G/SG/N/8/IND/34  
G/SG/N/10/IND/25  
G/SG/N/11/IND/20  
 
15 June 2023  
(23-4098) Page: 1/9 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON TAKING A DECISION TO APPLY A SAFEGUARD MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
INDIA 
PVC suspension resins with Residual VCM above 2 PPM  
The following communication, dated and received on 14 June 2023, is being circulated at the request 
of the delegation of India. 
 
_______________  
 
 
In continuation to WTO document G/SG/N/6/IND/48 dated 11  October 2022, India notifie s that there 
has been a finding of serious injury or threat thereof caused by increased imports of the product 
PVC suspension resins with Residual VCM above 2 PPM.  
1  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS  
Imports of the product under consideration (i.e., PVC Suspension Resins with RVCM content 
above  2PPM) has increased substantially in absolute terms over a very short period. The imports of 
the PUC have shot up suddenly during January to June 2022. Import volumes have dou bled in the 
most recent period as compared to 2019 -20 to 2020 -21. Overall imports of the PUC have increased 
by almost 115% from the base year. It is clearly evident that there has been a recent, sudden, sharp 
and signiﬁcant increase in imports of the PUC.  
Particulars  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
     Actual  Annualised  
 
PUC (PVC Suspension 
Resins  
With RVCM above 2 
PPM) MT 2,12,949  1,71,525  2,65,967  2,29,197  4,58,394  
Like article  
(PVC Suspension 
Resins with  
RVCM up  to 2 PPM)  MT 9,26,313  9,74,242  9,03,326  4,28,808  8,57,617  
Total Imports  MT 11,39,263  11,45,767  11,69,293  6,58,006  13,16,011  
Increase in imports  
PUC MT  (41,424)  94,442   1,92,427  
Like article  MT  47,929  (70,916)   (45,709)  
Total Imports  MT  6,505  23,526   1,46,718  
The imports of the product under consideration have increased by almost 15%  in the most recent 
period when compared to the same period in the previous year i.e., January  2021-June 2021 and 
increased by 102% when compared to January 2020 -June 2020 . Imports of PVC Suspension Resin 
with RVCM content up  to 2PPM during the period January 2021 -June 2021 have more or  less 
remained the same as compared to the same period in the previous year. There has been a decline G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 2 - 
 
  in import volumes of these goods in th e January 2022 -June 2022 period. It is thus concluded that 
the imports of product the under consideration have increased in absolute terms in the most recent 
period.  
2  SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS  
A) SERIOUS INJURY  
An evaluati on of the overall position of the Domestic Industry (DI), in the light of almost all the 
relevant factors, having a bearing on the situation of the DI, shows a significant overall impairment.  
The domestic industry has started suffering serious in the most recent period, as proﬁts, cash proﬁts 
and proﬁts as a percentage of selling price of the domestic industry declined significantly. Further, 
the inventories of the domestic industry increased signiﬁcantly in the most recent period. The serious 
injury to the  domestic industry is due to imports of product under consideration.  
Evidence of serious injury has been analysed and explained in subsequent paragraphs. The 
Directorate General of Trade Remedies (DGTR) has thus concluded that DI has suffered serious 
injury. 
B) THREAT OF SERIOUS INJURY  
It is noted that the imports of the product under consideration have not only increased in relation to 
total imports, but also Indian production, demand and sales of domestic producers.  
Increase in imports in absolute terms shows a clear surge in imports and has a rising trend, which 
is significant enough to constitute "increased imports" within the meaning of Section 8B of the 
Customs Tariff Act, 1975. Increased imports of the PUC threaten to cause serious inj ury to the DI.  
3  EVIDENCE OF SERIOUS INJURY  
A) ASSESSMENT OF DEMAND/CONSUMPTION  
The demand for the product has increased throughout and in the most recent period. Further, 
demand in the most recent period (on annualised basis) was higher as compared to the demand in 
the base year. However, so signiﬁcant was the increase in the volume of imports of the subject 
product that whereas the demand increased by *** MT in the most recent period as compared to 
the base year, the subject imports increased by ***MT,  which amounts to around 87% of the 
increase in demand. Thus, the growth in consumption was largely encapsulated by imports of the 
subject product.  
Particulars  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
     Actual  Annualised  
 
