G/SG/N/8/IND/33  
G/SG/N/10/IND/24  
G/SG/N/11/IND/19  
 
7 February 2022  
(22-0939) Page: 1/9 
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 RECOMMEND ATION TO IMPOSE A MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS  
INDIA 
Isopropyl Alcohol  
The following communication, dated and received on 3 February  2022, is being circulated at the 
request of the delegation of India.  
 
_______________  
 
In continuation to WTO document G/SG/N/6 /IND/47 dated 15 November 2019, India notifies that 
there has been a finding of serious injury or threat thereof caused by increased imports of the 
product "Isopropyl Alcohol".  
 
1.  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS  
The Product Under Consideration (PUC) i.e., Isopropyl Alcohol (IPA), which is also known as 
"Isopropanol", is imported into India from various countries, with major quantities being imported 
from China PR, Korea RP, Singapore and Taiwan. The Period of Investigation (POI) is April 2016 to 
June 2019 and the most recent period for the purpose has been considered as January 2019 – 
June 2019. The volume of imports over the period is as under:  
 
Particulars  Units  2016 -17 2017 -18 Apr–Dec-18 
Annual  Jan-Jun 19  
Annual  July-Dec 19  
Annual  
Import volumes 
including domestic 
industry  MT 85,348  97,533  1,21,422  1,58,736  1,29,165  
Trend  Indexed  100 114 142 186 151 
Imports by domestic 
industry  MT *** *** *** *** *** 
Trend  Indexed  100 105 116 128 99 
Imports by Others  MT 31,529  40,967  58,883  89,875  75,802  
Trend  Indexed  100 130 187 285 240 
Demand in India  MT *** *** *** *** *** 
Trend  Indexed  100 109 117 135 122 
 
From the above table, it would be evident that the total volume of imports of the PUC have increased 
from 85,348 MT in 2016 -17 to 1,58,736 MT in Jan -Jun, 2019 (Annual), implying an increase of 86% 
over the period, while the demand for the product increased by only 35%. After excluding the 
domestic industry -imports, the volume of imports of the PUC have increased from 31,529 MT in 
2016-17 to 89,875 MT in Jan -Jun, 2019 (Annual), implying an increase of 185% over the period. 
Further, the imports have also increased at an increasing rate, when compared on a year -on-year 
basis. Thus there has clearly been a surge in imports during the investigation period.  G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 2 - 
 
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 and exp lained in subsequent paragraphs. The 
Directorate General of Trade Remedies (DGTR) has thus concluded that DI has suffered serious 
injury.  
 
b. Threat of serious injury  
As stated in the table indicated above, imports of the PUC in India during the POI have n ot only 
increased in absolute terms but also increased in relation to production of the DI.  
 
Increase in imports in absolute terms shows a clear surge in imports and has a rising trend, which 
is significant enough to constitute "increased imports" within t he meaning of Section 8B of the 
Customs Tariff Act, 1975. Increased imports of the PUC threaten to cause serious injury to the DI.  
 
3.  EVIDENCE OF SERIOUS INJURY  
a. Assessment of demand/consumption  
For the purpose of the present investigation, demand or a pparent consumption of the product in 
India as the sum of domestic sales of Indian Producers and imports from all sources has been taken 
into account. It is seen that the demand for the PUC has shown significant increase over the period. 
Further, imports o f the product increased at a pace faster than the increase in demand.  
 
b. Share of Domestic Industry  
Share of imports and domestic industry are indicated below:  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
(Annual)  Jan-Jun 2019 
(Annual)  July-Dec 2019 
(Annual)  
Market share excluding domestic industry imports:  
Imports  % 31% 36% 50% 64% 56% 
Trend  Indexed  100 116 159 205 179 
Domestic 
Industry  % *** *** *** *** *** 
Trend  Indexed  100 93 73 52 64 
Total % 100%  100%  100%  100%  100%  
Market share including domestic industry imports:  
Imports  % 55% 58% 67% 76% 68% 
Trend  Indexed  100 105 121 138 124 
Domestic 
Industry's 
trading  % *** *** *** *** *** 
Other 
importers  % 20% 24% 32% 43% 40% 
Trend  Indexed  100 119 159 211 197 
Total imports  % 55% 58% 67% 76% 68% 
Trend  Indexed  100 105 121 138 124 
Domestic 
industry  % *** *** *** *** *** 
Trend  Indexed  100 94 74 54 70 
Total for all  % 100%  100%  100%  100%  100%  
 
