WORLD TRADE  
ORGANIZATION   
G/SG/N/1/IND/3/Suppl.1 
25 September 2012 
 (12-5148) 
Committee on Safeguards Original:   English 
 
 
 
NOTIFICATIONS OF LAWS, REGULATIONS AND 
ADMINISTRATIVE PROCEDURES RELATING 
TO SAFEGUARD MEASURES 
 
INDIA 
 
Supplement 
 The following communication, dated 24 August 2012,  is being circulated at the request of the 
Delegation of India. 
_______________ 
 
 
 In pursuance to Article 12.6 of the Agreem ent on Safeguards, India notifies the Rules, 
namely, the Safeguard Measures (Quantitative Restrictions) Rules, 2012, framed under sub-
section (3) of section 9A of the Foreign Trade (Development and Regulation) Act, 1992.  WTO 
document No. G/SG/N/1/IND/3 dated 23 Septembe r 2011 contains the provision introduced under 
Section 9A of the Foreign Trade (Development a nd Regulation) Act, 1992, as amended, giving power 
to the Government of India to impose quantitative rest rictions as safeguard measures.  Pursuant to this 
amendment to the Act, Safeguard Measures (Qua ntitative Restrictions) Rules, 2012 have been 
notified vide Government of India Notification No . G.S.R.381(E) dated 24 May 2012.  Copy of this 
Notification is annexed herewith.  This  notification is also available at 
http://dgft.gov.in/exim/2000/safeguardRulesI2012.pdf . 
 G/SG/N/1/IND/3/Suppl.1 
Page 2 
 
 
   
Annexure 
 
[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, 
PART II, SECTION 3, SUB-SECTION (i)] 
 
 
GOVERNMENT OF INDIA 
MINISTRY OF COMMERCE AND INDUSTRY 
(DEPARTMENT OF COMMERCE) 
 
NOTIFICATION  
NEW DELHI, 24 May 2012  
 
G.S.R. 381(E).--- In exercise of the powers conferred by sub-section (3) of section 9A of the Foreign 
Trade (Development and Regulation) Act 1992 (22 of  1992), the Central Government hereby makes 
the following rules, namely:  
1.  Short title and commencement .  (1)  These rules may be called the Safeguard Measures 
(Quantitative Restrictions) Rules, 2012.   
(2)   They shall come into force on the date of their publication in the Official Gazette.  
 2.  Definitions.  (1) In these rules, unless the context otherwise requires: 
 
(a)  "Act" means the Foreign Trade (Devel opment and Regulation) Act, 1992 (22 of 
1992);  
 
(b) "Authorised Officer" means the Authori sed Officer designated as such under sub-
rule(1) of rule 3;  
 (c)  "increased quantity" includes increase in im port whether in absolute terms or relative 
to domestic production;  
 (d)  "interested party" includes: 
 
(i)   an exporter or foreign producer or the importer of goods (which is subject to 
investigation for purposes of imposition of safeguard quantitative 
restrictions) or a trade or business association, majority of the members of 
which are producers, exporters or  importers of such goods;  
(ii)   the Government of the exporting country; and  
(iii)  a producer of the like goods or directly competitive goods in India or a trade 
or business association, a majority of members of which produce or trade the 
like goods or directly competitive goods in India;  
 
(e)  "like goods" means goods which is identical  or alike in all respects to the goods under 
investigation, or in the absence of su ch goods, other goods which has characteristics 
closely resembling those of the goods under investigation;  
 
(f)  "quantitative restrictions" means any sp ecific limit on quantity of goods imposed as a 
safeguard measure under the Act;   G/SG/N/1/IND/3/Suppl.1 
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(g)  "specified country" means a country or territory which is a member of the World 
Trade Organization and includes the country or territory with which the Government 
of India has an agreement for giving it the most favoured nation treatment;  
 
(2)  The words and expressions used herein and not defined, but defined in the Act shall have the 
meanings respectively assigned to them in the Act.  
 
3.  Responsibility of Authorised Officer for making enquiry in respect to safeguard 
quantitative restrictions.  (1) The Central Government shall, by notification in the Official Gazette, 
designate an officer not below the rank of Add itional Director General of Foreign Trade as an 
Authorised officer for making investig ation for the purpose of these rules.  
 