Domestic Industry -Sales  MT *** *** *** *** *** 
 Indexed  100 103 116 63 126 
Other producers -Sales  MT *** *** *** *** *** 
 Indexed  100 95 94 51 102 
Imports of PUC  MT 2,12,949  1,71,525  2,65,967  2,29,197  4,58,394  
Imports of like article  MT 9,26,313  9,74,242  9,03,326  4,28,808  8,57,617  
Demand/Consumption  MT *** *** *** *** *** 
Trend  Indexed  100 99% 101%  56% 112%  
B) EVOLUTION OF PRICES OVER THE PERIOD  
It is seen that the difference between the landed price of the PUC and the like article during the 
most recent period increased as compared to the base year and the previous year. Further, there 
has been an increase in the price difference between the PUC and the like article since 2021 -22 and 
this pattern has continued in the most the recent  period.  G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 3 - 
 
  Landed prices  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
PUC ₹/MT 65,754  81,281  1,21,784  1,27,503  
Like article  ₹/MT 68,504  80,141  1,23,615  1,31,951  
Difference  ₹/MT -2,749  1,140  -1,831  -4,448  
 
C) PRICE UNDERCUTTING:  
It is noted that the imports of the PUC were priced below the selling price of the domestic industry 
and causing price undercutting.  
Particulars  Unit PUC Like Article  
Net Sales realisation  ₹/MT *** *** 
Landed Price  ₹/MT 1,27,503  1,31,951  
Price Undercutting  ₹/MT *** *** 
Price Undercutting  % *** *** 
Price Undercutting  Range  5-15% 1-5% 
 
D) PRICE SUPPRESSION/DEPRESSION  
It is seen that in the most recent period (January -June,  2022), whereas the cost of sales of the like 
article manufactured by the domestic industry increased by ₹ *** per MT, the selling price has 
declined by ₹***per MT. Although, the landed value of the imported PUC has increased, it is noted 
that, despite suc h increase, the landed price of the PUC is below the cost of sales as well as the 
selling price of the domestic industry. The imports are thus depressing the prices and preventing the 
price increase that would have otherwise happened in absence of such low -priced imports of the 
PUC. 
Particulars  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
Cost Of sales  ₹/MT *** *** *** *** 
 Indexed  100 113 162 166 
Landed Price  ₹/MT *** *** *** *** 
 Indexed  100 124 185 194 
Selling Price  ₹/MT *** *** *** *** 
 Indexed  100 130 185 183 
 
E) MARKET SHARE  
It is seen that the market share of the product under consideration has increased signiﬁcantly in the 
most recent period, whereas the market share of domestic producers as a whole and other domestic 
suppliers of the PUC declined in the most recent period. The domestic industry has maintained its 
market share by lowering its selling price. The domestic producers have not been able to take 
advantage of the growth in consumption which has largely been captured by the imports  of the PUC.  
Particulars  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
Domestic Industry  % *** *** *** *** 
Trend  Indexed  100 107 114 114 
Other Producers  % *** *** *** *** 
Trend  Indexed  100 95 92 89 
Domestic Producers as a whole  % *** *** *** *** 
Trend  Indexed  100 98 98 96 
Imports of subject product  % *** *** *** *** 
Trend  Indexed  100 78 122 189 
Imports of like article  % *** *** *** *** 
Trend  Indexed  100 108 97 82 
Total Demand  % *** *** *** *** 
Trend  Indexed  100 107 114 114 
 G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 4 - 
 
  F) CAPACITY, PRODUCTION,  CAPACITY UTILIZATION AND DOMESTIC SALES  
The growth in demand was largely captured by the imports of the PUC due to which the domestic 
industry was not able to take advantage of the growth in demand.  
Particulars  Unit 2019-20 2020-21 2021-22 Jan-Jun' 22 
     Actual  Annualised  
Installed Capacity  MT *** *** *** *** *** 
 Indexed  100 100 103 52 103 
Production  MT *** *** *** *** *** 
 Indexed  100 100 115 58 117 
Capacity Utilization  MT *** *** *** *** *** 
 Indexed  100 100 112 113 113 
Domestic Sales  MT *** *** *** *** *** 
 Indexed  100 103 116 63 126 
 
