Wt/tpr/M/313/Add. 1 31 July 2015
Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (2) Customs valuation: paragraph 3.12, page 36
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| Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (2) Customs valuation: paragraph 3.12, page 36:
It is noted that I uses reference prices for customs valuation of a number of products, including soyabean oil, gold and silver. Question 12: Could I explain whether and how its practices to use reference prices for such products are consistent with the WTO Agreement on Customs Valuation? Reply: Tariff Values are computed for certain edible oils, brass scrap, gold, silver, areca nut and poppy seeds taking into account frequent fluctuations in their prices and trends noticed in import price data with a view to check misrepresentation of import data as well as to safeguard government revenue. The "Tariff Values" are calculated on the basis of prevailing international prices of these commodities as published in reputed international journals and publications. The tariff values are computed for only a very limited number of commodities on the basis of trends of prevailing prices of such or like goods in the international market. These values are also not minimum values as these values are accepted as the assessable values for these commodities irrespective of whether the declared value for these commodities is higher or lower than these tariff values. These tariff values are not fixed but floating values and are reviewed and revised every fortnight based on international prices so as to keep them close to the transaction values. Part III. TRADE POLICIES AND PRACTICES BY MEASURE; (1) Measures Directly Affecting Imports; (4) tariffs; (1) Applied tariffs; paragraph 3.19, page 38 The Secretariat's report states that in addition to the standard rate, other duties, such as "countervailing" duty (AD) and special additional duty (SAD) are charged at the border to counterbalance state and local taxes. Question 13: Could I provide more details and information on its process of managing and setting the additional and special additional duties? Are specific products or items targeted? Reply: Countervailing duty is charged under Section 3(1) of the Customs Tariff Act, 1975 (51 of 1975) at a rate equal to the excise duty on like articles produced or manufactured in I. Similarly, Special Additional Duty is charged under Section 3(5) of the Customs Tariff Act, 1975 (51 Of 1975) so as to counter-balance the sales tax, value added tax, local tax or any other charges leviable on a like article on its sale, purchase or transportation in I. Both "countervailing duty" (AD) and "Special Additional Duty" (SAD) are in the nature of equalizing duties so as to ensure that imports goods suffer the same level of domestic duties that indigenous goods suffer. Moreover, input tax credit of both "countervailing duty" (AD) and "Special Additional Duty" (SAD) are available for manufacturers using imported goods as inputs. Therefore, there is no cascading effect. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (4) Tariffs; (1) Applied Tariffs: paragraph 3.22, page 40: Paragraph 3.22 concerning I's applied tariff states that the "increase in the average tariff for agriculture is mainly due to an increase in tariffs for cereals and preparations thereof (from 30.4% in 2010-11 to 40.9% in 2014-15), oilseeds and fats (from 18.5% to 33.2%), and sugars and confectionary (from 33.4% to 41%)". Question 14: Considering that I's total cereal exports amounted to 21 MMT in 2013-14 (p.99 Secretariat Report), can I clarify how increasing the cost of imported staples such as cereals helps to improve and ensure food security of I's poorest consumers? Reply: The tariff rate of cereals was increased as a response to the price volatility in the domestic market and as a measure of balancing the interests of consumers and domestic famers. Agriculture sector continues to the sector employing the largest percentage of I's working population (56%), health of the agricultural sector is a crucial determinant of the health of the economy. Question 15: Do I's tariff measures provide an unfair advantage to I's farmers (i.e. p. 99 – agriculture accounts for 56% of employment) by protecting them from external competition? Reply: About 99% of farm holdings have less than 10 hectares of land which is not considered to be adequate to generate enough income to maintain minimum standard of living. The Indian farmers do not have adequate productive assets. Hence, some tariff protection as allowed under the WTO rules is necessary for agriculture commodities for protection from unforeseen fluctuating market prices. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (4) Tariffs; (2) bound tariffs: paragraph 3.25, page 42: It is noted that the considerable gap between applied and bound rates of tariff provides scope for the Government to raise applied tariffs within that margin, and that the Government reacts to international price changes and domestic pressures to adjust the applied tariff accordingly. Canada notes that while international price changes could justify changes to non-ad valorem tariffs, ad valorem tariffs are by nature proportional to the customs value of a good. Question 16: Could India explain what types of "domestic pressures" typically lead to adjustments to applied tariffs? Reply: While prescribing import tariffs on a good, the Government seeks to maintain a balance between the interests of consumers and domestic industry