The market share of the DI has been determined by considering both manufacturing and trading. It 
is seen that the market share of the DI shows a decline whether or not trading is included. Further, 
it is seen that the market share of the imports has increa sed significantly. As a result, market share 
of the DI fell sharply.  
 G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 3 - 
 
c. Domestic Sales  
The domestic sales of the DI were as follows. It is seen that domestic sales of the DI declined 
significantly over the period. The decline in sales is despite increase in demand and unutilised 
capacities with the DI.  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-Jun 2019 
Annual  July-Dec 2019 
Annual  
Domestic Sales  MT *** *** *** *** *** 
Trend  Indexed  100 103 86 73 86 
Export sales  MT *** *** *** *** *** 
Trend  Indexed  100 143 121 39 48 
 
d. Production  
The level of production over the period changed as under:  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec-18 
Annual  Jan-Jun 19 
Annual  July-Dec 19 
Annual  
Production  MT *** *** *** *** *** 
Trend  Indexed  100 100 86 74 85 
 
It is seen that the production of the domestic industry declined significantly in the recent period. 
The decline in production is despite increase in demand for the product.  
 
The production by the domestic industry reduced and ratio of imports to production by the domestic 
industry also increase indicating the change in business model under the distress of surge.  
 
e. Capacity utilization  
It can be seen from the table below that the capacity utilisation of the DI declined signifi cantly in 
the recent period with the increase in imports in the Country.  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-Jun 2019 
Annual  July-Dec 2019 
Annual  
Installed 
capacity  MT *** *** *** *** *** 
Trend  Indexed  100 100 100 100 100 
Production  MT *** *** *** *** *** 
Trend  Indexed  100 100 86 74 85 
Capacity 
utilization  % *** *** *** *** *** 
Trend  Indexed  100 100 86 74 85 
 
f. Employment  
It is seen that the employment with the DI has not got materially impacted.  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-Jun 2019 
Annual  July-Dec 2019 
Annual  
No. of 
employees  Nos *** *** *** *** *** 
Wages  Rs in Lacs  999 1,243  1,289  1,240  1,084  
 
g. Productivity  
The productivity per employee and per day declined over the injury period, following the decline in 
production of the DI.  
 G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 4 - 
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 
2018 Annual  Jan-June  2019 
Annual  July-Dec 2019 
Annual  
No. of 
employees  Nos *** *** *** *** *** 
Trend  Indexed  100 98 109 109 109 
Wages  Rs in Lacs  *** *** *** *** *** 
Trend  Indexed  100 124 129 124 109 
 
h. Profit/loss  
The profit/ loss of the DI over the period was as under. It is seen that the profits of the DI declined 
sharply over the injury period. Further, the DI started suffering financial losses in the recent period 
with the surge in imports.  
 
The injury on amount of trading is noted to be significantly lower than form the injury on account of 
manufacturing and the shift towards import is one to control the injury to be maximum possible 
extent therefore the imports by domestic industry can't be construed as self -inflicted.  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-June  2019 
Annual  July-Dec 2019 
Annual  
Profit/loss  Rs/MT       
Own Production  Rs/MT  *** *** (***)  (***)  (***)  
Trend  Indexed  100 58 (12) (74) (129)  
Trading  Rs/MT  *** (***)  (***)  (***)  (***)  
Trend  Indexed  100 (55) (35) (410)  (66) 
Total profit/loss  Rs in Lacs       
Own production  Rs in Lacs  *** *** (***)  (***)  (***)  
Trend  Indexed  100 60 (10) (54) (87) 
Trading  Rs in Lacs  *** (***)  (***)  (***)  (***)  
Trend  Indexed  100 (57) (43) (514)  (82) 
 