G) INVENTORY  
The inventories with the domestic industry increased substantially in the most recent period, 
showing  ***% increase in the most recent period as compared to the previous year. Even though 
the sales of domestic industry have slightly increased in the 'most recent period ', due to surge in 
imports of the PUC, the domestic industry was not able to take advanta ge of the full growth in 
demand because of which the inventories of the domestic industry have accumulated.  
Particulars  Unit 2019 -20 2020 -21 2021 -22 Jan-Jun' 22 
     Actual  Annualised  
Average Inventories  MT *** *** *** *** *** 
Trend  Indexed  100 73 35 197 197 
 
H) PROFIT/LOSS  
It is seen that domestic industry was suffering losses in the base year. The domestic industry was 
incurring losses during the base year; however, the domestic industry was making profits from the 
year 2020 -21 till June 2022. Howev er, it is seen that there is a decline in profitability of the domestic 
industry during the most recent period, which is an indication of imminent injury to the domestic 
industry. Further, the selling price of the domestic industry was also below the cost of sales in the 
base year due to which the domestic industry suffered losses in the base year. It is further seen that 
while the proﬁtability of the domestic industry improved in 2020 -21 & 2021 -22, the profitability 
parameters in terms of per unit proﬁts, cash profits per unit and proﬁts as a percentage of selling 
price declined in the most recent period as compared to 2020 -21 and 2021 -22. 
Particulars  Unit 2019 -20 2020 -21 2021 -22 Jan-Jun' 22 
Profits/Losses  ₹/MT (***)  *** *** *** 
 Indexed  (100)  288 386 246 
Cash Profits  ₹/MT (***)  *** *** *** 
 Indexed  (100)  612 788 546 
Profit as a  % of selling price  ₹/MT (***)  *** *** *** 
 Indexed  (100)  221 208 134 
 
4  UNFORESEEN DEVELOPMENTS  
Due to the Russia -Ukraine conflict, the oil prices increased. Due to the increase in oil prices, the cost 
of production of petrochemicals increased globally. This resulted in increase in cost of production of 
PVC Suspension Resins manufactured through ethylene route.  
It is also noted that PVC Suspension Resin with RVCM content above 2 PPM is primarily manufactured 
through the carbide route (where prices of coal have remained stable), whereas PVC Suspension 
Resin with RVCM content up  to 2 PPM is primarily manufactured through the ethylene route (where 
prices have been imp acted by the Russia - Ukraine conflict). As a result of increase in VCM costs, the G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 5 - 
 
  price of PVC Suspension Resin increased. This led to increase in imports of product under 
consideration in India, as these producers of resin above 2 PPM did not face these c ost increases.  
There was a disparity between consumption and production of the product under consideration in 
China due to COVID -19 related lockdowns, (b) the product is majorly consumed in the eastern part 
of China which faced signiﬁcant number of lock do wns due to COV ID-19, whereas the product under 
consideration is majorly produced in the western part of China, which did not face as much lockdowns 
as was faced in the eastern -part. This led to shutdown of the downstream industry, resulting in 
decline in d emand of the product under consideration in China, without proportionate reduction in 
production.  
Due to this imbalance, the production of the product did not decline commensurate to decline in 
demand, resulting in signiﬁcant material available with these producers at a cost much lower than 
the cost of producers through ethylene route. Further, manufacturing of PVC Suspension Resins is a 
continuous process leading to inventory build -up, if not sold in the market. The domestic industry 
submitted that invento ry build -up beyond certain limits is not even an option with any producer and 
therefore producers have to continuously sell the product.  
5  ADJUSTMENT PLAN  
The imposition of quantitative measures is recommended only for a period of one year. Further, 
given th e fact that the measure has been imposed only for a period of one year, it has not been 
considered necessary to make determination regarding the appropriateness of adjustment plan 
brought by the applicants.  
6  PRODUCT INVOLVED  
The product under consideration (PUC) is "Poly Vinyl Chloride (PVC) Suspension Resins with Residual 
Vinyl Chloride Monomer (RVCM) above 2 PPM" and is used in pipes, packaging, wiring and 
insulations, medical products, automotive applications, artificial leather for diverse applications l ike 
upholstery, furnishing, jackets, purse, belts, shoes, consumer goods etc. For more details, kindly 
see the copy of the attached Final Findings dated 15th of May 2023 and can be seen at 
https://www.dgtr.gov.in . 
7  PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
DGTR, the competent authority has recommended imposition of quantitative restrictions on imports 
of the PUC into India in quantity (MT) as specified in the Table below.  
Quotas (in MT)  
Quarter  1st 2nd 3rd 4th 
Total PUC  54,203  54,920  55,646  56,382  
Imports from 
China  20,494  20,765  21,039  21,317  
Imports from 
Chinese Taipei  15,100  15,299  15,502  15,707  
Imports from 
USA 9,690  9,818  9,948  10,079  
Imports from 
Russia  8,920  9,038  9,157  9,279  
Imports from 
other developing 
countries  Countries as per list below are exempt from imposition of safeguards measure  
Imports from 
other developed 
countries  No known imports of the product under consideration above 2 PPM  
 
