World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

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 import 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 administration 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 requirement 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.

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 China 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 restriction 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 from some other countries. Export of Chinese equipment to India is often restricted on security 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 Government ensure policy stability and transparency in the future?

Reply: The above statement, based on accounts of exporters does not seem to be factually correct as China is the leading supplier of telecom equipment to India. Restriction on imports on telecom equipment, if any, has been on security 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 information and describe the progress of this reform. Please also provide information on India's export 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 the 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 governments 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.

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 prohibitions for environmental, food security, marketing, pricing, and domestic supply reasons are applied 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 constantly 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 undergone 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 sovereign debt crisis. A large number of small and medium sized enterprises went bankrupt. Under such circumstances, what kind of financial measures has the Indian Government taken to guide the transformation 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 rate 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?

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 provides for disposal of infringing material including all tools, plates, dyes used for manufacturing the pirated goods. Indian courts have also granted injunction in trademark infringement 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 resides or carries on business. This is a departure from the normal practice under the Civil Procedure 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 order 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 falsification 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, and 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 making any search and seizure, shall obtain the opinion of the Registrar on facts involved in the 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 therefore 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 provides 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 Trade Marks Act, 1999, courts in India has through judicial pronouncement recognized and adequately protected the well known trade marks in India. To cite some examples: (a) the Registrar in Sunder 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 though Caltex was well known only in respect of petroleum products; (b) DUNHILL, a well known mark in respect of cigarettes, and which was sought to be registered in respect of cycle parts 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 hosiery. 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 which 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 extent 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 current 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, measures 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 implementing the Software Technology Parks (STP) scheme for promoting software and information technology service companies which has been widely successful and the exports made by STP registered units have grown manifold over the years. The STP scheme is meant for all IT/ITES companies 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, international market share, brand enterprises, and the level of technology. Please also describe the latest policy development of India in this field.

Reply: Information technology/information technology 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 exports. 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 mushrooming of RandD labs (initially captive units of MNC companies) in the past five years employing the best of our local talents, which has resulted in seeding intellectual capital for use domestically 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 semiconductor 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 creation 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 details 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 details can be found at the website of Department of Industrial Policy and Promotion: www.dipp.nic.in.

China 40:

REPORT BY THE SECRETARIAT:SECTION IV: TRADE POLICIES BY SELECTED SECTORS: OTHER SECTORS

Question 40: Please describe the recent development 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.

1. 
   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.)
   
2. 
   Total finished Steel: the following is a detailed 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 steel 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 details 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 short term measures taken at the time of global slowdown and the sudden increase in imports.

China 42:

REPORT BY INDIA: Paragraph 8

"While the growth rates of agriculture and industry have fluctuated, the services 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 contributes 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 increasingly 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, Luxembourg, 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 initiated 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 providing 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 establishing 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 public private partnership (PPP) basis in 2008 and introduction of web based port community systems.

Storage services

Major policy initiatives taken recently by the Government 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 construction of warehouses under the Grameen Bhandaran Yojana of NABARD and the Rastriya Krishi Vikas Yojana.

Real estate services