Section 9B of CTA, 1975 : Section 9B: No Levy Under Section 9 Or Section 9A In Certain Cases

Explanation using Example

Imagine a company in India, 'IndiTech', which manufactures solar panels. They've been facing stiff competition from 'SolarMax', a company from Country X that exports solar panels to India at very low prices. IndiTech claims that SolarMax can offer such low prices because it receives substantial subsidies from its government, which is not fair to the local manufacturers.

In response to IndiTech's complaints, the Indian government investigates and finds that SolarMax's low prices are indeed due to government subsidies. Normally, India could impose a countervailing duty under section 9 of the Customs Tariff Act, 1975 to offset these subsidies. However, the Indian government also discovers that SolarMax is dumping the solar panels at prices below their normal value, which could justify an anti-dumping duty under section 9A.

According to Section 9B, India cannot impose both countervailing and anti-dumping duties on the same imported goods for the same situation of dumping or export subsidization. The government must choose one. After further investigation, it is determined that the dumping has a more severe impact on IndiTech, so the government decides to impose an anti-dumping duty on SolarMax's solar panels.

Additionally, the Indian government cannot impose such duties on imports from countries with which it has a most favored nation agreement, unless it follows the rules set out for preliminary findings and determinations of injury to the domestic industry. This ensures that the measures are consistent with India's international obligations.

If SolarMax decides to voluntarily increase its prices to a fair level or if the government of Country X agrees to stop subsidizing the exports, India may choose not to levy the anti-dumping duty as per clause (c) of Section 9B.