Page 480 - MANUAL OF SOP

Countervailing Duty Investigations

upon export performance . The detailed list of export subsidy is provided in Part 1
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of Annex III of the CVD Rules. However, the list given is an illustrative one and not
exhaustive in nature. Examples of export subsidies are as follows:

(i) The provision of goods or services for use in the production of exported
goods in terms being more favourable than those for the production of
goods for domestic consumption;

(ii) An export-related exemption, remission or deferral of direct taxes; excess
exemption, remission, or deferral of indirect taxes or import duties; and
(iii) Provision of export credit guarantee or insurance programmes at premium
rates which are inadequate to cover the operating costs and losses of the
programmes.
20.17 Further, the following exemptions also amount to export subsidies:

(i) The exemption or remission of indirect taxes, in respect of production and
distribution of export products;

(ii) The exemption, remission, or deferral of prior stage cumulative indirect taxes
on goods or services used in the production of exported products provided
this does not exceed the corresponding exemption, remission, or deferral
on the goods or services used in the production of like products when sold
for domestic consumption pursuant to the guidelines on consumption of
inputs in the production process contained in Part-2 of the Annex;

(iii) Subsidies on ‘prior stage cumulative indirect taxes’ on inputs consumed in
the production of the exported products. This to be interpreted with the
guidelines on consumption of inputs in the production process contained in
Part-1 and Part-2 of the Annexure III;
(iv) Remission or drawback of import charges on imported inputs consumed in
the production of exported products. This is to be interpreted in accordance
with the guidelines on consumption of inputs in the production process
contained in Part-2 of the Annexure III to the CVD Rules and the guidelines
in the determination of substitution drawback systems as export subsidies
contained in Part-3 of the Annexure III to the CVD Rules;

(v) The exemption, remission, and deferral of prior-stage cumulative indirect
taxes levied on inputs consumed in the production process of the exported
12 Article 3 of the SCM Agreement identifies export subsidies as prohibited subsidies

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