G/SG/N/8/IND/30  
G/SG/N/10/IND/21  
G/SG/N/11/IND/16  
 
15 August 2016 
(16-4392) Page: 1/5 
Committee on Safeguards  Original: English  
 
 NOTIFICATION  UNDER ARTICLE 12.1(B ) OF THE AGREEMENT  
ON SAFEGUARDS ON FINDIN G A SERIOUS INJURY  OR 
THREAT THEREOF CAUSE D BY INCREASED IMPORTS  
 
NOTIFICATION OF A PR OPOSAL TO IMPOSE A M EASURE  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
INDIA 
(Hot-rolled flat sheets and plates (excluding hot rolled flat products in coil form) of alloy or non -
alloy steel having nominal thickness less than or equal to 150 mm and nominal width of greater 
than or equal to 600 mm)  
The following comm unication , dated 11  August 2016, is being ci rculated at the request of the 
Delegation of India.  
 
_______________  
 
 
In continuation to document Nos.  G/SG/N/6/IND/4 2 dated  10 December 2015 and 
G/SG/N/6/IND/42/Co rr.1 dated 5 January 2016.  
 
1  INFORMATION ON WHET HER THERE IS AN ABSO LUTE INCREASE IN IMP ORTS  
The Product Under Consideration i.e. 'Hot-rolled flat sheets and plates (excluding hot rolled flat 
products in coil form) of alloy or non -alloy steel having nominal thickness less than or equal to 150 
mm and nom inal width of greater than or equal to 600 mm ' 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  
2012-13 601667  100 
2013-14 32372 3 54 
2014-15  599891  100 
2015-16 (up to Sept 15)  384993  -- 
2015-16 (Annualized)  769986  128 
 
From the table above, it is evident that there is a surge in import in absolute terms i.e. import 
increased from 601667 MT during the period 2012 -13 to 769986 M T during 2015 -16 (Annualised).  
 G/SG/N/8/IND/30 • G/SG/N/10/IND/21 • G/S G/N/11/IND/16  
 
- 2 - 
 
  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 : 
 
Financi al Year  Total Imports (MT)  All India Production 
(MT)  Import with respect to 
total production  (%) 
2012-13 6,01,667  52,31,948  11 
2013-14 3,23,723  52,86,002  6 
2014-15 5,99,891  49,18,561  12 
2015-16 
(Up to Sept.,15)  3,84,993  24,93,601  15 
2015-16(A)  7,69,98 6 49,87,202  15 
 
From the above table, it is evident that there is a sudden, sharp and significant surge in imports 
during the most recent Period of Investigation, both in absolute terms as well as in relation to total 
domestic production.  
 
2  SERIOUS INJURY  OR THREAT THEREOF CAUSE D 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 D I, shows a significant overall  
impairment. Evidence of serious injury has been analysed & explained in subsequent paragraphs. 
It is thus concluded that D I has suffered serious injury  and increased imports of the product under 
consideration  threaten to cause serious injury to the DI.  
 
b. Threat of Ser ious Injury  
 
It is noticed that imports of the PUC in India during 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 SERIO US 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) Captive 
consumption 
of DI (MT)  Sales  of 
other Indian  
Producers 
(MT) Total Demand (MT)  Market Share 
(%) 
            Trend  DI Import  
2012-13 6,01,667  36,55,162  3,83,956  5,36,201  51,76,986  100 71 12 
2013-14 3,23,723  34,68,496  1,46,323  9,94,887  49,33,429  95 70 7 
2014-15 5,99,891  37,05,573  1,31,978  6,39,349  50,76,791  98 73 12 
2015-16(A)  7,69,986  37,10,488  2,18,784  6,94,669  53,93,927  104 69 14 G/SG/N/8/IND/30 • G/SG/N/10/IND/21 • G/SG/N/11/IND/16  
 
- 3 - 
 
  It is seen from the table above that the Imports had a market share of 12% in 2012 -13 which 
increased to 14% during 2015 -16(A) whereas the market share of Domestic ind ustry (DI) 
decreased from 71% to 69% during the same period.  
 
b. Production  
 
Year Production of DI (MT)  Trend  
2012-13 46,17,239  100 
2013-14 41,03,109  89 
2014-15 42,21,200  91 
2015-16 
(Up to Sept.,15)  21,22,308   
2015-16(A)  42,44,616  92 
 
From the above table, it is evident that the production of the Production of the DI decreased 
from 4617239 MT in 2012 -13 to 4244616 MT in 2015 -16 (A).  
 
c. Change in level of domestic sales  
 
It is evident that the sales of the Domestic Industry decreased from 3655162 MT in 2012 -13 to 
3468496 MT in 2013 -14. Further, the sales of the applicant during 2015 -16 (A) increased to 
3710488 MT. There is not much variation in the level of sales.  
 
d. Capacity Utilization:  The capacity utilization of the DI decreased from 60% to 49% during 
the period of investigation, as evident from the table below : 
 
Financial Year  Installed Capacity (MT)  Capacity Utilisation (%)  
2012-13 77,38,198  60 
2013-14 81,67,598  50 
2014-15 83,14,265  51 
2015-16 (Up to Sept 15)  43,03,796   -- 
2015-16(A)  86,07 ,592 49 
 
e. Profit and Loss:  The profitability of the DI has declined sharp ly during 2015 -16 (up  to 
Sept 15) and DI recorded loss, as evident from the table below : 
 
