ul no  of 1982 " the customs tariff (second amendment) bill, 1982 a  billfurther to amend the customs tariff act 1975 db it enacted by parliament in the thirty-third year of the republic of india as follows:-1 (1) this act may be called the customs tariff (second amendment) act, 1982 shori title iiild commence 5 ,(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint 51ot1971j z in section 9 of the customs tariff act, 1975 (hereinafter referred to as the principal act) ,-amend mentof section 9 (a) for sub-section (1), the following sub-section shall be sub-10 tituted, namely:-1 _-'10-"(1) where any country or territory pays, or bestows, directly or indirectly, any bounty or subsidy upon the manufacture' or production therein or the exportation therefrom of any article, then, upon the importation of any such article into india, whether the same is imported directly from the country of manufacture, production or otherwise, and whether it is imported in the same condition as when exported from the co'w1try of manufacture or production or has been changed in conditio& by manufacture, productiqn or otherwise; the central government may, by notification in the ofticial gazette, impose,-to (i) if the article is not otherwise chargeabie with duty under the provisions of this act, a duty; or , (ii) if the article is otherwise so chargeable, an additional duty, not exceeding the amount of such bounty or subsidy: provided that the central government may, pending the determination in accordance with the provisions of this section 5 and the rules made thereunder of the amount of such bounty or grant, impose a duty or additional duty under this bub-section not exceeding the amount of such bounty or subsidy as provisionally estimated by it and if such duty or amitional duty exceeds such bounty or subsidy as so determined,-i () (a) the central government shall, having regard to such determination and as soon as may be after such determination, reduce such duty or additional duty; and (b) refund shall be made of so much of such duly or additional duty which has been collected as is in excess of 15 the duty or additional duty as so reduced"; (b) in s'ub-section (2) ,- (i) for the words "net amount of any such bounty or grant", the words "amount of any such bounty or subsidy" _hall be wbstituted; 20 (ii) for the worcts "additional duty", the words "duw or , additional duty, a9 the case may be," shall be substituted 3 mter section 9 of the principal act, the following sections shall be inserted, namely:-insertion of new' sections 9aand 9b antidumpinc duty '9a (1) where any article is exported from any country or terri- 25 tory (hereafter in this section referred to as the exporting country or territory) to india at less than its normal value, then, upon the importation of such articl~ into india, the central government may, by notification in the oftlcial gazette, impose,-(a) if the article is not otherwise chargeable with duty under go the provisions of this act, a duty; or (b) if the article is otherwise so chargeable, an ac\d1tional duty, not exceeding the margin of dumping in relation to such article: provided that the central government may, pending the deter- 35 mination in accordance with the provisions qf this section and the rules made thereunder of the normal value and the margin of dumping in relation to any article, impose on the importation of liueh article into indla a duty or additional duty under this sub-eecttop on the basis of a provisional estimate of such value and margin apd j't s'uch -40 duty or additional duty exceeds the margin as so determined,-(a) the central government shall, having regard to such determination and as soon as may be after such detennination, reduce such duty or additionalduty; and ' (b) refund shall be made of so much of such duty or add!- 45 tional duty which has been collected as is in excess of such duty or additional duty as so reduced e:tplcmatior-for the purpojes ot this, aectioa,-(a) "margin of dumping", in relation to an article, meaju the difference between the price at which such article is exported and its normal value; (b) "normal value", in relation to an article, means-5 (i' the comparable price in the ordinary calu'se of trade for the said article or like article when meant for codludlption in' the exporting country or territory as determined und&r bub-section (2); or 10 (ii) where such comparable price cannot be aso~d because of the particular market situation or for any other reason, such value shall be either-(a) the highest comparable price for the said article or like article from the exporting country or territory to any third country in the ordinary course of trade as determined under sub-section (2); or (8) the cost of production of the said article or like article in the country of origin along with reasonable addition for selling and any other cost, and for proftts, as determined under s'lib-section (2) 20 (2) subject to any rules made under sub-eection '(3) the certtral government shall, after making due allowance in each case for differences in conditions and terms of sale, for differences in taxation and for other differences affecting price comparability, and, after such inquiry as it may consider necessary, determine, for the pur-~ses of sub-section (1), the export price and the normal value of and the margin of dumping in relation to, any article ,  i' '(3) the central government may, by notifleation in the official gazette, make rules for the purposes of this section, and without prejudice to the