Specify all those conditions which are to be satisfied for imposing countervailing duty on the subsidized articles as specified in section 9 of the Customs Tariff Act, 1962.

CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
Specify all those conditions which are to be satisfied for imposing countervailing duty on the subsidized articles as specified in section 9 of the Customs Tariff Act, 1962.

Answer & Explanation:

As per Sec 9(1) of the Customs Tariff Act, 1975, the countervailing duty on subsidized articles is imposed, if the following conditions are satisfied: Any country or territory, directly or indirectly, pays or bestows subsidy upon the manufacture or production or exportation of any article. Such subsidy includes subsidy on transportation of such article. Such articles are imported into India. The importation may/may not directly be from manufacture/production. The article, may be in the same condition as when exported from the country of manufacture or production or may be changed in condition by manufacture, production or otherwise. As per Sec 9(3) of the Customs Tariff Act, 1975, the countervailing duty shall not be levied unless it is determined that - the subsidy relates to export performance; the subsidy relates to the use of domestic goods over imported goods in the export article; or the subsidy has been conferred on a limited number of persons engaged in the manufacture, production or export of articles.

Topics: Customs Tariff Act, 1975

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