(1) A countervailing duty imposed under section 9 of the Act may be considered to be absorbed where export prices of an article from the exporting country or countries decrease post imposition of the countervailing duty without any significant change in resale price of such article in India imported from the exporting country or countries.

(2) Where an article subject to countervailing duty is imported into India at such price or under such condition which is considered as absorption of the existing countervailing duty, and such duty is thereby rendered or maybe rendered ineffective, the designated authority may, after conducting review, recommend modification in the form or basis of the countervailing duty, or the quantum of countervailing duty, or both, after reassessing the subsidy margin and injury margin and appropriate changes or adjustments in previously determined benefit from subsidy and injury, if necessary, in accordance with the provisions of rule 12 may be done.

(3) The domestic industry or any other interested party shall file the application seeking initiation of antiabsorption investigation normally within two years from the date of imposition of definitive countervailing duty:

Provided that in view of special circumstances in a given case, for reasons to be recorded in writing, the authority may accept an application for such initiation after expiry of the said period of two years.

Provided further that no such application shall be accepted in cases with less than twelve months' period remaining for the countervailing duty to expire.