generality df the foregoing, such rules may provide for the manner in which article's liable for any duty or adaiabnal duty under suh-eiection (1) may be identified, and for the manner in which the exl>ort prk-e and the normal value of, and the margin of dumping in relation to such articles may be determined and for the assessment and rollection of such duty or additional 'duty 35 (4) every notification issued under sub-section (1) shall, as soon as may be after it is issued, be jaid before each house of parliament 9b (1) notwithstanding anything contained in section 9 or section 9a the central (j<\vernment shall not levy any duty or additional duty under either of those sections on the-import into india of any article from any country or territory to which this section applies unless that government, after making investigation in accordance with the rules matte under suh-section (3) declares by notification in the ofticial ga1ette tha~ the import of such article into jndia causes or threatens material injury to any industry established in india or materially retards the establishment of any industry in jndia | no         | levy    ||------------|---------|| wnder      |         || aectiod    |         || 9          |         || or section |         || 9a         |         || in         |         || certain    |         || cases      |         || in         | the     || absence    |         || of         |         || injw'7     |         || to         |         || induatry   |         || in         |         || india     |         |(2) this section apl?lies tt') every country or territory which ir specified by the central government by notification in the official gazette to be a country or territory which, by reason of its beine a party to the gelleral agreement on tariff and trade or by reason of any agreement between it ard india for giving the mostfavoured nation treatment of for any other reason, levies duty or additional duty of the nature referred to in section 9 or section 9a on articles 5 imported from india only when such import causes or threatens any material injury to any inciustry established in such counlry or territory or materially retards the establishment of such tnaustry in such country or territory  (3) the central government may, by notification in the oftlcial 10 gazette, make rules for the i,;?ufposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which any investigation may be made for the purposes of sub-section (1), the factors to which regard shall be had in any such investigation an~ for all matters connected with such in  15 vestigation (4) every notification issued under sub-section (1) or subsection (2) shall, as soon as may be after it is issued be laid before each house of parliament explanatwn-for the purposes of this section, "inf\ustry", in 120 relation to any article, includes the manufacture er ~oduct1on of like articles, any activity connected therewft'ti·' ana the persons engaged in such production, manufacture or activity' india is a signatory to the general agreement on tari1fs and 1'rade (gatt) which is a multilateral trpaty governing -the international trade of its members article vi of the gati' provides that a contracting party may levy a countervailing duty on the importation of any product to offset any bounty or subsidy granted in the exporting country, or levy an anti-dumplng duty on any dumped product (viz a product imported at a value less than its normal value) to offset dumping the article also provides that these duties can be levied only if it is determined that the effect of subsidization or dumping is such as to cause or threaten material injury to an establfshed domestic industry or is such as to retard materialjy the establishment of a domestic industry, in the importing country during the tokyo round of the multilateral trade negotiations held fit geneva during 1973-7s, two multilateral agreements on subsidies and countervailing measures and anti-dumping have been negotiated laying down detailed rules to provide uniformity and certainty in the implementation of article vi of the gat!' india is - signatory to both these agreements these agreements require that each government accepting it shall take all necessary steps to ensure the conformity of its domestic laws, rules, regulations and administrative procedures with the provisions cif these agreements 2 the customs tariff act, 1975 which provides for the levy ot import duties does not contain any provision for the levy cif anti-dumping duty on goods found to have been dumped by fhe exporting countries section 9 of the act provides for the levy of a duty on bo'unty-fed articles, but a duty can be levied under the section only if the article is otherwise chargeable with duty under the provisions of the act the section does not permit imposition of countervailing duty on duty-tree imports even i1 these are being subsidized by the exporting countries further, the section also does not permit any exemption from the duty on bo'unty-fed articles in cases where the imports of such w'ticles do not cause or threaten material injury to an established industry or materially retard the establishment of such industry in india the act does not contain any provision for the levy of antl-dumping duty on goods fo'und to have been dumped by exporting countries 3 the bill seeks to amend the act to bring the-provisions of the act into conformity with the provisions of article vi of the gatt and agreements on subsidies and countervailing measures the main· amendments