8  FURTHER INFORMATION  
The Final Findings were published in Gazette of India on 15th of May 2023 and can be seen at 
https://www.dgtr.gov.in . G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 6 - 
 
  9  PROPOSED DATE OF IMPOSITION OF SAFEGUARD MEASURE  
The safeguard measure will be applicable from the  date of issue of notification in this regard by the 
Department of Commerce, Ministry of Commerce and Industry, Government of India.  
10  INVITATION FOR CONSULTATIONS  
Consistent with Article 12.3 of the Agreement on Safeguards, India proposes to give an opportu nity 
for consultation for those Members having substantial interest as exporters of the product concerned, 
for the purpose of exchanging views on the measure proposed. Members who wish to engage in 
consultations may contact the Directorate General of Forei gn Trade (DGFT), New Delhi addressed to 
DGFT at dgft@nic.in  within 10 days from the date of issuance of this notification. Consultations will 
take place in a virtual setting.  
  G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 7 - 
 
  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS  
1  SPECIFY THE MEASURE  
Quotas (in MT)  
Quarter  1st 2nd 3rd 4th 
Total PUC  54,203  54,920  55,646  56,382  
Imports from 
China  20,494  20,765  21,039  21,317  
Imports from 
Chinese Taipei  15,100  15,299  15,502  15,707  
Imports from USA  9,690  9,818  9,948  10,079  
Imports from 
Russia  8,920  9,038  9,157  9,279  
Imports from other 
developing 
countries  Countries as per list below are exempt from imposition of safeguards measures  
Imports from other 
developed 
countries  No known imports of the product under consideration above 2 PPM  
 
2  SPECIFY THE PRODUCT SUBJECT TO THE MEASURE  
The product under consideration (PUC) is "Poly Vinyl Chloride (PVC) Suspension Resins with Residual 
Vinyl Chloride Monomer (RVCM) above 2 PPM".  
3  SPECIFY THE DEVELOPING COUNTRIES TO WHICH THE MEASURE IS NOT APPLIED  
UNDER ARTICLE 9.1 OF THE AGREEMENT ON SAFEGUARDS, AND THE IMPORT SHARE OF  
THESE COUNTRIES INDIVIDUALLY AND COLLECTIVELY  
As the imports from the developing countries listed in the notifica tion no. 19/2016 -customs (NT) 
dated 5 February, 2016, other than China PR, do not exceed 3% individually and 9% collectively, 
imports of "Poly Vinyl Chloride (PVC) Suspension Resins with Residual Vinyl Chloride 
Monomer  (RVCM) above 2 PPM" originating from such developing countries (other than China PR) 
will not attract Quantitative Restrictions in terms of Section 9A(1) of the Foreign Trade (Development 
and Regulation) Act, 1992, as amended.  
  G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 8 - 
 
  [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,  
PART I I, SECTION 3, SUB -SECTION (I)]  
Government of India Ministry of Finance  
(Department of Revenue)  
(Central Board of Excise and Customs)  
Notification  
 
No.19/2016 -Customs (N.T.)  
 
