. /.  WORLD TRADE  
ORGANIZATION   
G/SG/N/16/IND/10/Suppl.1 
5 October 2012 
 (12-5411) 
Committee on Safeguards Original:   English 
 
 
 
NOTIFICATION OF APPLICATION OF TRANSITIONAL PRODUCT-SPECIFIC 
SAFEGUARD MEASURE PURSUANT TO SECTION 16 OF PART I  
OF THE PROTOCOL ON THE ACCESSION OF  
THE PEOPLE'S REPUBLIC OF CHINA 
 
INDIA 
 
(Hot-Rolled Flat Products of Stainless Steel) 
 
Supplement 
 
 The following communication, 28 September 2012, is being circulated at the request of the 
Delegation of India.   
 
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1. Market disruption and threat thereof 
  Imports of the product under consideration i. e. Hot Rolled Flat Products of Stainless Steel 
of 304 grade (of all widths) have increased throughout the injury period in absolute terms.  There is a 
sudden, sharp and significant increase in imports  in the recent period.  The imports from China 
increased from 5264 MT in 2009-10 to 35741 MT in 2011-12, which is an increase of 679%.  There is a sudden surge in imports in 2011-12 over 2009-10 pe riod from China.  The imports in relation to 
production and consumption have also increased rapi dly.  Market share of domestic industry has 
declined from 51.33% in 2009-10 to 40.88% in 2011-12.  Decline in market share of the domestic industry has adversely impacted the production and capac ity utilization of the domestic industry.     
 
2. Information on whether there is an abso lute increase in imports or an increase in 
imports relative to domestic production 
 
 Increased Imports:  Imports of Hot Rolled Flat Products of Stainless Steel of 304 grade (of 
all widths) have shown an increasing trend in absolute terms as well as compared to the domestic production, causing injury and serious thr eat of injury to domestic industries. 
 
 The table below gives the annual import figu res relating to Hot Rolled Flat products of 
Stainless Steel of 304 grade (of all widths):  
Financial 
Year Import from 
China Total 
import %of import 
from China 
  MT MT % 
2009-10 5,264 33,703 15.62% 
2010-11 26,702 46,364 57.59% 
2011-12  35,741 54,905 65.10% 
 G/SG/N/16/IND/10/Suppl.1 
Page 2 
 
 
   Imports of Hot Rolled Flat products of Stainless Steel of 304 grade from China were low in 
2009-10.  Imports have then shown a significant incr ease in short period.  Overall imports of Hot 
Rolled Flat products of Stainless Steel of 304 grade from China have increased almost 6 times in 2011-12 in comparison with the total quantity of 5,264 MT imported by 
2009-10. 
 
3. Precise description of the product involved 
 
In the notice of initiation, the product described was  "Hot Rolled Flat Products of Stainless 
Steel of 300 series".  On the basis of submission made by the interested parties including Government 
of China and Exporters that the product descrip tion is very wide, the product description was 
narrowed down to 'Hot Rolled Flat products of Stainless St eel of 304 grade(of all widths) and 
encompassing all austenitic grades having minimum Nickle (Ni) content of 6%, compulsorily 
containing chromium with or without the presence of other alloying elements like 
molybdenum, titanium etc, classified under Cust oms sub-heading no. 721 911, 721912, 721913, 
721914, 721921, 721922, 721923, 721924,722011,722012 of the Customs Tariff Act, 1975.  
 
4. Precise description of the proposed measure 
 
DG Safeguards, the competent authority, has recommended to impose provisional 
safeguard duty at the rate of 20% ad  valorem  on imports of Hot Rolled Flat products of Stainless 
Steel -304 grade (of all widths) and encompassing all austenitic grades havi ng minimum Nickle (Ni) 
content of 6%, compulsorily containing chromium  with or without the presence of other alloying 
elements like molybdenum, titanium etc from People's Republic of China, for a period of 200 days. 
 5. Further information 
 
The Preliminary Findings were published in  gazette of India on 24 September 2012. 
 
6. Proposed date of imposition of provisional measure  
 
The provisional safeguard measure will be applicab le from the date of issue of notification in 
this regard by the Department of Revenue, Mi nistry of Finance, Government of India. 
 
7. Offer of consultation 
 
 India invites Government of China for consultati on, if any, in this regard as per the provision 
of the Protocol of Accession.    
 
 
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