PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
(29) The product subject to this review is the same as in the original investigation, namely polyethylene terephthalate (PET) having a viscosity number of 78 ml/g or higher, according to ISO Standard 1628-5, currently falling under CN code 3907 61 00 and originating in India (‘the product under review’).
2.2.
Like product
(30) It was considered that the product under review produced in India and exported to the Union and the product produced and sold in the Union by the Union industry have the same basic physical and chemical characteristics, and the same basic uses. They were therefore considered to be like products within the meaning of Article 2(c) of the basic Regulation.
3.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF SUBSIDISATION
(31) On the basis of the subsidies investigated in the previous reviews, the information contained in the review request, the information submitted by the GOI and the concerned exporting producers, as well as the replies to the Commission's questionnaire, the following measures, which allegedly involve the granting of subsidy programmes, were investigated:
Nationwide subsidy programmes:
(a) Advance Authorisation Scheme (AAS)
(b) ‘Duty Drawback Scheme’ under rule 3(2) (DDS)
(c) Export Promotion Capital Goods Scheme (EPCGS)
(d) Merchandise Exports from India Scheme (MEIS)
(e) Regional subsidy programmes:Gujarat Electricity Duty Exemption Scheme (GEDES)
(32) Pursuant to Article 18 of the basic Regulation, the Commission should examine whether there is evidence of continued subsidisation, regardless of its amount. In view of the findings of existence of continued subsidisation with respect to most of the main subsidies countervailed in the original investigation, there was no need to investigate all the other subsidies alleged to exist by the complainant.
(33) The subsidies specified in the recital above, and which were countervailed in the past, are based on the following policy documents and legislation.
(34) The AAS, EPCGS, and MEIS schemes are based on the Foreign Trade (Development and Regulation) Act 1992 (No. 22 of 1992) which entered into force on 7 August 1992 (‘Foreign Trade Act’). The Foreign Trade Act authorises the GOI to issue notifications regarding the export and import policy. These are summarised in ‘Foreign Trade Policy’ documents, which are issued by the Ministry of Commerce every five years and updated regularly.
(35) Two Foreign Trade Policy documents are relevant for the review investigation period: Foreign Trade Policy 2015-20 (‘FTP 2015-20’) and updated Foreign Trade Policy 2015-20 (‘updated FTP 2015-20’). The latter entered into force on 5 December 2017. The GOI also sets out the procedures governing FTP 2015-20 and updated FTP 2015-20 in a ‘Handbook of Procedures, 2015-20’ (‘HOP 2015-20’) and an updated ‘Handbook of Procedures, 2015-20’ (updated ‘HOP 2015-20’) respectively. The latter entered into force on 5 December 2017.
(36) AAS, EPCGS, and MEIS are based on the FTP 2015-20 and updated FTP 2015-20 as well as HOP 2015-20 and updated HOP 2015-20.