WORLD TRADE  
ORGANIZATION  G/SG/N/6/IND/20 
9 February 2009 
 (09-0569) 
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 
 
(Oxo Alcohols)
 
   The following communication, dated 4 February 20 09, is being circulated at the request of the 
Delegation of India.   
 
_______________ 
 
 
[
Under Rule 6 of the Customs Tariff (Identif ication and Assessment of Safeguard Duty) 
Rules, 1997] 
 
 New Delhi, 16 January 2009.  No. D-22011/ 38/08  
 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 Andhra Petrochemicals Limited, Saifabad, 
Hyderabad, Andhra Pradesh for imposition of Safegua rd Duty on imports of Oxo Alcohols (Acylic 
Alcohols) into India to protect the domestic pr oducers of Oxo Alcohols (Acylic Alcohols) against 
threat of serious injury caused by the increased imports of Oxo Alcohols (Acylic Alcohols) into India.  1. Domestic Industry 
 
 The application has been filed by M/s Andhra Petrochemicals Limited,  Saifabad, Hyderabad 
for imposition of Safeguard Duty on imports of Oxo Alcohols (Acylic Alcohols).  The applicant is the 
sole producer of Oxo Alcohols (Acylic Alcohols) in India accounting for 100 per cent of the total 
production.  The domestic industries manufacture Satu rated Butan-1-ol(N-Butyl Alcohal) classified 
under 29051300 of HSN, Customs Tariff Act, 1975 and ITC, 2-Ethyl Hexanol classified under 29051620 of HSN, Customs Tariff Act, 1975  and ITC and other Butanols classified under 
29051490 of HSN, Customs Tariff Act, 1975 and ITC.  It is produced by reacting propylene with synthesis gas (a mixture of carbon monoxide and hy drogen) in the presence of homogeneous modified 
rhodium catalyst. The reactions are carried out at moderate temperature and pressure.  
 
2. Product Involved 
 
 The applicant has alleged serious injury and th reat of serious injury to the domestic producers 
by the increased imports of Oxo Alcohols (Acylic Alcohol s) into India.  The products involved are:   
 
 G/SG/N/6/IND/20 
Page 2  
 
   
Name of the Article classified under 
Customs Tariff 
Act, 1975 
Normal butanol (also known as NBA) or n-butyl alcohols, butan-1-ol 29051300 
Iso butanol (also known as IBA) or 
Butan – 2-ol  29051490 
Pentylol 29051400 
2-Ethyl Hexanol (also known as 2-
EHA) 29051620 
Sabutol 29051210 
Hexanol  29051390 
Heptanol  29125000 
Octanol and Iso octanol 29051690 
Nonanol and Iso Nonanol 29051990 
Decanol and Iso Decanol 29051700 
And Mixtures Thereof.  
 
It has been contended by the app licant that the products involved are like or a directly competitive 
article to what is produced in India.  Oxo Alcohol s (Acylic Alcohols) are mainly used as an agent / 
raw material in the Plasticizer Industry.   
 3. Increased Imports 
 
 Oxo Alcohols (Acylic Alcohols) is imported in to India from Republic of Korea, Iran, Saudia 
Arbia, UAE, Germany, Malaysia, and US.  The im ports Oxo Alcohols (Acylic Alcohols) have shown 
an increasing trend in absolute te rms as well as compared to the domestic production.  The imports 
show a surge from 2006-07 onwards and have incr eased drastically to 63181 MT in 2007-08 and 
six months trend during 2008-09 shows further increase.  The imports of Oxo Alcohols (Acylic 
Alcohols) during 2004-05 to 2008-09 (first six months) are as under:    
 Import 
Quantity 
(MT) Share of 
Imports 
(%) Share of 
Domestic 
Industry(%) Capacity 
Utilization
2004-05 47,812  -  
2005-06 47,187 52.49% 47.51% 109.52% 
2006-07 52,513 55.32% 44.68% 108.74% 
2007-08 63,181 59.48% 40.52% 110.38% 
2008-09 (Up to Sept-08) 32,468 61.24% 38.76% 105.36% 
2008-09 (October-08) 12566 83.78% 16.22% 74.83% 
 
4. Injury  
 
The increased imports of Oxo Alcohols (Acylic Al cohols) have caused and are threatening to 
cause serious injury to the domestic producers of Oxo Alcohols (Acylic Alcohols) as a result of growing imports as indicated by the following factors:   
  G/SG/N/6/IND/20 
 Page 3 
 
 
   a) Share of Domestic Industry :  The share of domestic Industry is on steady decline 
during the period 2005-06 to 2008-09 (upto October - 08).  The plant of the  applicant situated 
at M/s Andhra Petrochemical, Safiabad, Hyde rabad has been shut down during the period 
8 November 2008 to 7 December 2008.   
 b) Capacity Utilisation :  The capacity utilization of the domestic industry has fallen 
down during the month of October 2008.  There has been further fall in the capacity 
utilization during the month of November 2008 on account of closure of the plant.   
 c) Other Factors :  Other factors, including price, profit and loss have been considered. 
 5. The domestic producer have requested for im position of Safeguard Duty on imports of Oxo 
Alcohols (Acylic Alcohols) for a period of four years.  They have also requested for an immediate 
imposition of provisional Safeguard Duty in view of  the prevailing critical circumstances leading to 
irreparable damage.    6. The application has been examined and it is found prima facie that increased imports of Oxo 
Alcohols (Acylic Alcohols) have caused and are thr eatening to cause serious injury to the domestic 
producers of Oxo Alcohols (Acylic Alcohols) and accordingly it has been decided to initiate an investigation through this notice.    
7. All interested parties may make their views known within a period of 30 days from the 
date of this notice to:   
   The Director General of Safeguards 
  Bhai Vir Singh Sahitya Sadan:  2
nd Floor, 
  Bhai Vir Singh Marg   Gole Market, 
  New Delhi-110 001 
  INDIA.   Telefax:  23741542/ 23741537   E-mail:  dgsafeguards@nic.in
 
 8. All the known interested parties are al so being addressed separately.   
 
9. Any other party who wishes 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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