World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: There is no proposal in this regard at present.

11. 
    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 House of Parliament) on 3 May 2010 and is under consideration of the Parliament.

11. 
    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 defence sector and possible ways of meeting them. No decision has been taken in this regard.

11. 
    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?
    

Reply: Government of India has ratified 4 core conventions and 3 priority/governance conventions. The four core conventions ratified by India are Forced Labour Convention (No. 29), Abolition of Forced Labour Convention (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 Consultations (International Labour Standards) (No. 144), and all activities have to obey the national laws. Internal mechanisms for enforcement and monitoring have been put in place to ensure 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 declared value. There are six circumstances 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.

11. 
    Could India indicate:
    
    1. 
       Whether this refers to implementation of Decision 6.1 of the WTO Customs Valuation Committee;
       
    2. 
       Whether the "six circumstances" mentioned are the total criteria applied;
       
    3. 
       Whether risk analysis and risk criteria also apply;
       
    4. 
       How the importer can justify the declared customs value, with respect to each of the individual "six circumstances" mentioned;
       
    5. 
       Whether any other action is taken by customs, in cases where the transaction value method is not used?
       

Reply: The provision cited only gives the instances 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 envisaged 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 accordance with rules 4 to 9 of the said Customs Valuation Rules, 2007.