manufacturing/producing that good. Question 17: More specifically, could India explain what types of "domestic pressures" led to increases in applied tariffs in both agricultural products and non-agricultural products (particularly transport equipment in the case of non-agricultural products) as described in Table 3.4 (Summary analysis of Indian tariff, 2010-11 and 2014-15)? Reply: While prescribing import tariffs on a good, the Government seeks to maintain a balance between the interests of consumers and domestic industry manufacturing/producing that good. However, it would not be possible to comment on individual policy decisions. Question 18: Could India please outline details of recent increasing relating to binding of tariff rates, particularly those increases related to the agriculture sector? Reply: The tariff rate of certain agricultural products was increased as a response to the price volatility in the domestic market and as a measure of balancing the interests of consumers and domestic famers. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (5) Other charges affecting imports: paragraph 3.30, page 44: It is noted that some taxes, such as the AD and SAD, are expected to be subsumed into a single levy once the Goods and Services Tax (GST), which the Government expects to begin implementing in 2016, is adopted by all States. Canada understands that India’s current excise duties are levied at the point of production in India. This explains the need to apply an equivalent tax (the AD) on imports. However, Canada understands that the GST will be applied on the sale of goods, and as such would apply both to products made in India as well as to imports. Question 19: Could India confirm that, upon implementation of the GST, the AD and SAD applied on imports will be eliminated, and that no other "single levy" (beyond the GST itself) will be applied specifically on imports once the GST is adopted by all States? Reply: Normally, since the local taxes such as VAT, CST, etc. and the central excise duty are proposed to be subsumed in the GST, AD and SAD will also be subsumed into GST and a unified IGST rate will be applicable on imports. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (7) Tariff Rate Quotas: paragraph 3.33, page 44: It is noted that in India, imports of goods subject to Tariff Rate Quotas must be cleared by customs before 31 March of each financial year. Question 20: Could India clarify whether the March 31 deadline would result in less than full-year availability for TRQ allocations? Reply: This only means that in India the financial year (1 April to 31 March) is considered for yearly allocations. The annual quota is available for a 12 month window. The Indian financial year starts on April 1 and ends on 31 March, so a full one year window is available for quota utilization. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (9) Import prohibitions, restrictions, and licensing: paragraph 3.39, page 47: Paragraph 3.39 of the Secretariat Report states that import restrictions may be imposed for self sufficiency reasons. Question 21: How does India ensure that import restrictions imposed for self-sufficiency reasons do not conflict with trade liberalization efforts? Reply: The export and import of most items is free reflective of India's trade liberalization efforts. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (9) Import prohibitions, restrictions, and licensing: paragraph 3.40, page 47: It is noted that import prohibitions are mainly for health and safety reasons and include a range of products, which are listed in Table 3.8 (Import Prohibitions, 2014). Table 3.8 includes telephone sets (HS 8517). Question 22: Could India explain why it maintains an import prohibition on telephone sets (HS 8517)? Reply: Import of telephone sets under HS Code: 8517 is "free". However, import of "GSM mobile handsets" (classified under ITC (HS) code "8517") without International Mobile Equipment Identity (IMEI) No., with all zeroes IMEI, duplicate IMEI or fake IMEI is "Prohibited". Further, import of "CDMA mobile handsets" (classified under ITC (HS) code "8517") without Electronic Serial Number (ESN)/Mobile Equipment Identifier (MEID), with all Zeroes as ESN/MEID, duplicate ESN/MEID or fake ESN/MEID is "Prohibited". Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (11) Anti-dumping, countervailing, and safeguard measures: paragraph 3.61, page 54: It is noted that new rules concerning the circumvention of anti-dumping duties were introduced during the period under review. Question 23: Could India please indicate how many anti-circumvention investigations were initiated during the period under review and what were their outcomes? Reply: India has not initiated any anti-circumvention investigation so far. