WORLD TRADE  
ORGANIZATION  G/SG/N/6/IND/18 
19 January 2009 
 (09-0177) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE 
AGREEMENT ON SAFEGUARDS ON INITIATION OF 
AN INVESTIGATION AND THE REASONS FOR IT 
 
INDIA 
 
(Linear Alkyl Benzene
) 
   The following communication, dated 6 January 2009,  is being circulated at the request of the 
Delegation of India.   
 
_______________ 
 
  An application has been filed before me under Rule 5 of the Customs Tariff (Identification 
and Assessment of Safeguard Duty) Rules, 1997  by M/s. Reliance Industries Ltd., Mumbai, 
Tamilnadu Petroproducts Ltd., Chennai, Nirma Lt d., Ahmedabad and supported by Indian Oil 
Corporation Ltd., New Delhi for imposition of Safegu ard Duty on imports of Linear Alkyl Benzene, 
known as "LAB" in commercial parlance, into India to  protect the domestic producers of Linear Alkyl 
Benzene (LAB) against serious inju ry caused by the increased imports  of Linear Alkyl Benzene(LAB) 
into India.   
 
1. Domestic Industry  
 The application has been filed by M/s. Reliance Industries Ltd., Mumbai, Tamilnadu 
Petroproducts Ltd., Chennai, Nirma Ltd., Ahmedabad and supported by Indian Oil Corporation Ltd., 
New Delhi for imposition of Safeguard Duty on im ports of Linear Alkyl Benzene (LAB).  The 
application has been made by domestic producers of  Linear Alkyl Benzene (LAB) in India accounting 
for 100 per cent of the total production.    
2. Product Involved 
 
 The applicants have alleged serious injury caused to the domestic producers by the increased 
imports of Linear Alkyl Benzene (LAB) into India.  Linear Alkyl Benzene (LAB) is classified under 
sub-heading No. 3817 00 11 of Schedule I of the Customs Tariff Act, 1975.  It is used for the manufacture of Linear Alkyl Benzene Sulfonic Acid  or the Sodium Salt of Linear Alkyl Benzene 
Sulfonic Acid.  These compounds constitute the "Activ e" ingredients of household detergents.  They 
are surface active compounds (surfactants) which are combined with various builders (often inorganic 
salts) to make up detergents (LAB Sulfonates + Soda Ash + STPP = Household detergent).   
 
Linear Alkyl Benzene (LAB) is produced by first isolating C10 – C13 Paraffins from 
feedstock kerosene and converting it to their olefins.   These olefins are then alkylated to Benzene to 
form Linear Alkyl Benzene.   
 G/SG/N/6/IND/18 
Page 2  
 
  3. Increased Imports  
 
Linear Alkyl Benzene (LAB) is imported into India mainly from Qatar, Saudi Arab, 
Switzerland and Iran.  The imports of Linear Alkyl Benzene (LAB) ha ve shown an increasing trend in 
absolute terms as well as compared to the domes tic production.  The import and domestic production 
of Linear Alkyl Benzene (LAB) during the period from 2004-05 to 2007-08 was as under:   
 
Year Imports (MT) Domestic Production (MT) 
2004-05 9854 415383 
2005-06 4871 467985 
2006-07 21470 459082 
2007-08 45505 470284 
 
4. Serious Injury to the domestic producers 
 
 It is seen from the data supplied by the Domest ic Industry that there has been an increase in 
the import volumes during the 2007-08 as compared to the base year.  The import grew from 
9854 MT in 2004-05 to 45505 MT in 2007-08.  The share of import in domestic production during the 
same period rose from 3.82 per cent in 2004-05 to 14. 05 per cent in 2007-08 and consequently share 
of domestic production in consumption came down from 96.18 per cent to 85.95 per cent seriously 
hampering the viability of domestic industry.    5. Production 
 
 Though domestic production increased from 415383 MT  in 2004-05 to 4702 84 MT in 2007-
08 share of domestic production in local cons umption fell from 96.18 per cent in 2004-05 to 
85.95 per cent in 2007-08 making these units unviable.  In further support of their contention, the applicants on 28 November 2008 have informed about the closure of the following units due to 
worsening conditions.   
 
1. The Tamilnadu Petroproducts Ltd. was operating at about 65 per cent capacity until 
October 2008 and has been closed down on 24 November 2008.   
 
2. The Reliance Industries Ltd. was opera ting at about 90 per cent until October 2008– 
November 2008 and was shut down on 24 Novembver 2008.   
 
3. The Nirma Ltd. was operating at about 70 per cent capacity until October 2008 and 
they too shut down on 16 November 2008.   
 
6. The domestic producers have requested for im position of Safeguard Duty on imports of 
Linear Alkyl Benzene (LAB) for a period of thr ee years on a declining rate of 20 per cent for 1
st year, 
15 per cent in 2nd year and 10 per cent in the 3rd year which they hope when coupled with the various 
restructuring measures already initiated will help the industry to survive.  Th ey have also requested 
for an immediate imposition of provisional Safeguard Duty in view of the prevailing critical 
circumstances leading to irreparable damage.    G/SG/N/6/IND/18 
 Page 3 
 
 
  7. The application has been examined and prima facie  it is found that increased imports of 
Linear Alkyl Benzene (LAB) have caused and are th reatening to cause serious injury to the domestic 
producers of Linear Alkyl Benzene (LAB) and th erefore it has been decided to initiate an 
investigation through this notice.    8. All interested parties may make their views known within a period of 30 days from the 
date of this notice to:    
  The Director General (Safeguards) 
  Bhai Vir Singh Sahitya Sadan:  2
nd Floor, 
  Bhai Vir Singh Marg, 
  Gole Market,   New Delhi-110 001   INDIA.   Telefax:  91-11-23741542/91-11-23741537 
  E-mail:  dgsafeguards@nic.in
 
 9. All known interested parties are also being addressed separately.   
 
10. Any other party to the investigation who wi shes to be considered as an interested party 
may submit its request so as to reach the Director General (Safeguards) within 21 days from the 
date of this notice.    
 
 (S. S. RANA) 
 Director General (Safeguards) 
 
  
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