G/SG/N/8/IND/28  
G/SG/N/10/IND/19  
G/SG/N/11/IND/14/Suppl.2  
 
22 March 2016  
(16-1636)  Page: 1/4  
Committee on Safeguards  Original: English  
 
 NOTIFICATION  UNDER ARTICLE 12.1(B) OF THE AGREEMENT 
ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR 
THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION OF A PROPOSAL TO IMPOSE A MEASURE 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
INDIA 
(Hot-rolled flat products of non-alloy and other alloy 
steel in coils of a width of 600 mm or more) 
The following communication, dated 21 March 2016, is being circulated at the request of the 
Delegation of India. 
 
_______________ 
  
(In continuation to documents G/SG/N/6/IND/41 dated 16 September 2015, G/SG/N/7/IND/10–
G/SG/N/11/IND/14 dated 30 September 2015 and G/SG/N/7/IND/10/Suppl.1-G/SG/N/11/IND/14/Suppl.1 dated 30 September 2015) 
 
 1  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS 
The Product Under Consideration i.e. 'Hot-rolled flat products of non-alloy and other alloy steel in 
coils of a width of 600 mm or more'  hereinafter referred to as 'PUC' is imported into India from a 
number of countries. The imports of 'PUC'  is given in the table below: 
 
Financial Year Total Imports (MT) Trend 
2013-14 1252441 100 
2014-15 2644911 211 
2015-16 (Q1) 881233  
2015-16 (A) 3524932 281 
 
From the table above, it is evident that there is a surge in import in absolute terms i.e. import 
increased from 1252441 MT during the period 2013-14 to 3524932 MT during 2015-16 (Annualised).  
 
a. Share of imports relative to production: 
It is noticed that imports of PUC in India during the POI have also increased in relation to the 
production of the DI, which would be evident from the table given below: 
 
Financial Year Total Imports 
(MT) All India Production 
(MT) Imports in relation to 
Indian production (%) 
2013-14 1252441  25510777 5 G/SG/N/8/IND/28 • G/SG/N/10/IND/19 • G/SG/N/11/IND/14/Suppl.2 
 
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  2014-15 2644911 26395795 10 
2015-16 (Q1) 881233 6646258  
2015-16 (A) 3524932 26585032 13 
 
 
2  SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS 
a. Serious Injury:  
An evaluation 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. Evidence of serious injury has been analysed & explained in subsequent paragraphs. It is thus concluded that DI has suffered serious injury and increased imports of the product under 
consideration threaten to cause serious injury to the DI. 
 
b. Threat of Serious Injury:  
It is noticed that imports of the PUC in India duri ng the Period of Investigation (POI) have not only 
increased in absolute terms but also increased in relation to production of the DI, which is evident from the table indicated above. 
Increase in imports in absolute terms is 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.  
 
3  EVIDENCE OF SERIOUS INJURY 
The increased imports of 'PUC' into India have caused serious injury  to the domestic producers as 
reflected by the following parameters:  
a. Market Share:  
Financial Year Total Import (MT) Sales of DI (MT) % of Market Share 
   DI Import 
2013-14 12,52,441 1,03,42,565 45 5 
2014-15 26,44,911 99,49,214 39 10 
2015-16 (Q1) 8,81,233 25,89,929   
2015-16 (A) 35,24,932 1,03,59,716 37 13 
 
It is seen from the table above that the Impo rts had a market share of 5% in 2013-14 which 
increased to 13% during 2015-16(A) whereas the market share of Domestic industry decreased 
from 45% to 37% during the same period.  
b. Production:  
Financial Year Production (MT) Trend 
2013-14 17881187 100 
2014-15 17836937 100 
2015-16 (Q1) 4456795  
2015-16 (A) 17827180 100 
 
Production of the DI has improved marginally over the period. 
c. Change in level of domestic sales: 
It is evident that the sales of the Domestic In dustry decreased from 1,03,42,565 MT in 2013-14 
to 99,49,214 MT in 2014-15. Further, the sales of the applicant during 2015-16 (A) increased 
to 1,03,59,716 MT. There is not much variation in the level of sales.  G/SG/N/8/IND/28 • G/SG/N/10/IND/19 • G/SG/N/11/IND/14/Suppl.2 
 