(2)  The Authorised Officer shall be res ponsible for conducting i nvestigation, under sub-
section (1) of section 9A, for the purpose of impositi on of safeguard quantitative restrictions and 
making necessary recommendation therein to the Central Government.  
 (3)  The Directorate General of Foreign Trade shall provide secretarial support and the services of 
such other persons and such other facilities as it deems fit.  
 4.  Duties of Authorised Officer.  It shall be the duty of the Authorised Officer; 
 
(a)  to investigate the existence of serious inju ry or threat of serious injury to domestic 
industry as a consequence of increased import of a goods into India;  
 
(b)  to identify the goods liable for quantita tive restrictions as a safeguard measure; 
  
(c)  to submit its findings, to the Central Govern ment as to the serious injury or threat of 
serious injury to domestic industry conseque nt upon increased import of goods into 
India from the specified country; 
  
(d)  to recommend: 
 
  (i)  the nature and extent of quantitativ e restrictions which, if imposed, shall be 
adequate to remove the serious injury or threat of serious injury to the 
domestic industry; and  
   (ii)  the duration of imposition of safe guard quantitative restrictions and where the 
period so recommended is more than one year, to recommend progressive 
liberalisation adequate to facilitate positive adjustment; and 
  
(e)  to review the need for continuance of the safeguard quantitative restrictions.   
 
5.  Initiation of investigation .  (1) The Authorised Officer shall, on receipt of a written 
application by or on behalf of the domestic producer of like goods or directly competitive goods, 
initiate an investigation to determin e the existence of serious injury or  threat of serious injury to the 
domestic industry, caused by the import of a goods in such increased quantities, absolute or relative to 
domestic production.   
(2)  The application referred to in sub-rule (1) shall be made in Form appended to these rules and 
be supported with:  
(a)  the evidence of: G/SG/N/1/IND/3/Suppl.1 
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  (i) increased imports as a result of unforeseen development;  
   (ii)  serious injury or threat of serious injury to the domestic industry; and  
 
  (iii)  a causal link between imports and the alleged serious injury or threat of 
serious injury;  
 
(b)  a statement on the efforts being taken, or  planned to be taken, or both, to make a 
positive adjustment to increase in competition due to imports; and  
(c)  a statement mentioning whether an appli cation for the initiation of a safeguard action 
on the goods under investigation has also b een submitted to the Director General of 
Safeguards, Department of Revenue.  
 (3)  The Authorised Officer shall not initiate an  investigation pursuant to an application made 
under sub-rule (1), unless, it examines the accuracy  and adequacy of the evidence provided in the 
application and satisfies himself that th ere is sufficient evidence regarding: 
  
(a)  increased imports;  
(b)  serious injury or threat of serious injury; and  (c)  a causal link between increased imports and alleged serious injury or threat of serious 
Injury.  
 (4)  Notwithstanding anything contained in sub-ru le (1), the Authorised Officer may initiate an 
investigation suo moto, if, it is satisfied with the information received from any source that sufficient 
evidence exists as referred to in clause (a), clause (b) or clause (c) of sub-rule (3). 
  
6.  Principles governing investigations.  (1) The Authorised Officer sh all, after it has decided to 
initiate investigation to determine serious injury or threat of serious injury to domestic industry, 
consequent upon the increased import of a goods into India, issue a public notice notifying its decision 
which, inter alia , contain information on the following, namely: 
 
(a)  the name of the exporting countries, th e goods involved and the volume of import; 
 
(b)  the date of initiation of the investigation;  
(c)  a summary statement of the facts on which th e allegation of serious injury or threat of 
serious injury is based;  
(d)  reasons for initiation of the investigation;  
(e)  the address to which representations by interested parties should be directed; and  
(f)  the time-limits allowed to interested  parties for making their views known.  
 
(2)  The Authorised Officer shall forward a copy of the public notice to the Central Government 
in the Ministry of Commerce and Industry and other Ministries concerned, known exporters of the 
goods, the Governments of the exporting countries concerned and other interested parties.  
 (3)  The Authorised Officer shall also provide a c opy of the application referred to in sub-rule (1) 
of rule 5, to:  G/SG/N/1/IND/3/Suppl.1 
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(a)  the known exporters, or the concerned trade association;  
(b)  the Governments of the exporting countries; and  (c)  the Central Government in the Ministry of Commerce and Industry:  
 Provided that the Authorised Officer shall also make available a copy of the application, upon request 
in writing, to any other interested person.  
 