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (11) Anti-dumping, countervailing, and safeguard measures: paragraph 3.67-68, page 56: It is noted that sunset reviews and mid-term reviews may be self-initiated by DGAD or be initiated based on request from an interested party who submits positive information substantiating the need for such reviews. Question 24: Could India please indicate whether DGAD have self-initiated a sunset review or mid-term review in the past? If so, what factors did DGAD consider in deciding whether to self initiate? Reply: DGAD has not self-initiated any midterm or sunset review in the period of review. Part III. Trade Policies and Practices by Measure: (1) Measures Directly Affecting Imports; (13) Sanitary and phytosanitary requirements, paragraph 3.106; page 62: It is noted that India's Food Safety and Standards Act (2006) is intended to increase transparency of the scientific basis upon which India's SPS measures are adopted through, inter alia, harmonization with international standards. Question 25: Could India respond to its recent efforts to amend its Food Safety and Standards Act (2006) to harmonize with international standards? Reply: Harmonization of Indian food Standards with the International food Standards is an ongoing exercise through amendment of the related Regulations and it does not require any amendments in the Act. Question 26: Could India explain why it is not adhering to the Codex Standard for Named Vegetable Oils (CODEX STAN 210-1999) for the labelling of canola oil by requiring that canola oil be labelled as low erucic rapeseed oil? Reply: India is insisting on the labelling of "Canola Oil" strictly as per Section 2.1.16 of Codex STAN 210-1999, wherein it is clearly mentioned as "Rapeseed oil – low erucic acid (low erucic acid turnip rape oil; low erucic acid colza oil; canola oil) is produced from low erucic acid oil – bearing seeds of varieties derived from the Brassica napus L., Brassica rapa L. and Brassica juncea L., species. India would have no objection if the Label mentions the "Canola Oil" as "Rapeseed Oil- Low Erucic Acid (Canola)". India's objection is when it is labeled as "Canola Oil" without a mention of the source i.e. "Rapeseed Oil". The FSSAI has been maintaining that it has no objection if "Canola Oil" is mentioned in parenthesis under "Rapeseed Oil – Low Erucic Acid" just as mentioned in Codex. Question 27: Can India provide the basis by which its level of protection for import conditions of live animals and meat products exceeds those established by the World Organization for Animal Health (OIE)? For example, India's import requirements for pork and pork products as notified in G/SPS/N/IND/98 (dated March 16, 2015) continue to go beyond the relevant OIE standards for most notifiable diseases. Reply: The level of protection for import conditions of livestock and livestock products is based on OIE standards and the diseases included in health certificate are OIE listed diseases. The notified document G/SPS/N/IND/98 dated 16th March, 2015 is also based on OIE standards. Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting exports; Export taxes, charges, and levies, paragraph 3.122 page 65: Table 3.11 in Section 3.2.2 indicates items subject to export taxes. "Ferrous waste and scrap, and remelting scrap, ingots of iron or steel" are subject to an export tax rate of 15 percent. It is a well known fact that exports restrictions of scrap allow uncompetitive steel plants to operate, and that export restrictions in general have not proven effective as part of a country's industrialization strategy. Question 28: Can India comment on the role of these restrictions and indicate whether it foresees their removal in the near future? Reply: Section8 of the Customs Tariff Act, 1975lays down that where, in respect of any article, whether included in the Second Schedule or not, the Central Government is satisfied that the export duty leviable thereon should be levied, and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, direct an amendment of the Second Schedule to be made so as to provide for an increase in the export duty leviable or, as the case may be, for the levy of an export duty, on that article. Accordingly, export duty is imposed as a means of restricting the exports of the specified article. The same is amended/removed from time to time after review. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting production and trade; (1) Incentives, (2) explicit subsidies: paragraph 3.160, page 74: It is noted that India's latest notification to the WTO Committee on Subsidies and Countervailing Measures concerned fisheries' subsidies. Question 29: Given the lack of coverage in other economic sectors provided in India's notification to the Committee on Subsidies and Countervailing Measures, when does India expect to provide a complete subsidy notification to the WTO? Reply: As a part of this process and the obligation enshrined under Article 25.2 of ASCM, India has already submitted to the WTO, its latest notifications on fisheries subsidies, pertaining to Central Government, a number of State Governments and the Union Territories, fulfilling India's commitments to that extent. India has also fulfilled its commitment of Notification on Preferential Tax programmes. This is an indication of our commitment and serious efforts towards meeting our obligations under ASCM. For the remaining other programmes, India is collecting the information from all the stakeholders concerned and is examining them both from the angle of facts to be provided and the need for notifying them to WTO at all under the requirements of Article 25.2 of ASCM. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (2) competition policy and price controls, (2) Price controls: paragraph 3.184, page 79: It is noted that the ceiling price of scheduled formulations will be revised as per the annual wholesale price index (WPI). Question 30: Could India explain whether a price review is conducted following the issuance of a new indication for "essential medicines". Reply: As per the provisions of DPCO, 2013, where an existing manufacturer of a drug with dosages and strengths as specified in National List of Essential Medicines launches a new drug, such existing manufacturers shall apply for prior price approval of such new drug from the Government. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (3) State-owned enterprises, and privatization: paragraph 3.186, page 79: It is noted that central public sector enterprises (CPSEs) continue to play an active role in the economy, holding significant market-share in several sectors and sub-sectors. According to the Secretariat's Report, India's divestment policy is aimed at encouraging people-ownership of CPSEs while ensuring that the Government's equity does not fall below 51%, hence maintaining control of the enterprise. Question 31: Could India please explain its reasons for maintaining government control of these enterprises, and indicate whether there are long-term plans to further divest the government's involvement in the economy? Reply: Public Sector Undertakings (PSUs) have been playing a prominent role in India's industrialization and economic development. They have been set up to address various socio-economic problems in the country that needed to be dealt with in a planned and systematic manner. The long-term disinvestment plans are already indicated in para 3.186 of the Secretariat Report. Part III. Trade Policies and Practices by Measure; (3) Measures Affecting Production and Trade; (4) Government Procurement: paragraph 3.190, page 81: The Report notes that since 2012, "the use of e-procurement has become the norm in government procurement in India". Canada welcomes this development. Question 32: Can India confirm whether e-procurement is used by other levels of government (i.e. state or municipal)? If not, are there plans to extend the use of e-procurement to lower levels of government? Reply: E-procurement is used by State Governments. The Government of India is encouraging use of e-procurement by the State and other levels of the Government. Part III. Trade Policies and Practices by Measure; (3) Measures Affecting Production and Trade; (4) Government Procurement: paragraph 3.191, page 81: The Report notes that India is an observer to the WTO Agreement on Government Procurement (GPA). The Report further quotes Indian authorities on the formulation of "comprehensive government procurement legislation" that will be, among other things, "intended to accommodate requirements of the WTO-Agreement on Government Procurement". Canada holds the firm belief that GPA membership brings great benefits to developing and developed countries alike. Question 33: Does India plan to initiate negotiations towards its accession to the WTO GPA? Reply: India is in the process of formulating a comprehensive government procurement legislation. It is yet to be considered and passed by the Indian parliament. Once it is passed and implemented, issue of India acceding to GPA of the WTO would be examined. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (5) Intellectual Property Rights; (2) Patents: paragraph 3.207, page 84: India's National Manufacturing Policy, while defining the functions of the Technology Acquisition and Development Fund, has stated that the Fund will have the option to approach the Government for issue of a Compulsory Licence for the technology which is not being provided by the patent-holder at reasonable rates or is not working in India to meet the domestic demand in a satisfactory manner. It is stated that such compulsory licences will be issued only within the provisions of the TRIPS. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (5) Intellectual Property Rights; (2) Patents: paragraph 3.218, page 87: Another important development in the area of patents since the last Review is the issuance in March 2012 of India's first and only compulsory licence so far…. India has not issued any other compulsory licence since even though two more applications for such licences have been received by the Controller General of Patents, Designs and Trademarks in the fiscal years 2011/12 and 2012/13. Question 34: Could India indicate whether the Fund mentioned in paragraph 3.207 has ever approached the Government to issue a compulsory license for technology, including the applications mentioned in paragraph 3.218, and if so, what were the circumstances of the case(s) and the outcome(s)? Reply: The Technology Acquisition and Development Fund has not approached the Government for issues of compulsory license. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (5) Intellectual Property Rights; (2) Patents: paragraph 3.219, page 87: It is not entirely clear how India intends to address the issue of safeguards against diversion that are part of both the August 2003 decision and the subsequent Protocol Amending the TRIPS agreement that proposes to transpose the decision into the text of TRIPS Agreement in a new provision, Article 31bis" Question 35: Can India clarify whether there are any plans to address the issue of safeguarding against diversion that are part of both the August 2003 decision and the subsequent Protocol Amending the TRIPS agreement, if so could they provide some insight into these plans? Reply: Section 92 A of the Indian Patent Act prescribes clearly that the Compulsory licence for export of patented pharmaceutical products shall be available for manufacture and export of such products to any country having insufficient or no manufacturing capacity in the pharmaceutical sector for the concerned production to address public health problems, only when the country under reference has already granted a compulsory licence or has, by notification or otherwise allowed importation of