i. Inventory  
The inventory position of the DI over the period was as below. It is seen that the inventories with 
the DI declined in 2017 -18. The inventories have however increased significantly in the recent period 
with the surge in imports.  
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-June  2019 
Annual  July-Dec 2019 
Annual  
Own production  MT *** *** *** *** *** 
Trend  Indexed  100 88 41 95 154 
Opening  MT *** *** *** *** *** 
Trend  Indexed  100 262 57 92 254 
Closing  MT *** *** *** *** *** 
Trend  Indexed  100 22 35 97 116 
Trading  MT *** *** *** *** *** 
Trend  Indexed  100 224 341 473 506 
Opening  MT *** *** *** *** *** 
Trend  Indexed  100 327 630 825 1,193  
Closing  MT *** *** *** *** *** 
Trend  Indexed  100 193 252 365 296 
 
j. Price undercutting  
The level of price undercutting has been noted as below. It is seen that the imports have been 
undercutting the domestic price throughout the injury period. However, the price undercutting has 
increased significantly in the recent period.  
 G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 5 - 
 
Particulars  Units  2016 -17 2017 -18 Apr-Dec 2018 
Annual  Jan-June  2019 
Annual  July-Dec 2019 
Annual  
Landed value  Rs/MT  58,499  67,088  73,803  63,220  52,361  
Trend  Indexed  100 115 126 108 90 
Net sales 
realization  Rs/MT  *** *** *** *** *** 
Trend  Indexed  100 111 120 111 94 
Price 
undercutting  Rs/MT  *** *** *** *** *** 
Price 
undercutting  Indexed  100 66 38 157 151 
Price 
undercutting  % *** *** *** *** *** 
Price 
undercutting  Range  1-10% 1-10% 1-10% 5-15% 10-15% 
 
It is thus seen that the performance of the domestic industry has deteriorated in both volume and 
price parameters i.e. in respect of production, capacity utilisation, domestic sales, inventories, 
market share and profits. Accordingly, it is evident that the DI has suffered serious injury.  
 
4.  UNFORESEEN DEVELOPMENTS  
The domestic industry submitted that the unforeseen development leading to increase in imports 
was the non -competitiveness of propylene -based IPA versus acetone -based IPA, resulting in the 
latter  becoming cheaper. The applicant has also relied upon the decline in domestic demand in China 
PR due to shut down of downstream plants and imposition of tariffs by USA against the downstream 
products. In brief, the following evidence satisfies the requirem ents of unforeseen developments:  
 
a. decline in prices of acetone leading to decline in IPA prices;  
b. surplus and increased capacities with foreign producers;  
c. increased supply of acetone -based IPA at lower prices;  
d. reduced demand for the PUC in China PR.  
 
5.  ADJUSTMENT PLAN  
Adjustment plan submitted by DI is appropriate to facilitate positive adjustment to the increased 
import. Further, the adjustment plan implementation during the course of measures will be suitably 
evaluated either on Directorate General of Trade Remedies (DGTR)s' own initiative or on receipt of 
an application in this regard.  
 
6.  PRODUCT INVOLVED  
The PUC consists of 99.8% of IPA, 0.1% of water and 0.1% impurities. IPA is a compound with the 
chemical formula CH 3CHOHCH 3 and can be produced us ing Acetone or Propylene. It is a colourless, 
flammable liquid and is used in production of a variety of industrial and household chemicals, bulk 
drugs and drug formulations, antiseptics, disinfectants and detergents etc. The subject products are 
classifia ble under the tariff heading 2905, under code 2905 12 20, in the First Schedule to the 
Customs Tariff Act, 1975. It is clarified that the said HS Code is indicative only and the product 
description shall prevail in all circumstances.  
 
