Page 490 - MANUAL OF SOP

Countervailing Duty Investigations

distinguishing thing to demonstrate is that the injury is caused by the subsidized
imports, in view of their volume and price effects and their consequent impact on
the domestic industry. It is important to first determine if the Domestic Industry
is having a material injury, then the Authority would proceed to determine if the
injury is due to subsidization or not.

20.51 Further analysis for determining causal factor i.e. causation is important for
the determination of injury on account of subsidised imports. The demonstration
of the causal link must be based on an examination of all relevant evidence before
the authority. The authority must also examine any known factors other than the
subsidized imports, which could be injuring the domestic industry at the same time
and the injury caused by these other factors must not be attributed to the subsidized
imports.

20.52 When imports from more than one country are simultaneously subject to
countervailing duty investigation, the Authority can cumulatively assess the effect
of alleged subsidized imports for determining injury to the domestic industry for
injury purposes as long as they do not qualify for the de minimis or negligibility
thresholds and a cumulative assessment is appropriate in light of the conditions
of competition among the imports and between imports and the like domestic
products. Further, the Authority is required to analyze the impact of subsidized
imports on the domestic industry, in the same manner, as is done for dumped
imports on the domestic industry. The Authority is required to make an analysis
of the following factors which are set out in Para 1(5) of Annexure I to the CVD
Rules:

(i) Economic parameters and indices having bearing on the Domestic Industry;

(ii) The actual and potential decline in output, sales market share, profit,
productivity, return on investments, or utilization of capacity, factors
affecting domestic prices;

(iii) The actual and potential negative effects on cash flow, inventories,
employment, wages, growth, ability to raise capital or investments; and
(iv) In case of agriculture, whether there has been increased burden on the
government support programme(s).
20.53 The above list is not exhaustive and nor are they the decisive factors for
determining injury. Broad principles governing the determination of Injury have also

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