Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995
Rule 12. Calculation of the amount of the countervailable subsidy
(1) For the purposes of these rules, the amount of countervailable subsidies, shall be calculated in terms of the benefit conferred on the recipient which is found to exist during the investigation period for subsidisation
(2) As regards the calculation of benefit to the recipient, the following factors shall apply, namely:-
(a) government provision of equity capital shall not be considered to confer a benefit, unless the investment can be regarded as inconsistent with the usual investment practice (including for the provision of risk capital) of private investors in the territory of the country of origin or export;
(b)
a loan by a government shall not be considered to confer a benefit, unless there
is a difference between the amount that the firm receiving the loan pays on the
government loan and the amount that the firm would pay for a comparable
commercial loan which the firm could actually obtain from the market and in that
event the benefit shall be the difference between these two amounts;
(c)
a loan guarantee by a government shall not be considered to confer a benefit,
unless there is a difference between the amount that the firm receiving the
guarantee pays on a loan guaranteed by the government and the amount that the
firm would pay for a comparable commercial loan in the absence of the government
guarantee and in such case the benefit shall be the difference between these two
amounts, adjusted for any differences in fees;
(d)
the provision of goods or services or purchase of goods by a government shall
not be considered to confer a benefit, unless the provision is made for less
than adequate remuneration or the purchase is made for more than adequate
remuneration; whereas, the adequacy of remuneration shall be determined in
relation to prevailing market conditions for the product or service in question
in the country of provision or purchase (including price, quality, availability,
marketability, transportation and other conditions of purchase or sale).
(3)
The amount of the counter available subsidies shall be determined per unit of
the subsidised product exported to
(a)
any application fee, or other costs necessarily incurred in order to qualify
for, or to obtain, the subsidy;
(b)
export taxes, duties or other charges levied on the export of the product to
(4)
Where the subsidy is not granted by reference to the quantities manufactured,
produced, exported or transported, the amount of counter available subsidy,
shall be determined by allocating the value of the total subsidy, as
appropriate, over the level of production, sales or export of the products
concerned during the investigation period for subsidisation.
(5)
Where the subsidy can be linked to the acquisition or future acquisition of
fixed assets, the amount of the counter available subsidy shall be calculated by
spreading the subsidy across a period which reflects the normal depreciation of
such assets in the industry concerned and the amount so calculated which is
attributable to the investigation period, including that which derives from
fixed assets acquired before this period, shall be allocated as described in
sub-rule (4) and, where the assets are non-depreciating, the subsidy shall be
valued as an interest-free loan, and be treated in accordance with clause (b) of
sub-rule 2 above.
(6)
Where a subsidy cannot be linked to the acquisition of fixed assets, the amount
of the benefit received during the investigation period shall in principle be
attributed to this period, and allocated as described in sub-rule (4), unless
special circumstances justify its attribution over a different period.
(7)
The designated authority while calculating the amount of subsidy in
countervailing duty investigation shall take into account, inter-alia, the
guidelines laid down in Annexure IV to these rules.";