World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

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 import 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)".

75. 
    Does India consider that these schemes provide a subsidy contingent upon export performance?
    

Reply: Several of the schemes detailed in the Secretariat Report are in the nature of duty exemption/duty remissions and are not subsidies within the meaning of ASCM. The duty exemption/remission schemes are based on standard 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 quantity with the corresponding export product. There is no element of subsidy in these schemes as there is an appropriate verification mechanism to check whether any excess quantity of duty exempt material has been allowed for import.