WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/4/Suppl.1 
3 March 2009 
 (09-1084) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF APPLICATION OF TRANSITIONAL PRODUCT-SPECIFIC 
SAFEGUARD MEASURE PURSUANT TO SECTION 16.7 OF PART I  
OF THE PROTOCOL ON THE ACCESSION OF  
THE PEOPLE'S REPUBLIC OF CHINA 
 
INDIA 
 
(Aluminium Flat Rolled Products and Aluminium Foil
) 
 
Supplement  
 
    The following communication, dated 25 February 2009, is being circulated at the request of 
the Delegation of India.   
 
_______________ 
 
  We enclose a notification on making a finding of "market disruption" or threat thereof caused 
by increased imports of Aluminium Flat Rolled Pr oducts and Aluminium Foil from China into India 
and a notification before taking a provisional safe guards measure for imports of Aluminium Flat 
Rolled Product and Aluminium Foil (incorporating an offer of consultations under that Article) from 
China into India.    G/SG/N/16/IND/4/Suppl.1 
Page 2  
 
  A. N
OTIFICATION ON MAKING A FINDING OF MARKET DISRUPTION OR THREAT THEREOF CAUSED 
BY INCREASED IMPORTS OF ALUMINIUM FLAT ROLLED PRODUCTS AND ALUMINIUM FOILS 
FROM PEOPLE 'S REPUBLIC OF CHINA INTO INDIA  
1. Provide evidence of serious injury or threat thereof caused by the increased imports 
  There has been recent sharp increase in imports of the product concerned either in absolute 
terms, and/or relative to domes tic production or consumption.  Aluminium Flat Rolled Products & 
Aluminium Foils are imported into India primarily from People's Republic of China and it has been noticed that the rate of increase in imports from People's Republic of China is significantly higher 
than that from countries other than People's Republic of China.  The imports of Aluminium Flat 
Rolled Products & Aluminium Foils  have shown an increasing trend in absolute terms as well as 
compared to the domestic production.  The statistic s relating to imports of Aluminium Flat Rolled 
Products and Aluminium Foils during 2005-06 to 2008 -09 (April 08 to December 08) are as under:   
 
Table 1
 
 
 Units  2005-
06 Avg. 
per 
Month2006-
07 Avg. 
per 
Month2007-
08 Avg. 
per 
Month  April-
Dec-08  Avg. 
per 
Month  
Aluminium FRP 
All 
countries MT 26,046 2170.5 36,968 3080.6 48,274 4022.8 33,925 3769.4 
Trend Indexed 100 100 142 142 185 185 174 174 
China MT 9,853 821 16,155 1346 26,617 2218 22,287 2476 
Trend Indexed 100 100 164 164 270 270 339 302 
Other 
Countries MT 16,193 1349 20,814 1734 21,657 1805 11,639 1293 
Trend  Indexed 100 100 129 129 134 134 96 96 
Aluminium Foil 
All 
countries MT 20,263 1689 24,082 2007 39,390 3282 34,422 3825 
Trend Indexed 100 100 119 119 194 194 226 226 
China MT 5,437 453 10,777 898 23,925 1994 27,534 3059 
Trend Indexed 100 100 198 198 440 440 675 675 
Other 
Countries MT 14,826 1235 13,304 1109 15,465 1289 6,889 765 
Trend Indexed 100 100 90 90 104 104 62 62 
 
 
Table 2  
 
Market Share of Domestic Industry for Aluminium Flat Rolled Products (FRP)  
Market Share in 
Demand  Unit  2005-06  2006-07  2007-08  April-08 to 
Dec-08  
Total Indian Industry % 84.99 80.71 78.34  77.35 
HINDALCO % 49.31 49.17 44.20 41.67 
Imports from China % 5.68 8.43 11.94 14.88 
Other Countries-Imports % 9.33 10.86 9.72 7.77  G/SG/N/16/IND/4/Suppl.1 
 Page 3 
 
 
  Table 3  
 
Market Share of Domestic Industry for Aluminium Foil  
Market Share in Demand  Unit 2005-06  2006-07  2007-08  April-08 to Nov-08  
Total of Indian Industry %  67.26  64.00 52.75 46.97 
HINDALCO %  41.67 38.10 29.25 25.80 
Imports from China %  8.78 16.11 28.70  42.42 
Other Countries-Imports  %  23.96 19.89 18.55  10.61 
 
2. Provide information on whether there is an  absolute increase in imports or an increase 
in imports relative to domestic production 
 
 As given in the Tables above.    
3. Provide precise description of the products involved 
 
 The products namely Aluminium Flat Rolled Products and Aluminium Foil are classified 
under 7606 and 7607 of HSN and different subhead ings of 7606 and 7607 of Schedule I of the 
Customs Tariff Act, 1975.  The details of subheadings are given as per table below: 
 
Name of the 
Products  Customs Tariff Heading 
Aluminium Flat 
Rolled Products 76061110, 76061190, 76061200, 76069110, 76069120, 76069190, 
76069210, 76069290 
Aluminium foil  76071110, 76071190, 76071910, 76071991, 76071992, 76071993, 
76071994, 76071995, 76071999, 76072010, 76072090  
 
4. Provide precise description of the proposed measure 
 
 Not available.   
 
