./.  WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/21 
2 May 2005 
 (05-1789) 
Committee on Safeguards Original:   English 
  
 
TRANSITIONAL PRODUCT SPECIFIC SAFEGUARD ON IMPORTS OF  
INDUSTRIAL SEWING MACHINE NEEDLES INTO INDIA FROM  
THE PEOPLE'S REPUBLIC OF CHINA 
 
Request for Consultations from India
 
 
 
 The following communication, dated 11 September 2002, has been received from the Permanent Mission of India.  
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 1. My authorities have instructed me to requ est consultations with the People's Republic of 
China pursuant to Section 16 of the Protocol on Accession of the People's Republic of China and 
Paragraph 245-250 of the Report of the Working Pa rty on the Accession of China, with a view to 
seeking a mutually satisfactory solution regarding market disruption caused to the domestic producers 
by increased imports of Industrial Sewing Machin e Needles (ISMN) originating from the People's 
Republic of China into India.  2. An application has been filed before the Di rector General (Safeguards) under Rule 5 of the 
Customs Tariff (Transitional Product Specific Safe guard Duty) Rules 2002 by M/s. Altek Lammertz 
Needles Ltd., Chennai (hereafter referred to as Alte k) for imposition of safe guard duty on imports of 
ISMN into India from the People's Republic of Ch ina to protect the domestic producers of ISMN 
against market disruption caused by the in creased imports of ISMN into India. 
 3. The applicants have alleged market disr uption caused to the domestic producers by the 
increased imports of ISMN originating from the Peopl e's Republic of China into India.  The imports 
of ISMN in general from all countries put together increased from 116,470 kg. in 1997-98 to 181,981 kg. in 2001-02 (annualized).  The imports of ISMN from the People's Republic of China have 
shown an increase in absolute terms as well as compared to domestic production. 
 
4. The increased imports of ISMN have caused/th reatened to cause mark et disruption to the 
domestic producers of ISMN as indicated by the following factors:   (a) Prices of ISMN originating from China, P.R. have been falling steadily.  To keep up 
with the decline in prices of ISMN origin ating from China, P.R. and to retain their 
market share, the domestic producers had to reduce their prices of ISMN.  As a 
consequence their realization has declined considerably and resulted in loss to the 
domestic producers; 
  (b) The capacity utilization of the domestic  producers has declined in recent years; 
 
                                                     
 
1 This document was previously circulated as G/SG/54 dated 18 September 2002. G/SG/N/16/IND/2 
Page 2  
 
  (c) The market share of domestic producers of ISMN has shown a decline in recent 
years.  The domestic producers have been ab le to retain even this reduced market 
share only at the cost of reduction of their sales prices. 
 5. It appears that prima facie  increased imports of ISMN from the People's Republic of China 
have caused/threatened to cause market disr uption to the domestic producers of ISMN. 
 6. The Government of India reserves its right  to raise further issues during the course of 
consultation.  
7. We look forward to receiving your reply to  the present request and to fixing a mutually 
convenient date for consultations.   
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