INDIA – EXPORT RELATED MEASURES REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 18 May 2018
Document codes: WT/DS541/4
Complainant: U.S.
Respondent: India
Third parties: Brazil, Canada, China, Egypt, EU, Japan, Kazakhstan, South Korea, Russia, Sri Lanka, Taiwan, Thailand
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 3.1(a), 3.2  Subsidies and Countervailing Measures (SCM)

INDIA – EXPORT RELATED MEASURES
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
The following communication, dated 17 May 2018, from the delegation of the United States to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On 14 March 2018, the United States requested consultations with the Government of India
("India") pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes and Articles 4 and 30 of the Agreement on Subsidies and Countervailing
Measures ("SCM Agreement") with regard to certain measures of India. The United States held
consultations with India on 11 April 2018. Those consultations unfortunately did not resolve the
dispute.

It appears that India provides export subsidies through: (1) the Export Oriented Units Scheme and
sector specific schemes, including Electronics Hardware Techno logy Parks Scheme and Bio -
Technology Parks Scheme, 1 (2) the Merchandise Exports from India Scheme, (3) the Export
Promotion Capital Goods Scheme, (4) Special Economic Zones, and (5) a duty -free imports for
exporters program.

The export subsidies provided through these programs are reflected in legal instruments that
include the following, operating separately or collectively, as well as any amendments, or
successor, replacement, or implementing measures:

Export Oriented Uni ts Scheme and sector specific schemes, including Electronics
Hardware Technology Parks Scheme and Bio-Technology Parks Scheme:

1. Foreign Trade Policy [1st April 2015 – 31st March 2020] (Ministry of Commerce and
Industry, Notification 01/2015 -2020, April 1, 2015), as modified by Foreign Trade Policy
[1st April, 2015-31st March, 2020] Mid -Term Review, Updated As On 5 th December, 2017
(Ministry of Commerce and Industry, Notification 41/2015-2020, December 5, 2017).
2. (Appendices and Aayat Niryat Forms) of FTP 20 15-2020, 1st April, 2015-31st March, 2020
(Ministry of Commerce and Industry, undated).
3. Handbook of Procedures [1st April 2015 – 31st March 2020] (Ministry of Commerce and
Industry, Public Notice No. 01/2015 -2020, April 1, 2015), as modified by Handbook of
Procedures [1 st April, 2015 – 31st March, 2020], Updated up to 05.12.2017 (Ministry of
Commerce and Industry, Public Notice No. 43/2015-2020, December 5, 2017).
4. Public Notice 31/2015 -20, Amendments in paragraph (7) of Appendix -6B of Appendices
and Aayat Niryat Forms of FTP 2015-2020 (Ministry of Commerce and Industry, August 26,
2015).

1 See Chapter 6, Foreign Trade Policy [1st April, 2015-31st March, 2020] Mid-Term Review, Updated As
On 5th December, 2017 (Ministry of Commerce and Industry, Notification 41/2015-2020, dated December 5,
2017).

5. Public Notice No. 25/2015 -2020, Removal of mandatory warehousing requirements for
EOUs, STPIs, EHTPs etc. - Amendment in (i) paras 6.06, 6.20 and 6.40 of Hand Book of
Procedures(HBP) 2015-2020; and (ii) Appendix 6E, 6G,6H, 6M,5C and ANF 6A, ANF 6B of
Appendices and Aayat Niryat Forms of FTP 2015 -2020- reg. (Ministry of Commerce and
Industry, August 13, 2016).
Merchandise Exports from India Scheme:

