G/SG/N/8/IND/32/Suppl.1  
G/SG/N/10/IND/23/Suppl.1  
G/SG/N/11/IND/18/Suppl.1  
 
15 September 2020 
(20-6158) Page: 1/2 
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  
(Single Mode Optical Fibre)  
INDIA 
Supplement  
The following communication, dated 14 September 2020, is being circulated at the request of the 
delegation of India .* 
 
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This document is the notification of final finding of serious injury or threat thereof caused by 
increased imports of 'Single Mode Optical Fibre ' (hereafter also referred as 'product under 
consideration ' or 'PUC'). 
The Domestic Industry (DI) had requested imposition of Safeguard Duty on imports of 'PUC' into 
India to safeguard it from like or, directly competitive products from serious injury or threat of 
serious injury caused by increased imports.  
An examination of the application and the evidence/details/documents submitted therewith led to 
the conclusion by the Investigating Authority that the application satisfied the requirements of Rule  5 
the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules , 1997 ( for brevity, "the 
Rules"). Therefore, a Safeguard investigation against imports of the PUC into India was initiated vide 
notification published in the Gazette of India, Extraordinary dated 23  September 2019 vide 
GSR No.293 (E). The initiation of in vestigation was notified vide WTO document G/SG/N/6/IND/46 
and the provisional findings vide WTO document G/SG/N/8/IND/32  - G/SG/N/10/IND/23  - 
G/SG/N/11/IND/18.  However, no provisional measures were imposed.  
Now the Investigating Authority has issued its f inal findings. The effect of unforeseen developments 
and the obligation incurred under GATT 1994, as required under Article XIX of the GATT 1994 have 
been clearly established in the findings. Further, the Investigating Authority has concluded in the 
final findings that during the period of investigation (POI), there was an overall deterioration in the 
functioning of the DI, which is indicative of the serious injury and threat of serious injury in future. 
The finding of the serious injury suffered by the DI on account of enhanced imports of the PUC are 
summarized as under:  
a) The volume of imports of the PUC had increased significantly during POI mainly in 2018 -19 
and Q1 of 2019 -20; 
 
* A copy of the final finding has been submitted electronically. To consult this document please contact 
Ms. Richards (anne.richards@wto.org) or Ms. Naville (delphine.naville@wto.org) of the Rules Division.  G/SG/N/8/IND/32/Suppl.1 • G/SG/N/10/IND/23/Suppl.1 • G/SG/N/11/IND/18/Suppl.1  
 
- 2 - 
 
  b)  The imports in Q2 and Q3 of 2019 -20 are at comparable level of 2016 -17 and 2017 -18 in 
terms relative to production;  
c) The DI's market share has declined, whereas the market share of imports has increased.  
The increased imports of the PUC have substituted for the market share of DI;  
d) The capacity utilization of DI has decreased significa ntly in POI despite increase in demand. 
The inventories of the PUC have also increased significantly;  
e) The Domestic sales of the DI has declined significantly during the most recent period with 
their lost market been taken over by the imports;  
f) The DI  profit  earning in 2017 -18 shifted to significant losses during 2018 -19 and Post POI;  
g) There is significant price underselling and price suppression due to imports of PUC;  
h) On an overall basis, DI has suffered serious injury during POI due to increased imports.  
1  PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
Safeguard Duty of 10% for one year is proposed to be imposed ad valorem  on CIF prices on the 
imports of the PUC, from all countries with the exception of the developing countries as mentioned 
below.  
As the imports from developing nations, as listed in Notification No. 19/2016 -Customs(NT) dated 
5 February  2016 of Ministry of Finance, Government of India, except China PR, do not exceed 3% 
individually and 9% collectively, the import of product under considerat ion originating from 
developing nations except China PR will not attract safeguard duty in terms of proviso to 
Section  8B(1)of the Customs Tariff Act, 1975.  
The Safeguard Duty on the import of the PUC, is proposed to be levied for a period of one year. 
Since the safeguard duty is proposed to be for one year only, no progressive liberalisation has been 
recommended by the investigating authority.  
2  PROPOSED DATE OF IMPOSITION OF SAFEGUARD MEASURE  
The safeguard measure will be applicable from the date of issue o f notification in this regard by the 
Department of Revenue, Ministry of Finance, Government of India.  
3  FURTHER INFORMATION  
An appeal against the order of the Central Government arising out of these findings shall lie before 
the Customs, Excise and Service T ax Appellate Tribunal in accordance with the Customs Tariff Act, 
1975.  
Copy of the final finding is attached. It is also available in the public domain and can be accessed 
from the DGTR website at:  
file:///C:/Users/doc/Downloads/Final%20Findings_21%20Aug%202020_Single%20Mode%20Optic
al%20Fibre.pdf  
 
 
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