Section 9 — Countervailing duty on subsidized articles

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Authorises countervailing duty where a foreign government/public body confers a countervailable subsidy and the statutory conditions of subsidisation, injury and causal link are established. The duty cannot exceed the subsidy amount and is administered through the CVD Rules and DGTR investigation process.

Statutory position and legal effect

For Section 9, the legal answer should be built in layers. First identify what the section itself does; second identify the Schedule, notification, rule or investigation record that activates it for the goods and date; third reconcile that result with the Customs Act assessment machinery. This avoids a frequent customs error: treating a statutory power, a tariff rate and an effective rate as if they were the same thing.

The material date matters because tariff lines, exemptions, origin rules and trade-remedy measures change independently. A defensible file should therefore retain the exact tariff extract and notification version used in the assessment. Where this page is marked historical or transitional, the section should be cited only for a period when it legally operated or for explaining the transition to the current framework.

From an evidence perspective, the strongest working paper is not a screenshot of a duty calculator. It is a reconciliation showing the declared tariff item, legal notes considered, statutory rate, effective notification serial, preference/origin basis, additional levies, trade-remedy measure if any, and the arithmetic from customs value to final duty. Section 9 should occupy its correct place in that chain.

Official text control: use the India Code/Gazette version of Section 9 and the Schedule or delegated instrument applicable on the transaction date. This page intentionally explains the law rather than reproducing a long unofficial bare-act extract.

Applicability, rights, obligations and decision workflow

1. Step 1. Define the product under consideration and domestic like article.
2. Step 2. Identify the alleged financial contribution/income-price support and specificity.
3. Step 3. Quantify benefit/subsidy under the Rules.
4. Step 4. Prove material injury/threat/material retardation and causal link.
5. Step 5. Participate in DGTR questionnaire, verification, disclosure and hearing stages.
6. Step 6. Track provisional/final notification, exporter-specific rates and five-year/sunset-review timing.

The 1995 CVD Rules remain the core subordinate framework and were amended in 2024 to add a new-shipper-review mechanism. In a live case the government of the exporting country, exporters, importers/users and domestic industry can all be important participants.

Thresholds, provisos, timelines and interaction with other law

The section must be read with the Customs Act, the tariff Schedules and any subordinate instrument that gives it transaction-level effect. Where the provision contains a power rather than a self-executing charge, no duty or obligation should be assumed without locating the notification, rule, agreement or investigation determination that activates the power. Historical provisions require the same material-date discipline.

Rate changes, classification changes and trade-remedy measures are different legal events. The file should say exactly which one occurred and should not infer the enabling provision merely from the fact that the landed duty increased or decreased.

Rules, notifications, Finance Acts and operational instruments

Case law — provision-specific research matrix

No direct reported authority is forced into this page. The provision is primarily statutory/administrative; case law should be added only when a decision genuinely interprets this provision or its operative mechanism.

Worked example

A foreign producer receives a government grant tied to exports and Indian imports cause injury. Section 9 asks whether the measure is a countervailable subsidy under the Rules and what benefit is attributable per unit; it is not enough merely to show that the exporter is state-owned.

Professional result: document the legal route before doing the arithmetic. A short computation that identifies the correct provision and current notification is stronger than a long calculation based on an obsolete tariff or historical measure.

Evidence and compliance checklist

• Material date and customs event.
• Exact 8-digit tariff item and candidate headings considered.
• Relevant Section/Chapter/Subheading Notes and GRI reasoning.
• Statutory Schedule rate and effective exemption/preference rate.
• Current notification/rule/Finance Act extract with effective date.
• Section 3 additional levies and separate trade-remedy duty, if any.
• Origin/FTA support where a preferential rate is claimed.
• Assessment/order and calculation reconciliation retained with source links.

Common mistakes and professional traps

• Calling every government support a countervailable subsidy
• Ignoring specificity and benefit calculation
• Confusing Section 9 CVD with Section 3(1) excise-equivalent CVD
• Using anti-dumping normal value methodology for subsidy quantification
• Using an old manual or judgment for a current tariff rate without checking later amendments.
• Quoting a four-digit HSN heading when the legal outcome turns on an eight-digit tariff item or a national note.

Related provisions and research routes

• Customs Act section 12 — charging provision
• Customs Act section 14 — valuation
• First Schedule / General Rules for Interpretation
• CBIC effective-rate and exemption notifications
• DGTR trade-remedy case file
• DGTR Compendium updated to 16 June 2026
• SETU filing portal

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