WORLD TRADE
ORGANIZATIONG/SG/N/6/IND/8/Suppl.1
17 December 2001
(01-6348)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
INDIA
Supplement
The following communication, dated 7 December 2001, has been received from the
Permanent Mission of India.
_______________
1. Please refer to this Mission's communication dated 18 February 2000 forwarding therewith
Government of India Notification No. 7/2000- CUSTOMS dated 27 January 2000 containing the
Government decision on the imposition of safeguar d duty on import of Acetone into India.  This
notification was circulated as a WTO docu ment, bearing No. G/SG/N/10/IND/6 dated
21 February 2000.
2. Attached herewith is a copy of the Notice of Review of exemption from imposition of
safeguard duty on imports of Acetone into India, as conveyed through notification dated27 January 2000 referred to in paragraph 1 above, from notified developing countries {Notification
No. SG/INV/1/99/(REV) dated 21 November 2001, issued by the Director General (Safeguards)}.G/SG/N/6/IND/8/Suppl.1
Page 2
OFFICE OF THE DIRECTOR GENERAL (SAFEGUARDS)
5TH FLOOR, 'D' BLOCK, I.P. BHAWAN
NEW DELHI
F. No. SG/INV/1/99 (REV)   Dated:  21 November 2001
NOTICE OF REVIEW OF SAFEGUARD DUTY EXEMPTION
Sub: Review of safeguard duty exemption on im ports of Acetone into India from notified
developing countries
{Under Rule 18 of the Customs Tariff (Identification and Assessment of Safeguard Duty)
Rules, 1997 (hereinafter referred to as the SGD Rules) read with Section 8B of the Customs Tariff
Act 1975}.
*****
The notice initiating investigation for levy of safeguard duty concerning imports of Acetone
into India was issued on 16 June 1999 under Rule 6 of the SGD Rules.  Final findings were issued
under Rule 11(1) of the said Rules on 7 October 1999 and published in the Gazette of India
(Extraordinary) Part II-Section-3-Sub-section (i )) on 4 November 1999, recommending safeguard
duty to be imposed at 28 per cent ad valorem  during the first year, at 21 per cent ad valorem  during
the second year and at 9 per cent ad valorem  during the balance six months on imports of Acetone
into India being the minimum necessary for the pr otection of the domestic industry from the serious
injury threatened to be caused by the increased imports of Acetone.  In exercise of powers conferred
by sub-section (1) of section 8B of the Customs Tariff Act, 1975 (51 of 1975) read with Rules 12 and
14 of the SGD Rules and based on the final findings of the Director General (Safeguards), the Central
Government vide Notification No. 7/2000-Customs da ted 27 January 2000 imposed on Acetone,
falling under sub-heading number 2914.11 of the First Schedule to the said Customs Tariff Act, when
imported into India, a safeguard duty at the rate of:
(a) 28 per cent ad valorem  or Rs. 3,000 per metric tonne, whichever is lower, if imported
up to and inclusive of 26 January 2001;
(b) 21 per cent ad valorem  or Rs 2,250 per metric tonne, whichever is lower, if imported
on or after 27 January 2001 but not later than 26 January 2002;  and
(c) 9 per cent ad valorem  or Rs 965 per metric tonne, whichever is lower, if imported on
or after 27 January 2002 but not later than 26 July 2002.
Further the said notification exempted, inter alia , levy of safeguard duty on imports of
Acetone from notified developing countries under Clause (a) of sub-section (6) of Section 8B of
Customs Tariff Act 1975, other than South Africa.
It has been informed to the Department of Revenue, Ministry of Finance, New Delhi that the
imports of Acetone into India from Singapore, a notified developing country as per NotificationNo. 103/98-Customs dated 14 December 1998, betw een April 2001 to early September 2001 were
1,000 metric tonnes constituting 9.9 per cent of the total imports of Acetone during this period.  The
imports being in excess of the de minimis  level stipulated under Section 8B of the Customs Tariff Act
1975 make them ineligible for availing the exemption benefits extended by the aforesaid Notification
No. 7/2000-CUSTOMS dated 27 January 2000.  It has been requested that the exemption fromsafeguard duty available to imports originating from Singapore may be revoked.  Further it has alsoG/SG/N/6/IND/8/Suppl.1
Page 3
been requested that the share of imports from vari ous developing countries exporting Acetone to India
may be re-determined for any exemption from safeguard duty to be made available to them on
imports of Acetone.
The matter has been examined and it appears that prima facie  the imports of Acetone from
Singapore are more than the de minimis  level stipulated under Section 8B of the Customs Tariff Act
1975 and accordingly it has been decided to initiate review proceedings through this notice.  The
purpose of the review is to determine whether the notified developing countries are eligible to the
exemption from payment of safeguard duty on imports of Acetone.
All the interested parties may make their views known and submit documentary evidence by
31 December 2001 to:
The Director General (Safeguards)
5th Floor, "D" Block
Indraprastha Bhawan,
New Delhi 110 002India
      (Signed)
   (R. K. Gupta)
Director General (Safeguards)
__________