WORLD TRADE
ORGANIZATIONG/SG/N/6/IND/15
14 March 2003
(03-1494)
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
The following communication, dated 12 March 2003, has been received from the Permanent
Mission of India.
_______________
Attached herewith is a copy of the Notice of Initiation of safeguard proceedings
(No. SG/INV/1/2003 dated 6 March 2003) issued by the Director General (Safeguards) againstimports of Bisphenol A (BPA) into India.G/SG/N/6/IND/15
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OFFICE OF THE DIRECTOR GENERAL (SAFEGUARDS)
139, C.R. Buildings, I.P. Estate
NEW DELHI-110002
NOTIFICATION
F. No. SG/INV/1/2003         Dated:  6 March 2003
Notice of Initiation of a Safeguard Investigation
{Under Rule 6 of the Customs Tariff (Identification and
Assessment of Safeguard Duty) Rules 1997}
Subject: Initiation of safeguard Investigation concerning imports of Bisphenol A (BPA) into
India
1. An application has been filed before me under Rule 5 of the Customs Tariff (Identification
and Assessment of Safeguard Duty) Rules 1997, by Kesar Petroproducts Limited, Mumbai (KPL) for
imposition of safeguard duty on imports of Bisphenol A (BPA) into India to protect domestic
producers of BPA against serious injury caused by the increased imports of BPA into India.
2. Domestic industry
The application has been filed by KPL on behalf of the domestic producers of BPA for
imposition of safeguard duty on imports of BPA.  KPL is the only producer of BPA accounting for the
total domestic production.
3. Product involved
The applicants have alleged serious injury caused to the domestic producers by the increased
imports of BPA into India.  BPA is classified under sub-heading No. 2907.23 of the First Schedule to
the Customs Tariff Act 1975 and under 2907.2300 of the Indian Trade Classification (ITC), and is a
basic organic chemical with chemical formula C 15, H 16 and O 2.  The applicants produce BPA by
reacting Phenol and Acetone.  BPA is used in the manufacture of Epoxy Resins and Polycarbonates.
4. Increased imports
BPA is imported into India mainly from Belgium, China P.R., France, Germany, Japan,
Korea (RP), the Netherlands, Singapore, Spain, Slovenia, U.K. and the US.  The imports have shownan increase in absolute terms as well as compared to domestic production.  The imports and domestic
production of BPA during 1997-98 to 2002-03 (up to December) have been as under:
(In Mts)
Year Domestic
productionImportsImports from
China, P.R. as
% of domestic
production
1997-98 4192 898 21.42
1998-99 5242 1376 26.25
1999-00 6147 2253 36.65
2000-01 5313 2056 38.70
2001-02 6124 4339 70.85
2002-03 3834 5982* 156.02
*The imports during April-September is 3988.35MTs and on
prorata basis the imports work out to 5982MTs.G/SG/N/6/IND/15
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5. Injury
The increased imports of BPA have caused/threatened to cause serious injury to the domestic
producers of BPA as indicated by the following factors:
(a) International prices of BPA have been steadily falling.  The CIF price of BPA over
the last five years have fallen almost by 23 per cent.  To keep up with this fall in the
international prices and to retain their market share, the domestic producer had to
reduce their prices of BPA, as a sequel their net price realizations have declined
considerably and result in loss to the domestic producer.
(b) The capacity utilization of the domestic producer which was 83.85 per cent in 1997-
98 and improved to 102.45 in 1999-2000 declined to 61.24 per cent in 2001-2002 and
further declined to about 52 per cent during the period 2002-2003 (up to December).
(c) The closing stocks of domestic producer of BPA which decreased from 315.375MT
in 1999-2000 to 72.625MT in 2000-2001 increased to 418.575MT at the end of
March 2002.
(d) The market share of domestic producer of BPA in the total domestic consumption of
BPA which was about 70 per cent in 1997-1998 declined to 50 per cent in 2001-02and further declined to about 34 per cent as indicated in the table below.  The
domestic producers have been able to retain this reduced market share only at the cost
of reduction of their sales price.  The net sales realization per MT of BPA dropped
from Rs66191/- in 2000-01 to Rs62646/- in 2001-02 and further declined to
Rs51303/- in 2002-03 (December).
Year Domestic sales
(including captive
consumptionTotal domestic
consumption
including importsShare of domestic
sales to domestic
consumption
(2/3 x 100%)
(1) (2) (3) (4)
1997-98 2125 3023 70.29
1998-99 3222 4598 70.07
1999-00 3722 5975 62.29
2000-01 4983 7039 70.79
2001-02 4370 8709 50.18
2002-03 (up toDecember)3149 9131 34.48
6. The domestic producers have requested the imposition of safeguard duty on imports of BPA..
They have also requested for an immediate imposition of provisional safeguard duty.
7. The application has been examined and it appears that prima facie  increased imports of BPA
have caused/threatened to cause serious injury to the domestic producers of BPA and accordingly it
has been decided to initiate an investigation through this notice.
8. All interested parties may make their views known by 21 April 2003  to:G/SG/N/6/IND/15
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The Director General (Safeguards)
139, C.R. Buildings
I.P. Estate
New Delhi-110002India
9. All known interested parties are also being addressed separately.10. Any other party to the investigation who wishes to be considered as an interested party may
submit its representation so as to reach the Director General (Safeguards) within 21 days from the
date of this notice.
(B.K.MISHRA)
Director General ( Specific Safeguards)
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