scarce 
resources/assets of the nation.  The increasing u se of auction mode in this regard would help 
garner resources. 
Switzerland 4: 
Report by the Secretariat:  I.  Economic Environment:  (3) Fiscal Policy:  Para. 23: 
Switzerland has made very good experiences with the so -called "debt break mechanism" in public 
finances introduced into the Federa l Constitution by popular vote in 2001.  Since "[t]here are no 
explicit debt caps or limits" in India, we were wondering, whether discussions are going on in India 
at the moment, to introduce such a mechanism in order to promote a financially sustainable 
management of public finances.  Is India intending to  introduce such a capping mechanism to limit its 
public debt? WT/TPR/M/249/Add.1 
Page 256  
 
  Reply:  The FRBM (Fiscal Responsibility Budget Management) Rules 2004 contain an 
incremental assumption rule for public debt which states that "the Central Government shall not assume additional responsibilities (including  external debt at current exchange rate) in 
excess of 9% of GDP for the financial year 2004- 05 and in each subsequent financial year, the 
limit of 9% of GDP shall be progressively reduc ed by at least one percentage point of GDP".  
Hence a limit is set on public debt as a propor tion of GDP.  Through limiting the growth of 
public debt relative to growth in nominal GDP or through lower assumption of incremental 
liabilities or retirement of debt, the public debt wo uld decline to sustainable levels in reasonable 
time.  The suggested roadmap on fiscal consolidat ion will help in reducing the debt to GDP ratio 
from 44.2% in BE 2011-12 to 41.5% by 2013-14. 
The FRBM rules prescribe a cap of 0.5% of GD P in any financial year on the quantum of 
guarantees that the Central Government can assume  in a particular financial year which would 
put a limit on the stock of contingent liabilit ies and for better management of contingent 
liabilities the government guarantee policy has b een framed which lays down the principles to 
streamline the liability management by the Government. 
Switzerland 5: 
Report by the Secretariat:  II.  Trade Policy Re gime:  Framework and Objectives:  (4) Investment 
regime:  Para. 26: 
In spite of considerable improvements over the review period, doing business in India still requires 
overcoming 12 procedures with differen ces in rules at the state level.  What is India's strategy to 
reduce the adverse effects of cumbersome and lengt hy administrative processes on the business and 
investment environment? 
Reply:  The report of the World Bank is not rep resentative of the business environment across 
the country.  The sample size and the statistical un iverse are very limited in size.  Government is 
reviewing the FDI policy and regulations, on a continuing basis, with a view to their further liberalisation and increasing their investor-friendliness. 
Switzerland 6: 
Report by the Secretariat:  II.  Trade Policy Re gime:  Framework and Objectives:  (4) Investment 
regime:  Para. 39: 
It is a declared aim of the Indian government to  attract increased FDI.  However, the number of 
sectors/activities in which FDI is prohibited increa sed during the review period.  How does India 
explain this contradiction? 
Reply:  The list of sectors prohibited under both the Foreign Exchange Management Act and 
FDI Policy as extant at the time of the earlie r review, was subsequently consolidated under the 
FDI policy, vide Press Note 7 (2008), which is  available in the public domain.  Only one 
additional sector i.e. "manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or 
of tobacco substitutes" has since been added.  This has aligned the policy with Government's 
earlier decision of not granting industria l licenses for fresh capacity in the sector. 
Switzerland 7: Report by the Secretariat:  II.  Trade Policy Re gime:  Framework and Objectives:  (4) Investment 
regime:  Paras. 27, 39, and Table II.8:  WT/TPR/M/249/Add.1 
 Page 257 
 
 
  What is the relationship between the total ban of FDI in the manufacture of "cigars, cheroots, 
cigarillos and cigarettes, of tobacco or of toba cco substitute" and the compulsory requirement for 
industrial licensing in "Cigars and cigarettes of tobacco, and manufactured tobacco substitutes"?  
Does it mean that domestic production of tobacco products is allowed whereas foreign producers of 
tobacco products are not allowed to  enter the market?  If this is the case, could India explain the 
rationale for the unequal treatment of foreign in vestors interested in manufacturing in India 
compared to domestic manufactures? 
Reply:  No industrial license for creation of ne w capacity or addition of capacity has been 
permitted in the tobacco sector since the year 2000.  The decision to prohibit FDI in the manufacture of "cigars, cheroots, cigarillos and ciga rettes, of tobacco or of tobacco substitutes" 
has aligned FDI policy with the domestic situation. 
Switzerland 8: 
Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (i) Customs procedures:  (a) Registration and documentation:  Para. 11: 
Could India explain the functioning of the EDI [electronic data interchange] system?  For example, 
can importing companies other than shippers/customs brokers register and use this system?  [If not, 
why not?] Do foreign-invested importers have access to use the EDI on the same terms as Indian 
importers?  [If not, why not?] 
Reply:  Indian Customs launched the Indian Customs EDI system (ICES) in 1995, as an 
automated work flow system for clearance of im port and export consignments.  The key drivers 
for this were the need for handling larger volumes of international trade, lowering transaction 
costs, quicker turnaround times for cargo and efficient information sharing with Customs 
Community partners Document filing was initially facilitated through use of service centers.  A 
remote EDI system (RES) was also provided to enable remote filing of import and export 
documents from business premises of users.  The architecture of the ICES application has recently been modified and the new ICES 1.5 no w runs on an upgraded centralized platform, 
with strengthened security features. 
Any company can use the EDI system as long as  they register and obtain the Import Export 
Code (IEC) from the Ministry of Commerce (D GFT).  The foreign invested importers have 
access to use the EDI on the same terms as Indian importers as long as they have the IEC. 
Switzerland 9: Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (ii) Customs va luation and clearance:  Para. 21: 
The final sentence of paragraph 20, as well as paragraph 21 indicate that the transaction value 
includes transport costs as well as a landing charge .  Could India confirm whether or not duty is 
collected on these amounts and, if so, how it corresponds to the definition of transaction value under 
articles 1 or 8 of the Agreement on Customs Valuation? 
Reply:  Article 8.2 of the CVA states that, in fr aming its legislation, each Member shall provide 
for the inclusion in or the exclusion from the cust oms value, in whole or in part, of the cost of 
transport of the imported goods to the port or place of importation and of the loading, unloading and handling charges associated with the transport of the imported goods to the port 
or place of importation.  India has provided for th e inclusion in the assessable value of the cost 
of transport of the imported goods to the port or place of importation and of landing charges WT/TPR/M/249/Add.1 
Page 258  
 
  which represent the cost of unloading and handling charges of the imported goods at the port of 
importation. 
The duties are levied on the customs value of goo ds which includes the cost of transport of the 
imported goods to the port or place of importat ion, the unloading and handling charges of the 
imported goods at the port or place of importation and the cost of insurance. 
Switzerland 10: 
Report by the Secretariat:  III.  Trade policies and practices by measure:  (2) Measures directly 
affecting imports:  (ii) Customs va luation and clearance:  Para. 22: 
Could India explain the purpose of using refer ence prices, and how the use of such values 
corresponds to the valuation hierarchy established in the Agreement on Customs Valuation?  Second, 
the revision of "tariff values" every two weeks and on the basis of international market prices could 
prima facie appear to be a "variable import levy" ra ther than an "ordinary cu stoms duties" within the 
meaning of article 4.2 of the Agreement on Agri culture (and refers) and operate similarly to a 
safeguard mechanism.  Could India elaborate on whet her the values are aligned with international 
market prices? 
Reply:  Tariff values have been notified for pa lm oils, crude soybean oil, poppy seeds and brass 
scrap.  Tariff values are computed on the basis of prevailing international prices of these goods 
as observed from the various reputed int ernational journals and other publications. 
The tariff value system promotes greater uniformit y and certainty in assessment practice.  It 
checks undervaluation and thus acts as an im portant policy instrument for collection of 
appropriate amount of customs duty. 
The tariff values are neither arbitrary or fictit ious values nor minimum customs values.  As 
these values on identified goods are fixed on the ba sis of prevailing international prices, that is 
to say, the prices at which these goods are sold or offered for sale in the ordinary course of 
international trade under fully co mpetitive conditions, such values are not inconsistent with 
Article VII of the GATT 1994.  These values are in fact floating values and are frequently 
reviewed and revised so as to keep them closer to the transaction values under Article 1.1 of the 
CVA. 
The tariff value is a value for customs purposes.  Customs duties are levied on this value.  The 
tariff value is neither a "variable import levy" nor does it operate as a safeguard mechanism. 
Switzerland 11: Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (ii) Customs va luation and clearance:  Para. 25: 
With regard to paragraph 25: 
 Could India elaborate on the rationale for applying maximum retail prices on certain 
products and particularly the reg ime applicable to medicaments referred to in footnote 41?  
Does India conduct on-going reviews of the operation of this measure in order to ensure that 
its application does not result in de facto qu antitative restrictions within the meaning of 
article XI?  WT/TPR/M/249/Add.1 
 Page 259 
 
 
   How does India ensure that the application of  the abatement does not lead to discrimination 
by resulting in a higher value for imported produc ts on which additional duties are calculated 
[by way, for example, of reports]?  Finally, c ould India kindly provide the list of the 143 
items with HS codes and the abatement applied to each of them? 
Reply:  The MRP based levy was introduced with a view to reducing valuation disputes.  Under 
the provisions of Standards of Weights and Measures Act, 1976 (now Legal Metrology Act 
2009), as a measure of consumer protection, package d items, inter alia, are required to indicate 
the maximum retail price (MRP).  For medicaments, a similar requirement emanates from the provisions of the Drugs (Prices Control) Ord er 1995.  Since the MRP is known, for certain 
specified items prone to valuation disputes, Government has provided that for these items the 
tax base will be the MRP subject, however, to certain abatements from the MRP. 
This MRP based assessment is applied to impo rt goods because the determination of the value 
for like domestic goods for the purpose of charging ex cise duty is also done on this basis.  The 
rates of abatement are reviewed from time to ti me.  The method and the rates of abatement are 
identical for imported and domestic goods.  He nce, there is no discrimination against imported 
goods.  As such, the application of MR P based assessment does not result in de facto  QRs within 
the meaning of the GATT 1994. 
The list of items is available in notification No. 49/2008-CE (N.T.) dated 24 December 2008, as 
amended from time to time. 
Switzerland 12: Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (iii) Tariffs:  (a) Applied tariff structure:  Para. 27: 
According to para. 27 (and to para. 2 in the intr oductory part), the tariff structure of India is very 
complex.  In addition, traders as well as customs officers must consult several documents in order to 
know the effective amount of customs charges to be charged by import.  The "effective" tariff may also 
be modified in the course of the year.  The result is that the separate customs and excise tax schedules 
must be cross-checked with any applicable cust oms or excise notification that may have raised or 
reduced the rate on the imported product.  Which me asures does India envisage to take in order to 
simplify its tariff structure?  In particular could the Indian authorities envis age to include all these 
information in an online version of the import tariff and make it freely available in order to facilitate 
trade? 
Reply:  The tariff structure has been simplified co nsiderably in recent years.  However, this is 
an on-going process.  The present duty structure is simple though there are certain exemptions.  
It is Government's endeavour to gradually remove  exemptions which are no longer relevant in 
the changed circumstances. 
Steps have been taken to simplify the process of assessment of customs duties.  With the 
adoption of the Electronic Data Interchange (EDI) system and automation of businesses, the 
rates of duty and exemptions are automatically determined. 
All notifications relating to tariff changes are published in the Official Gazette  and are made 
available on the official website.  Steps are bein g initiated by the Government to put in place a 
user-friendly, updated, online tariff. WT/TPR/M/249/Add.1 
Page 260  
 
  Switzerland 13: 
Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (iii) Tariffs :  (b) Bound tariffs:  Para. 33: 
According to para. 33, only some 75% of India's tariffs are bound.  Could India provide information 
(product, HS code and level of duty) on how many  times since 2005, it had to raise its applied duties 
in the case of bound tariff lines as well as unbound tariff lines? 
Reply:  This information is being co mpiled and would be furnished shortly. 
Switzerland 14: 
Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (v) Other charges affecting imports:  Paras 42 – 46 and 50: 
With reference to paragraphs 42 to 46 and 50, a number of Swiss industries raised the issue that the 
number, complexity, variation by region and level s of India's various duties and charges make it 
difficult for them to ensure predict ability in their business relations.  As shown in table III.8, these 
duties and charges can double or even triple the MFN applied rate.  Switzerland would therefore welcome any information India might provide on an y reforms it may be planning to streamline and 
reduce the burden that such additional duties and char ges represent.  In particular, any information 
about creating an Advanced Ruling system that woul d provide a binding assessment regarding these 
duties and charges - in addition to the items mentio ned in paragraph 17 above - would be of interest. 
Reply:  The duties and charges as mentioned in  the aforementioned paragraphs are in the 
nature of charges equivalent to internal taxes ap plied at the border in order to provide level 
playing field for the domestic industry.  In case the domestic duties are reduced, equivalent 
reduction takes place in case of imported goods too.  For example, with reduction in the 
standard rate of excise duty from 16% in 2007-08 to 10% now, the rate of additional duty of 
customs has also come down to that rate. 
India has already put in place advanced ruling syst em to issue binding rulings on classification, 
valuation, duties etc. 
Switzerland 15: Report by the Secretariat:  III.  Trade policies and practices by measure:  (2) Measures directly 
affecting imports:  (v) Other charges affecting imports:  Para. 46: 
According to para. 46, the objective of Indian autho rities is to eliminate the cesses once the Goods 
and Services Tax is implemented.  Could India provid e detailed information as to when the Goods and 
Services Tax will replace the cesses as well as to the structure of the tax and on which basis it will be 
levied.  How will the new tax simp lify the current system of cesses? 
Reply:  All cesses are supposed to be subsumed in the goods and service tax (GST).  For GST to 
be introduced the first step is the amendment in the respective taxation powers of the Union and 
the States in the Constitution.  A constitutional amendment bill has been introduced in Parliament in March 2011.  The time frame for introduction of GST would depend on the time within which the bill is passed.  WT/TPR/M/249/Add.1 
 Page 261 
 
 
  Switzerland 16: 
Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (vi) Import prohibitions, restri ctions and licensing:  (b) Import licensing:  Para. 
55: 
According to para. 55, it is not clear which products require automatic license and which require 
non-automatic license.  Could India provide a deta iled list of these products (product description, HS 
code)? 
Reply:  This is being worked out and will be notified to WTO. Switzerland 17: Report by the Secretariat:  III.  Trade policies an d practices by measure:  (2) Measures directly 
affecting imports:  (viii) Contingency Measures :  (a) Anti-dumping and countervailing measures:  
Overview:  Para. 73: 
According to para. 73, anti-dumping investigations may 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 dom estic industry, or on its own initiative if there is justification to 
launch an investigation.  Could th e Indian authorities indicate on the basis of what type of 
justification an anti-dumping investigation would be launched ex-officio?  Also, could the Indian 
authorities explain why the Government  needs to initiate an anti-dump ing investigation if there is no 
demand to that effect from the domestic industry?   Could the Indian authorities further explain how 
an ex-officio initiation is consistent with the st anding requirements of Article 5.4 of the WTO 
Anti-dumping Agreement if no request to initiate an in vestigation has been recei ved from the domestic 
industry (petitioners must indeed account for at least 25% of total domestic production of the like 
product and the domestic producers expressly supporting the application must account for more than 
50% of the total production of the said product)? 
Reply:  The following provision in sub-rule 4 of India's Anti-dumping Rules is a kind of 
exception clause in the Rule 5, which relates to  initiation of anti-dumping investigation:  
"(4) Notwithstanding anything contained in sub-rule (1) of the anti dumping rules the 
designated authority may initiate an investigation suo moto if it is satisfied from the information 
received from the Commissioner of Customs appointed under the Customs Act, 1962 (52 of 1962) or from any other source that sufficient evidence exists as to the existence of the 
circumstances referred to in clause (b) of sub-rule (3) of anti-dumping rules." 
Thus, anti-dumping investigation can be initiated ex-officio under the above Rule which is in 
conformity with article 5.6 of the WTO Agreement on Anti dumping. 
There has been no ex-officio initiation by Indi a under this provision during the review period. 
Switzerland 18: Report by the Secretariat:  III.  Trade policies an d practices by measure:  (3) Measures directly 
affecting exports:  (iii) Export taxes, charges, and levies:  Para. 131: 
According to para. 131, "export taxes are used  to ensure domestic supply of raw materials for 
higher-value-added industries, promote further processing of natural resources, ensure an "adequate" domestic price, and preserve natural res ources".  Export taxes act as an indirect subsidy 
to the downstream industry.  In a recent WTO pane l report the panel stated that "Measures that WT/TPR/M/249/Add.1 
Page 262  
 
  increase the cost of certain raw ma terials for foreign consumers and decrease to domestic consumers 
are difficult to reconcile with the goal of prot ecting the environment or conserving these raw 
materials".  As export taxes have a restrictive effect  on export and for the reasons explained above, 
couldn't India consider and take other more efficient  measures than export ta xes to ensure domestic 
supply of raw materials? 
Reply:  India maintains export tax on a very lim ited number of items and is reviewed from time 
to time.  These duties/taxes are not inconsistent with the WTO provisions.  
Switzerland 19: Report by the Secretariat:  III.  Trade policies and  practices by measure:  (4) Measures affecting 
production and trade:  (i) Incentives:  (b) Oth er support:  Credit policies:  Para. 182: 
In para. 182, the Secretariat's report notes that India sets targets for priority-sector lending to ensure 
that banks provide credit to specific sectors.  Do mestic and foreign commercial banks are required to 
reserve a percentage of their adjusted net bank cred it (ANBC) or credit equivalent amount of 
off-balance sheet exposure (OBSE) whichever is high er, for priority sectors.  Domestic banks must 
reserve 40% of their ANBC/OBSR to lend to priority sectors and foreign banks 32% of their 
ANBC/credit equivalent of OBSE to priority secto rs, out of which 12% must be channelled to exports.  
Could the Indian authorities explain to what exten t these credit requirements in favor of priority 
sectors also imply interest rate concessions and, if so, how these interest rate concessions are being 
financed? 
Reply:  The targets of 40% for domestic banks  and 32% for foreign banks do not link to any 
interest rate ceiling, and with the introducti on of Base Rate System, with effect from 
1 July 2010, banks are free to decide interest rate on all loans, as per the policy framed by them. 
Switzerland 20: 
Report by the Secretariat:  III.  Trade policies and  practices by measure:  (4) Measures affecting 
production and trade:  (v) Government  procurement:  Para. 219: 
According to paragraph 219, India has prog ressively moved towards a more transparent and 
competitive procurement framework and its pa rticipation since 2010 as an observer in the 
WTO-Committee of public procurement certainely  underlines the will of the Indian authorities to 
bring the procurement regime in lin e with GPA rules and standards in  the future.  The information 
provided in the chapter Governement procurement shows moreover that India has to face many 
challenges for which the GPA already gives appr opriate answers and solutions.  Under these 
circumstances, Switzerland wonders whether it would not be  easier for India to join the GPA, so that 
it could base its internal legislation more eas ily on transparent and internationnally agreed 
provisions for core principles, procurement methods , design of legislations challenge procedures, 
etc.?  What are the hurdles India considers represent a challenge with a view of facilitating its final 
move to the GPA-membership?  What could the WTO-Members do to support India in resolving the 
main issues to be tackled? 
Reply:  Issue of India's accession to GPA is under examination.  At present, any commitment on 
this issue is not feasible.  However, India will ta ke a decision based on an assessment of actual 
and effective market access available in  the markets of GPA signatories. 
Switzerland 21: 
Report by the Secretariat:  III.  Trade policies and  practices by measure:  (4) Measures affecting 
production and trade:  (v) Government  procurement:  Para. 232:  WT/TPR/M/249/Add.1 
 Page 263 
 