6. Instruments 1 through 5.
7. Public Notice 2/2015 -2020, Subject: Merchandise Exports from India Scheme (MEIS) –
Schedule of country group, ITC (HS) code wise list of products with reward rates under
Appendix 3B notified (Ministry of Commerce and Industry, April 1, 2015).
8. Public Notice 27/2015 -2020, Subject: Merchandise Exports from India Scheme (MEIS) –
Additions/amendments in Table 1 (containing list of country groups) and Table 2
[containing ITC (HS) code wise list of products with reward rates] of Appendix 3B
(Ministry of Commerce and Industry, July 14, 2015).
9. Harmonised and Consolidated Table 2 of Appendix 3B as per Public Notice No. 61/2015 -20
(Ministry of Commerce and Industry, March 7, 2017).
10. Public Notice 1/2015-2020 Subject: Amendments in Product Description in MEIS Schedule
Table 2 of Appendix 3B (Ministry of Commerce and Industry, April 13, 2017).
11. Public Notice 17/2015 -2020 Subject: Harmonizing MEIS Schedule in the Appendix 3B
(Table 2) with ITC (HS), 2017 (Ministry of Commerce and Industry, August 22, 2017).
12. Public Notice 22/2015 -2020 Subject: Corrections/Amendments in Table 2 of Appendix 3B
Foreign Trade Policy 2015-20 (Ministry of Commerce and Industry, August 31, 2017).
13. Public Notice 42/2015 -2020 Subject: Amendment in Appendix 3B of the Foreign Trade
Policy 2015-20 (Ministry of Commerce and Industry, November 24, 2017).
14. Public Notice 44/2015 -2020 Subject: Amendments to Appendix 3B Foreign Trade Policy
2015-20 (Ministry of Commerce and Industry, December 5, 2017).
15. Public Notice 60/2015 -2020 Subject: Amendments/Cor rections in Table 2 of Appendix 3B
Foreign Trade Policy 2015-20 (Ministry of Commerce and Industry, February 15, 2018).
Export Promotion Capital Goods Scheme:

16. Instruments 1 through 5.
17. Public Notice No. 04/2015 -2020 Subject: Notification of new Appendix 5D containing the
list of services for which payment is received in Rupee terms which could be counted
towards discharge of Export Obligation under the Export Promotion Capital Goods (EPCG)
Scheme (Ministry of Commerce and Industry, May 3, 2016).
18. Public Noti ce No. 08/2015 -2020, Amendment in ANF -5A [Application for issue of EPCG
Authorisation]; ANF 5B [Application for redemption of EPCG Authorisation]; ANF 5C
[Application for Clubbing of EPCG Authorisations] and Appendix 5C [Format of Certificate
of CA/ Cost A ccountant / CS for redemption of EPCG Authorisation] as contained in the
Appendices & Aayat Niryat Forms of FTP 2015 -20 – reg. (Ministry of Commerce and
Industry, May 6, 2016).

19. Policy Circular No. 03/2015 -20 Subject: Relief in Average Export Obligation in terms of
Para 5.19 of Hand Book of Procedures of FTP 2015 -20 (Ministry of Commerce and
Industry, November 21, 2017).
20. Public Notice 47/2015 -2010 Amended Appendix 5E and 5F (Ministry of Commerce and
Industry, December 6, 2017).
Special Economic Zones:

21. The Special Economic Zones Act, 2005 No. 28 of 2005, issued June 23, 2005, Gazette of
India, Extraordinary Part II Section I (Ministry of Law and Justice).
22. The Special Economic Zones Rules incorporating amendments up to July, 2010 (Ministry of
Commerce and Industry, February 10, 2006).
23. Special Economic Zones (Amendment) Rules, 2010, G.S.R. 501(E) (Ministry of Commerce
and Industry, June 14, 2010).
24. Special Economic Zones (Amendment) Rules, 2017, G.S.R. 585(E) (Ministry of Commerce
and Industry, June 12, 2017).
25. Notification 15/2017-Integrated Tax (Rate) (Ministry of Finance, Department of Revenue,
June 30, 2017).
26. Income Tax Act, 1961, as amended.
Duty-free imports for exporters program:

27. Notification No. 50/2017 -Customs (Ministry of Finance, Department of Revenue , June 30,
2017), including Conditions 10, 21, 28, 32, 33, 36, 60, 61, 101.
Consistent with Annex VII of the SCM Agreement, India is subject to the obligations of
Article 3.1(a) of the SCM Agreement because India's gross national product per capita has reached
$1,000 per annum. Through each program, as reflected in the instruments listed above, India
provides subsidies contingent upon export performance. The measures appear to be inconsistent
with Article 3.1(a) of the SCM Agreement, and India appears to have acted inconsistently with
Article 3.2 of the SCM Agreement.

Therefore, the United States respectfully requests, pursuant to Article 6 of the DSU and Article 4.4
of the SCM Agreement, that the Dispute Settl ement Body ( "DSB") establish a panel to examine
this matter, with standard terms of reference as set out in Article 7.1 of the DSU. Pursuant to
Article 4.4 of the SCM Agreement, the panel shall be established immediately, unless the DSB
decides by consensus not to establish a panel.