World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: The Indian Customs law has provisions for inclusion of royalties and licence fees that are identical to the provisions mentioned under Article 8.1(c) of the CVA.

Under the Income Tax Act, 196 any person responsible for paying to a foreign company or any other non resident, any sum chargeable to tax as royalty or license fees, shall withhold income tax thereon at the rates in force. This is independent of the treatment under the custom regulations.

Singapore 4:

The WTO Secretariat report (WT/TPR/S/249, page 42, para 26) states that "India does not apply non preferential rules of origin". We would like to seek clarification on how India determines origin for non preferential goods for example when looking at anti dumping dutiable products or when differentiating between WTO member state products and non WTO member state products.

Reply: Article 2 of Anti dumping Agreement contains clear rules regarding determination of dumping. Article 2.1 and 2.5 provide guidance regarding determination of dumping margin having regard to the country of origin. No differentiation is made between products from WTO Members and products from non WTO Members.

Trade Remedies

Singapore 5:

The WTO Secretariat report (WT/TPR/S/249, page 60, para 72 84) focuses on the Contingency Measures   Anti dumping (AD) and Countervailing measures. We would like to clarify on (i) the set of criteria India utilises to impose an "All Others Rate" for an AD ruling; and (ii) India's treatment of trading companies in countries which have been placed under an AD "All Others Rate" but the dutiable products being sold into India had originated from countries covered under the particular AD ruling.

Reply: India uses facts available as per Anti Dumping Agreement for determination of normal value and export price for imposition of anti dumping duty as all others rate on those producers and exporters who have not cooperated during the investigation. Reference is also made to the provisions of Annexure II of the Agreement on anti dumping in this regard.