 
  According to paragraph 232, India retains preferen tial treatment for micro and small entreprises 
(MSEs).  What are the criteria used by India to de fine MSEs?  Does India consider that the concept of 
"Small and Medium Enterprises (SMEs) is different fr om the definition used for qualifying an activity 
or an enterprise as a MSE?  Switzerland consid ers that a GPA-Membership offers to SMEs 
interesting potential opportunities to participate in activities related to govern ment procurement and 
to create activities, jobs, technologies, research and networks.  Does India share this view? 
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 "equipment" respectively.  MSMEs participate in Government procurement 
in India and MSMEs registered with NSIC are provi ded facilities/benefits that assist them in 
marketing their products.  The actual market acc ess in GP markets abroad is yet to be assessed 
and analysed, and only thereafter can the po tential opportunities be actually tapped. 
Switzerland 22: 
Report by the Secretariat:  III.  Trade policies and  practices by measure:  (4) Measures affecting 
production and trade:  (vi) Intellectual property rights:  (b) Patents:  Para. 256:  
Paragraph 256 of the Report by the Secretariat ref ers to Section 84, Chapter XVI of the Patents Act 
1970 (hereafter:  Patents Act) and indicates the cond itions for the grant of a compulsory licence in 
India (the reasonable requirements of the public w ith respect to the patente d invention have not been 
satisfied;  the patented invention is not available at  a reasonably affordable price;  or it is not worked 
in India).  Switzerland would like to submit th e following questions concerning this issue: 
 Article 27.1 of the TRIPS Agreement requires that patents shall be available and patent rights 
enjoyable without discrimination as to wheth er products are imported or locally produced.  
Please confirm that importation of a patented invention is considered as working a patent/a 
patented invention under Section 84 of the Patents Act. 
 Further, Paragraph 256 of the Report of the Secretariat states that the Department of 
Industrial Policy and Promotions issued a discussion paper on compulsory licensing with a view to developing a predictable environment to u se such measure.  What is its legal status?  
Please describe shortly its contents and any possible recommendations or measures the 
Indian Government envisages under it.  Could the Indian authorities indicate where this 
discussion paper can be obtained? 
Reply :  Working of patent includes importation.  Ho wever, under Section 83 (b) of the Patents 
Act, mere importation cannot be considered as work ing.  This has been introduced to prevent 
abuse of monopoly rights and is in keeping with Article 5 of the Paris Convention and Article 2, 
7 and 8 of TRIPS. 
The Department of Industrial Policy and Promot ion prepared a Discussion Paper on the subject 
of Compulsory Licensing and hosted the same on  its website to invite the views and suggestion 
on certain issues for resolution.  The objectiv e of this exercise was not to invite any 
change/amendment to the provisions of the Patent Act 1970 but only to elicit the suggestions to take an appropriate policy decision whether the existing provisions of the Patents Act, 1970 require any amplification through issuing of gu idelines by the Government.  After obtaining 
and examining the suggestions on the said Discussion Paper, the Government has decided that 
there is no need to issue additional guidelines for the issue of Compulsory License and issued  a 
press release to this effect to co nclude the matter.  The said Discussion Paper is available on the 
official website of this Department i.e. www.dipp.nic.in. WT/TPR/M/249/Add.1 
Page 264  
 
  Switzerland 23: 
Report by the Secretariat:  III.  Trade polici es and practices by measure:  (4) Measures affecting 
production and trade:  (vi) Intellectua l property rights:  General question: 
The Report of the Secretariat does not explicitly men tion the protection of undisclosed information as 
provided for in Article 39.3 of the TRIPS Agreement.  We would li ke to ask the following question 
related to the marketing approval of pharmaceutical  or of agricultural chemical products, which 
utilize new chemical entities: 
 If a private party submits its undisclosed test  data to the marketing approval authorities of 
India, under what legal regime and how are these test data protected against unfair commercial use as required by Article 39.3 of  the TRIPS Agreement?  Could the Indian 
authorities indicate the relevant national legisla tion and how it implements Article 39.3 of the 
TRIPS Agreement.  
Reply:  India implements Article 39.3 of th e TRIPS Agreement through the existing legal 
mechanisms which are the common law, principles of equity and the law of breach of confidence 
developed through case law.  Protection is also provided through the provisions of Law of Torts 
and the Indian Contract Act, 1872 where remedi es are available.  Section 5 of the Official 
Secrets Act provides that unauthorized disclosure of  official secrets is a punishable offence.  
This provision is also applicable to government employees. 
Switzerland 24: Report by the Secretariat:  IV.  Trade policies by sel ected sector:  (2) Agricult ure:  (ii) Agricultural 
policy objectives:  (a) Measures affecting imports:  Para. 20: 
The Secretariat's report shows that India links the use of export restriction and export licensing as 
well as other non-tariff measures (N TMs) to domestic policies, for example by relaxing NTMs when 
imports are desired.  It seems that these measu res are rather unpredictable due to numerous changes 
in short frequency.  What is the reasoning behind this practice, bearing in mind the costs, risks and 
lack of predictability for national and internatio nal actors on the market?  Does India envisage 
de-coupling NTMs from domestic policy objectives? 
Reply:  The NTMs are maintained to fulfil the legitimate concerns in terms of Article XX of 
GATT, TBT and SPS.  The changes in NTMs on a given item are not made as frequently as 
projected in the report. 
Switzerland 25: Report by the Secretariat:  IV.  Trade policies by sel ected sector:  (2) Agricult ure:  (ii) Agricultural 
policy objectives:  (b) Measures affecting exports:  Para. 25: 
The Secretariat's report describes the provision of "tax incentives" in order to promote exports.  
Could India describe the scope, coverage and budget for these "tax incentives".  How is the incentive 
level determined?  What are the effects of such  measures on the prices of exported goods on foreign 
markets? 
Reply:  Schemes available to exports are in the form of duty neutralization schemes 
(rebating/exempting indirect taxes/duties) such as duty drawback, Advance Authorisation, Duty Free Import Authorisation (DFIA) and Duty  Entitlement Passbook (DEPB) schemes;  
incentive/reward schemes (to promote exports of specified goods) such as Vishesh Krishi and  WT/TPR/M/249/Add.1 
 Page 265 
 
 
  Gram Udyog Scheme (VKGUY), Focus Market Sc heme (FMS), Focus Product Scheme (FPS), 
Market Linked Focus Product Scheme (MLFPS) etc.  These schemes have been given in detail in India's Foreign Trade Policy, 2009-2014, which has been notified to WTO and is also available at http://dgft.gov.in. 
Switzerland 26: 
Report by the Secretariat:  IV.  Trade policies by sel ected sector:  (2) Agricult ure:  (ii) Agricultural 
policy objectives:  (b) Measures aff ecting exports:  Paras 26, 27, 28: 
The Secretariat's report shows a large variety of inst ruments used by India to  control and influence 
exports.  Those are, for example:  Export restric tions and prohibitions;  export taxes;  export quotas;  
state trading enterprises.  The products conc erned are relevant products for net food importing 
countries.  How are the thresholds for the utilization of those instruments determined?  What is the 
role of the world market prices for the application of  those instruments?  How does India ensure that 
the use of these instruments does not contribut e to speculative market price increase on world 
markets?  How does India ensure that negative e ffects of the use of such instruments on net 
food-importing countries are avoided?  Does I ndia envisage changes in its export control 
instruments? 
Reply:  While India is conscious of the above factors, it also has to remain mindful of its internal 
situation like the rising prices and demand in th e domestic market and food security concerns 
while tailoring its policies.  The sizeable p oor and vulnerable section of the population need 
protection from inflation and price volatility.  These restrictions are applied as India has to 
ensure food security for its people as well as to keep the domestic prices in control.  Currently 
there is no export duty applicable to food items. 
THAILAND Report by the Secretariat (WT/TPR/S/249) III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(a) Registration and documentation 
Page 37, Paragraphs 10-12 Thailand 1: We understand that India has implemented th e electronic data interchange (EDI) and risk 
management systems (RMS) as measures for trade fa cilitation.  We would like to learn more about 
your system. 
- How has the trade facilitation system been improved  after India started to apply these two systems?  
Please share with us any statistical or procedural information. 
- Please elaborate on remaining trade facilitation problems in the customs procedure given the 
implementation of these systems.  
Reply:  The EDI and RMS are important trade fa cilitation measures.  After introduction of 
these measures, the clearance time of cargo has been reduced considerably.  Prior to 
introduction of RMS almost all import decl arations were subjected for assessment and WT/TPR/M/249/Add.1 
Page 266  
 
  examination;  after the introduction of RMS, only 50% of the import declarations are subjected 
for assessment and examination. 
Trade facilitation is an ongoing process;  it wo uld not be possible to enumerate the remaining 
problems of trade on customs procedures after implementation of the EDI and RMS. 
TURKEY 
Turkey 1: 
Report by the Government of India (WT/TPR/G/249) 
Could India share its assessment how the rising in flationary pressure has affect ed the competitiveness 
in its services sector? 
Reply:  In so far as non-tradable services are concerned, there is some impact in terms of 
slowdown in housing and real estate sectors and financial services in the last 2 quarters;  but 
intense competitiveness among firms remain intact  in view of large number of market playeRs  
In so far as tradable services are concerned, co mpetitiveness is linked closely to REER.  But 
there is also the fact that the present inflation calculation does not include the services sector 
inflation. 
Turkey 2: 
Report by the Secretariat (WT/TPR/S/249):  SUMMARY:  Page 10, Para. 7 
As stated in the Secretariat Report, "India's short t erm objective, in accordance with the latest FTP, is 
to achieve annual export growth of 15%;  the long t erm objective is to accelerate export growth to 
25% per annum and double India's share in global trade  by 2020.  In order to meet these objectives, 
India implements a mix of policies including ta x incentives, export promotion, and credit facilitation 
schemes, to "neutralize" the cost of  imported inputs used in exports." 
Could India explain what is meant by the neutralization of cost of imported inputs? 
Could India explain whether the above mentioned mix of policies are applied to all or specific export 
sectors? 
Reply:  Neutralisation of the cost of inputs ref ers to duty neutralisation by way of rebate or 
exemption from the indirect taxes on the inputs used in the manufacture of the export product 
or creating a level playing field.  Details are given in the Foreign Trade Policy (2009-2014), 
which has been notified to WTO and is also available at http://dgft.gov.in.  
Turkey 3: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (iv) Tariffs:  page 43, para. 28: 
As stated in the Secretariat Report, "India prov ides a number of exemptions on imported inputs for 
certain sectors or importers, depending on the indu strial use of the import.  As a result of these 
exemptions, the effective applied tariff is consider ably lower than the simple average standard rate." 
Could India specify exactly the sectors that a re subject to the above mentioned exemptions and 
provide clarification on the criteria for th e determination of the sectors at issue?"  WT/TPR/M/249/Add.1 
 Page 267 
 
 
  Reply:  Exemptions from customs duties have been extended to sectors such as infrastructure 
(e.g. road construction), petroleum exploratio n, water supply, telecom, power, information 
technology, lifesaving drugs, agriculture, food processing, horticulture et c.  These sectors are 
identified as thrust sectors in the cont ext of overall development of the country. 
Turkey 4: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (iv) Tariffs:  page 45, para. 31: 
It is stated that despite the decline in average tariff protection for non-agricultural products to 8.9%, 
from 12% in 2007, transport e quipment still bears above average  tariff protection of 21.5%. 
Could India indicate whether above average ta riff production for transport equipment will be 
maintained? 
Reply:  India has been reducing its applied ta riff autonomously over the years.  Any further 
reduction has to be judged against the sensitivities  of the sector, its stage of development and the 
likely impact on employment and revenue.  Hen ce it would be difficult to predict the future 
action at this stage. 
Turkey 5: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affe cting Imports:  page 72, para. 119: 
Could India clarify if rules and regulations con cerning the Food Safety and Standards Act are being 
implemented? 
Reply:  Yes, The FSS Rules, 2011 were notified on 5 May 2011 and FSS Regulations, 2011 were 
notified on 1 August 2011, The FSS Act has been implemented with effect from 5 August 2011. 
Turkey 6: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affe cting Exports:  page 84, para. 156: 
Could India confirm if the exports to domestic tar iff area (DTA) from the export oriented units are 
subject to the excise and/or additional duties, f ees and charges besides the 25% basic customs duty 
and 100% additional customs duty? 
Reply:  Clearances from the export oriented units  to DTA attract excise duty equivalent to the 
aggregate of customs duties.  The effective rate however is 50% of basic customs duty plus full 
additional customs duty.  Education cess at the rate of 3% of these duties is also applicable. 
Turkey 7: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affe cting Exports:  page 79, para. 140: 
Could India clarify if the exports of cotton and cott on yarn are still subject to export restrictions as 
explained in para. 140? WT/TPR/M/249/Add.1 
Page 268  
 
  Reply:  Cotton and Cotton yarn are now freely ex portable subject to registration by Directorate 
General of Foreign Trade (DGFT) in the Depart ment of Commerce.  The detailed procedure for 
registration is given in the DGFT Notification  No. 63 (RE-2010)/2009-2014, dated 4 August 2011 
and is available at website http://dgft.gov.in.  
UNITED STATES 
US 1: Report by the Government (WT/TPR/G/ 249):  Page 13, Paragraph 28: 
The Secretariat mentions the Government's focus on  youth education and em ployment, stating that 
education is free and compulsory until age 14 an d that the Government is focused on creating 
educational programs geared toward job training.  What types of measures or programs has the 
Government enacted or undertaken to ensure ch ildren under 14 both stay in school and are not 
employed, particularly with  regard to hazardous work? 
Reply:  Indian Constitution states that the Stat e shall provide free and compulsory education to 
all children between the age of 6 and 14 years in such manner as the State, by law, may determine.  In 2009, the Right to Education Ac t was enacted to provide free and compulsory 
education to all children between the age of 6 and 14 years. 
"Sarva Shiksha Abhiyan " to universalize primary education, Mid-Day Meal scheme, schemes to 
provide food and shelter to the children wi thdrawn from work, and various income and 
employment generation schemes covering the families of these children for their economic 
rehabilitation are some of the initiatives in this direction. 
Under the project based plan of action, G overnment announced National Child Labour 
Programme in 1988 in districts of high child labour concentration. 330,000 children have been 
mainstreamed during 11
th five year plan. 
Presently, as per Child Labour (Prohibition a nd Regulation) Act, 1986, children below the age 
of 14 years are prohibited for employment in hazardous occupations/processes specified in the 
Act. 
US 2: 
Report by the Government (WT/TPR/ G/249):  Page 25, paragraph 93: 
India notes that in the period under review, "…se veral safeguard investigations were terminated 
without imposing duty.  Similar restraint was sh own in respect of anti-dumping investigations."  
Given its status as a significant user of trade remedies, could India please describe the process 
whereby restraint is reflected in its initiation procedures? 
Reply:  The designated authority (DA) initiates anti-dumping investigation under Rule 5 of the 
Anti-Dumping Rules after being satisfied with the adequacy and accuracy of information as 
regards prima facie evidence of dumping, injury an d a causal link furnished in the application .  
During the period under review, all the applicat ions were scrutinised in terms of the relevant 
rules and the relevant provisions of the Agreeme nt on Anti-Dumping.  There has not been a 
single case of suo moto  initiation of anti-dumping investigation.  Further, there were cases where 
the anti-dumping investigation were not initiate d as the DA after examination came to the 
conclusion that there was no prima facie evidence of dumping, injury and causal link between such dumped import and alleged injury.  WT/TPR/M/249/Add.1 
 Page 269 
 