proposed in the' bill are the following:-(i) section 9 of the act is being amended to /provide for the levy of countervailing duty on baunty-fed articles, whether or not such articles are otherwise chargeable with duty under the act the sec'tion is also being amended to provide for the imposition thereunder of provisional duty and of the refund of excess amount where the final duty as determined under the section is found to be less , , than the provisional duty the other changes propoaed in the section are for bringing the language of the section into conformity with the wording used in article vi of the gati' (vide clause 2 of the bill) (ii) a new section 9a is being inserted in the act to provide for the levy of anti-dumping du~y on dumped products and for the imposition of provisional duty on dumped products and refund of excess amount in cases where the final duty as determined under this section is less than the provisional duty (vi'de clause 3, new section 9a) (iii) a new section sb is being inserted to provide for exemptions from the levy of countervailing duties under section 9 and the antt-dumpmg duties under proposed section sa in the case of articles imported from any country or territory notified under the section the exemption would not be available in respect of import (jf any article if the import of such article into india causes or threatens material injury to any industry estabushed in india or materially retards the establishment of any industry in incua', further, the central government may specify for the purposes of this section only a country or territory which by reason of ig being a party to the gatt or by reason of any agreement between it and hlciia for giving it a most-favouted nation treatment or for any other reason, provides for a simuar exemption with respect to articles im-?orted into such country or tt-rritory from intt1a (vid4! clause 3, new section 98) 3 the bill seeb to achieve the above objects nrw delhi; the 6th july 1182 pranab mukherfee  president's recommendation under article 117 of the constitution of india[copy of letter no 527 /2/82-cus (to), dated the 9th july, 1982 from shri pranab kumar mukherj eoe , minister of finance to the secretary, lok sabha] , the pret;ident, having been informed of the subject matter of the bill further to amend the cu'1toms tariff act, 1975, rec)mmen<is under clause (1) of article 117 df the constitution of india the introduction of the bill in lok sabba , clause 2 of the bill seeks to amend sub-section (2) of section 9 of the principal act to empower the central government to make rules thereunder for the p'u~sealso of identification of bounty-fed articles which are otherwise liable to duty and for the assessment and collection of countervailing duty upon the importation thereof in accordance with the provisions cyf sub-section (1) of the section as propoaed to be amendedby lub-clause (a) of clause 2 of the bill 2 clause 3 of the bill seeks to insert two new sections-5ection 9a and section 9b new section 9a provide~ for the levy of anti-dumpin, dutielj sub-section (3) of new section 9a seeks to empower the central government to make rules for the purposes of this section the; rules made under this sub-section may 'provide, in particular, for the manner in which articles liable for anti-dumping duties under the section may be identified, the manner in which the export price am\ normal value of, and the margin of dumping in relation to, such articles may be determined and 'for the assessment and collection of such duties sub-section (3) 01 jlew section 9b seeks to empower the central government to make rules with ~t to the manner in which investiglltionsmay be made for the purpose 'of determining whether the import of any arti~e causes or threatens material injury to any industry established in india or ill4lterially retards the est-bushment of any industry in india, the factors to which regard shall be hact in making such investigations and other matter~ connected with such inves~igations 3 the matters in respect of which the rules may be made under the foregoing provisions relate to matters of detail or procec:ture the dele-2ation of legislative power ie, therefore, of a normal character - (51 of 1975) - - - - additional import duty on bountyfeci articles 9 (1) where any country or territory pays, or bestows, directly or indirectly, any bounty or grant upon the production therein or the exportation therefrom of any article and the article is chargeabl~ with duty  under the provisions of this act, then, upon the importation of any such article into india, whether the same is imported directly from the country of production or otherwise, and whether it is im~rted in the same condition &3 when exported from the country df production or has been changed in condition by manufacture or otherwise, the central government may by notification in the official gazette, impose an additional duty equal to the net amount of such bounty or grant (2) the net amount of any such bounty or grant as aforesaid shall, frool time to time, be ascert&med, determined, and declared by the central government, after such inquiry as it may consider necessary and the central government may, by notification in the oftlcial gazette, make rules for the identification of such articles and for the assessment and col~on of any additional duty imposed upon the importation thereof under 8ub-section (1)  - - - - - a bill further to amend the customs tari1f act, 1975 (shri p1'aub ku7mr mukher;ee miftuter ot finclnce) 