7.  PRECISE DESCRIPTI ON OF THE PROPOSED MEASURE  
DGTR, the competent authority has recommended imposition of quantitative restrictions on imports 
of the PUC into India in quantity (MT) as specified in the Table below.  
 G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 6 - 
 
QR Quota (in MT)  
 
Country  Quarters   
1st 2nd 3rd 4th 5th 6th 7th 8th 
China PR  9,356  9,356  9,356  9,356  9,924  9,924  10,526  10,526  
Germany  1,995  1,995  1,995  1,995  2,116  2,116  2,244  2,244  
Japan  1,411  1,411  1,411  1,411  1,496  1,496  1,587  1,587  
Korea RP  5,929  5,929  5,929  5,929  6,290  6,290  6,672  6,672  
Netherland  2,283  2,283  2,283  2,283  2,421  2,421  2,568  2,568  
Singapore  2,515  2,515  2,515  2,515  2,668  2,668  2,830  2,830  
Taiwan  4,050  4,050  4,050  4,050  4,296  4,296  4,557  4,557  
USA 2,087  2,087  2,087  2,087  2,214  2,214  2,348  2,348  
Other 
Countries  669 669 669 669 710 710 753 753 
Grand Total  30,294  30,294  30,294  30,294  32,134  32,134  34,085  34,085  
 
Accordingly, the competent authority recommends imposition of quantitative restrictions on the 
imports of subject goods for a period of two years from the date of notification under the 
Foreign  Trade (Development and Regulation) Act, 1992, as amended.  
  
8.  FURTHER INFORMATION  
The Final Findings were published in Gazette of India on 30 September 2021 and can be seen at 
https://www.dgtr.gov.in . 
 
9.  PROPOSED DATE OF IMPOSITION OF SAFEGUARD MEASURE  
The safeguard measure will be applicable fr om the date of issue of notification in this regard by the 
Department of Commerce, Ministry of Commerce and Industry, Government of India.  
 
10.  INVITATION FOR CONSULTATIONS  
Consistent with Article 12.3 of the Agreement on Safeguards, India proposes to giv e an opportunity 
for consultation for those Members having substantial interest as exporters of the product concerned, 
for the purpose of exchanging views on the measure proposed.  
Members who wish to engage in consultations may contact the Directorate General of Foreign Trade 
(DGFT), New Delhi addressed to DGFT at dgft@nic.in  within 10 days from the date of issuance of 
this notification. Consultati ons will take place in a virtual setting.  
  G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 7 - 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
1.  SPECIFY THE MEASURE  
Safeguards measures in the form of quantitative restrictions has been recommended on imports of 
the PUC into India in quantity (MT) as specified in the table below:  
QR Quota (in MT)  
 
Country  Quarters  
1st 2nd 3rd 4th 5th 6th 7th 8th 
China PR  9,356  9,356  9,356  9,356  9,924  9,924  10,526  10,526  
Germany  1,995  1,995  1,995  1,995  2,116  2,116  2,244  2,244  
Japan  1,411  1,411  1,411  1,411  1,496  1,496  1,587  1,587  
Korea RP  5,929  5,929  5,929  5,929  6,290  6,290  6,672  6,672  
Netherland  2,283  2,283  2,283  2,283  2,421  2,421  2,568  2,568  
Singapore  2,515  2,515  2,515  2,515  2,668  2,668  2,830  2,830  
Taiwan  4,050  4,050  4,050  4,050  4,296  4,296  4,557  4,557  
USA 2,087  2,087  2,087  2,087  2,214  2,214  2,348  2,348  
Other 
Countries  669 669 669 669 710 710 753 753 
Grand Total  30,294  30,294  30,294  30,294  32,134  32,134  34,085  34,085  
 
2.  SPECIFY  THE PRODUCT SUBJECT TO THE MEASURE  
The product concerned (PUC) is "Isopropyl Alcohol" which is also known as Isopropanol and is used 
in production of a variety of industrial and household chemicals, bulk drugs formulations, antiseptics, 
disinfectants and detergents etc. The subject products are classifiable under the tariff heading 2905, 
under code 2905 12 20, in the First Schedule to the Customs Tariff Act, 1975. It is clarified that the 
said HS Code is indicative only and the product description shall pr evail in all circumstances . 
 