 
  In respect of safeguard investigations, the DG Safeguards did not initiate safeguard 
investigations in respect of nine applications  submitted by the domestic industry during the 
period 2008-2010. 
US 3: Report by the Government (WT/TPR/ G/249):  Page 22, paragraph 76: 
India appears to suggest that trade liberalization is inconsistent with the development interests of 
micro, small and medium-sized enterprises, and that th erefore India must "protect" its enterprises.  
Given that tariffs and other trade barriers can o ften have a disproportionately adverse effect on the 
ability of such enterprises to reach foreign ma rkets, how does India see trade liberalization hurting 
the interests of its enterprises? 
Reply:  Special and differential treatment provi sions for developing countries are an essential 
part of the ongoing Doha Round of trade negotiati ons in recognition of the fact that developing 
countries must be able to take care of their development needs and concerns.  Developing 
countries need to be able to take part in global  trade on equitable and fair terms, by provisions 
that allow their nascent industries to grow and fl ourish and to become competitive enough to 
make use of the opportunities provided by trade liberalisation. 
US 4: Report by the Government (WT/TPR/ G/249):  Page 25, paragraph 95: 
In its report, India states that it has "unilaterally  roll[ed] back its trade defence measures."  Does this 
mean that India has declined to impose trade defence measures even where the conditions for 
imposition under the WTO Agreement have been met?  Or does this refer to trade defence measures 
that were terminated because they did not meet the conditions for imposition? 
Reply:  As reported by India in the semi-annua l report for following periods, 51 anti-dumping 
measures were terminated either after review or  the measures were allowed to lapse without 
initiating review:  
January-June 2008 10 
July–December 2008 4 
January–June 2009 4 
July–December 2009 11 
January–June 2010 6 
July–December 2010 16 
In two cases the Central Government did no t impose anti dumping measures despite the 
recommendations of the Designated Authority. 
As regards safeguard measures, restraint was exerci sed by imposition of lower rate of safeguard 
duty and for a shorter duration of time than recommended by the investigating suthority (IA).  In one case, the safeguard measure was limited to the period of provisional safeguard measure.  
US 5: 
Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (1) Overview:  
page 1, paragraph 3: WT/TPR/M/249/Add.1 
Page 270  
 
  In addition to the government's decision to in crease investor limits in the corporate bond and 
government bond markets, what additional policies is India considering to attract more medium – and 
long-term capital, "particularly given India' s infrastructure and general investment needs"? 
Reply:  In order to attract more foreign funds in the medium to long terms for financing of 
infrastructure the Government has announced that it would create special vehicles in the form 
of notified infrastructure debt funds.  The in terest payments on the borrowings of these funds 
would be subjected to a reduced withholding tax rate of 5% instead of the current rate of 20% 
and the income of such funds would be exempt  from tax.  The government is encouraging 
increased reliance on public private partnerships (PPPs) and has put in place policy and regulatory framework for PPPs for all infrastr ucture sectors that can be commercialized. 
US 6: 
Report by the Secretariat (WT/TPR/S/249):  I.  EC ONOMIC ENVIRONMENT:  (2)  Recent Economic 
Developments:  Page 3, paragraph 5: 
According to the Secretariat, "The IMF estimates Indi a's GDP growth potential to be some 8.5% per 
year;  the authorities consider the post global crisis gr owth potential to be of some 8%.  Achieving 
this in a context of a lesser reliance on public consumption and investment will imply boosting private 
investment, which, over the medium run will requi re a simplification of the business and regulatory 
environment, as well as facing the challenges of  improving infrastructure to overcome the current 
shortcomings."  What are India's plans to address these challenges? 
Reply:  The Indian economy was among the first economies to recover from the 2008-09 global 
economic and financial crisis.  After recovering to a growth rate of 8.0% in 2009-10, it has 
registered a growth of 8.5% in 2010-11.  Prior to the global crisis the Indian economy had 
averaged growth in real GDP close to 9.0%.  The OECD's Second Economic Survey of India 
(June 2011) places India's growth potential cl ose to 9%.  Long run GDP growth would be 
around that and accordingly, the Twelfth Five Year Plan is likely to target 9% plus growth. 
The Government is in the process of implemen ting several real and financial sector reforms and 
this will further improve the economic environmen t in the country.  The regulatory architecture 
is being made more amenable for sustainable gr owth.  The policy environment has been made 
more conducive for the spread of public private partnership in the infrastructure sector. 
US 7: Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (2) Recent Economic 
Developments:  Page 5, paragraph 10: 
The Secretariat says:  "Trade related administrati ve measures have also been used, such as export 
prohibitions (e.g. on non-basmati rice, onions, and edible oils (see Chapter IV(2)) and minimum export prices (onions and basmati rice).  The aut horities have indicated that these measures were 
taken in view of the emerging scenario of scarc ity and the consequent rise in prices of essential 
commodities."  How did these restrictions and governm ent interventions succeed in achieving India's 
objectives and how did they contribute to India's global competitiveness? 
Reply:  The measures were meant to address the issue of critical shortages of essential 
commodities and this objective was achieved  through these interventions.  The export 
restriction on non-basmati rice has been remov ed vide DGFT notification No. 71 dated 
09.09.2011.  WT/TPR/M/249/Add.1 
 Page 271 
 
 
  US 8: 
Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (2) Recent Economic 
Developments:  Page 6, paragraph 11:  
According to the Secretariat, "Agriculture accounts for just over 5% of total organized employment 
but this figure is misleading, as most agric ulture labourers are not unionized or otherwise 
organized."  Do these workers have the right un der Indian laws to unionize or organize? 
Reply :  There is no bar in unionisation of agricul ture labour.  Labour unions do exist in 
agriculture plantations like tea and coffee pl antations where there are large number of 
agriculture labour employed. 
The Trade Union Act, 1926 has empowered the wo rkers of the country including agriculture 
workers to form associations in the form of trad e unions.  In India, the number of agricultural 
workers employed in the Central sphere is ne gligible and the bulk of enforcement in the 
agricultural sector rests with the State Governme nt.  As per the statistics available in trade 
unions in India, 2006 (labour bureau), the number of unions submitting returns under agriculture, hunting and forestry is 274 with membership of 13,11,424 (men:  8,20,290 and 
women:  4,90,504) for the year 2006.  We have also ratified ILO Conventions No. 11 (Right of 
Association (Agriculture), 1921) and No. 141 (Rural Workers' Organization, 1975). 
In India, there are several categories of rural wo rkers and the most prominent among them are:  
agriculture labourers, construction workers, beed i workers, blacksmiths, fishermen, forest 
workers, etc.  For the categories of workers me ntioned above, several forms of organizations 
exist in the country, for example there are trad e union organizations for agricultural labourers, 
construction workers, forest and wood workers, etc.  In addition, there are general workers 
organizations which consist of rural workers fr om various categories.  The important rural 
workers' organizations in the country are:  Bh aratiya Khet Mazdoor Union and the All India 
Agricultural Workers' Union.  In addition to these, there are several central unions, for example 
Bharatiya Mazdoor Sangh, Indian National Tr ade Union Congress, etc. have their own rural 
workers' wings. 
US 9: Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (2) Recent Economic 
Developments:  Page 6, paragraph 12:  
How does international trade in goods and servi ces – both exports and imports – specifically 
contribute to the Indian government's efforts to c onfront the country's poverty alleviation challenges? 
Reply:  Trade in goods and services contribu te both directly and indirectly in poverty 
alleviation.  India's employment oriented expo rts like leather products, gems and jewellery, 
textiles, handicrafts and carpets provide huge em ployment opportunities.  India also exports 
many forest products, handicrafts and agricultura l products which help people in the rural 
areas, tribal and backward communities.  Simila rly, service exports like tourism provide direct 
and indirect employment to different strata of soci ety which constitutes nearly 9.2% of the total 
employment in the country.  Government has also initiated the skill development mission, providing appropriate training, technology up gradation etc to these employment oriented 
export sectors. 
 WT/TPR/M/249/Add.1 
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  US 10: 
Report by the Secretariat (WT/TPR/S/249):  I.  EC ONOMIC ENVIRONMENT:  (3) Fiscal Policy:  
Page 6, paragraph 14: 
"Since," according to the Secretariat, "tax revenue continues to be insufficient to finance India's 
infrastructural and developmental needs," what tools does the Indian government have to address 
each of these needs?  What role do trade and investment play in its plans? 
Reply:  A roadmap on fiscal consolidation that will reduce the debt to GDP ratio will help in 
unlocking more resources from G overnment revenue in future to be used for developmental 
programmes instead of debt servicing.  The roadmap envisages prudential expenditure 
management through which the Government of  India will generate resources to meet the 
development needs of various sectors.  As part  of expenditure correction, the Government has a 
established a practice of extending targeted food s ubsidies to the poor in cash in order to bring 
down overall subsidy related liabilities.  The public sector is vastly enhancing its use of the Public private partnership (PPP) mode for project financing.  This enables fiscal space for the 
provision of public goods in development sect ors where such financ e is unlikely to be 
forthcoming. 
A number of social and economic services are pr ovided both at the Centre and in States for 
which rates of recovery of costs could improve through better user charges. 
Revenue from non-tax sources could increase with better policies in the use of scarce 
resources/assets of the nation.  The increasing u se of auction mode in this regard would help 
garner resources. 
US 11: 
Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (3) Fiscal Policy:  
Page 7, paragraph 16:  
According to the Secretariat, "the 2010/11 Bu dget recommended bringing expenditure down through 
a proper targeting of subsidies and announced that new policies to reduce subsidies on fertilizers and 
petroleum products would be implemented."  What is the timeframe within which India plans to 
announce these new policies and their implementation? 
Reply:  Consequent to the budget announcement,  Indian Government has constituted a task 
force to recommend and implement a solution for direct transfer of subsidies on PDS kerosene 
and domestic LPG to the intended beneficiaries.   The task force has a mandate to study the 
present mechanism of transfer of subsidies on f ertilizers, kerosene and LPG, the challenges and 
problems in the governance structures and de livery system, and examine and suggest an 
implementable solution in the direct transfer of subsidies on kerosene and LPG to intended 
beneficiaries with the use unique identificati on numbers.  In August 2011, Government has 
accorded "in principle" approval to the recomme ndations of the Interim Report of the task 
force to the phase-wise implementation of the direct transfer of cash subsidy for LPG and 
Kerosene.  Accordingly, initiatives have been taken for launch of pilot study to introduce the 
changes as proposed in the interim report.  Th e final report of the task force is yet to be 
submitted to the Government.  The Government  will take a suitable action after detailed 
deliberations on the recommendation s proposed by the task force. 
  WT/TPR/M/249/Add.1 
 Page 273 
 
 
  US 12: 
Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (3) Fiscal Policy:  
Page 8, paragraph 19: 
"The authorities are confident that tax rationalizat ion will allow corporate and personal income tax 
collection to continue growing rapidly and help im prove the prospects of re venue led medium term 
consolidation.  However, indirect taxes, including tax es that fall solely or mainly on imports, continue 
to be an important source of revenue, and changes in their levels are a much used policy tool."  How 
does India's continued use of such indirect taxes benefit the country's infrastructural and 
developmental needs, and how do such taxes and changes in their levels impact India's global competitiveness pursuit? 
Reply:  The Central Government's indirect t ax collection accounts for 39.5% of total tax 
revenue (2009-10).  Although customs revenue still contribute significantly to indirect tax 
collections, their share has fallen consistently over the years.  Besides, the direction of change in 
customs tariffs has been downward over these yea rs.  The money thus collected is used for 
infrastructure development and p overty alleviation programmes. 
US 13: 
Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (3) Fiscal Policy:  
Page 8, paragraphs 20-22: 
What are the prospects for finalizing the propo sed GST and Direct Taxes Code, what steps are 
necessary for them to be enacted into law, and what is the expected  timeframe for their 
implementation? 
Reply:  The Direct Taxes Code Bill, 2010 was intro duced in the Parliament in August, 2010.  It 
is currently being examined by the Standing Co mmittee on Finance of the Parliament.  Once the 
report of the Standing Committee is received, the Government, after considering the report, 
shall finalize the Bill for enactment by Parliament. 
For finalizing the proposed GST, the first step  is an amendment in the respective taxation 
powers of the Union and the States, provided in the Constitution.  The implementation of the 
GST is, therefore, contingent on a Constitution al Amendment Bill, which has been tabled in 
Parliament in March 2011. 
US 14: Report by the Secretariat (WT/TPR/S/249):  I.  ECONOMIC ENVIRONMENT:  (7) Developments in 
Foreign Direct Investment:  Page 18, paragraph 48: 
The Secretariat notes that Mauritius remains India' s largest source of FDI.  Who are the foreign 
direct investors that are eligible to  obtain preferences such as exempti on from the capital gains tax?  
How does a foreign direct investor qualify for such  preferences and where can the rules governing 
these preferences be found? 
Reply:  The information relating to the FDI policy can be found at the website of DIPP at 
www.dipp.nic.in and the information relating to ex emption from capital gains tax can be found 
on the website of Income Tax Department at www.incometaxindia.gov.in. 
 WT/TPR/M/249/Add.1 
Page 274  
 
  US 15: 
Report by the Secretariat (WT/TPR/S/249):II.  TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (1) Overview (2) Trade Policy Formul ation and Implementation:  (ii) Trade policy 
formulation, implementation, and ob jectives:  Page 23, paragraph 12: 
How does the Indian government make/coordinate its trade policy?  Please identify and describe 
India's trade and investment policy process.  What is the interagency mechanism through which the 
various institutions involved in India's trade poli cy decision-making must vet their positions to arrive 
at an Indian government consensus on its tr ade and investment policy and negotiating positions? 
Reply:  This is achieved through a process of continuous dialogue with all stakeholders 
including industry associations, apex chambers , export promotion councils etc. to obtain 
sectoral feedback.  Intra governmental consultation s are also held on cross-cutting issues before 
formulating the trade policy and the negotiating positions. 
US 16: Report by the Secretariat (WT/TPR/S/249):  II.  TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (1) Overview (2) Trade Policy Formul ation and Implementation:  (ii) Trade policy 
formulation, implementation, and objec tives:  Pages 24- 25, paragraphs 14-15: 
The Secretariat Report states:  "Trade policy seems  to be lacking an overall thrust and is being 
conducted mostly on a sector or pro duct basis.  This has resulted sometimes in actions with an anti 
export bias (such as setting minimum export prices or applying export taxes), in contrast with the 
asserted general goal of seeking export expansion."   Does India envision that its long-term objective "to accelerate the export growth rate to 25% per annum and double India's share in global trade by 
2020" will be attainable in the global market as it exists today, or do global markets need to grow 
ever larger to accommodate India's export goals?  A nd, does India consider that its own market must 
be increasingly open to achieve its own economic growth  to be able to feed its export potential?  How 
will India achieve its future export goals if it is fa ced with the global marketplace as it stands today? 
Reply:  A strategy paper has been prepared on th e subject and it is available at the Department 
of Commerce website http://commerce.nic.in. 
US 17: Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (i) Bu siness environment:  Page 29, paragraph 26: 
The Secretariat states:  "The World Bank estimates that it takes 29 days at a cost of some 56.54% of 
GNI per capita to start a business in India.  In 2010, India ranked 165 out of 183 economies for ease 
of starting a business, up from 168 in 2009."  To wh at factors does India attribute this low ranking, 
notwithstanding India's efforts to improve its busin ess climate?  What additional measures is India 
considering to improve its business environment in an effort to achieve its trade and investment 
goals? 
Reply:  The report of the World Bank is not rep resentative of the business environment across 
the country.  The sample size and the statistical un iverse are very limited in size.  Government is 
reviewing the FDI policy and regulations, on a continuing basis, with a view to their further liberalisation and increasing their investor-friendliness. 
US 18:  WT/TPR/M/249/Add.1 
 Page 275 
 
 
  Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (i) Bu siness environment:  Page 30, paragraph 30: 
The Secretariat states:  "Prior environmental cl earance is required for all domestic or foreign 
companies planning a project in an area listed in  the Schedule to the 2006 Environmental Impact 
Assessment (EIA) Notification."  Having taken due not e of http://www.moef.nic .in/legis/env_clr.htm, 
we would like India to clarify its public process for obtaining prior environmental clearance.  Please 
identify which parts of the process are open to the public and the means by which they are made 
public.  Please explain the process by which an interested party can appeal the government's 
environmental clearance decision. 
Reply:  The environmental appraisal of developmental projects is undertaken under the 
provisions of the Environmental Impact Assess ment (EIA) Notification, 2006, which provides 
for screening, scoping, public consultation an d the final appraisal for the environmental 
clearance. 
After preparation of the draft Environmental Impa ct Assessment (EIA) Report, the same is put 
in public domain for organizing the public consultation.  The EIA Notification, 2006 provides 
the details of the process of public consultation in cluding the procedure, panel, videography etc.  
The issues raised in public hearing are required to  be incorporated in the final EIA Report.  
The project proponents are given an opportunity  to make the presentation during appraisal of 
the project by the sector specific expert appraisa l committees (EACs).  For benefit of all stake 
holders and for maintaining transparency, th e Ministry's website displays the agenda, 
proceedings of the EAC meeting, environmental clearance letter etc. and is updated regularly. 
The EIA Notification, 2006 is uniformly applicab le to the projects of the Central Government, 
state Government, public sector undertakings, private entrepreneurs, joint ventures as well as foreign companies. 
The Appeal against the environmental clearance or  rejection can be made before the National 
Green Tribunal established in 2010. 
US 19: 
Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (ii) Forei gn investment regime:  Page 32, Paragraph 38: 
The Secretariat's Report notes that FDI in LLPs is allowed with FIPB approval, in sectors where 
100% FDI is permitted and where FDI is not linked to  any performance conditions.  In which sectors 
is FDI linked to performance conditions ?  What precisely are those conditions? 
Reply:  The sectors inter alia  include "non-banking finance co mpanies" and "development of 
townships, housing, built-up infrastructure an d construction-development projects" where 
performance conditions, including fulfilment of  a minimum capitalisation norm, are to be 
fulfilled. 
US 20: 
Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (ii) Forei gn investment regime:  Pages 32-33, Paragraph 39: 
The Secretariat's Report notes that the number of sectors/activities in which FDI is prohibited by 
India has increased during the review period.  Plea se confirm whether the Secretariat's statement on WT/TPR/M/249/Add.1 
Page 276  
 
  this issue is correct?  If so, what is the policy ra tionale for increased prohibiti on on FDI, in light of 
India's stated intention to liberalize its investment  regime?  The Secretariat's Report also notes that 
between April 2007 and December 2009, the FIPB appr oved 949 FDI proposals with total investment 
of Rs. 404 billion.  How many FDI proposals, if an y, were declined during this period?  On what 
basis are FDI proposals declined? 
Reply:  The list of sectors prohibited under both the Foreign Exchange Management Act and 
FDI Policy as extant at the time of the earlie r review, was subsequently consolidated under the 
FDI policy, which is available in the public domain.  Only one additional sector i.e. "manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco 
substitutes" has since been added.  This ha s aligned the policy with Government's earlier 
decision of not permitting industrial li censes for fresh capa city in the sector. 
During the period April 2007–December 2009, 102 proposals were rejected mainly on the 
grounds of being not in compliance with the FDI policy. 
US 21: Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (ii) Forei gn investment regime:  Page 33, Paragraph 40: 
The Secretariat's Report notes that , despite liberalization of foreign equity caps, specific market 
access conditions or permits applicable to FDI can be  more restrictive than explicit investment caps.  
What are the various conditions and permits applicable to FDI in India, outside of equity caps?  Is 
information about these conditions included in the Co nsolidated FDI Policy issued by the Department 
of Industrial Policy and Promotion?  Is India c onsidering reducing or eliminating these conditions 
and permits, in light of their restrictive impact on investment? 
Reply:  The Consolidated Circular on FDI Policy (available at www.dipp.nic.in) details 
information related to the FDI policy, including  the applicable FDI cap, entry route (i.e. 
whether Government approval is required or otherwise) and other linked conditions.  
Investment in any sector is also required to comply with applicable laws/sectoral 
rules/regulations/security conditions. 
US 22: Report by the Secretariat (WT/TPR/S/249):  II.   TRADE POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES:  (4) Investment Regime:  (ii) Forei gn investment regime:  Page 33, Paragraph 40: 
India's Jawaharlal Nehru National Solar Mission (JNNSM) appears to condition investment in 
certain solar projects on what the JNNSM guidelin es call "domestic content requirements," which 
require that certain solar equipment used by develop ers in such projects be manufactured in India, 
i.e., of domestic (Indian) origin.  How does India view these requirements in light of its obligation 
under Article 2 of the TRIMS Agreement and the Illustrative List thereto? 
Reply:  The "domestic content requirements" in  India's Jawaharlal Nehru National Solar 
Mission (JNNSM) is not inconsistent with India's obligation under Article 2 of the TRIMS 
Agreement and the Illustrative List thereto. 
 US 23:  WT/TPR/M/249/Add.1 
 Page 277 
 
