Page 24 - MANUAL OF SOP

INTRODUCTION & PROCESS FLOW CHARTS CHAPTER 1

1.1 The General Agreement on Tariffs and Trade, 1947 (“GATT
1947”) was signed on October 30, 1947 and was implemented
from January 1, 1948 through the Protocol of Provisional Application
(“PPA”). The basic objective underlying the GATT was the reduction
of trade barriers among trading nations. While the core objectives of
the GATT 1947 were to promote free trade through binding tariff
commitments and implement the principle of non-discrimination,
the agreement also envisaged situations where tariffs or other
restrictions could be applied. One such exception is found in Article
VI for addressing the unfair trade practice of dumping. Imposition of
countervailing duties and safeguard measures also constitute such
permissible exceptions under the GATT.

1.2 The purpose of Article VI of the GATT 1947 was to provide
a legal regime to discipline and regulate the use of anti-dumping
measures. However, the effect of this would be limited. This was
because only Part I and III of the GATT 1947 were fully implemented
through the Protocol of Provisional Application whereas part II was
implemented only “to the fullest extent not inconsistent with existing
legislation”. Importantly, while Part I contained most-favored nation
(“MFN”) obligation and tariff concessions and Part III mainly contained
procedural provisions, Part II contained the substantive obligations
including those relating to customs procedures, quotas, subsidies,
anti-dumping duties and national treatment. With respect to these
substantive obligations, a GATT Contracting Party could ‘grandfather
rights’ for any of the existing provisions in its domestic legislation(s)
which was inconsistent with the GATT, 1947. Therefore, till 1967, in

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