Page 450 - MANUAL OF SOP

Anti-Circumvention Investigations

SIGNIFICANCE
18.4. Circumvention refers to an action taken by an exporter/producer of an
article in the exporting country which is subject to ADD, to avoid the incidence of
ADD imposed by the importing country. Circumvention, as defined under Rule 25
of the Rules,takes place in either of the following circumstances:

Assembling, Completion, or Finishing
18.4.1. where the article which is subject to ADD is imported into India in an
un assembled, incomplete or unfinished form subject country, and thereafter
assembled, or completed in India (sub-rule 1);

18.4.2. where the article which is subject to ADD is exported to another country in
an un assembled, incomplete or unfinished form, thereafter assembled, completed,
or finished, and then imported into India (sub-rule 1);

18.4.3. In either of the above circumstances, it is necessary for two conditions to
exist:

(i) First, the operation (of assembling, finishing, or completion) should have
started or increased after, or just prior to the AD investigation, and the parts
and components are imported from the notified country.

1
(ii) Second, the value addition (i.e., the value consequent to the operation)
should be less than 35% of the cost of the assembled, finished or complete
article.

Alteration of Description, Name or Composition
18.4.4. If the article which is subject to ADD has been subject to any process involving
alteration of the description, name or composition of such article (sub-rule 2).

18.4.5. Such alteration shall be considered to circumvent the ADD in forceif it results
in such article being altered in form or appearance (even in minor form) regardless
of variation of tariff classification, if any.

Change of Country of Export/Origin

18.4.6. If the article which is subject to ADD is imported through a country which is
not notified for the levy of ADD (sub-rule 3).

1 Explanation I to the sub-rule (1) defines value to mean the cost of assembled, complete or finished article less the
value of imported parts and components.

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