the patented pharmaceutical products from India. The controller shall on receipt of an application in the prescribed manner, grant a compulsory license solely for manufacture and export of the concerned pharmaceutical product to such country under such terms and conditions as specified and published by him. Application for compulsory license can be made under Form 17 of the Patents Act and Rules. However, no such compulsory licence has been granted in India so far. Part III. Trade Policies and Practices by Measure: (3) Measures Affecting Production and Trade; (5) Intellectual Property Rights; (2) Patents: paragraph 3.221, page 87-88: Section 3(p) of the Patents Act states that "an invention which, in effect, is traditional knowledge or which is an aggregation or duplication of known properties of traditionally known component or components" is not an invention and hence, not patentable. Further with respect to biological materials, Section 6(1) of the Biological Diversity Act 2002 provides that "no person shall apply for any intellectual property right, by whatever name called, in or outside India for any invention based on any research or information on a biological resource obtained from India without obtaining the previous approval of National Biodiversity Authority before making such application; provided that, if a person applies for a patent, permission of the National Biodiversity Authority may be obtained after the acceptance of the patent but before the sealing of the patent…" The Biological Diversity Act 2002 provides that "whoever contravenes or attempts to contravene or abets the contravention of the provisions of the Section 3 or Section 4 or Section 6 shall be punishable. Nondisclosure or false submission of the source or geographical origin of biological material used for an invention in the complete specification forms a ground for pre- and post-grant opposition under Clause (j) of Sections 25(1) and 25(2), respectively, of the Patents Act that could lead to revocation of the patent. Question 36: Can India elaborate on how their traditional knowledge database is used and how it is managed? Reply: The Traditional Knowledge Digital Library is a database of codified literature on Indian Systems of Medicine- Ayurveda, Unani, Siddha and Yoga. At present it contains database on approximately 290,000 formulations. The database is being updated on a continuous basis. The database is in the international patent classification format and can therefore be searched by the patent examiners. The database allows examiners to establish prior art in respect of applications based on Indian traditional medicinal knowledge and enables them to evaluate the non-obviousness of the claims made in the application. The access to TKDL is presently available to the European Patent Office, United State Patent & Trademark Office, Japan Patent Office, United Kingdom Intellectual Property Office, Canadian Intellectual Property Office, German Patent Office, Intellectual Property Australia, Indian Patent Office and Chile Patent Office), under TKDL Access (Non-disclosure) Agreement. In addition to providing access to TKDL, the Council for Scientific and Industrial Research that manages the database, files "third party observations" to assist the International Patent Offices to examine a Traditional Knowledge based application for novelty and non-obviousness. More information on TKDL may be obtained from the CSIR website http://www.csir.res.in. Question 37: Can India elaborate on how they define "traditional knowledge" and "known properties of traditionally known components", including how it is determined or established that something is considered "traditional knowledge"? Reply: Indian Patent Act does not define either "traditional knowledge" or "known properties of traditionally known components". However, any knowledge existing traditionally either with any local or indigenous community or elsewhere is taken into account. The meaning of these terms is construed as per standard concepts of "traditional knowledge" and general perspectives and practices in this regard, which are essentially country-specific. The database on Traditional knowledge as also the mandatory requirement that the applicant disclose the specifications of the invention facilitates establishing whether knowledge is traditional knowledge. Besides this, pre grant opposition procedure also enables interested parties to inform the Patent examiner of existing prior art and on the obviousness of the claims made out in the patent applications. If the applicant fails to meet the objections, the application is refused under section 15 of the Patents Act. Question 38: Can India indicate whether there have been any challenges to patents based on the grounds of traditional knowledge nondisclosure or false submission of source or geographical origin, and if so, what were the circumstances, and outcomes for these patents? Reply: 209 patent applications have either been set aside/ withdrawn/ amended, based on the prior art evidence in the TKDL database, on the basis of pre-grant opposition/Third Party Observations filed by Council for Scientific and Industrial Research. (ref: www.csir.res.in). The information on Patent Office Wise refusals /amendments/revocation of TK- related applications:
Year-wise refusals /amendments/revocation of TK- related applications
(Detailed information is available on CSIR website http://www.csir.res.in) Yüklə 1,57 Mb. Dostları ilə paylaş:
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