 
  Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (1) Introduction:  Page 35, paragraph 3: 
The Report by the Secretariat states "As a result of an amendment of the legislation as of 2010, 
safeguard measures may also take the form of quant itative restrictions."  This amendment has not 
been notified to the WTO Safeguards Committee.  Wh en does India plan to notify this amendment to 
the appropriate WTO Committee? 
Reply:  "Amendment to the Foreign Trade (Develop ment and Regulation) Act (FTDR Act) was 
made through an Amendment Act of 2010 in August 2010.  This inter alia , included insertion of 
Section 9A giving powers to the Central Govern ment to impose Quantitative restrictions as 
safeguard measures.  Framing of Rules to impl ement these provisions is under consideration of 
the Central Government.  As the Rules to implement these provisions were not framed, the 
above amendment to the FTDR Act could not be notified to the WTO Safeguard Committee 
earlier.  However, India is taki ng steps to notify the above amendments to the FTDR Act to the 
Safeguard Committee.  As and when the implementi ng Rules will be notified, the same will also 
be informed by India to the Safeguard Committee". 
US 24: 
Report by the Secretariat (WT/TPR/S/249):  III  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (1) Introduction:  Page 36, Paragraph 6: 
The United States understands that the Government of  India's Department of Information Technology 
draft procurement guidelines for preferential ma rket access imposes purchasing requirements not 
only on government agencies, but also on central government licensees.  If the guidelines are 
adopted, they would establish a 30 per cent preference  for the procurement of domestically produced 
electronics.  The April 2011 TRAI recommendations on domestic telecom equipment manufacturing 
impose similar obligations on licensees and characteri ze their purchases as govern ment procurement.  
Could India please clarify how these preference  regimes for domestic purchases carried out by 
private sector enterprises that are licensed by the government qualify as "products purchased for 
governmental purposes" so as to constitute go vernment procurement under the terms of GATT 
Article III:8(a)? 
Reply:  The draft guidelines of Departme nt of Information Technology are under the 
consideration of the Central Government and policy decision is yet to be taken.  Similarly the TRAI recommendations on telecom equipment manufacturing policy are under consideration 
by the Central Government and the policy has not yet been formulated.  It may be premature to 
comment on the compatibility with GATT Article III.8 (a) of a recommendation. 
US 25: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 36, 
paragraph 8: 
The report indicates that importers, with a few excep tions, must register with the Director General of 
Foreign Trade (DGFT) to obtain an importer-export er code (IEC) number to be able to import 
commercially.  Who is excepted from regist ering and what are the criteria for exception? 
Reply:  The details are available at para 2.8 of the Handbook of Procedure Vol. 1 and is 
available at DGFT website http://dgft.gov.in. WT/TPR/M/249/Add.1 
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  US 26: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 36, 
paragraph 9: 
The report sets forth the six regimes for entry of imports and states that imports for home 
consumption may be cleared after payment of th e duties and charges.  Does the regime for home 
consumption provide for release of the goods upon provision of a guarantee where there is a delay in 
the final determination of the customs value of th e goods, as required by Article 13 of the Customs 
Valuation Agreement (CVA)?  If so, please indicate wh ere in India's legislation this is set forth and 
provide additional details on the circumstances in wh ich such release is authorized.  How long must 
the "delay" be for Indian Customs to authorize such  release?  If India does not provide for such 
release, how does it implement CVA Article 13? 
Reply:  The regime for home consumption provides for release of the goods upon provision of a 
guarantee where there is a delay in the final det ermination of the customs value of the goods.  
Sometimes, it is not possible to finally de termine the customs value of the goods due to 
non-availability of some relevant information and/or documents.  Withholding release of goods 
in such cases may cause hardship to the importers by way of payment of demurrage/detention charges, disturbance in production schedule and ot her financial losses.  To meet such exigencies, 
provisions have been made in Section 18 of the Customs Act, 1962 (details may be viewed at www.cbec.gov.in) to assess the duty provisionally and to authorize release of the goods upon 
submission of a security by the importer pendi ng final determination of the customs value. 
No timeline has been laid down to measure the "delay" for the purpose of authorizing the 
release of goods.  The Customs Valuation Agree ment (CVA) does not provide any threshold to 
measure the "delay". 
US 27: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 37, 
paragraph 11: 
 Authorities report that 0.67 million registered IE C holders use EDI facilities.  How many registered 
IEC holders are there in total? 
Reply:  All IEC holders use EDI.  Hence the number remains the same. 
US 28: 
Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 37, 
paragraph 12: 
 The report indicates that importers meeting sp ecified criteria are entitled to special clearance 
procedures under the Accredited Client's Programme (ACP).  Is this program open to resident and 
non-resident importers?  Are there any limitations on the number of participants in the program? 
Reply:  ACP status can be given to any importer with IEC (import export code) who fulfils the 
criteria as per CBEC circulars No 42/2005 date d 24.11.2005 and 29/2010 dated 20.08.2010.   WT/TPR/M/249/Add.1 
 Page 279 
 
 
  There is no concept of non-resident importers in India.  There is no limitation on the number of 
participants in ACP program. 
US 29: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 37, 
paragraph 13: 
The report indicates that under the risk manageme nt system (RMS) high risk cargo imported by ACP 
importers and non-ACP importers is subject to four types of instructions:  (a) imports may be 
discharged without further assessment (i.e. of their classification, rate of duty or valuation) or 
examination;  (b) imports may be cleared with no further assessment but subject to examination;  
(c) the release of imports requires further assessmen t but no examination;  or (d) imports must be 
assessed and examined.  What percentage of goods falls into category (a)? 
Reply:  At present 51% of the imports are di scharged without assessment and examination. 
US 30: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 38, 
Paragraph 14: 
For imports of non-insecticidal boric acid, India re quires that import license applications specify the 
precise end-use and end-user of the boric acid.  The report further states that if these requirements 
are not fulfilled, imports are to be confiscated and th e importer may be fined a nd/or imprisoned.  We 
have noted our longstanding concerns about the nega tive impact that such a requirement has on the 
ability of intermediaries to import non-insecticidal boric  acid into India.  In what other circumstances 
can an importer be imprisoned in connection with an importation?  Are there process rights which 
are afforded to an importer facing imprisonment in  connection with an importation?  Please provide 
the complete citation to India' s legislation on such matters. 
Furthermore, please explain  why end-user information is necessary fo r this particular product?  Are 
domestic producers of boric acid required to spec ify the end-user prior to selling boric acid 
domestically? 
How does this requirement ensure that the good is not being misused once imported into India?  An 
instruction published by the Central Board of Excise and Customs on 22 June 2011 
(F.No.401/101/2011-Cus.lll) appears to indicate th at the clearance of products for household or 
non-insecticidal purposes should not be subject to the requirement of an import permit from 
CIBandRC.  How then, does India justify the continued documentary requirements for 
non-insecticidal boric acid, which appears contrary  to the Government's own interpretation of the 
Insecticides Act and appears intended to rest rict legitimate trade of the product? 
Reply:  Boric acid can be used for multiple pur poses.  The restriction is for regulating it when 
used as insecticide.  Information about end-use for import of boric acid is necessary to ensure 
that boric acid imported for non-insectic idal purposes does not get diverted to 
improper/un-regulated use.  There is a corresp onding requirement for domestic producers of 
boric acid requiring declaration of particula rs regarding quantum of boric acid manufactured 
and sold by them to ascertain/verify its end-use.   There is no special stipulation for boric acid 
only as the requirements relating to such permit  and reporting apply to all dual or multi use 
insecticides.  Section 29 of the insecticides act 1968 enumerates the offences for which WT/TPR/M/249/Add.1 
Page 280  
 
  punishment of imprisonment (or fine or both ) has been provided for.  There are several 
Government enforcement/intelligence agencies wh ich keep a vigil on misuse whether it is 
imported or diverted from local market.  The customs circular dated 22.6.2011 only clarifies the 
provisions of section 38 (exemption) of the insecticides act, 1968 and is not contrary. 
US 31: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 38, 
paragraph 15: 
The report indicates that imports under duty exempti ons and free-trade zone schemes are required to 
execute a bond equal to the amount of payable duty on the imported goods.  How is a determination 
made on the amount of payable duty? 
Report:  The amount of payable duty is the total duty payable on the imported goods as per the 
rates applicable, but for the exemption avai lable and claimed under the said schemes. 
US 32: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 38, 
paragraph 16:  
The report states that on average import procedures are completed in 20 days.  Does the filing of a 
bill of entry in advance of arrival of the goods re duce this time?  What is the average time for 
clearance of goods imported by ACP importers? 
Reply:  The filing of a bill of entry in advance of arrival of the goods reduces the time.  The 
average time for clearance of good s imported by ACP clients is 1 hour 6 minutes (8.08 minutes 
for assessment and 58.15 minutes for examination). 
US 33: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 39, 
paragraph 17:  
The report indicates an importer may appeal the assessm ent order.  What percentage of appeals are 
successfully resolved in favor of the importer? 
Reply:  Data is not readily available. US 34: Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (i) Customs procedures:  Page 39, 
paragraph 18: 
The Secretariat report indicates that India has m andatory preshipment inspections requirements for 
imports of metallic waste and scrap.  Has India notified such requirements  to the WTO?  If not, when 
will India submit its notification of these preshipme nt inspection requirements?  Does India plan to 
phase out these requirements?  If so, when?  WT/TPR/M/249/Add.1 
 Page 281 
 
 
  Reply:  Indian will be notifying the requirement  to WTO shortly;  however, the procedure to 
import the metallic waste and scrap is given at para 2.32 of the Handbook of Procedures 
Volume 1 and a copy of the same is available at http://dgft.gov.in.  
US 35: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports :  (ii) Customs valuation and clearance:  Page 
39, paragraph 20: 
The report states that transaction value may be  rejected if reasonable doubt arises concerning the 
accuracy of the declared value such as a significantly higher va lue at which identical or similar 
imports at (or about) the same time, in comparable quantities and comparable commercial 
transaction, were assessed.  What is considered a significantly higher value which gives rise to a 
reasonable suspicion?  The report also states that royalties and license fees must  be included in the 
transaction value if not included in the price actua lly paid or payable.  How is this requirement 
consistent with Article 8 of the CVA? 
Reply:  Under Rule 12 of the Customs Valuat ion Rules, 2007 the Customs may raise doubts on 
the truth or accuracy of the declared value of the goods where identical or similar goods are 
imported at a significantly higher value at or about the same time in comparable quantities in a comparable commercial transaction.  The t erm "significantly higher value" has not been 
defined under the said Rules.  The ordinary meanin g of the term "significantly higher value" is 
"substantially higher value" or "considerably higher value". 
It is relevant to mention here that Rule 12 by itself does not provide a method for determination 
of value;  it provides a mechanism and procedure for rejection of declared value in cases where 
there is reasonable doubt that the declared value  does not represent the transaction value.  The 
acceptance of the declared value is based on the facts and circumstances of each transaction, as 
envisaged in the CVA. 
The customs valuation legislation of India has b een framed on the lines of the CVA.  Following 
the CVA, the law provides that where the decl ared value is rejected, the value will be 
determined by proceeding sequentially in accord ance with rules 4 to 9 of the said Customs 
Valuation Rules, 2007. 
Under Article 8 1(c) of the CVA, royalties and lic ense fees related to the goods being valued that 
the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable, 
are taken into account in determining the custom s value under the provisions of Article 1.  This 
provision has been incorporated in the customs valuation legislation of India. 
US 36: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (ii) Customs valuation and clearance:  
Page 39, paragraphs 20-25: 
Does India apply paragraph 2 of the Decision on the Valuation of Carrier Media Bearing Software 
for Data Processing Equipment?  If not, why not , and would India consid er applying paragraph 2? 
Reply:  India follows the valuation practice mentioned in Para 1 of the Decision No. 4.1 adopted 
during the Tenth Meeting of the Committee on Cu stoms Valuation held on 24 September 1984.  WT/TPR/M/249/Add.1 
Page 282  
 
  Para 2 of the Decision indicates that the approach to include only the cost or value of the carrier 
medium and not to include the cost or value of th e data or instructions for valuation purposes is 
optional.  Further, Para 3 of the Decision requires that only those Parties which adopt the practice of not including cost or value of the da ta or instructions while assessing carrier media 
will be required to notify the committee. 
In India's case, the approach on valuation is based on transaction value under Section 14 of the 
Customs Act, 1962 read with the Customs Valuation Rules, 2007 which provide for inclusion of additional elements such as royalties a nd license fees in the assessable value under certain 
conditions.  In view of Para 3 of the aforesaid  Decision, India is not required to notify its 
position to the Valuation Committee. 
As for the question whether India would consider applying paragraph 2, it is not possible to 
predict decisions that might be taken in future.  
US 37: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (ii) Customs valuation and clearance:  
Page 40, paragraph 21: 
The Secretariat report indicates that a landing charge of 1% of the c.i.f. value is added to the c.i.f. 
value to calculate transaction value.  Does India consider such a charge to be part of the price actually paid or payable for the goods when sold for export to Indi a?  If so, please explain this 
practice in light of the CVA, in particular, paragra ph 3(c) of the Note to Article 1, which indicates 
that the customs value shall not include duties and taxes of the country of importation provided that 
they are distinguished from the price actually paid or payable for the imported goods? 
Reply:  Article 8.2 of the CVA states that, in fr aming its legislation, each Member shall provide 
for the inclusion in or the exclusion from the customs value, in whole or in part, the loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation.  India has provided for the inclusion in the assessable value of landing 
charges which represent the cost of unloading and handling charges of the imported goods at 
the port of importation. 
The landing charges do not represent the duties and taxes of the country of importation, 
viz. India. 
US 38: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (ii) Customs valuation and clearance:  
Page 40, paragraph 22: 
The report states that the Central Board of Excise Customs can fix "tariff values" (reference prices) 
for any type of imported good.  The Secretariat report notes that India uses reference prices to 
calculate customs duties for imports of palm oils, crude soybean oils, poppy seeds, and brass strap.  
The report also notes that reference prices for edib le oils have remained unchanged since 2006.  Why 
are these particular products subjected to referen ce prices?  How are these reference prices 
calculated?  Please provide further details on the background and data source used to establish 
reference prices.  Please explain the use of referen ce prices in light of Article 7 of the CVA.  WT/TPR/M/249/Add.1 
 Page 283 
 
 
  Reply:  Tariff values have been notified for pa lm oils, crude soybean oil, poppy seeds and brass 
scrap, as these goods are prone to undervaluation.  Tariff values are fixed on the basis of prevailing international prices of these good s as observed from the various reputed 
international journals and other publications. 
The tariff values are neither arbitrary or fictit ious values nor minimum customs values.  These 
values are floating values and are frequently reviewed and revised.  As the tariff values on 
identified goods are computed based on the preva iling international prices, that is to say, the 
prices at which these goods are sold or offered fo r sale in the ordinary course of international 
trade under fully competitive conditions, such valu es are not inconsistent with Article VII of the 
GATT 1994 read with the CVA. 
The tariff value system promotes greater uniformit y and certainty in assessment practice.  It 
checks undervaluation and thus acts as an im portant policy instrument for collection of 
appropriate amount of customs duty. 
US 39: 
Report by the Secretariat (WT/TPR/S/249): III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (ii) Customs valuation and clearance:  
Page 40, paragraph 23: 
The report indicates an importer may appeal agains t customs decisions on valuation matters.  How 
many appeals are considered, on average, in any gi ven year, and what percentage of appeals are 
successfully resolved in favor of the importer? 
Reply:  There is a well-laid down procedure fo r filing appeals against the decisions related to 
assessment of imported or export goods including on valuation matters.  However, no data on 
the percentage of appeals successfully resolved in  favour of the importer or the department is 
maintained. 
US 40: 
Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (ii) Customs valuation and clearance:  
Page 41, paragraph 25: 
The report indicates transaction value is not used  to assess additional duty on imports of packaged 
goods.  Please explain this in light of Article 1 of the CVA. 
Reply:  Central excise duty is chargeable on  domestically produced goods.  While some goods 
are charged to excise duty based on transact ion value, certain packaged goods are subject to 
excise duty based on maximum retail sale price less abatement.  Hence, when like packaged 
goods are imported, they are a ssessed to additional duty on maximum retail sale price less 
abatement so to provide a level playi ng field to the domestic industry. 
US 41: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (iv) Tariffs:  P age 43, Paragraph 27: 
According to the Secretariat, "During 2007-10 , the Government issued some 230 tariff rate 
amendment notifications.  In addition to the standard rate, importers are required to pay an 
additional duty ("countervailing duty") and a special additional duty instead of local taxes (section WT/TPR/M/249/Add.1 
Page 284  
 
