Notification 01 of 2022 Customs CVD

## Policy Analysis Report: Rescission of Notification No. 01/2017-Customs (CVD) **1. Executive Summary:** This report analyzes the notification published in the Gazette of India on February 1, 2022, which rescinds Notification No. 01/2017-Customs (CVD) dated September 7, 2017. The rescission relates to countervailing duties on subsidized articles under the Customs Tariff Act, 1975. The key finding is that this amendment removes a previous notification related to countervailing duties, suggesting a potential shift in the government's approach to addressing subsidized imports. **2. Introduction:** The purpose of this report is to provide a comprehensive overview of the notification issued by the Ministry of Finance, Department of Revenue, published on February 1, 2022, regarding the rescission of a prior notification related to countervailing duties. This analysis is based solely on the provided text of the notification. **3. Policy Overview:** * **Amendment:** This notification constitutes an amendment to existing customs regulations. * **Original Policy:** Notification No. 01/2017-Customs (CVD), dated September 7, 2017, published under G.S.R. 1137(E). * **Core Objective(s):** While the original notification is not provided, we can infer from the text that it pertained to the "Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury." This suggests the original objective was to regulate subsidized imports and protect domestic industries from injury caused by such subsidies. **4. Background and Rationale:** This notification rescinds a previous regulation. The likely reason for this specific amendment (rescission) is a reassessment of the need for or the effectiveness of the countervailing duty measures outlined in the original Notification No. 01/2017-Customs (CVD). The text does not specify the exact reasons for the rescission, but it implies a change in policy direction regarding subsidized imports. It is possible the government has determined the original CVD is no longer necessary or is implementing a new approach. **5. Key Provisions / Changes:** * **Specific Change:** The core provision is the rescission (cancellation) of the entire Notification No. 01/2017-Customs (CVD), dated September 7, 2017, published under G.S.R. 1137(E). * **New Rule/Provision:** There is no *new* rule in this notification. Instead, an *old* rule has been removed. * **Difference/Effect:** The effect of this change is that the countervailing duty measures established by the rescinded notification are no longer in effect. This means that goods previously subject to these duties may now be imported without them. The text does include the caveat "except as respect things done or omitted to be done before such rescission," clarifying that any assessments, collections, or legal actions initiated *before* Feb 1st 2022 under the rescinded notification remain valid. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this rescission include: * **Importers:** Particularly those importing goods previously subject to countervailing duties under the rescinded notification. * **Domestic Industries:** Those industries that were previously protected by the countervailing duties imposed under the rescinded notification. These industries may now face increased competition from subsidized imports. * **Customs Officials:** Those responsible for enforcing trade regulations and collecting duties. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Finance, Department of Revenue, is the responsible agency. Customs officials are responsible for implementing the rescission. * **Timelines/Procedures:** The rescission takes effect on February 1, 2022. Customs officials must cease applying the countervailing duty measures specified in Notification No. 01/2017-Customs (CVD) to goods imported on or after this date. However, actions taken *before* this date remain valid. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this rescission is a potential adjustment to the trade environment for specific subsidized goods. The impact of this change could include: * **Potential for Increased Imports:** Subsidized goods previously subject to countervailing duties may now be imported in greater quantities. * **Impact on Domestic Industries:** Domestic industries that previously benefited from the protection of countervailing duties may face increased competition. * **Possible Review of Trade Policy:** The rescission may indicate a broader review or shift in the government's trade policy regarding subsidized imports. **9. Conclusion:** The notification published on February 1, 2022, rescinds Notification No. 01/2017-Customs (CVD), effectively removing countervailing duty measures on specific subsidized articles. This change has the potential to impact importers, domestic industries, and the overall trade environment. The "except as respect things done or omitted to be done before such rescission" language is very important for those who have actions underway. It is crucial for affected parties to understand the implications of this rescission and adapt their business strategies accordingly. Further investigation into the rationale behind this rescission and any potential replacement policies is recommended.

Key Entities Referenced