RESTRICTEDWORLD TRADE
ORGANIZATIONG/TRIMS/W/16
30 October 1998
(98-4225)
Committee on Trade-Related Investment Measures Original:  English
REPLIES BY INDIA TO QUESTIONS POSED BY USA1
The following communication, dated 11 September 1998, has been received from the
Permanent Mission of India with the request that it be circulated to Members of the Committee.
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Question 1: India has notified only one TRIM in the automotive sector, regarding "dividend
balancing".  This is reflec ted in G/TRIMS/N/1/IND/1/Add.1.
(a) What exactly do the "dividend balancing" provisions of that notification
cover?
(b) Do they cover all local content prov isions of the new Indian measure?
(c) Do they cover the trade balancing and export performance requirements of
the new Indian measure?
(d) Can India explain whether it is of the view that the new Indian programme
is consistent with TRIMs Article 5.4?  If so, please explain how India can
make such an assertion in light of the new local content requirements and
trade-balancing TRIMs contained in the Indian measure that are not
referenced in the TRIM notified by India.
Answers to the questions by Japan refer.
Question 2: Even if it were consistent with th e notification, it appears that the new programme
is expected to last beyond 1 January 2000.
(a) Is it the intention of the Indian Government to extend the operation of this
TRIM beyond 1 January 2000?
(b) Please explain how this is consistent with India's obligations under the
TRIMs Agreement to eliminate all TRIMs by 1 January 2000 .
"Dividend balancing" provisions reflected in notification No.
G/TRIMS/N/1/IND/ 1/Add.1 are explained in Annexure 1 to the notification.  The
policy for import of CKD/SKD kits by car manufacturers is not covered by thisnotification.  This policy has not been notified under Article 5.4 of the TRIMS
Agreement.  The policy provides a measure to facilitate imports, which are otherwise
restricted due to balance of payments reasons.
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1 See document G/TRIMS/W/13, Part  E.