  (v)).  To determine the applied tariff (and other cu stoms duty) rate applicable to a particular product, 
separate customs and excise tax schedules must be consu lted.  These schedules should, in addition, be 
cross checked with any applicable cu stoms or excise notification that may have raised or reduced the 
rate on the product."  Under the WTO Agreement, does India view the countervailing duty and special additional duty as tariffs, other charges, or char ges equivalent to internal taxes applied at the 
border?  Please explain why Indi a considers such categorization appropriate for these particular 
types of charges.  How and when is the public, including non-resident impor ters, notified that India 
has raised or lowered its tariffs and other custom s duty rates applicable to imports?  Is there a legal 
or policy reason why exempted tariff and excise rates are not incorporated directly into the tariff and 
excise schedules as "final" rates?  Given that an importer must cross-check mu ltiple sources, some of 
which may not be readily available on the Intern et, in order to determine the duties and charges 
applicable to a particular importe d product, what steps would India consider taking to increase 
transparency and reduce the burden for importers? 
Reply:  The countervailing duty in lieu of central excise duty and special additional duty in lieu 
of state VAT and local levies are in the nature of charges equivalent to internal taxes applied at 
the border in order to provide level playing fi eld for the domestic industry.  These duties are 
charged at rates equivalent to those applie d to like goods that are produced and sold 
domestically. 
Within the ceiling prescribed in the tariff sche dule, the Government is empowered to grant 
exemptions in public interest.  These exemptions a re published in the form of notifications in the 
Official Gazette  and also uploaded on the departmental website soon after they are issued.  
Tariff schedules are an integral part of the st atutes governing customs and excise duties.  As 
such, they can be amended only through approp riate legislation (an amendment Bill) to be 
passed by both Houses of Parliament. 
Steps are being initiated to put in place a user friendly, updated, online tariff . 
US 42: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 53, paragraph 51: 
Please identify any import restrictions that have been  imposed on the grounds of "self-sufficiency."  
Please explain the basis for these restric tions in light of the WTO Agreement. 
Reply:  At present, India has not imposed any im port restriction on any item on this ground. 
US 43: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 53, paragraph 52: 
The Secretariat says:  "The use of NTMs raises the cost of exporting to India and, in some cases, may 
be equivalent to an import prohibition."  Please exp lain how India's use of NTMs can contribute to 
global economic growth and development so that I ndia can realize its potential and stated trade 
policy objective to increase substantially  its exports in the upcoming years. 
Reply:  India does not agree with the observation ma de in the Secretariat report.  India is aware 
of its obligations emanating from WTO Agreement.  WT/TPR/M/249/Add.1 
 Page 285 
 
 
  US 44: 
eport by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY MEASURE:  
(2) Measures Directly Affecting Imports:  (vi)  Import prohibitions, restrictions, and licensing:  
Page 53, paragraph 53: 
The Secretariat report states that "For sanitary reasons, India has c ontinued to ban imports of certain 
avian livestock and livestock products."  Please explain how India's currently applied measures on 
avian influenza conform to the World Organization for Animal Health (OIE) guidelines on acceptable 
international measures for preven ting the spread of this disease in commercial poultry trade. 
Reply:  OIE recognizes that epidemiology of Avian Influenza (AI) differs widely in different 
regions of the world.  India's AI measures a re based on scientific observations and available 
experience in India and around the world. 
US 45: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Pages 54-57, paragraphs 54-62: 
We understand that although India allows domestic  production and sale of  remanufactured goods, it 
maintains import license requirements that are inte nded to restrict the importation of remanufactured 
goods.  What is India's rationale and justification for requiring import licenses for these goods?  Why 
would less trade-restrictive measures not address any concerns that India may have? 
Please confirm whether such import license requireme nts are intended specifically to restrict the 
quantity or value of imports of remanufactured  products.  Does India have similar licensing 
procedures for companies engaged in or seeking to be engaged in remanufacturing in India?  Does 
India maintain annual part-specific limits on the quantity or value of remanufactured goods produced 
at domestic facilities, similar to the limits associated with import licenses for such goods? 
Are import licenses on these goods issued automatically?  If they are not issued automatically, why 
not, and what are the conditions that must be met to receive a license?  How long does it typically 
take to receive an import license on these goods ?  How frequently are licenses issued for 
remanufactured goods and how many are issued annua lly?  What is the duration of those licenses? 
Indian Policy circular No. 4 (RE-2006)/2004-09, dat ed April 20, 2006, explicitly allows for the 
importation of second-hand capital goods  without any restrictions.  How does India justify that it 
allows the importation, without an import licen se, of second-hand capital goods that may have 
undergone no processing, cleaning, in spection and testing, to ensure that  they are restored to original 
working condition, yet it requires an import license for remanufactured goods that have undergone 
those processes?  Does India view  the unrestricted importation of second-hand capital goods to have 
no impact on the rationale/objective for requiring such a license for remanufactured goods? 
Reply:  Second hand capital goods are clearly de fined and their imports are therefore freely 
allowed.  However, there is no agreed definition of remanufactured goods in the WTO and 
different members have different criteria.  He nce the import of such goods have to be 
considered on merits to safeguard public interest. 
  WT/TPR/M/249/Add.1 
Page 286  
 
  US 46: 
Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 54, paragraph 55: 
According to the Secretariat:  "The Import Policy Sc hedule lists the items that are restricted and items 
that are restricted with a condition.  Restricted items require a specific import licence issued by the 
Directorate General of Foreign Trade (DGFT).  Rest ricted items subject to conditions, require import 
permits (e.g. sanitary and phytosanitary permits), in addition to the specific impor t licence.  It is not 
clear to the Secretariat which products requi re an automatic licence and which require a 
non-automatic licence [emphasis added]."  Additi onally, we understand that India's ITC (HS) 
Classification website at www.dgft.gov.in does not indicate which procedures are automatic or 
non-automatic.  Please explain India's automatic and non-automatic licensing system in light of its 
obligations under the WTO Agreement on Import Licen sing.  For example, please provide a list that 
specifies which products are subject to automatic  license requirements, and which are subject to 
non-automatic import license requirements.  What is the rationale for requiring a non-automatic 
import license in respect of each of the identified pr oducts?  What is India's plan to increase the 
transparency of its licensing regime by making in formation publicly available and accessible? 
Reply:  India will be notifying the same shortly. 
US 47: 
Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 55, paragraph 58: 
Please explain in greater detail what the actual user condition is that is associated with import 
licenses. 
Reply:  This has been described under para 9.4, 9.5 and 9.6 of the Foreign Trade Policy 
(2009-2014) which is available at website http://d gft.gov.in.  The Foreign Trade Policy has been 
notified to WTO. 
US 48: Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 56, paragraph 59: 
Please explain the rationale for assessing application fees on the basis of the c.i.f. value of imports 
instead of the cost of services rendered as prescribed in GATT Article VIII. 
Reply:  The actual cost of services rendered is much higher than the present application fee, 
however, the application fees is being reviewed. 
US 49: Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 57, paragraph 62:  WT/TPR/M/249/Add.1 
 Page 287 
 
 
  Please explain the ratio nale for imposing restrictions on imports t hat do not meet a "minimum price."  
How does India assess the "quality" of a product that is so restricted?  Does India impose a corresponding "minimum price" requirement  on the sale of domestic products? 
Reply:  Minimum import price is one of the cri teria to determine quality.  Several factors are 
kept in mind while determining the minimum price. 
US 50: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 58, paragraph 66:   
Please explain the rationale for restricting impor ts including motor vehicle s to the three identified 
ports. 
Reply:  Imports of vehicles are allowed at speci fied ports for better monitoring of imports. 
US 51: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (vi) Import prohibitions, restrictions, and 
licensing:  Page 58, Section III(2)(vi)(d): 
The United States understands that India offers subsid ized rates (i.e., above market) when purchasing 
solar power generated by projects under the Jawahar lal Nehru National Solar Mission (JNNSM).  A 
developer may only get these subsidized rates, however, if it complies with what the JNNSM 
guidelines call "domestic content re quirements," which require that certain solar equipment used by 
developers in such projects be manufactured in Indi a, i.e., of domestic (Indian) origin.  How does 
India view these requirements in light of its oblig ation under Article 3.1(b) of the SCM Agreement? 
Reply:  In India's views, the power purchase arrangements under the India's Jawaharlal Nehru 
National Solar Mission (JNNSM) do not involve subsidies which are prohibited under 
Article 3.1 (b) of ASCM. 
US 52: 
Report by the Secretariat (WT/TPR/S/249): III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:  (vii)   State trading:  Page 58, paragraph 70: 
The Secretariat says that "India last filed its STE not ification in 2010;  however, the statistics were on 
STEs imports up to 2006."  When will India bring its STE import notification up-to-date? 
Reply:  It would notify it shortly. 
US 53: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impo rts:  (viii)  Contingency measures:  Page 61, 
paragraph 78: 
The Secretariat reports that India's sunset reviews of its antidumping measures  may be initiated either 
upon petition by the domestic industry or self-initiated by India's Directorate General of Antidumping 
and Allied Duties (DGAD), and, further, that India's ru les to initiate sunset reviews are contained in WT/TPR/M/249/Add.1 
Page 288  
 
  Trade Notice No. 1/2008 of 10 March 2008.  However , in its recent initiations of sunset reviews, India 
cites the "order of the Hon'ble Delhi High court in  the matter of Indian Metal and Ferro Alloys Ltd 
V/s Designated Authority, Writ Petition (Civil) No. 16893 of 2006 and in accordance with Section 9 A 
(5) of the Act, read with Rule 23 of the AD Ru les." (DGAD Initiation Notification, Sunset Review of 
Certain Rubber Chemicals, May 12, 2010).  This order notes that sunset reviews are mandatory under 
Indian law and must be conducted prior to the expiration of any antidumping measure.  The 
Secretariat report does not note that under its curren t laws and regulations, India is obliged to 
undertake a sunset review of every antidumping measure prior to its expiration.  Could India please 
explain how the "order of the Hon'ble Delhi Hi gh court in the matter of Indian Metal and Ferro 
Alloys Ltd V/s Designated Authority, Writ Petition (Civ il) No. 16893 of 2006 and in accordance with 
Section 9 A (5) of the Act, read with Rule 23 of the AD Rules" relates to Indian trade remedy law and 
the extent to which this order affects or otherwi se modifies the practice of automatic sunset reviews? 
Reply:  The Customs Tariff Act 1975 (as amended from time to time) and Anti-Dumping Rules 
require the Authority to conduct review of anti-d umping duties.  The Hon'ble Delhi High Court 
has held in Writ Petition No. 16893 of 2006 th at sunset review is mandatory in order to 
determine whether cessation of the existing duty is likely to lead to the continuation or recurrence of dumping and injury.  Therefore the Authority, in terms of said order, initiates a sunset review investigation in accordance with Section 9A(5) of the Act read with Rule 23 of 
Antidumping Rules to review the need for contin ued imposition of duty and to examine whether 
the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury. 
US 54: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impo rts:  (viii)  Contingency measures:  Page 62, 
paragraph 79: 
The Secretariat report, in the discussion of mid-t erm reviews of antidumping duty measures, states 
that requests for mid-term reviews of antidumping measures may be made to DGAD "provided that a reasonable period of time, i.e. at least one year,  has elapsed since the imposition of the definitive 
anti-dumping duty by the Central Government."  However, DGAD's handling of the recent mid-term 
review of the antidumping measures on imports of Co ld-Rolled Steel Products from the United States 
seems inconsistent with the Secretariat's report.  Could India please clarify the timeframe for requests 
for mid-term reviews and explain whether exceptions exist with respect to any requirement for a 
reasonable period of time to elapse befo re a mid-year review will be conducted? 
Reply:  The request for mid term review of anti-dumping measures may be made to DGAD 
provided that a reasonable period of time, i.e. at  least one year, has elapsed since the imposition 
of the definitive anti-dumping duty by the Central Government.  The mid-term review of 
anti-dumping measures on imports of cold rolled steel products from the United States is consistent with the above guidelines as in this case the definitive anti-dumping duty was imposed from 20 February 2009 and mid-term review of the anti-dumping duty imposed was initiated on 23 June 2010. 
US 55: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (viii) Contingency measures:  Page 65 
paragraph 92: 
The Secretariat report indicates that safeguard decisions are made by the Standing Board on 
Safeguards ("the Board").  However, very little is  known about this body.  Could India please provide  WT/TPR/M/249/Add.1 
 Page 289 
 
 
  further information about this Board including tim etables for decision making, structural composition 
of the Board and the policies under which the Board operates? 
Reply:  Standing Board on safeguards was co nstituted by the Government of India with 
Secretary, Department of Commerce as Chairman.  Other Members of the Board are Secretaries from Department of Revenue, Department of Agriculture and Cooperation, 
Department of Industrial Policy and Promotion and Secretary (ER) in Ministry of External 
Affairs Secretaries of any other ministry/department concerned with the safeguard measure may also be co-opted to attend the meeting of  the Standing Board on Safeguards (Board). 
The Board considers the recommendations made  by the Director General Safeguards (the 
investigating authority) and conveys its reco mmendation to the Central Government after 
deliberation in the meeting of the Board.  The Board will also consider recommendations 
relating to safeguard measures in the form of quantitative restrictions and convey its 
recommendation to the Central Government. 
US 56: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Impor ts:  (viii) Contingency measures:  Page 66, 
paragraph 95: 
The Report by the Secretariat states that recent legislation "amended India's safeguard legislation to 
allow for the use of quantitative restrictions as rem edy measures."  This amendment has not been 
notified to the WTO Safeguards Committee.  When do es India plan to notify this amendment to the 
appropriate WTO Committee? 
Reply:  Amendment to the Foreign Trade (Dev elopment and Regulation) Act (FTDR Act) was 
made through an Amendment Act of 2010 in August 2010.  This inter alia , included insertion of 
Section 9 A giving powers to the Central Govern ment to impose Quantitative restrictions as 
safeguard measures.  Framing of Rules to impl ement these provisions is under consideration of 
the Central Government.  As the Rules to implement these provisions were not framed, the 
above amendment to the FTDR Act could not be notified to the WTO Safeguard Committee 
earlier.  However, India is taki ng steps to notify the above amendments to the FTDR Act to the 
Safeguard Committee.  As and when the implementi ng Rules will be notified, the same will also 
be informed by India to the Safeguard Committee. 
US 57: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:   (ix) Technical regul ations and standards:  
Page 67, paragraph 99-115: 
Although not specifically mentioned in the "tec hnical regulations and standards" section of the 
Secretariat report, we would appreciate an update on the following outstanding trade concerns that 
were raised at the WTO TBT Committee during 2011: 
 E-Waste Rules 
 Labelling Requirements for Processed Products 
 Drugs and Cosmetics Rules 2007 WT/TPR/M/249/Add.1 
Page 290  
 
  Reply:  
E-Waste Rules 
E-waste is one of the fastest growing waste streams across the globe and the need to have a 
separate regulation for E-waste was felt.  The Mi nistry of Environment and Forests has notified 
the E-Waste (Management and Handling) Rules, 2011 on 12 May 2011, which shall come in to 
force from 1 May 2012.  Copy of the Rules is available on Ministry of Environment and Forests 
website: www.envfor.nic.in.  This was notifi ed to the TBT Committee on 4 October 2010 with a 
60 days comment period.  The reduction in the use of hazardous substances (RoHS) shall be implemented w.e.f. 01.01.2014. 
These Rules lay down responsibilities of Pro ducers, Collection Centres, Dismantlers and 
Recyclers.  The definition of Producer is given in these rules, which inter-alia  includes the 
person, who offers to sell imported el ectrical and electronic equipment. 
The concept of extended producer responsibility (E PR) has been enshrined in these Rules.  As 
per these Rules, producers of the Electrical a nd Electronic Equipment listed in Schedule I, 
i.e. IT and telecommunication equipment and Co nsumer electrical and electronics (television 
sets, refrigerator, washing machine, air-condition ers), are required to finance, and organize a 
system to meet the costs involved in the environmentally sound management of e-waste 
generated from the "end of life" of their own pr oducts and the historical waste available on the 
date from which these rules come in to force.  Producers are also required to set up collection 
centres/ effective take back system for their 'e nd of life' electrical and electronic equipment. 
The threshold limits prescribed in EU RoHS Direct ive, which is globally accepted standard for 
the hazardous substance used in manufacture of  electrical and electronics components have 
been adopted. 
Producers are expected to achieve reduction in use of six hazardous substances to the 
prescribed limit within a period of two years from the date of commencement of these Rules. 
Labelling requirements for processed products 
Food labeling 
The draft Food Safety and Standards Authority of India Regulations, 2010 were notified in the 
Gazette  of India (the Gazette  No. 2-15015/30/2010-FSSAI) on 20 October, 2010.  The same were 
also available on the website of the FSSAI (www .fssai.gov.in).  These draft regulations were 
notified to the WTO in SPS format under ref erence G/SPS/N//IND69 dated 7 July 2010.  
Chapter 4 of these regulations are relating to pa ckaging and labelling Regulations.  India has 
not contemplated any new regulations.  These me asures are already enforced under the existing 
Indian Legislation (PFA Rules, 1995). 
Eco-Labelling Scheme 
To increase consumer awareness, the MoEF, G overnment of India launched the eco-labelling 
scheme known as "Ecomark" in 1991 vide Notification No. GSR 85(E) dated 
20th February, 2011 for easy identification of  environment-friendly products.  Any product 
which is made, used or disposed of in a w ay that significantly reduces the harm it would 
otherwise cause the environment could be cons idered as environment-friendly product.  The 
specific objectives of the scheme are as follows:  WT/TPR/M/249/Add.1 
 Page 291 
 
