Page 495 - MANUAL OF SOP

Manual of OP for Trade Remedy Investigations

20.69 As regards grants, following are some of the examples inter alia listed in
Part B of Annexure IV of the CVD Rules:

(i) Direct Transfer of funds: Amount received;
(ii) Tax exemption: Amount of tax payable at applicable rate;
(iii) Tax reduction: Amount of tax payable at applicable rate –tax paid;
(iv) Accelerated depreciation: Amount of tax payable under normal; depreciation
schedule –amount actually paid;
(v) Interest rate subsidies: Amount of interest saved by the recipient; and
(vi) In all above cases, an amount for notional interest on subsidies received
during the period of investigation is also to be added.

ON THE SPOT VERIFICATION

20.70 The Authority relies upon the facts and information contained in the
application/ questionnaire response for arriving at final determinations in an
investigation. However, the Authority may also validate the information by
conducting a verification of the domestic industry or other respondent(s). The team
is required to notify the exporter(s)/subject country(ies) in question in advance. If
an interested party refuses access to, or otherwise does not provide necessary
information within a reasonable period, or significantly impedes the investigation,
the findings may be finalised based on the best available facts in terms of Rule 7(8)
of the CVD Rules.

20.71 The Article 12.6 of the SCM Agreement and Rule 10 of the CVD Rules
provide for verification in the territory of the other member countries as required.
Following are the essential steps for on the spot verification in CVD investigations:

(i) In CVD investigations, the DGTR requests the responding exporter to
designate a contact point for verification of the information contained in
the questionnaire and also requests for the availability of the concerned
officials for verification;
(ii) For schemes of Government, it may be necessary that the verification is done
with respective agency officials, i.e., those who are directly involved with
the administration of the concerned programs and not the officials who
actually prepared the questionnaire responses. The Embassy/Consulate of
India in the concerned subject country(ies) shall be requested to coordinate
the meetings with the respective Govt. departments and public offices in
the respective countries;

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