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  d. Capacity Utilization:  
The capacity utilization of the DI has remained more or less the same as seen from the table 
below: 
Financial Year Capacity (MT) Capacity Utilization (%) 
2013-14 23568996 75.9 
2014-15 23568996 75.7 
2015-16 (Q1) 5884372  
2015-16 (A) 23537488 75.7 
 
e. Profits and losses : 
The profitability of the DI has declined sharply during 2015-16 (Q1) and DI recorded loss, as 
evident from the table below: 
Financial Year Profitability (Rs/MT) Indexed 
2013-14 100 
2014-15 136 
2015-16 (Q1) (114) 
 
f. Employment & productivity:   
The trend of employment and productivity has rema ined same over the injury period, as evident 
from the table below:  
 
Financial Year No. of employees (indexed) Productivity per employee (MT) 
(indexed) 
2013-14 100 100 
2014-15 100 100 
2015-16 (Q1) 100  
2015-16 (A) 100 100 
 
g. Inventories: 
Inventories have marginally increased from 100 points in 2013-14 to 103 points in 2015-16 (Q1) 
as evident from the table below: 
Financial Year Inventory (MT)  Inventory (MT) (indexed) 
2013-14 636879 100 
2014-15 648290 102 
2015-16 (Q1) 657099 103 
 
h. Unforeseen Developments: 
India's bound rates on PUC as per its Schedule of Concessions to the WTO is 40% ad valorem. It is 
further observed that India has been reducing its applied tariff rates on goods across many 
sectors. The sole purpose of this exercise is to  encourage international trade so that India better 
assimilates into global trade. This is particularly true for the PUC for which India had a reduced 
applied rate of 7.5% in 2013-14 and 2014-15. It ca n be seen that due to the effect of such low 
applied tariffs of the PUC, under the present ci rcumstances and market conditions has actually 
increased in sudden, sharp, significant manner into India. 
 
Hence, it is clear that as a result of unforeseen developments and as an effect of obligations under GATT including tariff concessions, imports of the PU C has increased in a sudden, sharp, significant 
manner into India. 
 
4  ADJUSTMENT PLAN 
The DI has provided a viable adjustment plan which focuses on cost reduction, optimum utilization 
and expansion of production capacities which will enable to adjust to the international competition. G/SG/N/8/IND/28 • G/SG/N/10/IND/19 • G/SG/N/11/IND/14/Suppl.2 
 
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  5  PRODUCT INVOLVED 
The Product Under Consideration (PUC) is "Hot-rolled flat products of non-alloy and other alloy 
steel in coils of a width of 600 mm or more"  and is classified under Chapter 72 of the Customs 
Tariff Act, 1975 under tariff heading 7208 and tariff item 72253090. 
 
6  PRECISE DESCRIPTION OF THE PROPOSED MEASURE 
DG Safeguards, the competent authority, has reco mmended to impose safeguard duty at the rate 
of 20% ad valorem  for the first year, 18% ad valorem  for the second year (for first 6-months), 
15% ad valorem for second year (for next 6-months) and 10% ad valorem for third year 
(for 6-months) on imports of Hot-rolled flat products of non-alloy and other alloy steel in 
coils of a width of 600 mm or more . 
 
7  FURTHER INFORMATION 
The Final Findings were published in gazette of India on 15/03/2016. 
 
8  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 Revenue, Ministry of  Finance, Government of India. 
  NOTIFICATION PURSUANT TO ARTICLE 9,  FOOTNOTE 2, OF THE AGREEMENT ON 
SAFEGUARDS 
1  SPECIFY THE MEASURE Safeguard duty at the rate of 20% ad valorem  for the first year, 18% ad valorem  for the second 
year (for first 6-months), 15% ad valorem for second year (for next 6-months) and 
10% ad valorem for third year (for 6-months) when imported into India has been recommended 
by DG (Safeguards), the competent authority. 
 
2  SPECIFY THE PRODUCT SUBJECT TO THE MEASURE 
The Product Under Consideration (PUC) is "Hot-rolled flat products of non-alloy and other alloy 
steel in coils of a width of 600 mm or more"  and is classified under Chapter 72 of the Customs 
Tariff Act, 1975 under tariff heading 7208 and tariff item 72253090. 
 3  SPECIFY THE DEVELOPING COUNTRIES TO WHICH THE MEASUR E 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 developing nations except China PR and Ukraine do not exceed 3% 
individually and 9% collectively, the import of product under consideration originating from 
developing nations except China PR and Ukraine will  not attract Safeguard Duty in terms of proviso 
to Section 8B (1) of the Customs Tariff Act, 1975. Turkey vide Notification No. 19/2016-Customs (N.T.) dated 05.02.2016 has been recognised as a developing nation. Therefore, Imports of the 
product under consideration originating from Turkey will not attract Safeguard Duty w.e.f. 
05.02.2016. 
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