3.  SPECIFY THE DEVELOPING COUNTRIES TO WHICH THE MEASURE 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 the developing countries listed in the notific ation no. 19/2016 -customs (NT) 
dated 5 February, 2016, other than China PR, do not exceed 3% individually and 9% collectively, 
imports of "Isopropyl Alcohol" originating from such developing countries (other than China PR) will 
not attract Quantitative Res trictions in terms of Section 9A(1) of the Foreign Trade (Development 
and Regulation) Act, 1992, as amended.  
  G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 8 - 
 
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, 
SUB-SECTION (i)]  
Government of India Ministry of Finance (Department  of Revenue)  
(Central Board of Excise and Customs)  
Notification  
No. 19/2016 - Customs (N.T.)  
New Delhi, 5th February, 2016  
G.S.R..(E). - In pursuance of clause (a) of sub -section (6) of section 8B of the Customs Tariff Act, 
1975 (51  of 1975) and in supersession of notification of the Government of India in the Ministry of 
Finance, Department of Revenue, No. 103/98 Cus, dated th e 14th December, 1998, published in the 
Gazette of India, Extraordinary vide number G.S.R. 737(E), dated the 14th December, 1998, except 
as respects things done or omitted to be done before such supersession, the Central Government, 
hereby notifies the fol lowing countries as developing countries for the purposes of the said section, 
namely : - 
1 Afghanistan  45 Ghana  89 Palestine  
2 Albania  46 Grenada  90 Panama  
3 Algeria  47 Guatemala  91 Papua New Guinea  
4 Angola  48 Guinea  92 Paraguay  
5 Armenia  49 Guinea Bissau  93 Peru 
6 Azerbaijan  50 Guyana  94 Philippines  
7 Bangladesh  51 Haiti 95 Republic of Moldova  
8 Belarus  52 Honduras  96 Romania  
9 Belize  53 Indonesia  97 Rwanda  
10 Benin  54 Iran (Islamic Republic of)  98 Saint Lucia  
11 Bhutan  55 Iraq 99 Saint Vincent and the  
Grenadines  
12 Bolivia  (Plurinational  State  of) 56 Jamaica  100 Samoa  
13 Bosnia and Herzegovina  57 Jordan  101 Sao Tome and Principe  
14 Botswana  58 Kazakhstan  102 Senegal  
15 Brazil  59 Kenya  103 Serbia  
16 Bulgaria  60 Kiribati  104 Sierra Leone  
17 Burkina Faso  61 Kyrgyzstan  105 Solomon Islands  
18 Burundi  62 Lao Peoples  Democratic  Republic  106 Somalia  
19 Cabo Verde  63 Lebanon  107 South Africa  
20 Cambodia  64 Lesotho  108 South Sudan  
21 Cameroon  65 Liberia  109 Sri Lanka  
22 Central African Republic  66 Libya  110 Sudan  G/SG/N/8/IND/33 • G/SG/N/10/IND/24 • G/SG/N/11/IND/19  
 
- 9 - 
 
23 Chad 67 Madagascar  111 Suriname  
24 China  68 Malawi  112 Swaziland  
25 Colombia  69 Malaysia  113 Syrian Arab Republic  
26 Comoros  70 Maldives  114 Tajikistan  
27 Congo  71 Mali 115 Thailand  
28 Costa Rica  72 Marshall Islands  116 The former  Yugoslav  Republic 
of Macedonia  
29 Côte D'Ivoire  73 Mauritania  117 Timor -Leste  
30 Cuba 74 Mauritius  118 Togo 
31 Democratic  People'  Republic  of Korea  75 Mexico  119 Tonga  
32 Democratic  Republic  of the Congo  76 Micronesia  (Federal  State  of) 120 Tunisia  
33 Djibouti  77 Mongolia  121 Turkey  
34 Dominica  78 Montenegro  122 Turkmenistan  
35 Dominican Republic  79 Morocco  123 Tuvalu  
36 Ecuador  80 Mozambique  124 Uganda  
37 Egypt  81 Myanmar  125 Ukraine  
38 El Salvador  82 Namibia  126 United Republic of Tanzania  
39 Eritrea  83 Nepal  127 Uzbekistan  
40 Ethiopia  84 Nicaragua  128 Vanuatu  
41 Fiji 85 Niger  129 Viet Nam  
42 Gabon  86 Nigeria  130 Yemen  
43 Gambia  87 Pakistan  131 Zambia  
44 Georgia  88 Palau  132 Zimbabwe  
 
[F.  No.21000/22/2015 -OSD(ICD)]  
(Satyajit Mohanty)  
Director to the  Government of India  
 
 
__________