 
   To provide an incentive for manufacturers and importers to reduce adverse 
environmental impact of products. 
 To reward genuine initiatives by companies to reduce adverse environmental impact of 
their products. 
 To assist consumers to become environm entally responsible in their daily lives by 
providing information to take account of  environmental factors in their purchase 
decisions. 
 To encourage citizens to purchase products  which have less harmful environmental 
impacts. 
 Ultimately to improve the quality of the en vironment and to encourage the sustainable 
management of resources. 
So far, the Government of India has notified the final criteria for the following 16 product 
categories which also include processed fruits and vegetable under food items: 
1.  Soaps and detergents 2.  Paper 
3.  Food items 4.  Lubricating oils 
5.  Packaging material/package 6.  Architectural paints and powder 
7.  Batteries 8.  Electrical/electronic goods 
9.  Food additives 10.  Wood substitutes 
11.  Cosmetics 12.  Aerosol propellants 
13.  Plastic products 14.  Textiles 
15.  Fire-extinguishers 16.  Leather 
Drugs and Cosmetic Rules 2007 
The amendment to the Drugs and Cosmetic Rules for introducing a system of registration of 
imports of cosmetics into the country was published as a Gazette  notice dated 2.2.2007.  It was 
subsequently notified to the WTO on 15.4. 2008 vide notification no G/TBT/N/IND/33.  A 
subsequent Gazette  notice was made on 19.5.2010 with a later amendment dated 19.7.2010 
indicating the specific date of entry into force.  Based on an extension granted, these rules are 
now to come into effect on 1.10.2011.  Theref ore, the transparency obligations under the TBT 
Agreement namely the reasonable time period  for other members to make comments and 
providing a reasonable interval between its public ations and entry into force have been met. 
This notification is based purely on public health  concerns of the consumers.  The provisions of 
the amendment do not discriminate between the exporters to India as similar provisions are 
already in existence for domestic manufactures.  A system of registration of imports of Drugs 
was already in practice since 2003. 
The amended rules also take on board the concer ns of some Members with the deletion of the 
clause related to inspection or visit of the manuf acturer premises by the licensing authority in 
India or by any other person to whom the power has been delegated. 
US 58: Report by the Secretariat (WT/TPR/S/249):III.  TRADE POLICIES AND PRACTICES BY MEASURE:  
(2) Measures Directly Affecting Imports:  (ix)  Technical regulations and standards:  Page 68, 
paragraph 103: WT/TPR/M/249/Add.1 
Page 292  
 
  Since August 2007, India has notified a total of nine (9) new measures to the WTO TBT Committee 
plus one (1) supplemental notice, for a total of te n (10) notifications over the course of four years.  
During the same period, China notified a total of 5 61 measures;  Brazil:  185 measures;  and Kenya:  
178 measures.  How does India explain its extre mely low relative number of TBT notifications? 
Reply:  Regulations, standards and conformity  assessment procedures thereof are formed or 
changes are made therein accord ing to the need of domestic industry, consumer safety and 
socio-economic developments.  As and when ch anges are made in existing regulations or 
standards and conformity assessm ent procedures thereof or new regulation or standard and 
conformity assessment procedures are drafted,  this is duly notified to the WTO as per 
transparency obligations prescri bed in the SPS and TBT Agreements. 
US 59: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:   (ix) Technical regul ations and standards:  
Page 68, paragraph 104: 
According to the Secretariat:  "A draft technica l regulation is sent out for comments prior to its 
adoption by the concerned ministry/department/organi zation and publication in the Official Gazette.  
Comments must be provided within 60 days of th e publication of the notice.  The draft technical 
regulations are also notified to WTO Members for co mments."  Since August 2007, India's Ministry of 
Health sent 121 notices to the Official Gazette;  India Ministry of Environment and Forests:  69 
notices;  India Ministry of Consumer Affairs, Food, and Public Distribution:  59 notices.  In sum, just these three individual ministries sent 249 notices to the Official Gazette.  Please describe in detail the 
process by which India notifies measures to the WTO S ecretariat.  What actions is India taking (or 
planning to take) to improve the regulatory coordi nation required to notify the WTO of its many 
technical regulations and conf ormity assessment procedures? 
Reply:  During 2007 to 2011 India has notified 40 SPS and TBT notifications to the WTO.  
Whenever any department/ministry or regulatory body makes any changes in the existing 
regulation or standard and conformity asse ssment procedures thereof or drafts a new 
regulation or standard and conformity assessment  procedures, they are notified to the WTO. 
US 60: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:   (ix) Technical regul ations and standards:  
Pages 68-69, paragraphs 103-105: 
We understood that India would ensure that import licen ses will be issued at the same time that the 
medical devices registrations are approved.  Indi a seems to have a three-month processing lag.  How 
does India plan to address these issues expeditiously, which may include providing adequate staff in 
the Drugs Controller General of India's offi ce to implement the registration requirements? 
Reply:  Grant of registration certificate and gr ant of import license are separate exercises under 
the Drugs and Cosmetics Rules.  Applications for grant of import license have to be processed 
subsequent to the approval of registration certificate as one of the pre-condition of application is the grant of registration certificate.  Many times authorised importer different from the 
registration certificate holder.  To expedite the processing of applications the office of DCGI is 
being strengthened. 
  WT/TPR/M/249/Add.1 
 Page 293 
 
 
  US 61: 
Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:   (ix) Technical regul ations and standards:  
Pages 68-69, paragraphs 103-105: 
When does India plan to establish a regime that distinguishes between medical technologies and 
pharmaceuticals;  and, how will India provide the time required for both industry and India's 
regulators to prepare for compliance with  and implementation of any new rules? 
Reply:  The matter is under active consideration of the Government.  Since it requires 
amendment to the act, hence, a time frame cannot be committed.  
US 62: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Imports:   (ix) Technical regul ations and standards:  
Pages 68-69, paragraphs 103-105: 
The United States understands that individual states in India are asking medical devices companies to 
provide pricing information and plant master file s.  These devices are distinct from drugs and 
typically have US Food and Drug Administration appro val when exported from the United States.  Do 
states' regulators under the Drugs and Cosmetics Act have the authority to require this information, 
or does this authority belong to the central govern ment?  Please explain the rationale for requesting 
pricing and other proprietary information on medica l devices, and can this objective be achieved in 
less burdensome and intrusive ways? 
Reply:  The information of Plant Master File is required to be submitted to the Central 
Government at the time of registration.  Th ere is no requirement for submission of Plant 
Master File to the state regulatory authorities fo r imported medical devices.  State authorities 
may however ask for information in certain cases where they have reasons to ask for such 
information as a regulatory authority. 
It is necessary to provide pricing and other proprietary information on medical devices to 
protect the interest of consumers. 
US 63: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (x) Sanitary and phytosanitary measures 
(SPS):  Page 71, paragraph 115: 
The Secretariat report states that "Currently there is no mandatory labelling requirement for 
genetically modified (GM) products.  However, legislation is in the pipeline:  The Ministry of Health 
and Family Welfare has proposed comprehensive l abelling requirements for GM foods, requiring all 
packages of food/food ingredients of GM origin, t hat are subject to the approval of the Genetic 
Engineering Approval Committee (GEAC), to bear a l abel indicating that they are of GM origin, and 
that the product has been cleared for sale in the exporting country."  Given the broad definition of 
biotech-enhanced food under the proposed legislation, what is India's rationale for requiring 
biotechnology labelling, as the end- product may not even contain genetically engineered material?  If 
such a justification is on the basis of supportin g "informed consumer choice," what meaningful 
information regarding the composition, safety, or sp ecial handling requirements for the foods will the 
mandatory labelling requirement convey?  How do es India propose to enforce such a requirement? WT/TPR/M/249/Add.1 
Page 294  
 
  Reply:  The regulation on labelling is under cons ideration and before notification of the final 
regulation the draft regulation shall be placed on FSSAI portal for comments. 
US 64: Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (x) Sanitary and phytosanitary measures 
(SPS):  Page 72, paragraph 119: 
The Secretariat report states that "In August 2006, the Central Government passed the Food Safety 
and Standards (FSS) Act of 2006 to consolidate se parate laws, and to establish the Food Safety and 
Standards Authority of India (FSSAI).  Accordin g to the authorities, this law has been notified 
(Chapter II(2)(i)).  However, the rules and regulati ons to operationalize this Act have not been 
notified yet.  Once the Food Safety and Standards Re gulations, 2010 and Rules 2011 are notified, the 
Food Safety and Standards Act 2006 will be fully im plemented and will repeal some of the separate 
laws."  The United States understands that on August 5, 2011, India fully implemented the Food Safety and Standards Act, 2006.  The Act officially repeals the regulatory framework established by 
the previously existing eight food laws, consolidat ing them into the Food Safety and Standards Rules 
and Regulations 2011- under a single regulator- The Food Safety and Standards Authority of India.  
Does India intend to notify these changes to the WTO in accordance with the transparency and 
notification obligations under the SP S Agreement?  If not, why not? 
Reply:  It is submitted that Food Safety a nd Standards Act Rules and Regulations have been 
fully implemented with effect from 5 August 2011, with this previously existing eight food laws 
are repealed. 
Draft Food Safety Rules 2010 notified on 22.05.2010 to WTO vide notification G/SPS/N/IND/68 
and Draft Food Safety Regulations 2011 notified on 7 July 2010 vide notification G/SPS/N/IND/69. 
US 65: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (2) Measures Directly Affecting Im ports:  (x) Sanitary and phytosanitary measures 
(SPS):  Page 74, paragraph 125: 
What are the risk and science-based justifications  requiring that "all consignments containing 
products subject to genetic modification must ca rry a declaration stating that the product is 
genetically modified?" 
Reply:  The assertion that all consignments containing products subjected to genetic 
modification must carry a declaration stating that  the product is genetically modified, is for the 
purpose of giving consumers an informed choice. 
US 66: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Ex ports:  (v)  Export prohibitions, restrictions, and 
licensing:  Page 39, para 18, Page 77, par agraphs 131 and 132, (Tables III.15 and Table III.16): 
India has taken a number of measures, including at the state level, to restrain exports of steelmaking 
raw materials, despite the fact that India's gr owing steel industry itself relies on global trade for 
access to steelmaking raw materials.  Do stat es have the authority under Indian law to ban the export  WT/TPR/M/249/Add.1 
 Page 295 
 
 
  of any product?  Please explain the rationale for maintaining export licensing, bans and other 
restrictions on iron ore and ferrous  scrap, in light of Article XI of  the GATT.  Also, please explain 
why export taxes and additional measures are necessary to  restrict trade in these raw materials.  How 
does the imposition of export taxes (but very low domestic taxes) contribute to the responsible 
development of India's iron ore resource?  Does India have any plans to reduce or eliminate its 
trade-distorting export taxes on iron ore? 
Reply:  These taxes are reviewed from time to time.  The nature of export restriction depends on 
the conditions and situations at a given time and is not inconsistent with the WTO provisions.  
Export regulations are governed  by the Central Government. 
US 67: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Ex ports:  (v)  Export prohibitions, restrictions, and 
licensing:  Page 79, paragraph 140: 
The Secretariat's report states that "export licensing is sometimes used as a policy tool to ensure the 
domestic supply of certain products."  For example, at different periods in 2010, certain exports of 
cotton (HS 5201, 5202, and 5203), excluding cotton yarn, (HS 5205, 5206, and 5207), were restricted 
by an export license or by an export authorization re gistration certificate that was issued only after 
the domestic supply of cotton was ensured for the domestic garment and handloom sectors.  We 
understand that the restrictions on the export of cotto n have been lifted.  Please explain the rationale 
for these export restrictions, particularly in light of  India's commitments unde r Article XI and Article 
XX of the GATT.  Also, please indicate whether these  restrictions had the intended effect, and whether 
or not the Government plans to reinstate the restri ctions at the start of the new cotton season in 
October? 
Reply:  The restriction on export of cotton wa s imposed temporarily as allowed under Article 
XI of GATT.  Government policy on cotton exports is guided by the consideration of permitting 
export of surplus cotton from India.  Accordingl y, exportable surplus is determined from time 
to time and allowed to be exported either by placing cotton exports under free list or by way of 
quotas.  Export of cotton has b een made free for the cotton year 2010-11 (up to 30.09.2011) vide 
DGFT Notification No. 62 dated 02.08.2011, which is available in the website dgft.gov.in.  It is only subject to registration of contracts for ex port of cotton with the Directorate General of 
Foreign Trade. 
US 68: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports:  (vii) Export support:  Page 81, 
paragraph 145: 
The Secretariat's report states that India's latest notification to the WTO Committee on Subsidies and 
Countervailing Measures included tax incentives pr ovided under the Income Tax Act 1961 and to 
Export Oriented Units (EOUs).  The United States would note that after nearly ten years since its last 
subsidies notification, India recently notified that  it maintained only these three subsidy programs 
despite evidence to the contrary, as detailed through out the Secretariat's report.  Could India please 
explain why each of the programs, which are de tailed throughout the Secretariat's report, is not 
subject to the notification obligations under Article  25 of the SCM Agreement?  If a program is 
subject to notification, please do so in acco rdance with Article 25 of the SCM Agreement. WT/TPR/M/249/Add.1 
Page 296  
 
  Reply:  Several of the schemes detailed in the Secretariat Report are in the nature of duty 
exemption/duty remissions and are not in the natu re of subsidies within the meaning of ASCM.  
In those schemes, there is a clear co-relation between the items permitted for import duty free 
and their quantity with the corresponding export product.  There is no element of subsidy in 
such schemes as there is an appropriate veri fication mechanism to check whether any excess 
quantity of duty exempt material  has been allowed for import. 
US 69: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports:  (vii) Export support:  Page 81, 
paragraph 145: 
According to the Secretariat, "During the period und er review, India did not make any notifications to 
the WTO regarding export subsid ies on agricultural products."  When will India bring its 
notifications up to date? 
Reply:  India's notification to the WTO, G/AG/N/I ND/8 dated 15 July 2011, related to export 
subsidy commitments for the marketing years 1995-96 and 2001-02 to 2003-04.  Work is 
underway on India's notifications for the subsequent years. 
US 70: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Ex ports:  (vii) Export support:  Page 82, paragr aph 149 
and page 84, paragraph 153: 
According to the Secretariat, the SEZs and the Expo rt Oriented Units (EOUs) are exempt from routine 
customs procedures.  Furthermore, according to the Se cretariat, "As in the case of the EPZs, the main 
objectives of the EOU Scheme is to increase exports and foreign exchange revenues, promote the 
transfer of latest technologies, stimulate di rect foreign investment, and generate additional 
employment."  Do India's labor laws apply to these zones?  Are ther e differing standards or regulations 
for employment in these areas?  Does the Ministry of Labour conduct any labor inspections in these 
zones? 
Reply:  The SEZ Act, through an amendment br ought about by the Parliament, envisages the 
Central Government shall have no authority to  relax any law relating to the welfare of the 
labour in the SEZs.  All labour laws are applicab le in special economic zones.  The rights of the 
workers/labour are therefore protected under th e SEZ Act.  The Central Government cannot 
relax any Central Act or any rules or regulations made there under, which would affect the 
welfare of the labour in the SEZs. 
India has ratified ILO Convention No. 81 co ncerning Labour Inspection, 1947.  An "Area 
Officer System" is in vogue in the Ministry  of Labour and Employment under which the 
Central Government deputes its officers to visit States in order to ensure proper 
implementation of labour laws (including in the SEZs). 
US 71: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports:  (vii) Export support:  Page 84, 
paragraph 155;  Page 88, paragraphs 165-167;  Page 89 paragraph 173:  WT/TPR/M/249/Add.1 
 Page 297 
 
 
  In addition to the SEZ and EOU programs, the Secretariat's report describes numerous other 
programs that appear to be export subsidies.  These programs include: 
 Advance Authorization Scheme; 
 Duty Free Import Authorization Scheme (DFIA); 
 Duty Entitlement Passbook Scheme (DEPBs); 
 Focus Market Scheme; 
 Focus Product Scheme; 
 Status Holder Incentive Scheme; 
 Export Promotion Capital Goods Scheme (EPCGS); 
 Export and Trading Houses Scheme;   
 Target Plus Scheme (TPS);  and  
 Exim Bank lending. 
As noted as well in the Secretariat's report, pr oduct coverage and the level of benefits changed during 
the period under review and new export contingent sch emes were implemented.  Moreover, based on 
publicly available information and recent press re ports, many of these programs seem clearly to 
benefit the textile and apparel sector.  In light of th e WTO Secretariat's calculations that demonstrate 
India's exports of textile and apparel products are above the export competitiveness threshold as 
defined by Article 27.6 of the Agreemen t on Subsidies and Countervailing Measures 
(G/SCM/132/Add.1/Rev.1), does India recognize its obligation under Article 27.5 of the SCM 
Agreement to phase out all export subsidy benefits  provided to its textile and apparel sector?9  If so, 
could India please explain what concrete steps I ndia is currently taking to phase-out these programs 
and describe the schedule under which these benefits to  the textile and apparel sector will be phased 
out? 
Reply  As stated in response to question No. 68, several schemes contained in the Secretariat's 
report are not in the nature of subsidies unde r the ASCM Agreement and therefore do not 
require to be notified to the WTO.  This i ssue was discussed in previous Subsidies Committee 
meetings including the one held in May 2011.  India is committed to meeting its obligations under the Agreement but there are issues which n eed clarity and common understanding before 
further action can be taken.  These issues have be en raised in the Subsidies Committee.  Clarity 
on the definition of "product" for the purpose of  Article 27.6 is the starting point for phasing 
                                                      
