Page 457 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

(b) both of them are directly or indirectly controlled by a third
person; or
(c) together they directly or indirectly control a third person
subject to the condition that are grounds for believing or
suspecting that the effect of the relationship is such as to
cause the producers to behave differently from non-related
producers.
(ii) a producer shall be deemed to control another producer when the
former is legally or operationally in a position to exercise restraint or
direction over the latter.
19.3. This definition is applied in the Directorate to determine if domestic producer
in India is related to exporters in subject countries or importers in India. Explanation
to Rule 2(b) of the Anti-Dumping Rules, 1995 clearly states that the definition of
related party contained therein is specific to that clause only.

Customs Valuation Rules, 2007

19.4. Rule 2(2) of the Customs Valuation (Determination of Value of Imported
Goods) Rules, 2007 framed under Customs Act, 1962 provides that persons shall
be deemed to be “related” only if:

(i) they are officers or directors of one another’s businesses;
(ii) they are legally recognised partners in business;
(iii) they are employer and employee;

(iv) any person directly or indirectly owns, controls or holds five per cent or
more of the outstanding voting stock or shares of both of them;

(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or

(viii) they are members of the same family.

Explanation I. - The term “person” also includes legal persons.
Explanation II. - Persons who are associated in the business of one another
in that one is the sole agent or sole distributor or sole concessionaire,

434