(4)  The Authorised Officer may issue a notice ca lling for any information in such form as may be 
specified in the notice from the exporters, forei gn producers and governments of exporting countries 
and such information shall be furnished by such  persons and governments in writing within thirty 
days from the date of receipt of the notice or w ithin such extended period as the Authorised Officer 
may allow on sufficient cause being shown.   
Explanation .  For the purpose of this rule, the publ ic notice and other documents shall be 
deemed to have been received one week after the date on which these documents were put in the 
course of transmission to the interested parties by the Authorised Officer.  
 
(5)  The Authorised Officer shall provide opportunity to the industrial user of the goods under investigation and to representative consumer organisations in cases where the goods is commonly sold 
at retail level to furnish information which is relevant to the investigation including inter alia , their 
views if imposition of safeguard quantitative rest rictions is in public interest or not.  
 
(6)  The Authorised Officer may allow an inte rested party or its representative to present the 
information relevant to investigati on orally but such oral information shall be taken into consideration 
by the Authorised Officer only when it is subsequently submitted in writing.   
 
(7)  The Authorised Officer shall make availabl e the evidence presented to it by one interested 
party to all other interested parties, participating in the investigation.  
 (8)  In case where an interested party refus es access to or otherwise does not provide necessary 
information within a reasonable period or significan tly impedes the investigation, the Authorised 
Officer may record its findings on the basis of the facts available and make such recommendations to 
the Central Government as it deems fit under such circumstances.  
 
7.  Confidential information .  (1) Notwithstanding anything contained in sub-rules (1), (3) and 
(7) of rule 6, and sub-rule (5) of rule 9, any info rmation which is by nature confidential or which is 
provided on a confidential basis shall, upon cause being shown, be treated as such by the Authorised 
Officer and not be disclosed without specific author isation of the party providing such information.  
 
(2)  The Authorised Officer may require the par ties providing information on confidential basis to 
furnish non confidential summary thereof and if, in the opinion of the party providing such information, such information cannot be summari sed, such party may submit to the Authorised 
Officer a statement of reasons why summarisation of such information is not possible.  
 
(3)  Notwithstanding anything contained in sub-rule (2), if the Authorised Officer is satisfied that 
the request for confidentiality is not warranted or th e supplier of the information is unwilling either to 
make the information public or to authorise its di sclosure in a generalised or summary form, it may 
disregard such information unless it is demonstrated  to its satisfaction from appropriate sources that 
such information is correct.   G/SG/N/1/IND/3/Suppl.1 
Page 6 
 
 
  8.  Determination of serious injury or threat of serious injury.  The Authorised Officer shall 
determine serious injury or threat of serious in jury to the domestic industry taking into account, inter 
alia, the following principles, namely: 
 
(a)  in the investigation to determine wh ether increased imports have caused or are 
threatening to cause serious injury to a domestic industry, the Authorised Officer 
shall evaluate all relevant factors of an  objective and quantifiable nature having a 
bearing on the situation of that industry, in particular, the rate and amount of the 
increase in imports of the goods concerned in  absolute and relative terms, the share of 
the domestic market taken by increased imports, changes in the level of sales, 
production, productivity, capacity utilisation, profits and losses, and employment; and  
 
(b)  the determination referred to in clause (a) shall not be made unless the investigation 
demonstrates, on the basis of objective ev idence, the existence of the causal link 
between increased imports of the goods c oncerned and serious injury or threat 
thereof:  
 Provided that when factors other than increased imports are causing injury to the domestic industry at 
the same time, such injury shall not be attribut ed to increased imports and in such cases, the 
Authorised Officer may refer the complaint to th e authority for anti-dumping or countervailing duty 
investigations, as appropriate. 
  
9.  Final findings .  (1) The Authorised Officer shall, within eight months from the date of 
initiation of the investigation or within such ex tended period as the Central Government may allow, 
determine whether, as a result of unforeseen deve lopments the increased imports of the goods under 
investigation has caused or threat ened to cause serious injury to the domestic industry, and a causal 
link exists between the increased imports and seri ous injury or threat of serious injury and 
recommend:  
(i)  the extent and nature of quantitative restrictions which, if imposed, would be 
adequate to prevent or remedy ‘serious in jury’ and to facilitate positive adjustment, as 
the case may be;  
 
(ii)  the extent of quantitative restrictions so that the quantity of imports is not reduced to 
the quantity of imports below the level of a recent period which shall be the average 
of import in the last three representative years for which statistics are available and 
justification if a different level is necess ary to prevent or remedy serious injury;  
 
(iii)  the quota to be allocated among the supplyi ng countries, and the allocation of shares 
in the quota for such specified countries which have a substantial interest in supplying 
the goods;  
 
(iv)  the duration of imposition of quantitativ e restrictions and where the duration of 
imposition of quantitative restrictions is more than one year, the progressive 
liberalisation adequate to facilitate positive adjustment.  
 