5. Provide proposed date of introduction of the measure 
 
 Not available.   
 
6. Provide expected duration of the measure 
 
 Not available.    
7. For a measure with a duration of more three years, provide the proposed date for the 
review (under Article 7.4) to be held not later than the mid-term of the measure, if such 
a date for the review has already been scheduled 
  Not Available.   
 
8. If the expected duration is over one year , provide expected timetable for progressive 
liberalization of the measure 
 
 Not available.   G/SG/N/16/IND/4/Suppl.1 
Page 4  
 
  9. If the measure is being extended, also provide:   
 
 (i) Evidence that the industry concerne d is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;   
 (ii) Reference to the WTO document that  notified the initial application of the 
measure;   
 (iii) Duration of the measure from initial application till the date at which it will be 
extended;  and 
 (iv) Precise description of the measure in pl ace prior to the date of extension (in this 
context, please note that the last sentence of Article 7.4 states that:  "A measure 
extended under paragraph 2 shall not be more r estrictive than it was at the end of the 
initial period, and should continue to be liberalized").   
 
 Not available.   
 B. N
OTIFICATION BEFORE TAKING PR OVISIONAL SAFEGUARD MEASURES  
1. Specify the product subject to the proposed provisional safeguard measure 
 
 The product namely Aluminium Flat Rolled Pr oducts & Aluminium Foil is classified 
under 7606 & 7607 of HSN and different subheadings  of 7606 and 7607 of Schedule I of the Customs 
Tariff Act, 1975 as per details given in point 2 above.    
2. Specify the proposed safeguard measure 
 
 Ad valorem Safeguard Duty of 21 (twent y one) per cent on all goods falling under Chapter 
heading 7606 (Aluminium Flat Rolled Products) and at  the rate of 35(thirty five) percent on all goods 
falling under Chapter heading 7607 (Aluminium Foil).    3. Specify the proposed date of introduction of the provisional safeguard measure 
 
 The Directorate General of Safeguards has recommended for imposition of  Safeguard Duty 
on 2 February 2009.  The approval of the Central G overnment is awaited and the date of introduction 
of provisional Safeguards measure will be the date of issue of the notification of Ministry of Finance, 
Department of Revenue.   
 
4. Specify the expected duration of the provisional safeguard measure, if any decision on 
the duration of the measure has been made 
 
 Two hundred (200) days from the date of issue of notification by the Ministry of Finance, 
Department of Revenue.   
 
5. Provide the basis for Making a preliminary determination, as provided for in Article 6, 
that increased imports have caused or are threatening to cause serious injury;  and 
determining that there are critical circu mstances where delay would cause damage 
which it would be difficult to repair 
 
 The Directorate General of Safeguards, the co mpetent authority has conducted investigation 
in response to the application submitted by the domes tic industry in order to determine whether there 
was market disruption caused to the domestic indu stry, within the meaning of the Agreement on 
Safeguards and the Protocol of China's accession to the WTO in connection with the product defined 
in point 1 of this notification.  The results of the analysis conducted during the investigation are  G/SG/N/16/IND/4/Suppl.1 
 Page 5 
 
 
  recorded in the Notification dated 2 February 2009 a nd published in the Official Gazette of India on 
the same day.     The analysis shows that the application contains  sufficient evidence of market disruption to 
the domestic industry caused by imports, thereby m eeting the conditions laid down by the rules in 
force to implement possible provisional safeguard measures.   
  A comprehensive evaluation of paramete rs for the period from 2005-06 up to the 
December 2008 demonstrates threat of market disrup tion, which is clearly imminent.  The market 
share of the domestic industry has substantially d eclined during April to December.  During the same 
period there has been substantial increase in imports  both in absolute as well as relative term.  The 
significant increase in imports and consequent threat of market disruption, which is clearly imminent, coincide with the unforeseen developments.  The declining capacity utilization during the 
period 2008-09 (upto December 2008) compared to the period 2007-08 coincide with the same period 
when import increased.  Further, the reduction in employment shows similar trend as of increasing 
import.  This clearly depicts a direct correlation between the increase in imports and threat of market 
disruption faced by the domestic industry.     The increasing share of domestic market take n by imports at injurious prices, unutilized 
production capacity and idling of capacities in the year 2008 are the critical circumstances for imposition of provisional measures as the damage ca used by delay will be difficult to repair.  The 
preliminary determination shows that critical circ umstances exist in which delay would cause damage 
which it would be difficult to repair.  As indicated  above threat of market disruption is clearly 
imminent.  The domestic producers are already sufferi ng a decline, notably in loss of market share, 
reduced capacity utilization and loss of employment.    
C. O
FFER OF CONSULTATION UNDER ARTICLE 12.4 
 The Government of India offers consultati ons on the provisional Safeguards measure at any 
time after 2 February 2009.      
__________