SOUTH AFRICA – ANTI-DUMPING DUTIES ON CERTAIN PHARMACEUTICAL PRODUCTS FROM INDIA
Document: Request for Consultations by India
Date: 13 April 1999
Document codes: WT/DS168/1; G/L/303; G/ADP/D17/1
Complainant: India
Respondent: South Africa
Dispute stage: Consultation
Agreements cited: Art. 2, 3, 6, 12, 15  Anti-dumpingArt. I, VI  Services (GATS)

SOUTH AFRICA – ANTI-DUMPING DUTIES ON
CERTAIN PHARMACEUTICAL PRODUCTS FROM INDIA
Request for Consultations by India
The following communication, dated 1 April 1999, from the Permanent Mission of India to
the Permanent Mission of South Africa and to th e Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.
My authorities have instructed me to request consultations with the Republic of South Africa
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes, Article XXIII of the General Ag reement on Tariffs and Trade 1994 (GATT) and
Article 17.3 of the Agreement on Implementation of Article VI of GATT 1994, regarding the
recommendation of imposition of definitive anti-dumping duties by the Board on Tariffs and Trade
(BTT) vides its report No. 3799 dated 10 March 1997, on the import of certain pharmaceutical
products from India.
South Africa initiated anti-dumping proceedings against the import of ampicillin and
amoxycillin 250 mg. capsules from India. The Board on Tariffs and Trade of South Africa made a
preliminary determination on 26 March 1997 that ampicillin and amocycillin 250 mg. and 500 mg.
capsules exported by M/s Ranbaxy Laboratories Ltd., India, were being allegedly dumped into
South Africa Customs Union (SACU). This was followed by the recommendation to impose final
duties on these products by the above mentioned BTT reported on 10 September 1997.
The Government of India considers that the definition and calculation of the normal values is
inconsistent with the provisions of the WTO and an erroneous methodology was used for determining
the normal value and the resulting margin of dumping. The method of arriving at constructed export
price was also not reasonable which resulted in a higher margin of dumping. The Government of
India further considers that the determination of injury was not based on positive evidence and did not
include an evaluation of all relevant economic factors and indices having a bearing on the state of the
industry which led to an erroneous determination of material injury suffered by the petitioner. India is
also of the view that the South African authoritie s' establishment of the facts was not proper and that
their evaluation was not unbiased or objective. Moreover, the South African authorities have not
taken into account the special situation of India as a developing country.
The Government of India wishes to express its concern at the apparent lack of conformity of
the above measures with the provisions of obligations of GATT 1994 and the Anti-Dumping
Agreement. In particular the Government of I ndia considers that infringements of the following
provisions have taken place:

(i) The following Articles of the Agreement on Implementation of Article VI of
GATT 1994:
(a) Article 2
(b) Article 3
(c) Article 6
(d) (a) to (c) above alone and in conjunction with Article 12
(e) Article 12
(f) Article 15
(ii) Article VI of GATT 1994
(iii) Article I of GATT 1994
We look forward to receiving your reply to the present request and to fixing a mutually
convenient date for consultations in this regard.