(2)  The final findings if affirmative shall cont ain all information on the matter of facts and law 
and reasons which have le d to the conclusion.  
 
(3)  The Authorised Officer shall issue a public notice recording his final findings.  
  G/SG/N/1/IND/3/Suppl.1 
 Page 7 
 
 
  (4)  The Authorised Officer shall send a copy of the public notice regarding his final findings to 
the Central Government in the Ministry of Commerce and Industry and a copy thereof to the 
interested parties.   
10.  Imposition of safeguard quantitative restrictions.  The Central Government may based on 
the recommendation of the Authorised Officer, by a notification in the Official Gazette , under sub-
section (I) of section 9A of the Act, impose upon im portation into India of  the goods covered under 
the final determination, a safeguard quantitative restrictions not exceeding the amount or quantity 
which has been found adequate to prevent or remedy serious injury and to facilitate adjustment.   
 
11.  Imposition of safeguard quantitative re strictions on non-discriminatory basis.  Any 
safeguard quantitative restrictions imposed on go ods under these rules shall be applied on a non-
discriminatory basis to all imports of the goods irrespective of its source.  
12.  Date of commencement of safeguard quantitative restrictions .  The safeguard quantitative 
restrictions levied under these rules shall take effect from the date of publica tion of the notification in 
the Official Gazette, imposing such quantitative restrictions.  
13.  Duration.  (1) The safeguard quantitative restrictions imposed under rule 10 shall be for such 
period of time as may be necessary to prevent or reme dy serious injury and to facilitate adjustment.  
(2)  Notwithstanding anything contained in sub -rule (1), safeguard quantitative restrictions 
imposed under rule 10 shall, unless revoked earlier, ceas e to have effect on the expiry of four years 
from the date of its imposition:  
 
Provided that if the Central Government is of  the opinion that the domestic industry has taken 
measures to adjust to such serious  injury or threat th ereof and it is necessary that the safeguard 
quantitative restrictions should continue to be imposed, to prevent such serious injury or threat and to 
facilitate adjustments, it may extend the period beyond four years:  
 
Provided further that in no case th e safeguard quantitative restrictions  shall continue to be imposed 
beyond a period of ten years from the date on whic h such restrictions were first imposed.  
 
14.  Liberalization of safeguard quantitative restrictions. -- If the duration of the safeguard 
quantitative restrictions imposed under rule 10 exceeds one year, the restriction shall be progressively 
liberalised at regular intervals dur ing the period of its imposition.  
15.  Review .  (1) The Authorised Officer shall, from ti me to time, review the need for continued 
imposition of the safeguard quantitative restrictions  and shall, if, it is satisfied on the basis of 
information received that: 
(a)  safeguard quantitative restrictions is ne cessary to prevent or re medy serious injury 
and there is evidence that the industry is  adjusting positively, it may recommend to 
the Central Government for the continue d imposition of quantitative restrictions;  
(b)  there is no justification for the continued imposition of such restriction; recommend 
to the central Government for its withdrawal:  
 
Provided that where the period of imposition of saf eguard quantitative restrictions exceeds three 
years, the Authorised Officer shall review the situ ation not later than the midterm of such imposition, 
and, if appropriate, recommend for withdrawal of such safeguard quantitative restrictions or for the 
increase of the liberalisation of quantitative restrictions.  
 G/SG/N/1/IND/3/Suppl.1 
Page 8 
 
 
  (2)  Any review initiated under sub-rule (1), sh all be concluded within a period not exceeding 
eight months from the date of initiation of such re view or within such extended period as the Central 
Government may allow.  
 
(3)  The provisions of rules 5 , 6, 7 and 9 shall , mutatis mutandis , apply in the case of review under 
this rule.  
 
[F.No.01/92/180/106/AM 11/PC-VI/PRA] 
 ANUP K. PUJARI, Director General of Foreign Trade 
E-mail:  dgft@nic.in 
 
 
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