9 Under the Agreement on Subsidies and Counterv ailing Measures (SCM Agreement), developing 
countries receive special and differentia l treatment with respect to certain subsidy discip lines under Article 27.  
For developing countries listed in Annex VII of the SCM Agreement (including India) the SCM prohibition on 
export subsidies does not apply until (1) per capita GNP reach es a designated threshold or (2) eight years after 
the country achieves "export competitiveness" for a par ticular product.  Article 27.6 of the SCM Agreement 
defines export competitiveness as the point when an exported product reaches a share of 3.25% of world trade 
for two consecutive calendar years.  E xport competitiveness is determined to exist either via notification by the 
developing country or on the basis of a computation undertaken by the WTO Subsidies Committee Secretariat at 
the request of any Member. WT/TPR/M/249/Add.1 
Page 298  
 
  out any subsidies.  Another issue is the calculation of the time when the obligation to phase out 
would begin.  
US 72: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports:  (vii) Export support:  Page 84, 
paragraph 155: 
The Secretariat's report states that firms, including those within the textiles and garment industries, 
that are established within a Special Economic Zone  (SEZ) "benefit from several incentives subject to 
generating foreign exchange earnings within five yea rs of operation."  Specifi cally, the Secretariat's 
report notes that SEZ units, including those within the textiles and garment industries, 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 dut y, and electricity duty).  The Secretariat's report 
states that both SEZs and EOUs are exempt from various taxes, including income tax, until March 31, 
2011.  Could India confirm whether all of these in centives ended on March 31, 2011, or whether some 
or all of them have continued past that date?  If  they have continued, please provide the expected date 
of termination, if any. 
Reply:  Provisions relating to EOUs are provided in Chapter VI of the Foreign Trade Policy 
2009-14, which may be viewed on http://dgft.gov. in.  Income Tax exemption for EOUs has been 
withdrawn with effect from 1.04.2011. 
Facilities available for SEZ units and SEZ de velopers are provided in the SEZ Act 2005 and 
SEZ Rules 2006, which may be viewed on www.sezindia.gov.in.  Minimum alternate tax (MAT)  
at 18.5% has been imposed on SEZ units and developers with effect from 1 April 2012.  
Similarly SEZ developers are now required to pay dividend distribution tax (DDT), on which 
exemption was available previously. 
US 73: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (vii) Export support:  Page 85, table III.20: 
Will India consider extending to investors that se ll in the domestic market the same incentives 
afforded to investors in export oriented units, e.g., 100-percent foreign direct investment through the 
automatic route, no requirement for import license s, single window clearance for central and state 
level approval procedures, and permissi on to import second hand capital goods? 
Reply:  The policy on foreign direct investment, wh ich is equally applicable to export oriented 
and other units, is specified under the Conso lidated Circular on FDI policy ("Circular 1 of 
2011").  It is reviewed on a continuing basis, wi th a view to further liberalising it and increasing 
its investor-friendliness. 
US 74: Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Ex ports:  (viii) Export promotion and marketing 
assistance:  Page 88, paragraph 169: 
The Secretariat's report describes various schemes providing "assist ance for setting up new export 
promotion parks and zones (includi ng SEZs) and complementary infras tructure such as road links to  WT/TPR/M/249/Add.1 
 Page 299 
 
 
  ports, container depots, and power supply," unspec ified assistance to Export Promotion Councils 
(EPCs) in their "export promotion activities," as well as "assistance for research on potential export 
markets."  The Report additionally notes that "EPCs and commodity boards also continue to promote 
exports of specific products" such as textiles, ch emicals and leather.  Will India notify these financial 
assistance programs in this regard in light of its  obligations under Article 25 of the Subsidies 
Agreement?  If not, please explain why these pr ograms are not subject to those obligations. 
Reply:  India has notified the programme relating to preferential tax policies relating to setting 
up of special economic zones (SEZs) and the SE Z units in the notification G/SCM/N/186/IND 
dated 18 October 2010.  Export promotion acti vities carried out by the export promotion 
councils (EPCs) need not necessarily be subsidies within the meaning of Article 1 of ASCM.  
Likewise, subsidies for development of general infrastructure do not require to be notified. 
US 75: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(i) Incentives:  Page 91, paragraph 175: 
As the Secretariat points out, In dia maintains several subsidy progr ams at the sub-central level.  
However, India has not included any of these sub- central programs in its subsidy notifications under 
Article 25 of the SCM Agreement.  Please explain why India has not notified, pursuant to Article 25 of 
the SCM Agreement, the state level programs which are detailed throughout the Secretariat's report?  
Does India accept the obligation to notify sub-centr al government programs pursuant to Article 25 of 
the SCM Agreement?  If so, why has India never done so? 
Reply:  India is making efforts to gather th e information relating to support programmes of 
state governments at sub-central level so that these may be notified to the WTO, if required. 
US 76: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(i) Incentives:  Page 91, paragraph 177: 
Opening the multi-brand retail sector to foreign direct investment (FDI) could provide a stimulus to 
take advantage of the tax incentive for capital expenditure in the co ld chain sector.  What are the 
prospects for FDI liberalization in multi-brand retail? 
Reply:  The existing policy allows for 51% foreign  direct investment (FDI), only in single brand 
retail trade, subject to specified conditions.  FDI in multi brand retail trading is presently 
prohibited.  Government of India had released a Discussion Paper on the subject of "Foreign 
Direct Investment in Multi-Brand Retail Trading" , in order to obtain stakeholder comments, 
for informed policy making.  Comments were recei ved from a number of stakeholders.  The 
discussion papers, as well as the comments rece ived thereon, are in the public domain.  The 
Government has not taken a final decision in this regard. 
US 77: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(ii) Role of state-owned enterprises (other than state-trading companies), and disinvestment:  
Page 96, Paragraph 190: WT/TPR/M/249/Add.1 
Page 300  
 
  The Secretariat's Report describes the role of central  public sector enterprises in the Indian economy, 
noting that they continue to play an active role in the economy, and that they hold significant market 
share in a number of infrastructure sectors.  Acco rding to the Report, divestments during the review 
period have been focused almost excl usively in the energy sector.  What is India's long term plan for 
public sector involvement in the economy, particular ly in areas such as telecommunications and 
financial services, sectors of interest to private and foreign investors, and the expansion of which are 
critical to India's continued economic growth? 
Reply:  The observation that divestments during the review period have been focused almost 
exclusively in the energy sector is not correct si nce disinvestments have been made in other 
sectors too, for example, mining, shipping etc. 
The Government has made a clear commitme nt to empowering the CPSEs and their 
managements.  It was recognised that public enterprises could not compete effectively with private entrepreneurs without freedom to func tion and operate commercially.  Thus, the 
concept of Navratna and Mini-Ratna was intro duced with greater delegated authority, both 
financial and managerial so as to provide th em comparative advantages and to give them 
greater autonomy to compete in the global mark et.  Government has real ized that "Navratnas", 
"Mini-ratnas" and other CPSEs are required to grow and deliver on the promises they have made to their stakeholders.  Other refo rms have also been announced, such as 
professionalisation of the Boards of Directors of public sector enterprises and evaluation of 
performance of CPSEs through memorandum of understanding (MOU). 
The government established the Maharatna status in 2009, which raises a company's investment 
ceiling from Rs 1,000 crore to Rs 5,000 crore.  The Maharatna firms can now decide on 
investments of up to 15% of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. 
US 78: Report by the Secretariat (WT/TPR/S/249):  III. TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(ii) Role of state-owned enterprises (other than state-trading companies), and disinvestment:  
Pages 96-98, paragraph 191 and table III.26: 
When will the partial disinvestments approved for ce rtain companies in 2011 take place?  Will foreign 
investors be able to participate in these disinvestments? 
Reply:  Disinvestments in a particular year depend on culmination of a set of procedures 
mentioned below: 
(i) Authorization procedure that includes, the Board of Directors of the CPSE, the 
administrative ministry including oth er ministries concerned and finally the 
Government. 
(ii) The CPSE specific compliance procedure in preparation for disinvestment. 
(iii) Market related procedure that includes professional positive input and advice about the 
markets. 
Based on the above factors partial disinvestment s approved for certain companies in 2011, will 
take place.  WT/TPR/M/249/Add.1 
 Page 301 
 
 
  Foreign investors should be able to particip ate in these disinvestments under the category of 
qualified institutional buyers.  Marketing road-shows are organized to facilitate their participation in the IPOs/FPOs. 
US 79: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(iii) Competition policy:  Page 100, Paragraph 203: 
The Secretariat's Report describes provisions of the Competition Act 2002, particul arly as they 
pertain to abuse of dominant position.  According to the report, the Act prohibits enterprises from 
imposing unfair or discriminatory conditions when pu rchasing or selling goods or services, or when 
pricing goods or services?  Do these provisions of the Competition Act apply equally to India's 
central public sector enterprises?  If not, please describe the measures in place to prevent abuse of 
market position by CPSEs. 
Reply:  The Competition Act applies fully to  the CPSEs and the Competition Commission of 
India (CCI) has the authority to take decisi ons regarding any anti-competitive practice 
entertained by CPSEs, but does not include any activity of the Government relatable to the 
sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic en ergy, currency, defence and space, as per the 
definition of "enterprise" under section 2(h) of the Competition Act, 2002. 
US 80: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(iv) Price controls:  Page 102, paragraphs 217-218: 
India has price caps on certain branded drugs.  The Department of  Pharmaceuticals (DoP) permits 
importers to recover landed costs, plus any additional cost getting drugs to market up to 50 per cent if 
there are no domestic manufacturers, in which case th ere is a 35 per cent rate of return.  We have 
heard reports that the National P harmaceutical Pricing Authority (NPPA)  is deviating from this rule 
by offering a rate of return below the stated po licy, which appears effectively to price foreign 
companies out of the market.  Is this deviation by NPPA permitted under Indian law?  If so, what is 
the legal basis for this deviation and what is th e rationale for NPPA's refusal to implement DoP's 
stated policy? 
Reply:  National Pharmaceutical Pricing Authorit y (NPPA), an independent body of experts set 
up by the Government to fix/revise the prices of  scheduled drugs as per the provisions of Drugs 
(Prices Control) Order, 1995 (DPCO, 1995). 
As per the provisions of DPCO, 1995, for schedul ed formulations drugs imported in finished 
form, landed cost shall form the basis for fixing its price alongwith such margin to cover selling 
and distribution expenses including interest and importer's profit, which shall not exceed 50% 
of the landed cost. 
Thus the margins as above can also be less than 50%.  Decisions of NPPA are judicial orders for 
which there is a judicial process for review.  Companies aggrieved against NPPA decision can have recourse to review and appeal thereafter under due process of law. WT/TPR/M/249/Add.1 
Page 302  
 
  US 81: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(iv)  Price controls:  Page 105, paragraphs 217-218: 
What new price control policies is India consideri ng, and does India plan to have a process that is 
open for public comment? 
Reply:  The Pharmaceutical Policy as amended fr om time to time envisages making available 
quality medicines at reasonable prices to the masses.   This policy is prepared after consulting 
with all the stakeholders. 
US 82: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(v) Government procurement:  Page 106, par agraph 219: 
 India became an observer to the WTO Agreement  on Government Procurement in February 2010.  
Does India have plans to commence accession to the GPA?   If so, please indicate when India intends 
to commence accession? 
Reply:  Issue of India's accession to GPA is under examination.  At present, any commitment on 
this issue is not feasible. 
US 83: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(v) Government procurement:  Page  110, paragraphs 238-240 generally: 
To what extent, and under what conditions, are service providers located outside India eligible to bid 
for government tenders?  Does Indi a currently impose any restriction on  foreign financial institutions 
being able to provide financial services to pu blic sector undertakings and government entities? 
Reply:  Various norms for obtaining bids in respect of Central Government procurement are 
contained in the Rules 149 to 154 of chapter 6 of General Financial Rules, 2005, while those for procurement of services are contained in the Rules 163 to 185 of the same chapter.  There is no 
general bar on participation of global firms in Central Government procurement.  A copy of the 
General Financial Rules is available at the webs ite:  http://finmin.nic.in/the_ministry/dept_ 
expenditure/GFRS/GFR2005.pdf. 
US 84: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 114, paragraph 250 
The Secretariat discusses the proof of  efficacy requirement in Section 3(d) of India's Patent Act.  
Under Section 3(d), if an applicant demonstrates the novelty, non-obviousness, and industrial use of a 
product, can it still be denied a pat ent on the grounds that it fails to also demonstrate a significant 
improvement in efficacy?  Does the Government of India consider this  requirement to be in line with 
TRIPS Article 27(1) which states that patents shall be available for inventions in all fields of  WT/TPR/M/249/Add.1 
 Page 303 
 
 
  technology provided they are new, involve an inventive step, and are capable of industrial 
application?  Please explain. 
Reply: 
 Patents are available to any invention that meets the criteria of patentability, that is, 
novelty, inventiveness and industrial application. 
 Section 3(d) prevents the grant of patent for merely new forms or new usages of known 
substances and thus averts grant of frivolou s patents, which may be obtained by minor 
modifications, particularly in the pharmaceutical sector. 
 The provisions for requirement of enhancemen t of the known efficacy under section 3(d) 
of the Patents Act, 1970 are only for the me re discovery of a new form of a known 
substance.  This provision has been made on ly to prevent the ever greening of product 
patents. 
 Section 3(d) is also intended to ensure availability of medicines by preventing 
ever-greening of existing patents and thus is  in consonance with Member States' rights 
of ensuring availability of medicines at reasonable prices for meeting public health requirements. 
 This is one of the recognized flexibilities available under Article 8 of the TRIPS 
Agreement that countries are free to adopt in their legislation as per Doha Declaration. 
 The Declaration states that TRIPS Agreement can and should be interpreted and 
implemented in a manner supportive of WTO members' right to protect public health 
and, in particular, to promote access to medicines for all. 
 As such the said provisions of section 3(d) of the Patents Act, 1970 are fully compliant 
with Article 27(1) of the TRIPS Agreement read with Article 8 of the said Agreement. 
US 85: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 115, paragraph 256: 
The Secretariat indicates that DIPP has issued  a discussion paper on patent compulsory licensing 
with a view to developing a predictable environmen t to use such measures.  How will the Government 
of India ensure that any suggested changes to current implementation of compulsory licensing 
complies with all of the conditions in TRIPS Artic le 31?  Does India plan to seek public comments 
regarding any changes it is considering?  How does th e Government of India satisfy the undisclosed 
information obligations of TRIPS Article 39( 3), including protection of data against unfair 
commercial use? 
Reply:  The Department of Industrial Policy and Promotion (DIPP) prepared a Discussion 
Paper on the subject of Compulsory Licensing and hosted the same on its website to invite the 
views and suggestion on certain issues for resolution .  The objective of this exercise was not to 
invite any change/amendment to the provisions of  the Patent Act 1970 but only to elicit the 
suggestions to take an appropriate policy decision  whether the existing provisions of the Patents 
Act, 1970 require any amplification through issuing of guidelines by the Government.  As such, 
the question of any change to the existing provisions of the Patents Act 1970 does not arise.  WT/TPR/M/249/Add.1 
Page 304  
 
  Moreover, after obtaining and examining the su ggestions on the said Discussion Paper, the 
Government has decided that there is no need to issue additional guidelines for the issue of 
Compulsory License and issued a press release to th is effect to conclude the matter.  Further, 
the existing provisions of the Patent Act 1970 a re already TRIPS compliant including Article 31 
thereof. 
As regards the protection of undisclosed in formation against unfair commercial use as per 
Article  39(3) of TRIPS Agreement, adequate safe guard provisions are there in the existing Acts.  
US 86: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 116 paragraph 265: 
The Secretariat's Report states:  "Any person may oppose the registration, within three months from 
the date of its advertisement."  How many pre-registration opposition and post-registration 
cancellation/rectification matters are pending before th e Intellectual property Office?  On average, 
how long does it take for the Indian Intellectual  Property Office to decide a pre-registration 
opposition and a post-registration cancellation/rectification matter? 
Reply:  With reference to the Secretariat obser vation regarding trade mark opposition in India 
there are about 1,30,000 pre-registration oppositions pending at TMR.  Further about 2,500 cancellation proceedings are pending at TMR.   The average time for disposal of contested 
matters at TMR after conclusion of the hearing by the adjudicating officer is between three to 
six months by way of a detailed speaking order. 
US 87: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 117, paragraph 270: 
According to the Secretariat, in 2007, "the cu stoms authorities promulgated guidelines, under which 
right holders may record their registered trademarks  with the customs authorities.  These guidelines 
authorize customs officials to seize goods infringi ng the trademarks of the right holder at the border 
without a court order.  According to the author ities, there have been no such instances."  Why have 
there been no seizures of trademark infringing go ods conducted without a c ourt order despite the 
existence of guidelines authorizing customs officials to take such action? 
Reply:  There have been seizures of trade mark infringing goods by the Indian Customs as per 
the IPR border measure prevalent in India, without court order. 
US 88: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 119, paragraph 278: 
The Secretariat's Report states:  "[T]he Copyright (Amendment) bill 2010 pr oposing amendments to 
the Copyright Act 1957 is being discussed in Par liament."  On August 12, 2011, press reports 
indicated that the Cabinet had approved changes to th e proposed bill.   What are the key issues in 
the cabinet-approved version of th e bill, and the expected timeline for legislative consideration and  WT/TPR/M/249/Add.1 
 Page 305 
 
 
  passage?  On a related legislative note, what is the status of India's draft optical disc law and India's 
efforts to combat optical disc piracy? 
Reply:  The Copyright (Amendment) Bill, 2010 pending in Rajya Sabha (the Upper House of 
Parliament) since it was introduced on 19  April, 2010.  The Bill is available at 
www.copyright.gov.in.  The details of amendments  to the Bill will only be made available after 
both the Houses of Parliament consider the same. 
US 89: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 119, paragraph 280: 
The Secretariat's Report states:  "Through the Inter national Copyright Order, copyright is protected 
in India for nationals of countries that are member s of the Berne Convention,  the Universal Copyright 
Convention, and the TRIPS Agreement."  Recently two Indian courts issued decisions effectively 
holding that songwriters and music publishers lose their exclusive public performance rights after 
their songs have been licensed for recording.  As a result of these rulings, radio stations will only be 
required to pay license fees to th e sound recording companies, but not to the collecting society which 
distributes royalties to the songwriters and publishers.  See Music Broadcast Private Ltd. v.  Indian 
Performing Right Society (decided July 25, 2011 in Bombay;  Suit No. 2401 of 2006) and Indian 
Performing Rights Society v Aditya Pandey (deci ded July 28, 2011in Mumbai;  CS(OS) 1185/2006 
and I.A.  Nos. 6486/2006, 6487/20 06 and 7027/2006).  Please explain these decisions in light of 
India's obligations under the Berne Convention (incor porated into the TRIPS Agreement by virtue of 
TRIPS Article 9(1)). 
Reply:  Issues raised in these cases are sought to be addressed in the Copyright (Amendment) 
Bill, 2010 and the amendments to the Bill presen tly under Parliament scru tiny.  The Copyright 
Act, 1957 is in compliance with India's obligations under the Berne Convention (incorporated into the TRIPS Agreement by vi rtue of TRIPS Article 9(1)). 
US 90: 
Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 120, paragraph 283: 
The Secretariat states:  "Twenty four states and UT s have set up Copyright Enforcement cells within 
the crimes section of the police, to enforce the copyright legislati on.  The authorities have indicated 
that, in 2008 the police registered 6,036 cases regar ding copyright violations;  2,151 persons were 
convicted."  We would appreciate information regarding the type of penalties imposed on the 
convicted persons, whether any of  the convicted persons were sentenced to serve time in prison, and if 
so, for what period of time? 
Reply:  The above information can be obtained from National Crime Records Bureau of 
Ministry of Home Affairs, Government of India. 
US 91: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 120, paragraph 285: WT/TPR/M/249/Add.1 
Page 306  
 
