Conditions to be satisfied under Countervailing duty on subsidized articles [Section 9 of the Customs Tariff Act] :
The countervailing duty on subsidized articles is imposed if the following conditions are satisfied.
(a) Any country or territory, directly or indirectly, pays or bestows subsidy upon the manufacture or production or exportation of any article. Such subsidy includes subsidy on transportation of such article.
(b) Such articles are imported into India.
(c) The importation may/may not directly be from the country of manufacture/production.
(d) The article, may be in the same condition as when exported from the country of manufacture or production or may be changed in condition by manufacture, production or otherwise.
| Subsidy shall be deemed to exist if-
(a) There is financial contribution by the Government or any public body in the exporting or producing country or territory. Such contribution may include direct transfer of funds like grants, loans etc., waiver of revenue due to the Government etc. (b) There is any form of income or price support granted or maintained by the Government, which results in increased export of such article or reduced import of any article into that country. (c) A Government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions specified above which would normally be vested in the Government and the practice in, no real sense, differs from practices normally followed by Governments. |