New Delhi, 5th  February, 2016  
G.S.R.(E). - In pursuance of clause (a) of sub-section (6) of section 8B of the Customs Tariff 
Act, 1975 (51 of 1975) and in supersession of notification of the Government of India in the Ministry 
of Finance,  Department  of Revenue,  No.103/98 Cus, dated the 14th December,  1998,  published  in 
the Gazette of India, Extraordinary vide number G.S.R. 737(E), dated the 14th December, 1998, 
except as respects things done or omitted to be done before such supersession, the Central 
Government, hereby notifies the following countries as developing countries  for the purposes of the 
said section, namely:  
 
1  
Afghanistan   
45  
Ghana   
89  
Palestine  
 
2  
Albania   
46  
Grenada   
90  
Panama  
 
3  
Algeria   
47  
Guatemala   
91  
Papua New Guinea  
 
4  
Angola   
48  
Guinea   
92  
Paraguay  
 
5  
Armenia   
49  
Guinea  Bissau   
93  
Peru 
 
6  
Azerbaijan   
50  
Guyana   
94  
Philippines  
 
7  
Bangladesh   
51  
Haiti  
95  
Republic of Moldova  
 
8  
Belarus   
52  
Honduras   
96  
Romania  
 
9  
Belize   
53  
Indonesia   
97  
Rwanda  
 
10  
Benin   
54  
Iran (Islamic 
Republic  of)  
98  
Saint Lucia 
 
11  
Bhutan   
55  
Iraq  
99  
Saint Vincent and 
the Grenadines  
 
12  
Bolivia 
(Plurinational State  
of)  
56  
Jamaica   
100  
Samoa  
 
13  
Bosnia and 
Herzegovina   
57  
Jordan   
101  
Sao Tome  and Principe  
 
14  
Botswana   
58  
Kazakhstan   
102  
Senegal  
 
15  
Brazil   
59  
Kenya   
103  
Serbia  
 
16  
Bulgaria   
60  
Kiribati   
104  
Sierra  Leone  
 
17  
Burkina Faso   
61  
Kyrgyz  Republic   
105  
Solomon Islands  
 
18  
Burundi   
62  
Lao People 's 
Democratic 
Republic   
106  
Somalia  
 
19  
Cabo Verde   
63  
Lebanon   
107  
South Africa  G/SG/N/8/IND/34 • G/SG/N/10/IND/25 • G/SG/N/11/IND/20  
 
- 9 - 
 
   
20  
Cambodia   
64  
Lesotho   
108  
South Sudan  
 
21  
Cameroon   
65  
Liberia   
109  
Sri Lanka  
 
22  
Central African 
Republic   
66  
Libya   
110  
Sudan  
 
23  
Chad  
67  
Madagascar   
111  
Suriname  
 
24  
China   
68  
Malawi   
112  
Eswatini  
 
25  
Colombia   
69  
Malaysia   
113  
Syrian Arab Republic  
 
26  
Comoros   
70  
Maldives   
114  
Tajikistan  
 
27  
Congo   
71  
Mali  
115  
Thailand  
 
28  
Costa Rica   
72  
Marshall Islands   
116  
The former Yugoslav 
Republic of  North 
Macedonia  
 
29  
Côte D'Ivoire   
73  
Mauritania   
117  
Timor -Leste  
 
30  
Cuba  
74  
Mauritius   
118  
Togo 
 
31  
Democratic 
People's Republic of 
Korea   
75  
Mexico   
119  
Tonga  
 
32  
Democratic 
Republic of the 
Congo   
76  
Micronesia 
(Federal State of)   
120  
Tunisia  
 
33  
Djibouti   
77  
Mongolia   
121  
Türkiye 
 
34  
Dominica   
78  
Montenegro   
122  
Turkmenistan  
 
35  
Dominican Republic   
79  
Morocco   
123  
Tuvalu  
 
36  
Ecuador   
80  
Mozambique   
124  
Uganda  
 
37  
Egypt   
81  
Myanmar   
125  
Ukraine  
 
38  
El Salvador   
82  
Namibia   
126  
United Republic of 
Tanzania  
 
39  
Eritrea   
83  
Nepal   
127  
Uzbekistan  
 
40  
Ethiopia   
84  
Nicaragua   
128  
Vanuatu  
 
41  
Fiji  
85  
Niger   
129  
Viet Nam  
 
42  
Gabon   
86  
Nigeria   
130  
Yemen  
 
43  
The Gambia   
87  
Pakistan   
131  
Zambia  
 
44  
Georgia   
88  
Palau   
132  
Zimbabwe  
 
[F. No.21000/22/2015 -OSD (ICD)]  
 
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