Page 479 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

recipient would pay on a comparable commercial loan that the recipient
could obtain from the market;
(v) Government loan guarantees confer a benefit if there is a difference between
the amount the recipient firm pays on loan guarantee by the government
and the amount the firm would have paid on comparable commercial loan;
(vi) Government provision for goods and services: if such goods and services
have been provided for less than adequate remuneration based on prevailing
market conditions; and

(vii) Government Purchase of goods does not confer benefit unless these are
purchased for more than adequate remuneration based on prevailing
market conditions .
10
20.14 At times a subsidy may be non-specific on its face value, however, it
could, in application or in effect, be specific. These are called de facto specific
subsidies. If there are reasons to believe that this is the case, it may be required to
consider other factors/parameters also, including the use of a subsidy program by a
limited number of enterprises, predominant use of certain enterprises, granting of
disproportionately large amounts of subsidy to certain enterprises, and the manner
in which discretion has been exercised by the granting authority in the decision
to grant a subsidy. Further, consideration of factors like length of the operation,
extent of diversification of economic activities within the jurisdiction of the granting
authority, its nature, etc. may also be considered before taking the decision about
the presence of de facto specificity.

20.15 Section 9 (3) of the Act read with Rule 11(1)(a) of the CVD Rules, provides
that the Central Government shall not levy countervailing duty unless it is determined
that the subsidies are – (a) export-oriented or (b) contingent upon use of domestic
goods over imported ones or (c) conferred on a limited number of persons engaged
in manufacturing, producing and exporting the article. In view of the above,
only actionable subsidies and prohibited subsidies are to be countervailed by the
Investigating Authority.

20.16 EXPORT SUBSIDY : Rule 11 (1)(a) identifies the subsidies which are
11
contingent in law or in fact, whether wholly or as one of the several conditions,

10 See Appellate Body Report, Canada – Certain Measures Affecting the Renewable Energy Generation Sector,
WTO Doc. WT/DS412/19 WT/DS426/19 (May 6, 2013).
11 Please refer to Para XX of Chapter 24 for WTO Jurisprudence.

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