  The Secretariat Report indicates that the "Geogr aphical Indications of Goods (Registration and 
Protection) Act 1999" stipulates the grounds for ref using registration of Geographical Indications.  
Can India confirm that the grounds include that the proposed geographical indication is likely to cause confusion with an earlier established right , whether established via a prior registration or 
through prior use?  Also, can India confirm that  an additional ground for refusing registration of a 
geographical indication is if there is evidence that  the proposed geographical indication is the 
common name (the generic term) for a good in India? 
Reply:  Yes.  It is confirmed that grounds for ref using registration of geographical indications 
include that the proposed geographical indication  is likely to cause confusion with an earlier 
established right, whether established via a pr ior registration or through prior use.It is 
provided under section 9(a) of India's GI Act that "a geographical indication the use of which 
would be likely to deceive or cause confus ion shall not be registered as a geographical 
indication".  However, the expression "earlier es tablished right" has not been used in the GI 
Act.  But Section 26 of the Act protects a trade mark which contains or consists of a GI which 
has been applied for or registered in good faith or where such trade mark has been used in good 
faith before the date of filing of an applicatio n for a GI in India.  Hence, such 'earlier 
established rights' are subsumed in the Act. 
Section 9 (f) of the GI Act provides that "a geogr aphical indication which are determined to be 
generic names or indications of goods and are, th erefore, not or ceased to be protected in the 
country of origin, or which have fallen into disu se of that country shall not be registered as a 
geographical indication".  Explanation 1 to sect ion 9 further provides "For the purpose of this 
section, generic names or indicati ons, in relation to goods, means the name of a goods which, 
although relates to the place or the region where the goods was originally produced of 
manufactured, has lost its original meaning and has become the common name of such goods or 
serves as a designation for an indication of the kind, nature, type or other property or 
characteristic of the goods. 
It is, therefore, confirmed that a GI which has become generic cannot be protected under the 
Act. 
US 92: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Page 122, paragraph 297: 
The Secretariat's Report states:  "India has no specifi c legislation regulating the protection of trade 
secrets;  hence enforcement measu res/penalties for violations of tr ade secrets are available through 
common law."  India was considering a statutory law for protection of trade secrets under the draft of 
the Innovation Bill.  Please confirm the status of th is Bill.  Does it provide for protection of trade 
secrets? 
Reply:  India's 'National Innovation Policy' is under formulation. 
US 93: Report by the Secretariat (WT/TPR/S/249):  III.  TRADE POLICIES AND PRACTICES BY 
MEASURE:  (3) Measures Directly Affecting Exports :  (4) Measures Affecti ng Production and Trade:  
(vi) Intellectual property rights:  Pages 123-124, paragraphs 298-300:  WT/TPR/M/249/Add.1 
 Page 307 
 
 
  The Secretariat says that India has made improv ements in IPR enforcement through increased border 
protection, and its IP offices continued to pursue promising modernization efforts.  Please describe 
what steps have been taken to increase border prot ection of IPR.  We would appreciate information 
or data on the number of seizures of IPR infringi ng goods made at the borders, the kind of products 
that are being seized and from what country, and how this has changed from previous years. 
Reply:  Apart from introducing a separate law on border measures, Indian Customs has 
focused on effective implementation of the law.  A key initiative taken by Indian Customs in this 
regard is the facility for online registrations by the right holders.  The web based IPR module known as the Automatic Recordation and Targ eting for IPR Protection (ARTS) provides for 
online registration with the chosen Customs fiel d formation for the enforcement of IPR rights 
namely copyrights, trademarks, patent, design s and geographical indications by following 
appropriate guidelines.  The main features of the ARTS are online submission of IPR Notice, 
uploading images of genuine goods and trademark insignias, uploading images of infringing goods, generation of Unique Temporary Registra tion Number (UTRN), auto generated mail to 
applicant regarding the status of his applicat ion for recordation, commu nication of the final 
Unique Permanent Registration Number (UPRN), etc. 
The ARTS has been Integrated to national risk management module.  ARTS has been listed by 
the WCO Asia Pacific Regional Office for Capa city Building as one of the Regional Best 
Practices and circulated to the members. 
Taking into consideration the relatively new IPR regime in force since May 2007, the 
performance of Indian Customs in checking in stances of counterfeiting and piracy has been 
noteworthy.  Cases have been booked by th e Customs involving counterfeit goods infringing 
IPRs of brands such as Nokia, Nivea, L'Orea l, Garnier, Revlon, Dove, Axe, Sony, Adidas, 
Bosch-Mico, etc. 
US 94: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(1) Overview:  Page 125, paragraph 4: 
 As the Secretariat states, the services sector has  emerged as the main driver of Indian economic 
growth, with increasing overseas operations by Indi an companies and numerous leading global firms 
doing business in India.  We believe that this requires world class legal services and compliance with 
international legal practices.  The Secretariat's Report from Indi a's 2007 Trade Policy Review noted 
that provision of any legal service by a foreign firm or foreign lawyer was at the time prohibited.  It 
also noted that a discussion on liberalization ha d been initiated via a Department of Commerce 
consultation paper.  What is the current status of  liberalization in India's legal services sector?  What 
was the outcome of the discussion initiated via the consultation paper referenced in the 2007 TPR 
Report? 
Reply:  At present Foreign Law Firms are not allowed to practice in India and, under the 
Indian Advocates Act, 1961 they are prohibited from giving any legal advice that could constitute practicing Indian Law.  Currentl y this sector is governed by self regulatory 
professional body (Bar Council of India).  The consultation paper hosted on the website of the Department of Commerce has init iated a debate on the subject at large and especially amongst 
the stake holders. 
US 95: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(2) Agriculture:  (ii) Agricultural pol icy objectives:  Page 129, paragraph 18: WT/TPR/M/249/Add.1 
Page 308  
 
  The Secretariat report provides a brief description of  India's tariff rate quota (TRQ) system and its 
implementation.  The paragraph also states that  "Imports under TRQs are allowed only through 
eligible entities or designated agencies."  How does India determine and designate these eligible 
entities or agencies (identified on page 48, paragraph 37)? 
Reply:  Para 2.59 of the Handbook of Procedures Volume 1 gives the details of the agencies and 
the same is available at http://dgft.gov.in.  Handling the TRQ requires a higher skill and thus the agencies notified are usually S TEs from the respective sectors. 
US 96: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(2) Agriculture:  (ii) Agricultural pol icy objectives:  Page 133, paragraph 32: 
According to the Secretariat, "India's latest no tification to the WTO on domestic support commitments 
in 2011, covered 1998/99 to 2003/04.[2]" When w ill India bring its notifications up to date? 
Reply:  India's notification to the WTO, G/AG /N/IND/7 dated 9 June 2011, covered the backlog 
for the period 1998-99 to 2003-04.  Work is underway on India's notifications for the subsequent years . 
US 97: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(2) Agriculture:  (ii) Agricultural pol icy objectives:  Page 134, paragraph 36: 
The Secretariat Report states that India has a Market Intervention Scheme (MIS) that covers 
perishables not under the minimum support prices (MSPs).  These perishables are purchased at a 
market intervention price (MIP).  Please identify the perishables t hat are covered by the MIS and 
identify which perishables in fact  received intervention in the few circumstances that it did occur?  
Please identify how the MIPs are dete rmined as compared to the MSPs. 
Reply:  All perishables, which include fruits, vegetables, oil-palm, areca-nut etc. are covered by 
the MIS.  MIS operations are, however, taken up exceptionally, only to p revent distress sale by 
farmers. 
The Market intervention price (MIP) is fixed taking into consideration estimated cost of 
production;  whereas minimum support prices  (MSP) for crops under Price Support Scheme 
(PSS) are announced before the crop season and a re fixed after a detailed analysis of cost and 
other relevant factors by the Commission fo r Agricultural Costs and Prices (CACP). 
MIP operations have been carried out in case of  apples in Himachal Pradesh, potatoes in West 
Bengal and some other States for other vegetables/fruits in the recent past. 
US 98: Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (ii) Financial services:  Page 141, Paragraph 61: 
The Secretariat notes that "Foreign investment partici pation [in India] is a llowed in both public and 
private sector banks, up to a threshold of 74% for a ll forms of foreign investment (i.e. FDI and FII) in 
private banks, and of 20% in public banks."  On August 11 2010, however, the RBI released the 
"Discussion Paper on Entry of New Banks in th e Private Sector," seeking feedback from all 
stakeholders and the general public with respect to new private bank licenses.  This discussion paper  WT/TPR/M/249/Add.1 
 Page 309 
 
 
  states that:  "Since the objective is to create  strong domestic banking entities and a diversified 
banking sector which includes public sector banks, domestically owned private banks and foreign 
owned banks, aggregate non-resident investment in cluding FDI, NRI and FII in these banks could be 
capped at a suitable level below 50 per cent and lo cked at that level for the initial 10 years…this 
[capping foreign investment to below 50% for the initia l 10 years] would be in contrast to the present 
FDI policy which allows 74 per cent foreign equity  in private sector banking."  When does India 
intend to release final guidelines, and will the new bank licenses cap foreign investment below the current 74% threshold? 
Reply:  Reserve Bank of India has released the Draft Guidelines for Licensing of New Banks in 
the Private Sector on August 29, 2011 on its we bsite for public comments and feedback and has 
given time up to 31 October 2011.  The draft guidelines cap the aggregate foreign investment in 
the new private sector banks at 49% for the first five years from the date of licensing of the bank.  After the expiry of five years from the date of licensing of the bank, the permissible foreign shareholding would be as per the extant policy, which is presently at 74%.  The lower foreign investment cap in the initial 5 years for a new private sector bank is stipulated with an 
objective to create strong domestic banking entities. 
US 99: Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (ii) Financial services:  Page 141, Paragraph 62: 
The Secretariat's Report describes mandatory priority sector lending requirements for banks, and 
notes that the requirements reduce capital availabl e to profitable sectors of the economy, increase 
intermediation costs, and increa se overall interest costs to the economy.  Is India considering 
revisiting the priority sector lending requirements, in light of their negative impacts on capital 
availability and cost? 
Reply:  The priority sector includes sectors, viz., agriculture, micro and small enterprises, 
education, housing and micro credit.  The activiti es are wide and varied and as such there is no 
risk of credit concentration.  At present, th ere is no interest rate ceiling stipulation on these 
loans.  Bank lending to priority sector needs is to be viewed as a viable and profitable business proposition.  Further, this facilitates inclusive and equitable growth.  The policy has proved its 
efficiency over the years in channelizing credit to desired directions. 
US 100: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (ii) Financial services:  Page 141, Paragraph 65: 
The Secretariat's Report notes that a government pr iority is to foster financial inclusion and 
overcome still low levels of financial penetration in India.  At the same tim e, the Report notes that 
financial services is one of the few sectors still subject  to foreign investment restrictions, is dominated 
by state-owned companies, and is one in which GATS limitations have been imposed on the number of 
available licenses.  Is India considering steps to  further liberalize its financial services sector and 
achieve greater private-sector participation, in lig ht of its goals of deepening financial penetration 
and attracting investment, including for infrastructure development? 
Reply:  The average population per branch office has come down from 15,500 (as on 
30 June 2005) to 13,400 (as on 30 June 2010) over the last five years due to expansion of 
branches by the commercial banks.  However,  in order to achieve greater geographical 
penetration and to promote financial inclusion,  Reserve Bank envisages issuing licence to a few WT/TPR/M/249/Add.1 
Page 310  
 
  more new banks in the Private Sector.  For the purpose, Reserve Bank had studied the 
international practices and considered the Indian experience and placed a discussion paper on 
entry of new banks in the private sector on 11 Au gust 2010.  The draft guidelines on licensing of 
new banks have also been released on 29 August  2011 for comments.  On examination of the 
feedback and after certain vital amendments to the Banking Regulation Act, 1949 are carried 
out, final guidelines would be issued and the process for granting licences to new bank in the 
private sector would be initiated. 
US 101: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (ii) Financial services:  Page 145, Paragraph 77: 
The Secretariat notes that "In January 2011, the RB I released the Discussion Paper on Presence of 
Foreign Banks in India Reserve Bank of India (2011a), seeking feedback from all stakeholders and 
the general public with respect to the most convenient form of forei gn bank presence in India."  This 
discussion paper states that:  "From financial stab ility perspective there would be a need to mandate 
at entry level itself subsidiary form of presence (i.e. wholly owned subsidiary-WOS) under certain 
conditions and thresholds.  It would likewise be mandatory for those fresh entrants who establish as 
branches to convert to WOS once they meet the conditions and thres holds referred to above or which 
become systemically important over a period by vi rtue of their balance sheet size."  Although the 
paper continues that "India's commitments to WTO will have to be kept in mind" the paper certainly 
raises the prospect that existing bank branches may be required to convert to subsidiaries.  Since 
India has a GATS obligation to provide bank ent ry via branching, does India intend to enter into 
negotiations under GATS Article XXI to modify its  schedule?  Also, we understand that one of the 
reasons that, to date, foreign banks have not establis hed wholly-owned subsidiaries in India is that 
there has been considerable uncertainty with regard to the potential for forced divestiture (e.g., to 
comply with a previous 74% equity ownership limita tion.) In order to provide better certainty and to 
reduce this risk, does India intend to schedule a commitment to allow 100% foreign ownership of 
banks?  If so, when?  If not, why not? 
Reply:  The Press Release of 21 January 2011 is merely a Discussion Paper inviting 
comments/suggestions from all stakeholders;  a po licy view in the matter is yet to be taken.  
Therefore, it will be premature to comment on the outcome of the same at this stage. 
US 102: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (ii) Financial services:  Pages 149-150, paragraph 95: 
The Secretariat's Report notes that competition in the insurance sector is constrained by high entry 
barriers, including a 26% cap on foreign investment.  The Secretariat's Report from India's previous Trade Policy Review, in 2007, noted that an ame ndment was under consideration by the government 
at that time to increase the foreign equity cap in the in surance sector to 49%.  What is the status of 
this amendment?  Does India plan to include pr ovisions for health insurance in any current 
legislation under consideration?  If so, how woul d this be implemented and would foreign health 
insurance companies be constrained by any remaining equity caps? 
Reply:  The Government had introduced the Insurance Laws (Amendment) Bill, 2008 in the 
Parliament (Rajya Sabha) on 22 .12.2008.  At present, the Bill is before the Parliamentary 
Standing Committee on Fina nce for its consideration. 
The Insurance Amendment Bill also proposes to de fine health insurance as a separate class of 
insurance business.  However these health insurers  are also proposed to be subject to the FDI 
equity cap of 49%.  WT/TPR/M/249/Add.1 
 Page 311 
 
 
  US 103: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (iii) Telecommunications:  Page 157, paragraph 119: 
In April 2011 The Telecommunications Regulatory Agency of India (TRAI) issued recommendations 
to promote domestic telecom equipment manufactu ring.  These recommendations called for, inter 
alia, a requirement to be imposed on telecom servi ce providers to ensure that a certain percentage of 
equipment purchased was manufactured in India.  What is the status of these recommendations, and 
what steps would need to be taken for the po licies recommended to have the force of law and be 
required to be followed by service providers?  How will India ensure that they do not conflict with 
trade obligations? 
Reply:  TRAI has given certain recommendation s for taking measures to enhance telecom 
equipment manufacturing in India.  These reco mmendations are under the consideration of the 
Central Government.  It is thus premature to comment on any possible conflict with trade 
obligations of India. 
US 104: Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (iii) Telecommunications:  Page 157, paragraph 119: 
The United States notes that India issued signific antly revised telecom licensing amendments in 
May 2011 that require, inter alia, that the certification of certain telecom equipment take place only in India.  Please explain how this requirement fu rthers India's security objectives that underlay these 
amendments more than testing that takes place outside India.  Who will be responsible for 
establishing and operating the cer tification labs in India? 
Reply:  Security testing of telecom equipment is different than conformance and performance 
testing.  Each country has its own security standards and India would also like to have its own 
standard.  Government will establish the test sta ndards, procedures as tools for security testing 
and accreditation of test labs. 
US 105: Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (iii) Telecommunications:  Page 158, paragraph 122: 
TRAI has identified problems tel ecommunications companies have had  obtaining competitive access 
to cable landing stations located in India, whic h limits their ability to provide telecommunications 
services.  What is the status of TRAI's ef forts to institute ru les for such access? 
Reply:  TRAI regulation for cable landing station is already in place. US 106: 
Report by the Secretariat (WT/TPR/S/249):  IV .  TRADE POLICIES BY SELECTED SECTOR:  
(3) Services:  (iii) Telecommunications:  Page 158, paragraph 122: 
Foreign telecommunications operators in India a re precluded from selling direct-to-home satellite 
capacity to customers.  Instead, they must sell capacity to the Indian Space Research Organization, WT/TPR/M/249/Add.1 
Page 312  
 
  which then resells it to customers.  What is the purpose of this policy?  Does India have plans to 
address this barrier to supply of satellite services in India? 
Reply:  This is governed by SATCOM Policy of  India.  The SATCOM policy provides for users 
to avail of transponder capacity from both domest ic/foreign satellites.  However, the same has to 
be in consultation with the Department of Space. 
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