Financial Year  Profitability (Rs/MT) Indexed  
2012-13 100 
2013-14 70 
2014-15 52 
2015-16 (Up to Sept 15)  (150)  
 G/SG/N/8/IND/30 • G/SG/N/10/IND/21 • G/S G/N/11/IND/16  
 
- 4 - 
 
  f. Employment  & productivity  
 
The trend of employment is increasing whereas the trend of productivity per employee is 
decreasing over the injury period, as evident from the table below:  
 
Financial Year  Production 
of DI (MT)  No. of  
Employees 
(Indexed)  Productivity per Employee(MT) 
(Indexed)  
2012-13 46,17,239  100 100 
2013-14 41,03,109  110 80 
2014-15 42,21,200  117 78 
2015-16(A)  42,44,616  125 73 
 
g. Inventor ies 
 
Inventories have increased from 100 points in 2012 -13 to 109 points i n 2015 -16 (up to Sept 15) 
as evident from the table below : 
 
Financial Year/Quarter  Inventory (MT)  Inventory (MT) (Indexed)  
2012-13 2,56,812  100 
2013-14 3,13,029  122 
2014-15 2,88,941  113 
2015-16 
(Up to Sept.15)  2,80,751  109 
 
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 intern ational trade so that India better 
assimilate s 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 can be seen that due to the eff ect of such low 
applied tariffs of the PUC,  there was a chance for the imports of the PUC, under the present 
circumstances and market conditions has actually increased in sudden, sharp, significant  manner 
into India.  
 
Hence, i t is clear that as a result of unforeseen developments and as an effect o f obligations  under 
GATT including tariff concessions, imports of the PUC 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.  
 
5  PRODUCT INVOLVED  
 
The Product Under Consideration (PUC) is ' Hot-rolled flat sheets and plates (excluding hot rolled 
flat products in coil form) of alloy or  non-alloy steel having nominal thickness less than or equal to 
150 mm and nominal width of greater than or equal to 600 mm' and is classified under Chapter 72 
of the Customs Tariff Act, 1975  under tariff heading 7208 and 7225 (72254013, 72254019, 
72254020 , 7225030 and 73359900).  
 G/SG/N/8/IND/30 • G/SG/N/10/IND/21 • G/SG/N/11/IND/16  
 
- 5 - 
 
  6  PRECISE DESCRIPTION OF THE PROPOSED MEAS URE 
DG Safeguards, the competent authority, has recommended to impose safeguard duty at the rate 
of 10% ad valorem (minus Anti -Dumping duty, if any) on the import of PUC imported at a price 
below $504 per MT for first year, at the rate of 8% ad valorem (minus Anti -Dumping duty, if any) 
on the import of PUC imported at a price below $504 per MT and at the rate of 6% ad valorem 
(minus Anti -Dumping duty, if any) on the import of PUC imported at a price below $504 per MT  on 
imports of ad valorem (minus Anti -Dumping duty, if any) on the import of PUC imported at a price 
below $504 per MT.  
 
7  FURTHER INFORMATION  
The Final Findings were pu blished in gazette of India on 2 August 2016. 
 
8  PROPOSED DATE OF IMPOSITION OF SAFEGU ARD 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 PURSUAN T TO ARTICLE 9, FOOT NOTE 2,  
OF THE A GREEMENT ON SAFEGUAR DS 
1  SPECIFY  THE MEASURE  
safeguard duty at the rate of 10% ad valorem (minus Anti -Dumping duty, if any) on the import of 
PUC imported at a price below $504 per MT for first year, at the rate of 8% ad valorem (minus 
Anti-Dumping duty, if a ny) on the import of PUC imported at a price below $504 per MT and at the 
rate of 6% ad valorem (minus Anti -Dumping duty, if any) on the import of PUC imported at a price 
below $504 per MT  on imports of ad valorem (minus Anti -Dumping duty, if any) on the i mport of 
PUC imported at a price below $504 per MT when imported into India has been recommended by 
DG(Safeguards ), the competent authority.  
 
2  SPECIFY THE  PRODUCT SUBJECT TO T HE MEASURE  
The Product Under Consideration (PUC) is ' Hot-rolled flat sheets and pl ates (excluding hot rolled 
flat products in coil form) of alloy or non -alloy steel having nominal thickness less than or equal to 
150 mm and nominal width of greater than or equal to 600 mm' and is classified under Chapter 72 
of the Customs Tariff Act, 197 5 under tariff heading 7208 and 7225 (72254013, 72254019, 
72254020, 7225030 and 73359900).  
 
3  SPECIFY THE DEVELOPIN G COUNTRIES TO WHICH  THE MEASURE IS NOT A PPLIED 
UNDER ARTICLE  9.1 OF THE AGREEMENT ON SAFEGUARDS , AND THE IMPORT SHARE  OF 
THESE COUNTRIES INDI VIDUALLY AND COLLECTI VELY  
As the imports from dev eloping nations, as listed in Notification No.19/2016 -Customs (NT) dated 
5 February 2016, except China PR, Indonesia and Ukraine do not exceed 3% individually and 9% 
collectively, the import of product under consideration originating from developing  nations except 
China PR , Indonesia  and Ukraine will not attract Safeguard Duty in  terms of proviso to 
Section  8B (1) of the Customs Tariff Act, 1975.  
 
__________