WORLD TRADE G/SG/N/6/IND/1
7January 1998
ORGANIZATION(98-0010)
Original: English Committee onSafeguards
NOTIFICATION UNDER ARTICLE 12.1(A) OFTHE
AGREEMENT ONSAFEGUARDS ONINITIATION OF
ANINVESTIGATION AND THE REASONS FOR IT
INDIA
Thefollowing communication, dated 18December 1997, hasbeenreceived fromthePermanent
Mission ofIndia.
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NOTICE OFINITIATION OFASAFEGUARD INVESTIGATION
(Under Rule6oftheCustoms Tariff (Identification andAssessment ofSafeguard Duty)
Rules, 1997)
NewDelhi, 28November 1997
No.SG/INV/1/1997
Subject: Initiation ofSafeguard Investigation concerning Imports ofAcetylene Black intoIndia
1. Anapplication hasbeenfiledbefore meunder rule5oftheCustoms Tariff (Identification and
AssessmentofSafeguardDuty)Rules,1997,byM/s.TecilChemicals&HydroPowerLimited,Mumbai,
M/s.Panyam Cements &Mineral Industries Ltd., Hyderabad, M/s.Senka Carbon Pvt.Ltd., Chennai
&M/s.Oswal Petro Chemicals, Mumbai forimposition ofSafeguard Duty onimports ofAcetylene
Black intoIndia toprotect thedomestic producers ofAcetylene Black against serious injury caused
bytheincreased imports ofAcetylene Black intoIndia.
2. Domestic industry: Theapplication hasbeenfiledbyM/s.Tecil Chemicals &Hydro Power
Limited, Mumbai, M/s.Panyam Cements &Mineral Industries Ltd., Hyderabad, M/s.Senka Carbon
Pvt.Ltd., Chennai &M/s.Oswal Petro Chemicals, Mumbai onbehalf ofthedomestic producers of
Acetylene Black. There areonlyfourdomestic producers ofAcetylene Black accounting fortheentire
domestic production ofAcetylene Black.
3. Product involved: Theapplicants havealleged serious injury caused tothedomestic producers
bytheincreased imports ofAcetylene Black intoIndia. Acetylene Black classified under sub-heading
No.280300 oftheFirstSchedule totheCustoms Tariff Act1975, isasuperior variety ofCarbon Black.
Itisproduced from calcium carbide orthrough petrochemical route, andisusedmainly indrycell
batteries.
4. Increased imports: Acetylene Black isimported intoIndiafromJapan, Singapore, South Africa,
France, China, P.R., thePhilippines andBelgium. Theimports haveshown anincreasing trend inG/SG/N/6/IND/1
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absolute terms aswellascompared tothedomestic production. Theimports anddomestic production
ofAcetylene Black during theperiod from 1993-94 to1997-98 havebeenasunder:
Year Imports (MT) Domestic production (MT)
1993-94 11.5 2,601.65
1994-95 8.3 3,355.43
1995-96 71.0 3,570.075
1996-97 841.06 3,274.62
1997-98 250.57 (uptoJuly) 1,272.255
(uptoSeptember)
5. Injury: Theincreased imports ofAcetylene Black have caused andarethreatening to
cause serious injury tothedomestic producers ofAcetylene Black asindicated bythefollowing factors:
(a) production hasgonedown from3,570.075 MT(1995-96) to3,274.62 MT(1996-97)
and1,272.255 MT(1997-98 uptoSeptember);
(b) saleshavegonedown from3,574 MT(1995-96) to3,017 MT(1996-97) and1,291 MT
(first halfof1997-98);
(c) capacity utilization hasgonedown from67.36% (1995-96) to58.48% (1996-97) and
45.44% (first halfof1997-98);
(d) M/s.Tecil Chemicals &Hydro Power Limited havesuspended theirproduction from
August 1997.
6. ThedomesticproducershaverequestedforimpositionofsafeguarddutyonimportsofAcetylene
Black foraperiod offouryears. They havealsorequested foranimmediate imposition ofprovisional
safeguard duty.
7. TheapplicationhasbeenexaminedanditisfoundthatprimafacieincreasedimportsofAcetylene
Black havecaused andarethreatening tocause serious injury tothedomestic producers ofAcetylene
Black andaccordingly ithasbeendecided toinitiate aninvestigation through thisnotice.
8. Allinterested parties maymake theirviews known within aperiod of40daysfrom thedate
ofthisnotice to:
TheDirector-General (Safeguards)
5thFloor, D-Block,
Indraprastha Bhawan, I.P.Estate
NewDelhi -110002
INDIA
9. Allknown interested parties arealsobeing addressed separately.G/SG/N/6/IND/1
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10. Anyother party totheinvestigation whowishes tobeconsidered asaninterested party may
submit itsrequest soastoreach theDirector-General (Safeguards) within 21daysfrom thedateof
thisnotice.
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